Insurance News
Brief insurance news and digest for the busy executives. A handy insurance news archive with main focus on Malaysia. Disclaimer: While all attempts are made to ensure the accuracy of the news herein, we will not be liable for any loss arising from the use of any information contained in this blog. You may reproduce materials published here provided the source (news.actuaries.com.my) is properly acknowledged.
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Sunday, 11 April 2010
News Posts 20100404-20100410
Insurance News Aviva is making a come back in general insurance market starting with Singapore. Aviva General was sold to MSIG in Malaysia in 2006.
April 10, 2010
Insurance News Proton has been a long-time sponsor of BAM since 1985. However, in February 2010, ING came in as a new sponsor and players started wearing T-shirts with ING's logo in front at the German open. Proton now wants its logo back in front rather than on the sleeve. They may have smelled the chance of the national team winning the Thomas Cup to be held soon.
April 10, 2010
Insurance News Allianz Life's existing CEO will leave the country to head for Turkey. His position will be taken over by the current CEO of Allianz in Indonesia.
April 10, 2010
Insurance News Lonpac's underwriting surplus before management expenses in Q1 improved by 52%, on the back of 11.5% increase in revenue, compared to the same period last year.
April 8, 2010
Insurance News Lai Leong Pin, the Chief Agency Officer of Prudential, has been appointed as Prudential's General Manager.
April 7, 2010
Insurance News The proposed TPBID compensates for injuries but does not cover other vagaries such as loss of current and future income.
April 6, 2010
Insurance News Allianz General launched a PA product that covers among others medical expenses related to dengue, malaria, JE; kidnap, snatch theft etc.
April 6, 2010
Insurance News FOMCA proposes that a fund be setup and managed by government to resolve the TPBID issue. Those who are injured in car accident can seek compensation from the fund. This approach is used in Australian and NZ. The fund can operate in a similar fashion as SOCSO and is to be funded by the public.
April 6, 2010
Insurance News Maybank will transfer its shares in Mayban Fortis Holdings Bhd to Etiqa International Holdings Sdn Bhd. After the transfer, Etiqa International will serve as the investment holding company for Maybank's insurance, takaful and asset management businesses.
April 5, 2010
Insurance News Watch out for this type of motor insurance scam that was exposed in UK. A car owner is paid a fee to admit liability for causing car damage and bodily injury in an accident that never happened. The car of the "victim" then gets smashed up in a yard and an insurance claim of around £20,000 is filed.
April 4, 2010
Insurance News HSBC Amanah Takaful will launch a regular contribution retirement product in May, which has features similar to a product sold in HK by HSBC. 7 new products are planned to be rolled out this year. The global financial crisis has affected the single contribution investment-linked plans while favouring non-ILP plans.
April 4, 2010
Insurance News PM instructed BNM to consult consumer groups before finalising TPBID scheme. The scheme apparently has a cap of RM100,000 compensation. PM also took note of the loss suffered by the industry in motor insurance.
April 4, 2010
Labels: Allianz, Aviva, Etiqa, Executive Movement, HSBC, ING, LPI, Motor Insurance, MSIG, Products, Prudential, TPBID
Sunday, 28 March 2010
News Digest 20100321-20100327
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Labels: AIA/AIG, Allianz, BNM, Merger, Motor Insurance, Prudential, TM Asia, Tokio Marine
Sunday, 21 March 2010
News Digest 20100309-20100320
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Labels: Accounting, AIA/AIG, Allianz, AmAssurance, BNM, Kurnia, Merger, Motor Insurance, Products, Prudential, Retirement, Takaful Ikhlas, Takaful Malaysia, Tokio Marine
Tuesday, 9 March 2010
News Digest 20100301-20100309
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Labels: AIA/AIG, AXA Affin, Bancassurance, Merger, Motor Insurance, Prudential, Takaful, Takaful Malaysia, TM Asia
Monday, 1 March 2010
News Digest 20100223-20100301
Click this link for the news digest.
Labels: AIA/AIG, Allianz, ASM, AXA Affin, BH Insurance, BNM, Financial Advisors, Manulife, Merger, Motor Insurance, Prudential, RBC, Takaful Ikhlas, Takaful Malaysia
Saturday, 30 January 2010
News Digest 20100124-20100130
Insurance News Etiqa Takaful Bhd appoints Shahril Azuar Jimin as its new CEO. http://bit.ly/cxXiRn
Shahril Is New CEO Of Etiqa Takaful :: Bernama.com
Insurance News The government proposed in GTP for insurers to reduce insurance premiums for cars, motorcycles and houses installed with security features. But surely the motor tariff will have to go in the first place. Right? http://bit.ly/8XTcx5
Five initiatives shortlisted to check crime
The Home Ministry has shortlisted five initiatives to achieve the target of reducing the overall crime index by at least 5% by the end of this year, according to the GTP Roadmap.
Insurance News HSBC Amanah Takaful will launch 7 products this year, focusing on medical and retirement. http://bit.ly/cnBWIG Meanwhile, an insurance survey by HSBC shows that 49% of Malaysians plan to save more in the next 6 months. 58% of the survey respondents are likely to buy products that offer capital protection. http://bit.ly/9L05nT
HSBC Amanah Takaful to launch 7 products in 2010
HSBC Amanah Takaful (Malaysia) Sdn Bhd, the Islamic insurance arm of HSBC Bank Malaysia Bhd, plans to launch up to seven products this year. Chief executive officer Zainuddin Ishak said the company is now focused on traditional long-term plans such as retirement and medical health. ...
Insurance News Zurich Financial now says it wants to have controlling stake in its joint venture in Malaysia but would do it in such a way that all parties are comfortable. Zurich Financial currently holds 40% stake in the JV. http://bit.ly/cF3fXV
Zurich Financial eyes controlling stake in Malaysian venture
DAVOS: Swiss insurer Zurich Financial Services Ltd is exploring ways to take a controlling stake in its Malaysian joint venture and grow its business in Indonesia, its Asia-Pacific head said yesterday. ...
Insurance News Great Eastern denies that it is in talks to sell a stake in Malaysian unit. http://bit.ly/a9hgGR
Great Eastern not in talks to sell stake in Malaysian unit
GREAT Eastern Holdings Ltd (GEH) said it is not in talks to sell a stake in its Malaysian insurance arm, Great Eastern Life Assurance (Malaysia) Bhd (GELM). "We wish to state that we are currently not ...
Insurance News Allianz General is paying profit commission of RM6.26 mil to its qualifying agents (25% of its agency force) before Chinese New Year. http://bit.ly/81tH9B
Allianz pays commissions to agents early
Allianz General Insurance Co (M) Bhd (AGIC) kept its promise for the fourth consecutive year by making an early profit commission payment.In a statement today, AGIC's chief executive officer Ng Hang Ming ...
Insurance News Tokio Marine is targeting a lower growth rate of 10% in 2010 compared with the 20% it achieved in 2009. However, it still expects to outpace the industry's expected growth rate of 6-7%. Prefers non-motor lines of business e.g. fire, marine, cargo and PA. Not ruling out acquisition. http://bit.ly/81WhB0
Tokio Marine expects 10% premium growth this year
KUALA LUMPUR: Tokio Marine Insurans (Malaysia) Bhd (TMIM) expects a premium growth of between five to 10 per cent this year, its chief executive officer Dr Michael Heng Kiah Ngan, said Tuesday.
Insurance News Will Great Eastern divests it stake in Malaysia? How much is the divestment, if any? Is Khazanah the suitor or any other parties? Is divestment a pre-condition of being granted the takaful licence? Would IPO be an option if a direct shareholder cannot be found? This article may shed some light. http://bit.ly/8iwedl
Khazanah said among suitors for Great Eastern
A group of potential suitors, including state-owned investment agency Khazanah Nasional Bhd, is said to have lined up for a stake in Singapore's Great Eastern Life Assurance (Malaysia) Bhd to help realise the insurer's takaful ambition. ...
Insurance News Takaful Malaysia won the Global Diamond Award while its Group MD Hassan Kamil won the "Smart Entrepreneur" Award. http://bit.ly/6YbYwS
Takaful Malaysia, group MD win major awards
Insurance News While many may think that China and India markets are hot, Prudential is scaling back its growth ambitions in both countries. Instead investment would be pushed into fast-growing economies in southeast Asia, including Malaysia, Vietnam and Indonesia. The reason for such decision seems to be the slow relaxation of restrictions on foreign ownership of financial firms in China and India. http://bit.ly/7CJkyf
Prudential to Scale Back on India, China - NYTimes.com
LONDON (Reuters) - Britain's biggest insurer Prudential has begun a shake-up of its Asian business that will see it scale back its ambitions for growth in India and China, The Sunday Times said.
Insurance News LIAM, ACE Synergy and Prudential spoke on 2010 outlook and challenges. http://bit.ly/8H8IxQ
Malaysian insurers in for better times
PETALING JAYA: Despite facing some hurdles, the local insurance industry has a promising outlook with new life business weighted premium forecast to grow 12.5% to RM3.6bil this year.
Labels: ACE, Allianz, Business Targets, Etiqa, Executive Movement, Great Eastern, HSBC, LIAM, MCIS, Merger, Motor Insurance, Prudential, Takaful Malaysia, Tokio Marine
Sunday, 25 October 2009
Budget 2010: Responses
LIAM:- Micro insurance: insurance not only for high-income earners; will work with authorities to launch the scheme
- RM1,000 tax relief on annuity: by 2020, 10% of population age >60 years; investment income earned in annuity fund should be tax free.
- Insurance penetration rate will improve, currently 41%
Source: LIAM
PIAM:
- Restructuring of motor insurance cover for 3rd party liabilities is necessary
- Lead to ultimate deregulation and liberalisation of motor and fire tariff
Source: Business Times
EPF:- 1Malaysia Retirement Scheme will benefit 2 mil self-employed and non-wage earners
- Only 18% of 5.72 mil active members have enough savings to finance their retirements
- 40% of active members chose to contribute at 8% instead of 11%
Source: Bernama
Labels: Annuity, EPF, Insurance Penetration, LIAM, Motor Insurance, PIAM, Retirement
Sunday, 12 July 2009
Insurance outlook
Summary of views of various industry players on insurance outlook in 2H 2009:
Great Eastern
- The worst is over, export industry picking up, companies started recruiting
- 2H to be better than 1H
- Expect double-digit growth for whole year
- Distribution channel and products are key growth drivers
LPI Capital
- Export and construction sectors will provide growth
- Marine and fire insurance will benefit
- Need to be prudent in underwriting and have strong claims management in view of rising motor insurance claims (bodily injury and motor theft)
Manulife
- Regardless of economic cycles, insurance performs well
- Stimulus plans are positive
- External factors may affect growth pace
- Equity markets have not stabilised
Source: The Star
Labels: Great Eastern, Insurance, Lonpac, Manulife, Motor Insurance, Underwriting
Tuesday, 7 July 2009
New third-party tariff
Third-party motor insurance premium rates are under reviewed. A new tariff may apply and the new tariff will be based on supply and demand, and market forces.
The existing tariff has been around for more than 30 years.
Source: The Star
Labels: Motor Insurance
Sunday, 21 June 2009
BNM firm on premium rebates
BNM is pushing through premium rebates on general insurance policies bought directly from insurance companies, despite a strong protest from insurance agents.
Apparently, the rebates do not apply only to motor insurance policies as previously announced but to other general insurance policies as well. The rebates for non-motor policies vary by type of insurance and are between 5% and 25%.
Insurance agents are encouraged to transform themselves to financial advisors. BNM also said that there were no plans to introduce premium rebates for life policies.
Some statistics:
- 40,000 general insurance agents in Malaysia
- RM4.4 bil premium in general insurance (2008)
- Motor insurance is the largest class with 50% share
- 15% of motor insurance business was direct business
Source: Business Times 1 & 2, The Star, BNM
Labels: Agents, BNM, Motor Insurance, Premium Rebates
Saturday, 23 May 2009
Perwakim's views on motor insurance rebates
Perwakim, an association of general insurance agents in Malaysia, will meet BNM and PIAM to discuss motor insurance rebates.
Perwakim's views on rebates:
- Detrimental to both agents and customers
- Only benefit insurance companies (no reasons were given on why this is so)
- Will result in retrenchment of staff of smaller agencies
In Malaysia, there are 50,000 insurance agents of which 40% are full time.
Source: The Star
Labels: Motor Insurance, Premium Rebates
Wednesday, 20 May 2009
More responses on motor insurance rebate
The recent decision to grant 5-10% rebate to policyholders buying motor insurance direct has resulted in different responses from different parties:
Deputy Finance Minister:
- Poicyholders will continue to use agents if their services are excellent
- This practice is in line with the rest of the world
- The aim is to increase the public's access to insurance
- Also to bring the industry up to speed with various technological advancements
- Remisiers have set the precedent, now you can buy shares direct
Proton Dealers Association Malaysia (Peda):
- It will destroy the automotive eco-system, particularly the dealers network
- Automotive dealers will lose > 20% of their income
- Motor insurance premiums are > RM1 mil per year per dealer agency
- Peda will call for a boycott
- It will contribute to a higher unemployment
EON Bank:
- No impact on its insurance business if Peda calls for a boycott
Source: The Star, Business Times 1 & 2
Labels: Motor Insurance, Premium Rebates
Monday, 18 May 2009
Mandatory rebates for motor insurance
From July 1, motor insurance can be purchased directly from insurance companies and the commission normally paid to the agents will be mandatorily rebated to policyholders who are the actual owners of the vehicles.
The rebates are:
- 5% in 1st year
- 10% in renewal years
The responses by various parties on the above:
- Agent: livelihood of agents would be affected
- BNM: promote the promulgation of alternative channels
- Federation of Malaysian Consumers Association: agents will have less cross-selling opportunities
Source: The Star
Labels: Agents, Motor Insurance, Premium Rebates
Thursday, 30 April 2009
Automotive Intelligence Report
ISM has issued an "Automotive Intelligence" report with statistics on vehicles by make, model and capacity, as well as buyers gender and age and geographical location.Some of the statistics extracted from the report are:
- 49% of new car registrations in 2007 & 2008 was from male buyers, 41% female. (presumably the other 10% was registered in the name of companies)
- 19% of the buyers were in age group of 26-30, 15% in 21-25
- 23% with engine capacity 1,000-1,300 cc, 15% with 1,000 cc or less
Source: Business Times, The Star
Labels: Motor Insurance
Sunday, 26 April 2009
Motor insurance claims worsen
The combined loss ratio for motor insurance business in 2008 worsened to 115.5% compared with 114.1% in 2007 and 104.4% in 2006.
Gross direct motor insurance premiums rose by 10.1% to RM4.89 bil.
Claims ratios for 3rd party bodily injury claims reached 340% in Q1 2008 compared with 262% in 2007.
Source: Business Times
Labels: Motor Insurance
Thursday, 23 April 2009
Negative profit growth for MSIG
MSIG Insurance has suffered a pre-tax profit growth of -21.4% in FY 12/2009.Reason quoted: significant drop in investment and other income.
Information on MSIG:
- 3rd largest general insurer by premium income.
- RM120.9 mil pre-tax profit (2009) vs RM153.9 mil (2008).
- Will launch new personal & lifestyle insurance products.
- Gross premium grew 9% to RM774.2 mil (mainly from motor and miscellaneous).
Source: Business Times
Labels: Financial Results, Motor Insurance, MSIG, Products
Tuesday, 17 February 2009
Motor tariff to be increased with discount for direct cases?
Are motor insurance premiums finally going up? The motor insurance tariff has remained unchanged since 1978, despite higher motor claims, surging vehicle thefts and the rising cost of automotive repairs. Some insurance companies are shying away from writing motor insurance, while others have allegedly forced consumers to buy other general insurance products together with motor insurance.
It was reported that BNM was considering approving a hike in motor insurance premiums with the condition of those buying direct getting a discount of 5% in 1st year and 10% in renewal years. This is in view of the saving of commissions which will not be paid for direct cases.
Source: The Star
Labels: Motor Insurance
Saturday, 22 November 2008
Kurnia to reduce reliance on motor insurance
Kurnia targets to reduce its reliance on motor insurance business. Motor insurance business currently contributes 84% of it gross premium income, the target is to reduce it to 50%.Yesterday, Kurnia also re-launched its enhanced Kurnia Auto Assist (roadside breakdown repair, 30 minutes arrival at scene) and Kurnia Express (immediate settlement of claims of comprehensive motor policyholders up to RM3,000).
Source: Business Times
Labels: Business Targets, Kurnia, Motor Insurance
Wednesday, 12 November 2008
Pay-as-you-drive Motor Insurance
If you use your car very infrequently, I think you would like the idea of pay-as-you-drive motor insurance policy.
In UK, you can have your motor insurance premium based on distance covered and the time of day or night you use your vehicle. This is achieved through a monitoring device called Coverbox which monitors your driving habits.
Actuaries would love this as well because it will provide very detailed data for them to improve on their pricing models.
Source: Insurance Daily
Labels: Actuary, Motor Insurance, Products
Friday, 26 September 2008
December Born Drivers Higher Risks
A study in UK has concluded that the month in which people are born can have impact on their performance as drivers.
People who were born in December have the highest likelihood to submit a motor insurance claims.
While there is no plan as yet to charge motor insurance premium by the day and month one was born in, there is no guarantee that this will not be done in future.
Source: Insurance Daily
Labels: Motor Insurance
Tuesday, 15 July 2008
Inflation will Affect Motor Insurance Business
The recent fuel price hike and the high inflationary environment is expected to have negative impact on the motor insurance business. The demand for vehicles, especially the large capacity vehicles, will likely to be depressed. The motor insurance premium growth is expected to be affected as a result.
The gross written motor insurance premiums reached RM4.67 bil in 2007, a growth of 1.4% over 2006.
Kurnia expects that inflation will also put pressure on management expense. The slowdown in vehicle sales however may be temporary as cars are still a neccessity for Malaysians.
Source: Business Times
Labels: Insurance, Kurnia, Motor Insurance
Friday, 21 March 2008
Captor for Takaful Ikhlas
Takaful Ikhlas has teamed up with Captor Retail Sdn Bhd to offer its contributors a vehicle security system at RM1,998. The contributors will also get a free PA takaful of RM50,000 sum covered.Labels: Motor Insurance, Takaful Ikhlas
