A Case Study of Strategic Planning for Perdana Cigna Insurance Berhad
The after effects of Asian Currency Crisis were still lingering in the economies of South East Asia countries. The crisis begun in July 1997, however, the general insurance industry took the brunt of the economic downturn in 1998. The 1997 financial result for general insurance companies shown go...
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| Main Author: | |
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| Format: | Project Paper Report |
| Language: | English English |
| Published: |
1999
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8126/1/GSM_1999_8_.pdf http://psasir.upm.edu.my/id/eprint/8126/ |
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| Summary: | The after effects of Asian Currency Crisis were still lingering in the economies
of South East Asia countries. The crisis begun in July 1997, however, the
general insurance industry took the brunt of the economic downturn in 1998.
The 1997 financial result for general insurance companies shown good return
and potential growth in gross and net written premium, and profit for the next
financial year. Most general insurance companies including Perdana CIGNA
Insurance Berhad h ad targeted major growth in 1998. The uncertain
economic conditions dashed the company's hopes of producing the desired
results. The general insurance market or premium size had shrunk
considerable, especially, in motor insurance, as there are less new cars and
devaluation of second hand car value. Other general insurance lines like fire
was also affected as the value of properties were reduced, along with the fire
insurance premium. The general insurance companies competed among each
other to achieve growth and profitable, thus, reduction of premium occurred
as too many insurers were fighting for business. Perdana CIGNA Insurance
Berhad had a small portfolio of motor insurance, therefore, massive drop of
turnover or net written premium did not occurred. However, losses i n claims
were high and desirable growth was not achieved in 1998. Despite of the
economic downturn, companies must reorganized and planned to take on
new challenges or fight for survival as the most cost efficient and innovative
company would be able to weather out the bad economic conditions. |
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