KUALA LUMPUR: Etiqa, the insurance and takaful arm of Malayan Banking Bhd (Maybank), sees Indonesia as a highly competitive market and will focus on maintaining a high-quality business in the country.
“In some cases, we may pass on certain opportunities if we believe the risks are too high or the profit potential is uncertain.
“The priority here is profitability, ensuring that it is maintained and grown over time, even if that means growth in size might take longer,” Etiqa group CEO Kamaludin Ahmad told SunBiz.
Maybank Group owns a 79.87% stake in PT Asuransi Etiqa Internasional Indonesia, which runs the general insurance business.
He said the challenge, especially in Indonesia, which has a population of 270 million to 280 million, is accessibility.
“Less than 5% of the population currently uses banking services, making outreach a significant hurdle.
“Additionally, a large portion of the population remains unbanked, though that number is gradually improving,” Kamaludin said.
He said that in Indonesia, Etiqa only provides general insurance at the moment.
“Our focus is on strengthening that area before expanding further,” he said.
Etiqa also sees Cambodia as a market poised for rapid development.
However, Kamaludin said Cambodia currently is still a small market and it will only contribute up to 1% of total revenue for another five years.
Maybank Group owns Etiqa General Insurance (Cambodia) Plc and Etiqa Life Insurance (Cambodia) Plc.
“In the Philippines, we have historically been a strong provider of group medical insurance, which remains a key strength for us,” Kamaludin said.
Maybank Group owns 95.24% of Etiqa Life and General Assurance Philippines Inc, which manages general and life insurance businesses.
Malaysia is currently the largest contributor to premium revenue to Etiqa, at about 80%.
At the same time, Singapore, where Etiqa only began its life insurance business in 2014, has grown to contribute almost 20% of Etiqa’s total revenue.
“Within the entire Etiqa group, although we operate in five countries, the Malaysian operations remain dominant,” Kamaludin said.
He said Etiqa generated around RM800 million from its operations in the Philippines, Indonesia, and Cambodia.
The Philippines contributed around RM500 million, Indonesia just over RM200 million, and Cambodia, where Etiqa only recently established a presence, contributed around RM20 million.
Malaysia and Singapore contributed nearly RM10.7 billion to Etiqa’s total revenue last year.
“Our goal is to grow these smaller markets more rapidly, though it will take time for them to become significant contributors.
“Meanwhile, our Malaysian operations continue to multiply as well.”
Maybank Group’s annual report to Bursa Malaysia stated that Etiqa, the top corporate insurer in Malaysia with an estimated 30% market share, is well-positioned to capitalise on the country’s renewed optimism.
Etiqa will also leverage its leadership in motor takaful to provide the protection needs of Tesla and Pronet vehicles as they roll out their electric vehicles.
Further, it noted that the consolidation of the insurance industry in Malaysia may increase competition for market share in the short term.
Digital insurance and takaful operators may enter the Malaysian insurance space in the medium term by 2026.
Etiqa said it will strengthen its digital offerings in preparation for new competition.
“Meanwhile, over the longer run, we are stepping up efforts to standardise our digital platform across to ensure the ability to offer the best products and services across the region,” it said.
