Bank's insurance unit mulls overseas expansion

Bank’s insurance unit mulls overseas expansion | Insurance Business Asia

Insurance News

Bank’s insurance unit mulls overseas expansion

In the motor business, insurance arm has the second largest market share

Insurance News

By
Halee Andrea Alcaraz

Etiqa, Maybank’s insurance arm, sees opportunities to widen its overseas presence and adopt more sustainable frameworks.

The announcement comes after Maybank hosted an investor day with a focus on the insurance business.

Etiqa has a base of 4.2 million customers, of which 45% appear to have been acquired via bancassurance channels.

In fiscal year 2023, the insurance company contributed RM1.1 billion (over $233 million) in pretax profits, which is c.9% of the group’s total.

According to the group’s takaful division, Kenanga, Maybank has an overall portfolio of 12.3 million customers, 3.3 million of which are Etiqa clients.

Kenanga also said the group anticipates its bancassurance channel to keep tapping into the wider group’s regional network, noting that most growth is attributed to life insurance products.

Maybank’s largest business is in Malaysia (75%), while Singapore is its second largest market (18%).

The group believes local markets will most likely see the greatest support from its notable presence in motor class insurances. Maybank boasts a higher expense ratio in favor of compensating its panel vendors well to boost customer experience.

It plans to target higher-value vehicles and get into its auto finance centres to widen its profit margins as well as accelerate growth. In the motor business, Etiqa is said to have the second largest market share, following Allianz.

It plans to offer new innovations to its ecosystem with more direct engagement with customers through its mobile app on air travel notifications, and rebates for prolonged uses.