Industry outlook by LIAM

LIAM expects new business to grow at 17% and 12.5% for year 2009 and 2010 respectively. 2010 should see introduction of micro insurance and annuity products to take advantage of tax relieves announced in the Budget.

With the completion of FSMP in 2010, further liberalisation would be seen in areas such as:

• allowing insurers to distribute other personal financial service products
• removal of caps on operating expenses
• granting of new licences for innovative players

The liberalisation measures announced in 2009 are expected to result in:

• more bancassurance partnership
• opening of more branches
• higher foreign equity holding
• application of the 2 new takaful licences

Source: Business Times 1 & 2

Tender called to sell Tahan

Tahan Insurance will be sold through a tender to be called in January 2010. The company is currently under control of BNM due to failure to comply with minimum CAR of 130% under RBC.

Under BNM's control, Tahan implemented a turnaround plan that focuses on a few key areas including:

• tightening management and accountability
• strengthening organisation's people and agents
• reducing exposure to loss making motor business
• managing claims and management expenses, including settling claims promptly
• recovering old debts from agents, reinsurers and insurers
• tightening underwriting terms

Source: Business Times 1 & 2

No strained ties between shareholders in MCIS Zurich

MCIS Zurich denies that there is strained ties between the 2 major shareholders: Koperasi MCIS Bhd, which owns 43.69%, and Zurich Asia Holdings Ltd, which owns 40% of MCIS Zurich.

Zurich Asia Holdings Ltd is also not selling its stake in MCIS Zurich, according to CEO of MCIS Zurich.

Earlier, Business Times reported the alleged strained relationship due to the following:

• Zurich FS' proposal of selling 30% of MCIS Zurich to EON was blocked by Koperasi as Koperasi will lose its control on MCIS Zurich. The EON deal would improve MCIS Zurich's market share as EON Bank is currently giving its bancassurance business to Uni.Asia
• Zurich FS did not support Koperasi's proposal to apply for the new takaful licence unless Koperasi was willing to lose its control on MCIS Zurich
  

Source: The Star 1 & 2, Business Times 1 & 2

Findings from Retire-Meter

Findings from Prudential Retire-Meter:

• 9% respondents have clear idea how much is needed for their retirement
• 65% expressed concern of not having enough money to live through retirement
• >50% would retire as soon as reaching financial independence
• 75% would start savings for retirement now if knowing the amount required for retirement

Source: Business Times

AIG is now Chartis

AIG General Insurance (M) Bhd is now called Chartis Malaysia Insurance Bhd.

Chartis' strategies and targets:

• 7.5% gross premium growth for 2010
• Higher contributions from aviation and household contents
• 4 new branches: Klang, Sungai Petani, Seremban and 1 in East Coast
• Increase agency force from 2,800 to 3,000
• Fire insurance: focus on SMEs
• Expands regional processing centre in Technology Park

Source: The Star

Desk calendars to be given away

We have 20 desk calendars to be given away to Insurance News regular readers.

To receive one of the calendars, all you have to do is email us a scanned copy of your recent business card.

The calendar will be mailed to the business address on your business card and due to cost constraint, we will only mail to an address in Malaysia.

The first 15 readers with an insurance related job title (including but not limited to actuarial title) on their business cards will be sent a desk calendar. The 16th to 20th readers with an actuarial title on their business cards will also receive the same.

Uni.Asia's distribution strategy

Uni.Asia says it is on multiple distribution strategy and is stronger in alternative distribution than in tied-agency system.

Uni.Asia currently has 4 bank partners and is looking for more bancassurance tie-ups. Products are claimed to be tailor-made after analysing profile of banks' customer base. The market share of the company in regular premium bancassurance products is claimed to be 36%, ranking number 1 in the industry.

The company has also expanded its other sales channels such as telemarketing, direct marketing and worksite marketing.

Source: Business Times

BSC intends to increase stake in MAA Takaful

Bahrain's Solidarity Company (BSC), a 40% unit of Ithmaar Bank, has intention to increase its stake in MAA Takaful. However, the deal has to be a win-win situation for both BSC and MAA Holdings.

Source: The Star