Promise of Malaysian market sees MSIG lead with intention

In his 41-year insurance career, MSIG Chief Executive Chua Seck Guan has held many leadership positions. However, he cites his current achievements among those he is most proud of.

“I’ve experienced three major mergers and acquisitions (M&As), six name changes and played a key role in ensuring integration was achieved successfully, including realising the stakeholders' planned purpose, synergies and targets,” he says.

MSIG has since grown “from strength to strength” under Chua Seck Guan’s leadership, to become one of the top five general insurance players in the market.

“The company consistently outperforms competitors in terms of underwriting profits and combined operating ratios,” he asserts.

The way to succeed

The youngest of six siblings, Chua Seck Guan was born in Malacca, and after attending a Chinese primary school and an English/Malay secondary school, he graduated from Tunku Abdul Rahman University of Management and Technology.

His parents’ continued emphasis on the importance of education and knowledge as the way to succeed was his biggest influence in shaping him into the leader he is today.

“I joined the general insurance industry in 1983 as a Loss Control Surveyor at New Zealand Insurance,” Chua Seck Guan recalls.

“It was a specialist role that involved identifying industrial hazards and proposing strategies and measures for risk mitigation and prevention. The role not only supported underwriters but also various distribution channels predominantly Agency and Broker.”

When opportunity knocks

Chua Seck Guan says the Malaysian insurance market is ripe with opportunity. For example, it has a lower exposure to natural catastrophe losses, as it is free from typhoons and earthquakes.

“The industry has been operating profitably and the cost of doing business is much lower than neighbouring country,” he says.

In addition, for a market where insurance penetration rate is relatively low, there is still room for further consolidation from the current 19 players in the next few years.

“The market has been fairly disciplined with strong supervision and governance from the regulators,” Chua Seck Guan adds.

“Malaysia could be a low-cost centre for multinational insurers who wish to set up regional hubs or outsource their policy processing, claims handling, IT, actuarial and other support functions,” he says, while conceding that “foreign companies who wish to acquire insurers in Malaysia can only own up to a maximum of 70 per cent shareholding.”

Battling competition and brain drain

In terms of market challenges, Chua Seck Guan points to the need for conventional insurers in Malaysia to compete with Takaful insurers. “The regulator also plans to issue digital insurance licenses, potentially before the end of the year,” he points out.

 “Brain-drain” is another issue the Malaysian industry faces, as many highly skilled knowledge workers relocate to Singapore due to the significantly greater remuneration they can secure.

To tackle such issues and trends head on, Chua Seck Guan says his strategy as CEO is to ensure support from strong and credible leaders who inspire change, value talent and diversity, and foster employee engagement and development.

“I believe in always having a positive mindset that can embrace challenges and uncertainties as opportunities to drive innovation and continuous improvement,” he says.

Chua Seck Guan is also a firm believer in robust enterprise risk management and compliance, as well as having the ability to “leverage on pricing and data analytics to drive business growth, improve profits, and reduce operational cost”.

ANZIIF sees 140 years of service

In 2024, the year of ANZIIF’s 140th anniversary, Chua Seck Guan, an ANZIIF, Senior Associate (CIP) since 1987, says membership with the insurance learning organisation is very important to him.

“In particular, the ANZIIF Journal has been a source of knowledge in keeping me abreast with the latest changes and trends in the field of insurance; from emerging risks to new regulatory news,” he says. “It also enhances my international perspective and helps when socialising or interacting with wider audience.”

Chua Seck Guan also says that in his experience, ANZIIF was most active in its early days when its [traditional] exam was the preferred professional qualification for many Malaysian insurance practitioners.

“[ANZIIF]’s presence in Malaysia is less visible now with the introduction of the local Malaysian Insurance Institute (MII) exam, although I understand it still offers insurance qualifications via online channels.”

Bringing value to the market

That being said, Chua Seck Guan is certain that ANZIIF can bring value to the Malaysian industry with its virtual training and seminars to capture wider audience.  

“To increase ANZIIF’s membership base, the organisation could consider collaborating with MII or other Malaysian tertiary institutions including granting exemptions to students undertaking certain insurance subjects based on their existing qualifications,” he says.

With the recent two mega mergers in Malaysia, Chua Seck Guan says a major aim for the future is to regain the company’s ranking.

He says another focus in the next three to five years will be operationalising the company’s ESG agenda, especially the impact of climate change on underwriting and investment policies.

“We also plan to expand on partnerships with digital platforms and aggregator sites to drive further growth and leverage on AI to drive productivity and enhance knowledge within the organisation,” he says.