KOTA KINABALU, May 26 – Insurance companies must come up with innovative products especially to anticipate major disasters, said Sabah Chief Minister Datuk Seri Musa Aman. He said, last year was a challenging year for the insurance sector, not only with the downturn in the economy but also with earthquakes in Sabah, floods in Peninsular Malaysia and the haze.
He said, given these scenarios, it is crucial for insurance companies to be innovative in meeting market needs and to attract new clients. He said this at a dinner hosted by Progressive Insurance Bhd (PIB) here Wednesday night. Musa said the Sabah government bought shares in the company 12 years ago and received over RM6.7 million in dividends from PIB in 2015 despite challenging times.
He said it is through the dividend payments that they were able to carry out more socio economic programmes for the people and further develop Sabah. Earlier, PIB Chief Executive Officer Francis Lai said despite the adverse economic situation last year, PIB achieved a profit after tax of RM15.44 million and declared RM7.72 million in dividends to shareholders.
“For 2016, we foresee a challenging year ahead but we have taken necessary steps to stay competitive and profitable. In the first quarter of this year, our pre-tax profit rose to RM8.67 million from RM8.4 million achieved in the same quarter in 2015,” he added.