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KUALA LUMPUR: HeiTech Padu Bhd's associate company, PAC Total Solutions Sdn Bhd (PTS) is in talks with four insurers to provide customised IT solutions.
PTS chief executive officer Eric Loo said two of the companies were incorporated locally while another two were based in the region. "The discussions with the regional based insurers look promising and we could land a contract in the next eight months," said Loo after a signing ceremony yesterday.
Under the agreement signed, PTS will customise the IT solutions of Tia Technology A/S to insurance companies in Malaysia and the region. Denmark-based TIA Technology's flagship product is TIA Solution which provides a complete solution for insurers from planning and marketing activities to claims handling, thus helping lower operational costs.
Loo said the new business line was set to contribute 3%-4% of HeiTech's group revenue in 2008 and RM20 million in revenue (10% of group revenue) by 2010. HeiTech reported total revenue of RM335 million for its FYE December 2006 and RM158 million in revenue as of June 30, 2007.
Asked on the target market share of TIA core solution, Loo said that judging from the current status of insurance companies in Malaysia, more than 50% were looking to change their systems, adding that some had approached PTS and indicated interest in a total solutions provider.
According to TIA chief executive officer Morten B Steiner, TIA Solutions helps insurers lower total operational costs by 20%-30% increase in efficiency as compared to companies using old systems. So far, TIA Solutions has been implemented in 45 insurance companies over 20 countries.
"Basically, TIA provides the core engine while PTS builds the platform 'company layer', customising it to the company," said Loo.
PTS at present provides a wide range of applications and solutions for insurance companies. Loo said that they wanted to create a new business direction for the company.
"But having looked at various models, we decided not to divert from our core focus which is the insurance industry so the next best thing was core solutions," said Loo.
He said that the quickest way into the market was to get into a partnership with TIA, and that PTS was fortunate to have coincided with TIA's expansion plan into Europe and Asia.