Wednesday, May 30, 2012

Auto Insurance Merging



Many auto auto insurance companies are expected to carry out mergers and acquisitions this year to face the competition with an international title auto auto insurance companies.

Senior Vice President of the Malaysian  Auto insurance Institute (MII) Mohd. Taipor Suhadah said, at this time, open-door policy towards foreign auto insurance company has seen many foreign companies able to compete with local companies.

In fact, he said, Bank Negara Malaysia (BNM) also allows ownership by foreign companies up to 70 percent in auto insurance companies in the country.

"Over time, the foreign auto insurance company will have total equity in the country that resulted to be more aggressive companies to allow competition become more healthy,'' he said.

He was speaking to reporters after attending the opening ceremony of the International Claims Convention 2012 here today.

The ceremony was officiated by the Deputy Governor of BNM, Donald Joshua Jaganathan.

When asked whether the local auto insurance companies meet the guidelines set by BNM, clear Taipor, local auto insurance companies have to meet the standard.

He said the rules set by the authorities followed by auto insurance companies in the country at this time.

"The auto insurance industry at this time is different and far better than 10 to 20 years ago,'' he said.

Add Taipor, during 2011 a total of RM9.93 billion of life auto insurance claims were paid, while RM6.2 billion is general auto insurance.

From RM6.2 billion in general auto insurance, about 60 percent of the motor vehicle-related auto insurance claims, he said.


No comments:

Post a Comment