CIMB-Sun Life Malaysia expects RM100m in premiums from Sun Wealth in 2017

KUALA LUMPUR: CIMB Bank Bhd expects its partnership with Sun Life Malaysia Assurance Bhd (Sun Life Malaysia) to rake in RM100 million in premiums next year, through the launch of new insurance product, Sun Wealth.
CIMB CEO of group consumer banking Samir Gupta said at the official launch of Sun Wealth yesterday that the lender has managed to secure RM21 million worth of premiums through 700 clients as of Oct 31, 2016 since the product’s soft launch in July.
“We are targeting to achieve RM30 million premiums by the end of this year,” he added.
Samir said with eight million customers nationwide, the bank believes that there will be a high demand for the product, noting it is designed to help customers achieve their financial goals.
Sun Wealth, which is developed by Sun Life Malaysia, offers flexible premium payment terms, where customers can choose from three short premium payment terms of three, five or eight years tailored to their specific needs.
For example, the “Three Pay 15 Term” plan option allows customers to pay premiums for three years while having protection coverage and additional benefits for 15 years.
In addition, the plan offers easy enrolment with guaranteed acceptance, where no underwriting and medical check-up required for all applications of up to RM350,000 annual premium per life assured.
Meanwhile, Sun Life Malaysia deputy CEO Raymond Lew said despite the current economic uncertainty, the insurance provider believes there is still a demand for life insurance products.
“During the uncertain time, people usually will spend more to get protection. Plus, life insurance products are GST (Goods and Services Tax) exempted. So we can see that the number of people buying health and medical insurance increasing slightly.
Lew expects the insurance industry to remain challenging in 2017.
Formed in 2013, Sun Life Malaysia is a joint venture of Sun Life Financial Inc with Khazanah Nasional Bhd and the CIMB Group. It offers a comprehensive range of life insurance and takaful products and services to Malaysians nationwide.
On another issue, Samir said the weakening of the ringgit is unlikely to affect the bank’s consumer lending, noting that it still sees growth in its consumer portfolio, which consists of mortgages, credit card, auto and personal loans.
“At the moment, we are growing and we will continue to grow (on the consumer side). The fluctuation is part of the financial market. We don’t really see such an impact. The ringgit has depreciated in the past and that hasn’t really affected our system.
“However, we remain watchful, we will not ignore the fact that this factor should be considered and kept in mind, but (so far) we haven’t got any stress in the system,” Samir added.
CIMB expects its consumer loans to rise by 6%-7% this year and hopes to grow at the same pace next year.