The German insurer Allianz SE is focusing on business growth in three core Southeast Asian countries — Thailand, Malaysia and Indonesia — rather than exploring opportunities in the pan-Asean market, given the unclear outlook of the imminent single market under the Asean Economic Community (AEC).
Manuel Bauer, a member of the Allianz board of management for Southeast Asia, says political turmoil can be a factor in any country in which the insurer operates.
Manuel Bauer, a member of the board of management for Southeast Asia, said Allianz intends to boost its business in the three markets to be in line with or even higher than the industry’s growth rate, depending on business opportunities in each country.
Improving income in the three high potential growth economies would underpin the company's business expansion.
Global insurance players have been pouring investments into these countries in recent years as their low insurance penetration indicates vast room for growth.
The Swiss insurer ACE Ltd reached an agreement earlier this year to buy 60.9% of Siam Commercial Samaggi Insurance from Siam Commercial Bank for 3.74 billion baht, and the value could hit 6.15 billion baht if all shares are acquired.
Last year, Canada’s Sun Life Financial Inc teamed up with Malaysian sovereign-wealth fund Khazanah Nasional Bhd to buy 98% of Malaysian life insurer CIMB Aviva Malaysia for US$596 million.
But the AEC needs a clearer conception of its single market, particularly regulations in order to analyse business opportunities, he said.
''Since the European Union’s formation 60 years ago, it took time to become a single market as each member developed at different stages. The AEC is new and needs more time to understand what it will become,'' he said.
Allianz operates in more than 70 countries with 78 million customers. Its growth market covers 24 countries including Thailand, Malaysia, and Indonesia with a customer base of 36.2% of total clients.
The growth markets contributed 8.3% to the company's gross premiums, which stood at 46.9 billion euros in 2012, and Thailand, Malaysia and Indonesia represented 18% each in the growth market's gross premiums.
It plans to pay more attention to risk management this year amid several lingering uncertainties across the world. The international insurer has been developing business regarding crisis under professional risk management. Thailand has survived several crises and bad experiences both economic and political, as well the flood crisis in 2011, he said.
In Thailand, Allianz under its joint venture Allianz Ayudhya's business operations has 1.4 million policy holders.