KUALA LUMPUR: AIG Malaysia Insurance Bhd sees good growth potential in the travel insurance business and expects the segment to expand at least 20% each year.
“Travel insurance is a good growth product for us.
“We expect the product to bring in a growth rate of 20% annually,†AIG Malaysia senior vice-president of consumer insurance Ganeswaran Subramaniam (pic) told reporters after unveiling the results of the group’s first Travel Trend survey.
According to Ganeswaran, travel insurance accounted for about 6% to 7%, or about RM30mil, of AIG Malaysia’s total portfolio last year.
Based on the group’s inaugural Travel Trend survey, which polled 600 of its travel insurance customers over a course of two weeks, more than 65% of the customers cited “feeling protected†and “having peace of mind†as the top two reasons for their purchase of travel insurance.
The survey also revealed that travellers were taking up to three holidays per year on average with an annual spending on travel ranging from RM6,000, while the average cost of travel insurance coverage was estimated to stand at 3% of total travel cost.
“The Travel Trend survey will be an annual exercise for us to understand our customers better.
“(It will) help us design products that can match their needs,†said AIG Malaysia CEO Antony Lee, while noting that, “travel is a booming business.â€
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