KUALA LUMPUR, 20 July 2010 - Despite The Economic Turnaround, The Insurance Industry Is Still Facing Numerous Challenges Due To The Stagnant Purchasing Power. Compared To Life Insurance, The General Insurance Industry Is More Affected By The Turmoil With The Customers Becoming More Sceptical Towards The Importance Of Protecting Their Assets Through Insurance. This Is One Of The Challenges That The General Insurance Agents Have To Face As Their Roles Have Shifted From Being The Sellers And Providers Of Protection To Becoming The Financial Saviour For The Public And The Economy. They Have To Change The Public’s Mindset That General Insurance Is Not Only For Regulatory Requirement But Also For Their Future Well-being In Light Of The Ever-fluctuating Economy.

In stating this, The Malaysian Insurance Institute (MII) Chief Executive Officer, Puan Khadijah Abdullah said that with the emergence of many innovations and developments in the market such as bancassurance and online internet purchase, the market will rely less on traditional insurance agents which without proper actions, many of the agents will be pushed out of the market. These latest developments are derived from the rising number of educated customers, where their main priorities are accuracy and speed of the services given to them.

“Despite the challenges during the economic and financial breakdown, the number of general insurance agents has increased tremendously. With 2009 recorded 35,930 agents, the number has risen to 36,060 agents as at June 2010. This shows that insurance business is still an attractive business in Malaysia. But, with the emergence of fast changing financial services landscape and increasingly sophisticated customer demands, agents have now played a greater role in order to weather the volatile economic and financial challenges,” she said in her welcoming remarks at the General Insurance Agents Convention 2010 organised by The Malaysian Insurance Institute (MII).

Added to her speech, Khadijah also emphasised on the importance of agency and insurance companies to continuously invest in human capital development for the insurance agents as to gain the appropriate knowledge and skills which not only to grow their businesses but most importantly to survive in the today’s challenging environment.

This adding-value should be nurtured as key differentiator factor among the agents for them to stay ahead of the competitors and to remain strong in the market and business. This can be acquired by continuous participation in training and education programmes and conventions held by MII and the industry.

The grand convention with the theme “Hopes-Redefining Challenges” discussed on the required skills and knowledge to build competent talents among the general insurance agents and on promoting transparency and disclosure in the insurance business. Five renowned speakers exchange their views and expertise on various topics regarding general insurance namely Madam Koid Swee Lian, Director of Consumer and Market Conduct from Bank Negara spoke on ‘Promoting Greater Transparency and Disclosure in Insurance Business’; Dr Peter Ng, Consultant Urogical Surgeon from Subang Medical Centre with his topic on ‘Prostate Disease and Blood in the Urine’; Mr Kong Keen Yung, Principal Consultant from Innovative Training Expert Sdn Bhd spoke on ‘Mastering the Power of Negotiation’; ‘The DNA of Sales Superstar by Mr Raymond Phoon, Business Transformation Expert and International Speaker from Medianetic Sdn Bhd and Mr Haridas Kandasamy, Group Sales Manager from K.Haridas & Associates on the topic of ‘No Excuse No Limit’.

This conference creates a platform to help agents broaden their understanding on the developments and changes taking place within the society and the nation. Insurance agents need to know more than just the insurance product technicality but they must also keep abreast of the issues and opportunity circulating in the market today. This is the opportunity for the agents, sales and marketing personnel and agency offices and employees who are eager to sharpen their skills and professionalism to maximise the opportunity available in the market despite the unprecedented economic and financial landscape.