Insurance Is Still Not Well Received In Brunei
By James Ken

Bandar Seri Begawan - The need for individuals to have proper financial planning as well as insurance to protect them was highlighted by key figures in the local insurance industry during an interview at the insurance roadshow, yesterday.

Commenting about the insurance market in Brunei Darussalam, Mr David Wong, the Vice President of Business Development in Great Eastern Life Assurance, said, "I think insurance in Brunei Darussalam is still not well received and the public is not aware of the benefits of insurance."

Based on his experience in Singapore, the focus of insurance is lacking here in Brunei Darussalam because people here feel that they are well protected and don't need insurance coverage, he said.

"However, the public need to know that insurance is not only about protection but is also savings. It's also protecting oneself as well as family members and dependents. There is a lot of potential for the market in Brunei to look at insurance as a form of savings and long term financial planning."

He also feels that the government should play an important role in educating the public on the need for insurance through campaigns.

He cited the success story of Singapore during the 1980s where the government of Singapore managed to reach out to its people on the benefit of insurance and now people are taking insurance seriously.

"Currently, Great Eastern Life Assurance is working closely with the Ministry of Defence in educating young soldiers on the importance of insurance as a form of savings," he revealed.

Meanwhile Miss Tsang Poh Yee, Head of Business Development of MNI Insurance in Brunei, said, "Currently, we are trying to create public awareness on the fine print and the needs of insurance. Some of the insurance is compulsory by law for example motor insurance and workman insurance while other insurance is for protection like property, houses and others.

"Most importantly, we want to educate the public that whatever insurance they purchase, they must try to consult the insurance companies on what they need and which to purchase because of the many packages on insurance coverage."

Thus, according to Miss Tsang, the public need to be aware of what they have chosen by always suggesting them to ask as many questions as possible to find out what they have purchased.

It is also the insurance agent's duty to assist the public on the information on the much insurance coverage.

"For MNI, all the insurance agents must pass a basic insurance knowledge test from a Malaysian insurance institute in order to be registered as an agent. On top of that, the industry also educates our staff to update their knowledge of the industry and our products," she added.

Speaking on financial planning, Mr Sajan Raman, the. General Manager of American International Assurance Company based in Brunei Darussalam, said, "Financial planning is about risk management, cash management, debt management and wealth management, which are the four aspects of financial planning."

He stressed that risk management is the most important aspect in financial planning, similar to building a house, where a person must get the right foundation and foundation is risk management.

"Everyone of us can generate money, we have to protect ourselves from death, disabilities and illness," Mr Raman said.

Next step is to look into cash management. "If you overspend, you must cut down on expenses to generate enough cash. The best practice is to have six months of monthly cash expenses saved in the bank so that in case of emergency, there is money in the bank."

Debt management is to clear all the debt as fast as possible with the money so that one can move on to work on how to grow the wealth in wealth management.

Mr Raman further said, "In AIA, we have financial health checks, where we look at an individual's assets as well as liabilities. The data will be analysed to come up with a solution for a product that caters for each individuals.

As for the subject of public's negative perception on insurance, Mr Raman said, "Nowadays insurance companies are regulated by the Insurance Order and all companies need to meet up with minimum capital requirement. If anybody goes against the contract, people can always bring them (company) to the court. Many problems arise, when people don't look at the contract carefully and they don't realise some of the things that are not included in the claims."

He also ensures that the insurance agents at AIG and AIA undergo numerous training and have to pass an examination to be an agent.

"We are very firm and strict on compliance. We make sure that every agent goes through Al simple financial health check and undergoes money-laundering training."

The agents sit for these tests on an annual basis to remind them of the rules and regulations, and in the event of a person not complying, some form of action will be taken, including termination.

Mr Raman provided a positive response towards the roadshow as it creates some awareness for the public on financial planning. He feels that companies should organise such roadshow more often.

"It's a process of educating the public on financial planning," he said.  -- Courtesy of Borneo Bulletin

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