Kurnia Group
Kurnia sets RM1.1b premium target
BUSINESS TIMES - Thursday, June 17th, 2010
INSURANCE group Kurnia Asia Bhd aims to grow gross premium collection by a
tenth to RM1.1 billion this year as it actively recruit agents.
"We see this year's growth at between 8 per cent and 10 per cent, which
is in line with that of the industry," chief investment officer Pankaj
Kumar told reporters after the company's annual general meeting in Petaling
Jaya, Selangor, yesterday.
Also present were executive chairman Tan Sri Kua Sian Kooi, chief financial
officer Looi Kok Leong and director of corporate planning and investor relations
Dr James Tee.
Kurnia also plans to cut management cost by 15 per cent and this is still
on track. Looi explained that the insurer had centralised backroom operations
to better control risks. In the process, staff strength had declined to 1,350
from 1,700.
"In cutting cost, we minimised duplications and in the process there
had been some attrition. There was no voluntary separation scheme," he
said.
Kurnia also wants to venture into the takaful business with a Middle East
partner. It first applied to Bank Negara Malaysia for a takaful licence on
its own five years ago.
As for who will be the new chief executive officer (CEO) of Kurnia Insurans
(Malaysia) Bhd, the group said it has submitted its request and is waiting
for Bank Negara approval.
Earlier this year, Kurnia Insurans CEO Captain K.H. Chia resigned, after just
17 months on the job.
It was also reported that Bank Negara would wrap up discussions on the new
basic motor insurance coverage for third-party bodily injury and death by July.
The rationale for reviewing third party insurance was because premiums have
remained unchanged for the past 30 years.
"In view of the impending regulatory changes, we stand to underwrite
motor risks sustainably. We will then be able to price motor insurance fairly
and reasonably," said Kua.
In Malaysia, Kurnia holds 15 per cent of the motor insurance market. It is
working hard to grow other segments like personal accident, fire, liability,
engineering and foreign worker compensation.