Hans de Cuyper, CEO of Etiqa Insurance & Takaful, the second largest insurance company and largest Takaful operator in Malaysia, says the group's premiums will reach RM2 billion by year end, double that of last year. On the Takaful business, he says the double digit growth is largely due to government support in the form of tax incentives etc, and explains that it is not mere labels that differentiates Takaful and conventional insurance. One challenge is that there is more money chasing Syariah-compliant investments, so Etiqa will have to start investing abroad. On overseas expansion, Etiqa does not have the risk appetite to start in a greenfield market and will instead ride on Maybank's regional expansion plans especially in Indonesia. While the potential for Takaful is significant across the world, local regulatory hurdles, to some extent political, have to be overcome. More consolidation is expected among general insurers but the synergies from merging with Kurnia Insurance, which is for sale, may be limited because Etiqa already has a bigger distribution network and talent can be acquired.

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