Source: Bernama, 22nd December 2008
Prudential BSN Takaful Bhd (PruBSN) will spend about RM7 million to establish seven new branches in 2009.
PruBSN chief executive officer Mohamad Salihuddin Ahmad said the first two branches to be located in Shah Alam and Johor Bahru, are due to commence operations in the first quarter of next year.
“The other five branches will also be located in state capitals.It will cost us about a million ringgit to establish each new branch,” he told Bernama in an interview recently.
Established in 2006, he said the company aimed to further strengthen its position in the country.
It currently has three centres of operations in Kuala Lumpur, namely the shared services hub located in Menara Yayasan Tun Razak, the marketing and administration centre in Wangsa Maju and its headquarters at Menara Prudential in Jalan Sultan Ismail.
A 51:49 joint venture between Bank Simpanan Nasional Bhd and Prudential Plc, PruBSN has to date collected in total, new, regular contributions of RM340 million. About 95 percent of its products come from the family segment.
Despite being in the takaful business for just over two years, the company has captured a 35 percent market share in terms of new business growth.
Mohamad Salihuddin attributed the growth to various factors, including its dynamic staff and agents.
“We have grown by leaps and bounds.From only just 20 staff, the company has 200 today and about 9,000 agents,” he said.
Of its present total agency force, 70 percent are non-Muslim, which reflects the growing awareness and importance of the takaful business.
PruBSN also has 190,000 policy holders, of whom 34 percent are non-Muslims.
Mohamad Salihuddin said that the company wants to create an awareness among the public that takaful is not only meant for Muslims.
“It is for everyone. The takaful is a system and has nothing to do with your faith,” he said.
He said the takaful market in Malaysia was still untapped as its penetration rate was only 8.0 percent compared with 40 percent for conventional life products.
Mohamad Salihuddin said the company also planned to introduce a new product, PruBSN ASAS, in the first quarter next year.
He said PruBSN would continue to focus on the family takaful segment following the success of its TAKAFULINK product that provides protection with links to three funds, equity, managed fund and bond fund.
PruBSN was the first takaful operator to offer a medical card to customers.