Tahan to increase non-motor portfolio

Published by NSTP (Business Times)

TAHAN Insurance Bhd said it wants to reduce its dependence on the motor insurance business while increasing its non-motor portfolio within the next three years.

The insurance company's non-motor business currently makes up 35 per cent of its total underwriting portfolio and the company is planning to raise this to 50 per cent.

Tahan's plans include underwriting more marine cargo, healthcare and foreign workers' insurance.

The company will begin educating and training its 3,000 strong agency force to familiarise themselves with non-motor policies such as personal accidents, fire and burglary.

Currently, motor insurance accounted for the bulk or 65 per cent of Tahan's premiums written last year follwed by miscellaneous (21 per cent), fire (11 per cent) and marine cargo (3 per cent).

"In five years, we target the marine cargo business to account for 10 per cent of our portfolio," said Tahan's chief operating officer, general insurance division Chong Wai Hong after launching its latest initiative, e-cargo Insurance.

In the immediate term, Chong said, Tahan is expecting to double its marine cargo contribution from RM3 million this year to RM6 million next year.

Currently, Tahan's marine cagro business accounts for about 1 per cent of the industry's RM375 million premium.

e-cargo Insurance is a collaboration with Dagang Net Technoligies Sdn. Bhd. to help facilitate the purchase of marine cargo insurance online.

Chong said e-cargo Insurance shpund be successful in ranking in RM3 million premiums in its first year and will pave the way for the company to sell its existing products online beginning with fire insurance next year.

The exclusive partnership will see Tahan offer the latest solution integrated with the customs cargo clearance, the first in marine insurance here.

"We plan to lap on Dagang Net's 3,000 database members that uses its electronic custom clearance services," said Chong, adding that clients that Tahan hasmore than 1,000 existing customers that transact marine cargo conventionally.

First phase of the service started yesterday with issuance of individual shipment followed by phase two's issuance of marine cargo policy and certificates next month and lastly online payment in the second quater in 2006.

Tahan will spend RM1.5 million to launch the full service.