Chee Keng Koon on Singapore insurance | QBE Insurance | Video

Transcript

Over the next seven years, the health insurance market in Singapore is set to quadruple, due to higher levels of disposable income. One of the key players in the region is QBE Insurance Group, and its Singapore CEO, Chee Keng Koon, talks to us about the recent changes in the Singapore insurance sector, the challenges that insurers are facing, and QBE’s plans for expansion in the rest of Asia.

World Finance: Mr Chee, how has the insurance market developed over the last few years?

Chee Keng Koon: Well, Singapore is actually a very interesting market for insurance. As you know Singapore is a financial hub, and we are also the insurance hub in Asia. And if we look back at the statistics in Singapore in terms of revenues, in 2004 the revenues in Singapore were only about SGD 2.2bn written premium size for general, in terms of onshore and offshore.

In the last year, the figures came out to be about SGD 10.4bn, which SGD 3.4bn is onshore, basic domestic business, and the balance is offshore business. So, actually the growth is fantastic. Over the last eight years the growth is about 15 percent on an annual basis.

So, we have a plan in place to ensure that we will not miss out on these opportunities, in terms of the growth in Singapore.

“Over the last eight years the growth is about 15 percent on an annual basis”

World Finance: What opportunities are there for QBE in the Singapore insurance market?

Chee Keng Koon: Looking at the Singapore market, Singapore is going through what we call this ‘infrastructure renewal process,’ which therefore gives rise to opportunities for us. The Singapore government is looking at health insurance. As you know, Asians are becoming more affluent, and as a result people are more focused on health now. Health is a big market, and people in Asia are actually running to Singapore for treatment, and therefore it gives rise to opportunity in internal health, and in terms of commercial and marine.

As you know, Singapore is one of the marine hubs in Asia, so we are the leading players in marine insurance over the last 12 years, and we have been the leaders in this aspect, not just in Singapore, but also in Asia. And our growth is basically focused on these specialty lines: basically it’s marine in Asia, liabilities and casualties, and particularly on professional indemnity, where we are big players for insuring doctors, lawyers, architects, which has great demand going forward.

World Finance: Are there any specific challenges you face in Singapore?

Chee Keng Koon: The challenges as far as the Singapore context is concerned, is always the resource part. The human capital management. I think the influx of the new entrants into the Singapore market give rise to competitions, not just in terms of people trying to take over your business, but very much on the competitor trying to take over your resource. When you lose a good resource, the key personnel? It’s equal to actually losing business.

So, it’s a real challenge for me to retain talent. It’s these talents, and the key personnel, that are the ones that bring us the profits, and brings us the growth. Skill will give us the cost leaderships, besides being the leader. So, what we look at, in order to overcome the challenges, are cultivating the right attitudes of our people, building good, extremely good relationships, and the Asia business depends not just on pricing itself, but on relationships. Long terms relationships, win-win partnerships, collaborations: that’s the way to grow.

“When you lose a good resource, the key personnel? It’s equal to actually losing business”

World Finance: And what are the challenges and opportunities in the rest of the region?

Chee Keng Koon: Asia has been an emerging market, and it was the same as many. So to me there are greenfields in Burma, which is greenfield. But Singapore, Hong Kong, Malaysia and Indonesia are the markets we’re likely to focus on.

World Finance: So what are QBE’s plans for the next few years?

Chee Keng Koon: Our vision is to be in the top three insurance companies in Singapore. And also the top insurance company in Asia. Our plans are to focus on organic growth in Asia, looking at these specialty lines, like the marine insurance, the constructions, the bigger regional spaces, but specifically on the casualty and property markets. And I think we have built the team now, we have built the right capabilities. The key is that we want to build long-term, rewarding relationships with our customers, to achieve our target plans. To deliver the results for our people, for our customers, for our shareholders.

World Finance: Chee Keng Koon, thank you.

Chee Keng Koon: Thank you.