News Digest 20100110-20100116

Insurance News It is TM Asia's turn to say that they want to double their premiums, but this time it seems to be a target set for only Sabah or the most for East Malaysia. The company also wants to be 1 of the top 5 in 2 to 3 years' time mainly through its agency force. http://bit.ly/6BDdfE

TM Asia Life aims to double premium
TM Asia Life Malaysia Bhd, which has embarked on an expansion plan in East Malaysia, hopes to double new business premium with the opening of its new premises in Kota Kinabalu. The company, with a strong ...

Insurance News Vincent Kwo is now COO for MAA. http://bit.ly/8O41Hb

MAA appoints chief operating officer
MALAYSIAN Assurance Alliance Bhd (MAA) has appointed Vincent Kwo Shih Kang as chief operating officer from January 2. Kwo, 49, graduated from City University, London, in 1982 where he obtained a Degree ...

Insurance News AXA Affin does not rule out acquisition to achieve its 8% market share target. Our view is that this may in fact be a more feasible route given that doubling the premiums every year is not an easy task at all. Perhaps AXA should explore with UOB and see whether the latter has intention to sell its insurance units in Malaysia? http://bit.ly/6dFGcH

AXA Affin not ruling out acquisitions, partnerships
AXA Affin Life Insurance Bhd hopes to grow its share of the local life insurance market from 1.5 per cent to 8 per cent by 2012, as it undertakes a AXA global branding exercise.Its chief executive officer ...

Insurance News It is unusual to have an Islamic bank that doesn't have any takaful operations to comment on takaful. OCBC Al-Amin commented that the growth of takaful lagged behind Islamic banking. Great Eastern, which is owned by OCBC, is believed to have applied for 1 of the 2 new takaful licences to be issued this year. GE has also recruited the ex-CEO of Prudential BSN to enhance its chance of getting the new licence. http://bit.ly/6hKEVH

Malaysian takaful growth lags banks
Growth in Malaysia’s takaful Islamic insurance industry has lagged the sharia banking sector as insurers struggle to find a home for premiums and players lack distribution channels, Singapore’s ...

Insurance News AXA Afiin Life needs to double premiums to be top 5 player by year 2012. http://www.actuaries.com.my/news/2010/01/axa-affin-life-needs-to-double-premiums.html

Insurance News: AXA Affin Life needs to double premiums
www.actuaries.com.my
Axa Affin Life has a huge target to achieve by year 2012. It has to grow its market share from the current 1.5% to 8%, to be among the top 5 in the industry. Its NB premium was RM162 mil in 2009, the target set for 2010 is RM320 mil and RM100 mil for total premiums and weighted premiums respectively...

Insurance News Dedicated to all our readers who are insurance agents. http://www.youtube.com/watch?v=ysA-wtl8-YI&feature=autofb

Insurance agent - Bangkok Life advertisement
Bangkok Life Assurance advertisement

Insurance News CIMB Aviva Takaful launched EasyLife Takaful Series and expects to secure contributions of RM35-40 mil. The takaful player aims to increase its market share from the current 2-3% to 5% in 2 years time. There are currently 8 takaful players in the market with 2 new licences to be issued soon. http://bit.ly/6nmFtQ http://bit.ly/6p0TRW http://bit.ly/5Q3TlO

CIMB Aviva aims for 5pc market share
CIMB Aviva Takaful Bhd is looking to increase its market share to five per cent in two years in line with the steady growth of the takaful industry, chief executive officer Muhammad Fikri Mohamad Rawi ...

Insurance News CIMB Wealth Advisors which started distribution for AIA since March 2009 secured RM7.6 mil premium in 2009. It sets a target of RM25 mil for 2010 planning to tie up with more insurers after obtaining its financial advisor licence. http://bit.ly/6ceiyR

CIMB Wealth sees RM25m premiums
CIMB Wealth Advisors Bhd aims to secure RM25 million premium this year from insurance and takaful products, chief executive officer Tan Beng Wah said today.The company managed to secure RM7.6 million premium ...

News Digest 20100106-20100113

Click this link for the news digest.

CIMB Aviva sets targets

CIMB Aviva sets the following targets:

• Top bancassurance player by 2011
• Top takaful player by 2011

The company claimed to be the 3rd largest bancassurance player currently.

Some info on CIMB Aviva:

• 90% of products distributed through banks, mainly CIMB bank
• Also uses tele-marketing and direct marketing
• Will consider other distribution channels after bancassurance business pick up
• Launch of EasyLife Solutions increased sales of regular premium investment-linked

Source: The Star

CIMB Wealth Advisors ties up with AIA

CIMB Wealth Advisors signed a 10-year exclusive strategic alliance with AIA to offer AIA's products to the former's customers. The products include traditional life, investment-linked medical, education, endowment and takaful products from AIA Takaful International Bhd.

Some facts on CIMB Wealth Advisors:

• Over 5,500 agents and financial planners
• 35 regional offices, branches and agency offices

CIMB Wealth Advisors is part of CIMB Group which has its own life insurance and takaful arms under the brand name of CIMB Aviva. It is interesting to note that with the exclusive alliance with AIA, it seems to mean that CIMB Aviva's products will not be sold by CIMB Wealth Advisors.

Source: CIMB Wealth Advisors

CIMB Sun Life

CIMB Group and Sun Life Financial will form a joint venture called CIMB Sun Life to operate in Indonesia. The joint venture will offer bancassurance products through CIMB Niaga.

Source: The Star

HSBC Amanah Takaful has new CEO

HSBC Amanah Takaful has appointed Zainudin Ishak as the new CEO. Zainudin was previously CEO for CIMB Aviva Takaful.

Source: Bernama

CIMB Aviva's new CEOs

Life: Kevin Jones
Takaful: Muhammad Fikri Mohamad Rawi

Kevin joined CIMB Aviva in August 2008 and was the COO.

Muhammad Fikri joined CIMB Aviva in 2006.

Source: Business Times

CIMB Aviva pulls out of most general insurance business lines

CIMB Aviva Takaful Bhd is pulling out of all motor and commercial lines business and will focus on personal accident and retail fire only, the 2 lines of business that have higher profit margin. For existing policies, the coverage will be provided until end of the contract period and presumably it will not be renewed thereafter.

The company also offers VSS and 200 out of 550 employees have accepted the offer.

Source: Business Times

EasyLife Solutions

CIMB Aviva launched a new investment-linked product - EasyLife Solutions.

EasyLife Solutions has 4 plans to choose from:

1. EasyLife Kids
2. EasyLife Men and Women
3. EasyLife Retirement
4. EasyLife Money Back

Sales targets over the next 12 months:

• 24,000 policies
• RM13 mil premiums

Takaful version of the product will be launched within the next 12 months.

Source: Business Times

Investors still prefers capital protection

CIMB Aviva conducted a survey of 200 people and found that 67.9% of them prefers to invest in a product that provides: 1) capital protection 2) investment diversification and 3) insurance/takaful protection.

74% prefers Asian market such as China, India, the Philippines, Indonesia, Thailand and Malaysia. 10.7% prefers Australia and 5.4% opts for North America.

CIMB Aviva launched a product called Market Select last month that provides features similar to the preferences above.

Source: The Star

LIAM Calls for Tax Incentives in Budget

Life Insurance Association of Malaysia (LIAM) has called for the following additional tax incentives, to be announced in Budget 2009 today:

• Separate the tax relief of RM6,000 that is currently given to approved fund contributions and insurance premiums, so that each will be entilted to RM6,000. This mirrors the call by MIT.
• Increase the existing RM3,000 tax relief on education and medical insurance to RM6,000.
• Remove the 8% tax on investment earnings that is currently imposed on life insurance funds.
• Provide tax incentives for establishment of private pension schemes.

Meanwhile CIMB Aviva Takaful calls for life insurance and takaful contributions to be tax-exempt up to RM10,000 and education and medical insurance premiums to enjoy RM5,000 tax relief.

Source: Business Times

Market Select

CIMB launched a syariah-compliant capital protected fund called Market Select on 20 August.

Product features:

• Target: RM200 mil by September 19
• Minimum contribution: RM25,000
• Fund invests in 17 countries
• Takaful coverage of up to 125% of the contribution
• Tenure: 3 years and 5 years

Source: Business Times

Motor Takaful through Tune Money

CIMB Aviva now sells its motor takaful through Tune Money, in addition to PA, motorcyclist PA and home protection plans.

There are 3 motor takaful plans available: comprehensive, 3rd party with fire and theft and 3rd party only.

For those with car registration card (i.e. not with the bank for example), the road tax can also be renewed online and Tune Money would deliver the road tax to the address specified.

A H&S plan would be launched in 3 to 4 months time.

Source: The Star & TAS Research

CIMB Aviva Targets 40% Growth

CIMB Aviva is targeting 40% annual growth in Malaysia until 2010. This is twice the target sales growth for Aviva Group in Asia Pacific of 20%.

Asia Pacific currently contributes 9% of new business sales of the whole Aviva group. This is projected to increase to 15% by 2010.

Strong local knowledge is important to Aviva, hence its partnership with CIMB is 1 of its key strategies. Aviva will look into expanding into other distribution channels in future.

Source: Business Times & The Edge Daily

CIMB's 3-in-1 Education Package

CIMB Wealth Advisors' newly launched 3-in-i education package is a combination of life insurance/family takaful, unit trust and trust nomination service:

• Life insurance: Non-par, limited payment, regular premium decreasing term assurance covering the payor. Other optional riders can be added. Term: 10, 15 or 20 years.
• Unit trust: Lifecycle Funds (2017, 2022 or 2027). The number represents the maturity year. The funds will switch to lower risk assets automatically as they approach the maturity year.
• Trust nomination service: expedite payments to beneficiaries in the event of death of investor.

The package is similar to a regular premium investment-linked education plan with payor premium waiver rider, except there is no insurance cover on the child. The money paid to the package presumably is not entitled to claim the tax relief of RM3,000 per year?

Source: CIMB Wealth Advisors

CIMB Aviva Launched MyKid Edu

CIMB Aviva launched MyKid Edu Plan and MyKid Edu Takaful Plan, distributed through CIMB Bank and CIMB Islamic.

http://www.bernama.com.my/bernama/v3/news_lite.php?id=323978

MyKid Edu is an education investment-linked plan. The plan comes with a compulsory premium waiver rider.

http://www.cimbaviva.com/bancassurance.html#li4