News
Prudential BSN to invest RM7mil in seven new branches
KUALA LUMPUR: Prudential BSN Takaful Bhd (PruBSN) will spend about RM7mil to establish seven new branches in 2009.
PruBSN chief executive officer Mohamad Salihuddin Ahmad said the first two branches – in Shah Alam and Johor Baru – were 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 RM1mil to establish each new branch,” he told Bernama.
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 RM340mil. About 95% 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% 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 members, the company has 200 today and about 9,000 agents,” he said.
Of its present total agency force, 70% are non-Muslims, which reflects the growing awareness and importance of the takaful business.
PruBSN also has 190,000 policy holders, of whom 34% are non-Muslims.
Mohamad Salihuddin said the company wanted to create awareness among the public that takaful was not only meant for Muslims.
”It is for everyone. The takaful is a system and has nothing to do with your faith,” he said, adding that the takaful market in Malaysia was still untapped as its penetration rate was only 8% compared with 40% 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 is the first takaful operator to offer a medical card to customers.
– Bernama
