News Digest 20100117-20100123

Insurance News TokioMarine has promoted Deputy CEO Dr Michael Heng as CEO, replacing PhangKwang Chee who has helmed the top post for the past 9 years. TokioMarine's market share grew from 48th position in 1999 to 5th position last year. http://bit.ly/7AXC0g

Tokio Marine names new CEO
Tokio Marine Insurans (Malaysia) Bhd today announced the appointment of Dr Michael Heng Kiah Ngan as its new chief executive officer.Heng, who was previously the company's deputy chief executive officer, ...

Insurance News Etiqa launches Triple Lifestyle Protector. Features: 15% SA paid every 3 years from 5th policy year; 100% SA returned at maturity; premium payment period of 20 years or until age 85. http://bit.ly/7vkOOd http://bit.ly/8KXxzy

BERNAMA - Etiqa Insurance Jangka Pelan Terbaharu Dapat Sambutan Baik
KUALA LUMPUR, 20 Jan (Bernama) -- Etiqa Insurance Bhd menjangka pelan Triple Lifestyle Protector yang dilancarkan baru-baru ini di mana ia menawarkan pelbagai faedah di bawah satu polisi mendapat sambutan yang baik. ...

Insurance News Prudential is targeting the largely untapped and underserved bumiputera market, focusing on young generation especially those below age 25. Great Eastern has also previously unveiled strategies that include targeting young generation. http://bit.ly/6nHL5D http://www.actuaries.com.my/news/2010/01/strategies-of-prudential-and-great.html

Prudential to tap into growing Bumi market
LEADING life insurer Prudential Assurance Malaysia Bhd wants to tap into the growing Bumiputera market by increasing its Bumiputera agents, said its top executive. Chief executive officer Charlie Oropeza ...

Insurance News Prudential launches an aggressive branding campaign covering 9 markets in the region in 7 languages on "The Power of Listening". http://bit.ly/5XgKaj

The power of listening
PRUDENTIAL Corporation Asia recently launched “The Power of Listening”, its largest branding campaign in its 85-year history in Asia.The campaign reinforces the company’s “Always Listening. Always Understanding” ...

Insurance News Tune Money aims to double insurance policies sold to 3,000-4,000 this year. Currently it partners Multi-Purpose for motor insurance and Tokio Marine for PA and home insurance. Takaful is in the pipeline as well as H&S, life, travel and pets. http://bit.ly/8Ne1wd http://bit.ly/5kaKoB

Tune Money aims for RM4m net profit this year
ONLINE financial services provider Tune Money Sdn Bhd, which has been profitable since last April, aims for a net profit of up to RM4 million this year as it grows its prepaid card and insurance base. ...

Insurance News Zurich Financial has come out to clarify that the partners in MCIS Zurich are still keen to work together although admitting some of the facts reported earlier on the tension in the relationship were not wrong. Zurich Financial is also not selling its stake in MCIS Zurich. http://www.actuaries.com.my/news/2009/12/no-strained-ties-between-shareholders.html http://bit.ly/7Guc11

MCIS Zurich owners deny rift, remain keen on takaful ops
MCIS Zurich Insurance Bhd's major shareholders have denied that there is any rift between them and say they remain keen to build the business together. They also denied that Switzerland's largest insurer, Zurich Financial Services Ltd (Zurich FS), might sell its shares in MCIS Zurich. ...

Insurance News Allianz General launched a Directors' and Officers' liabilities insurance product. http://bit.ly/54HdEh

Allianz debuts product for corporate leaders
Allianz General Insurance Company (Malaysia) Bhd (AGIC) today launched a new generation of insurance protection, specially tailored for leaders of Malaysian corporations."Allianz Protect Platinum goes ...

Insurance News MFPC launches Syariah RFP programme, appoints MPM as examination facilitator. http://bit.ly/6MHuhm

Insurance News Takaful Ikhlas is the winner of best brand in the services -Islamic protection and the healthcare insurance categories. http://bit.ly/7TIDUk

Takaful wins Brand Laureate awards
TAKAFUL Ikhlas Sdn Bhd has won two awards at the BrandLaureate SMEs Chapter Awards 2009 for brands in corporate branding. It was named the best brand in the services -Islamic protection and the healthcare insurance categories. ...

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 ...

Takaful Health

Prudential BSN Takaful today launched Takaful Health, a sister product of PRUhealth, whereby a no claim bonus of up to RM500 will be paid if there is zero claim in previous certificate year.

Other features:

• Provides comprehensive hospital and medical coverage
• Coverage until 80 years old
• Rider to Takafulink (protection) and Takaful Cerdik (education)

Source: The Star

INGeasi for Retirement

Features of INGeasi for Retirement:

• 3 packages:
• Life as Usual
• No Worries
• Unleash
• Guaranteed yearly income (in multiples of RM120) from age 55 to 85
• Annual non-guaranteed cash dividends
• Non-guaranteed terminal dividend
• Death and TPD coverage
• Sum insured = 20 x annual retirement income
• Waiver of premium on critical illness
• Family income until age 65 (subject to maximum 20 years) if death/TPD before age 65
• Premium payment term: lower of 20 years or reaching age 60
• Cash-out option

Source: The Edge, ING

STMB's strategies to increase market share

STMB aims to achieve 50% market share in 2-3 years' time from the current 40% by implementing the following:

• Introduction of competitive and innovative products
• Expansion of distribution channels
• Moving into multi-racial target market
• Increase its visibility and brand awareness with RM15 mil rebranding exercise

Source: The Star

i-Protect

This has nothing to do with iPhone!

TM Asia Life launched a new product called i-Protect with the following features:

• Regular premium investment-linked
• Premium from RM100 per month
• Option to receive annual payout from the later of age 55 or 5 years after policy is in force

Target premium is RM10 mil in 12 months.

TM Asia also launched a new fund called Asia Orient Fund.

Source: The Edge, Business Times

Uni Guaranteed Cash Plus

Uni.Asia sets a target of RM260 mil NB premium for FY 3/2010:

• RM100 mil for RP
• RM100 mil for SP
• RM60 mil for credit related and others

Other information on Uni.Asia:

• 37% market share in bancassurance business
• 88% growth as of 8/2010
• Target growth: 85% in FY 3/2010
• New product launched: Uni Guaranteed Cash Plus (UGCP):
• RM100 mil premium targeted: RM30 mil from agency, RM100 mil from other channels

Source: Business Times

Prudential's strategies

Prudential's new CEO has made known his strategies going forward:

On distribution:

• Builds its telemarketing reach, possible tie-up with telcos
• Looks for more bancassurance partners, current sole partner is Standard Chartered
• Continues to expand its agency force (currently 10,300)
• Turns more agents to wealth planners (1,800 as at Dec 2008)

On product strategy:

• Relook at traditional products

On customer service, focus on 5 key service points:

• Application is made
• Policy is issued
• Bill is issued
• Policy request is made
• Claim is made

Source: Business Times

STMB eyeing more than 50pc market share

STMB is eyeing more than 50% market share (by what measure?) and has identified general takaful and retail family market as the key growth drivers.

The following 3 new takaful products will be launched for FY 6/2010:

• Takaful myGraduan (protection and savings plan)
• Takaful myInvest (protection and investment plan)
• Takaful myGemilang (retirement plan)

The advantages of liberalisation according to STMB are:

• Increased innovation in products
• New technology

The disadvantages are:

• Market share of existing players reduced
• Staff pinching

Source: The Star

Global Recovery Income Plan (GRIP)

HLTMT launched GRIP yesterday. Product features:

• Australian-denominated syariah-compliant investment-linked takaful plan
• Capital protected
• 4-year term
• Min investment: A$10,000
• Sum covered: up to 125% of initial contribution
• Max sum covered per participant: A$600,000
• Offer period: 3/9/09 to 17/10/09
• Annual income distribution: 1st 3 years fixed, 4th year performance based
• Target contributions: A$30 mil

Source: The Star, Business Times

HLA Cash Builders

HLA last week launched HLA Cash Builders, targeting RM150 mil in 6 months. Since its soft launch last month, the product has collected RM10 mil premium.

Product features:

• Participating endowment
• Covers death and TPD
• Premium payment period: 6 or 10 years
• Term: 25, 25, 30 and 35 years
• Entry age: 1 month to 60 years
• Maximum maturity age: 80 years
• Minimum premium: RM2,500
• Minimum SA: RM10,000
• 4 Builder riders (can be mixed and matched to produce up to 20% yearly guaranteed income or 5 times basic SA)
• Builder 1: guaranteed 1% payable from year 1
• Builder 2: guaranteed 2% payable from year 5
• Builder 3: guaranteed 3% payable from year 10
• Builder 4: guaranteed 4% payable from year 20
• Dividends (non-guaranteed): cash, terminal and maturity

Source: The Star, The Edge, Business Times, TAS Research

Hong Leong Endowment Plus

HLA launched Hong Leong Endowment Plus with the following features:

• Participating endowment
• Limited pay: 5 or 8 years
• Cash dividends (after limited payment period):
• Guaranteed: 5% of SA
• Non-guaranteed: 2% of SA
• Maturity
• Guaranteed: 100% SA
• Non-guaranteed: terminal dividend
• Term: 15, 20 or 25 years
• 100% SA on death and TPD
• 200% SA on accidental death
• Entry age:
• Minimum: 30 days
• Maximum:
• 60 years (term 15 & 20)
• 55 years (term 25)

Source: Business Times, TAS Research

AmTriple Guarantee Fund

AmLife Insurance Berhad recently launched AmTriple Guarantee Fund with the following features:

• Single premium endowment
• Term: 5 years
• 3 guarantees:
• Guaranteed step-up annual dividend
• Year 1: 3%
• Year 2: 3.1%
• Year 3: 3.3%
• Year 4: 3.5%
• Year 5: 4%
• 100% capital protection
• SA = 125% SP (Age: 30 days - 59); SA = 105% SP (Age: 60 - 70)
• Authorised fund size: RM100 mil
• Offer period: 13/8/2009 to 11/9/2009
• Channel: 187 AmBank branches
• Min premium: RM20,000

Source: Business Times, TAS Research

Uni LifeIncome

Uni.Asia launched Uni LifeIncome with the following product features and design:

• 5% guaranteed cash payment up to age 88 (5% of sum assured, not total premiums paid)
• Covers death, TPD
• Waiver of premium during critical illness
• Entry age: 14 days to 60 years
• Option of premium payments ranging from RM25,000 to RM300,000 (what does this mean???)

Target premium: RM5 mil in 1st year

Source: Bernama

Articles on insurance/takaful over the weekend

Some of the articles appearing in StarBizWeek Special on 8 August that may be worth reading:

Keeping abreast with changes: Various insurance chieftains touch on issues like financial planning, bancassurance, professionalism, sustainability of business and future challenges and growth drivers.

Innovation key to growth for takaful: Leaders of takaful industry talk on sustainability of takaful industry, liberalisation, bancatakaful, human capital and retakaful.

Linking markets with Islamic finance: Towards the end of the article, BNM governor mentions that the insurance industry has a long way to go and develop products for retirement, pension schemes, annuities and medical coverage. Professionalism and capitalisation need to be increased. There should be more mergers in the domestic sector and the need for setting up enabling infrastructure.

Source: The Star

Maid Protector

RHB launched a new product named Maid Protector, to be distributed through Pos Malaysia.

Product features:

• Personal Accident product
• Cover legal foreign maids
• Premium: RM60 to RM95 per year
• Up to RM30,000 SA on accidental death and TPD
• Reimbursement of medical expenses due to accidents
• Weekly hospital income benefits
• Reimbursement of repatriation expenses of the insured maid following accident, disease, death or total disablement
• Reimburses third party on accident or damage due to negligence of the maids
• Policy term: 12 & 24 months

Target premium: RM1.2 mil in 1st year
Foreign maids in the country: 300,000

Source: Business Times, Bernama

Great Eastern partners OCBC in bancassurance

Great Eastern has tied up with OCBC in bancassurance. Such tie-up of foreign-owned bank and foreign-owned insurer was not permitted before the liberalisation of the market.

2 new bancassurance products were launched: MaxMoney Plus and MaxMoney Back.

Targets set:

• MaxMoney Plus: RM12 mil by end 2009
• MaxMoney Back: RM6 mil by end 2009
• OCBC to have 10-15% market share in bancassurance in the long term

Source: The Star, Business Times

PRUhealth

Prudential launched its new medical insurance plan - PRUhealth.

Some product features:

• Rider to investment-linked plan
• Covers hospitalisation, surgeries and outpatient treatments
• Coverage up to age 100
• No claim bonus of up to RM500 per year, withdrawn as cash or invested as extra units in ILP
• Annual claims limit can be waived with additional premiums

Prudential has allocated RM7 mil for its advertising campaign on PRUhealth.

Source: The Star

A marketing idea for you

If you are looking for new marketing ideas, Aviva UK may have something that interests you.

A research in UK found that 40% of new parents have no life insurance in place. Aviva therefore offers free cover of up to £10,000 to those with 1st offspring aged less than 6 months. The cover ends on the child's 1st birthday.

The free cover is available through advisers, hence creating an opportunity for the advisers to conduct a financial evaluation for the new parents.

Any insurance company wants to copy the idea here?

Source: Insurance Daily

ILP Gold Fund

Can you buy an investment-linked product in Malaysia that has unit fund invested in gold?

A quick check on the ILP funds that have their unit prices published in Business Times seems to suggest that there is currently no such fund available.

Banks have already embarked on various gold products including physical investment in gold coins, pendants and gold bars. There are also passbook gold investment accounts offered by some banks. You may also buy gold-linked capital protected unit trusts from the market.

Gold generated strong investment returns of 16% in the past 6 months and 43% in the past 24 months.

If there is no ILP gold fund in the market, for insurance product developers out there reading this blog, you may want to explore the feasibility and be the first insurer to launch the fund.

Source: The Star

PB-ING Asian Jewels

ING launched a new product distributed through Public Bank named PB-ING Asian Jewels.

Product features:

• 5-year SP ILP
• Fixed annual coupon at end of years 1 to 4
• Maturity: refund of premium in AUD
• Invest in 5 Asian markets: China, Hong Kong, South Korea, India and Taiwan
• Sale period: 22 days ending on 3 August
• Entry age of life assured: 30 days to 70 years
• Minimum premium: RM30,000

Source: Business Times

Smart Portfolio

Great Eastern launched its latest investment-linked product named Smart Portfolio. Smart Portfolio consists of 4 series:

1. Smart Protection
2. Smart Investment
3. Smart Education
4. Smart Retirement

Great Eastern targets RM200 mil in 6 months for Smart Portfolio (RM150 mil for Smart Protection, RM50 mil for Smart Investment). Smart Protection and Smart Investment were rolled out today with Smart Education and Smart Retirement targeted to be launched in Q1 2010.

Premium for Smart protection starts at RM100 a month, while Smart Investment starts at RM500 a month.

Great Eastern is also working aggressively in pursuing new takaful licence.

Source: Bernama, Business Times

A(H1N1) death rates

For actuaries out there, in case you are pricing a product to cover death risk for A(H1N1) patients, the world death rate currently stands at 0.42%. This is equivalent to the mortality rate of a male aged 50, according to the latest Malaysian insured life table M9903, definitely not to be taken lightly. (In layman's terms, the chance of an A(H1N1) patient dying is the same as the chance of a male aged 50 dies due to all causes before he reaches age 51).

The table below shows the death rate by country:



Source: The Star

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

HLA Secure Income Builder

HLA launched a new product called Secure Income Builder. Product features:

• 6-year investment-linked plan
• Dividends: 4.25% of total annual premium paid, guaranteed for 1st 2 years
• 100% capital-back guarantee upon maturity

Source: Business Times

ValuePac

Axa Affin has launched a new product called ValuePac. Product features:

• Apparently a term assurance
• Term: 5, 10, 15, 20 (?)
• With renewability and convertibility options

Source: Bernama

Asia Jade

TM Asia launched a new product called Asia Jade. Product features:

• Term: 3.75 years
• 100% capital protected
• Investment-linked
• 3 underlying stocks: China Mobile, China Railway and China National Offshore Oil Corp
• Sales period: 9/6/2009 to 30/6/2009
• Target sales: RM40 mil
• Minimum premium: RM10,000
• SA: 125% of premium (death and TPD)
• Age of policyowner: Min: 19; Max: 75
• Age of assured: Min: 1 month; Max: 75

Source: Business Times

Manulife wants takaful licence

Manulife will apply for a new takaful licence by end of October. Malaysia recently announced that 2 new takaful licences would be granted this year.

Takaful penetration rate is currently at 7%, lower than the 40% in the conventional side.

Manulife currently has a takaful operations in Indonesia and intends to expand to the Philippines, Thailand and China.

Manulife has not decided whether it will increase its stake in the operations in Malaysia following the liberalisation.

Manulife's targets in 2009:

• New business premiums: 5% more than RM63 mil achieved in 2008
• 2 protection-related products in 2009

Source: The Star

AmAsia Recovery

AmLife is launching a new capital guaranteed fund called AmAsia Recovery, to be sold through AmBank.

Information on AmAsia Recovery:

• 100% capital guaranteed
• Offer period: 30 days
• Term: 3 years
• Fund size: RM100 mil
• Min investment: RM5,000

Source: Business Times

Great Eastern's Targets

Great Eastern's targets for 2009 and beyond:

• Weighted new business premium: RM800 mil in 2009 (27% growth)
• Roll out investment-linked products in June/July 2009, focusing on protection, investment, education and retirement
• Enhance stand-alone medical products
• New branches for Seberang Jaya and Petaling Jaya in 2 to 3 years
• Banacassurance partnership with OCBC within 3 months
• 3 bancassurance products
• 3,000 Life Planning Advisory (LPA) graduates by end of 2010

Other statistics and information on GE:

• NB premium of RM629 mil in 2008
• Q1 2009 NB weighted premium: RM170 mil, Q1 2008: RM107 mil, growth 59%
• 17,000 agents
• 2.25 mil policyholders
• 2.8 mil policies in force
• Agency contributes 95% of NB
• 24 branches
• Assets > RM37 bil
• 600 LPA graduates so far
• LPA graduates' productivity is 2.5 times of the average agent

In 2008, Great Eastern set a NB premium target of RM1 bil.

Source: Business Times, The Star

Ikhlas Hajj Savings Takaful

Takaful Ikhlas launched Ikhlas Hajj Savings Takaful in Kuching today.

Product features:

• Investment-linked plan
• Protection and savings plan for the purpose of performing haj
• Entry age: 30 to 60 years
• Covers TPD, critical illnesses

Target contributions: RM3 mil in FY 03/2010.

Source: Business Times 1 & 2

RM50 mil target for Perfect Series

HLA is targeting RM50 mil premium for its Perfect Series product for 2009.

The company achieved 45% growth in its regular premium business up to end of April.

Source: Business Times 1 & 2, The Star

Insurance cover for HIV-positive

PruProtect, a joint venture between Prudential and a South African firm, is offering life insurance cover for HIV-positive people in UK.

The sum assured is up to £250,000 for a maximum term of 10 years.

Not all HIV-positive people will be able to get cover, initially the target is 7% of these people. In the near future, this will move up to 20%.

Source: Telegraph

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

Hong Leong Medi Saver

HLA has launched Hong Leong Medi Saver, to be distributed through Hong Leong Bank.

Product features:

• Medical and surgical plan
• Offers guaranteed renewal until the age of 99
• Annual limit of up to RM240,000 & lifetime limit of up to RM1.2 mil
• Provides daily cash if hospitalised for outpatient cancer treatment, outpatient kidney dialysis treatment and emergency evacuation and repatriation
• 4 plans to choose from
• Entry age: 1 month to 60 years old
• Premium from RM114 per year

Source: Business Times

PruBSN Asas

PRUDENTIAL BSN Takaful Bhd has launched PruBSN Asas. Some product features:

• Covers TPD and death.
• 3 supplementary riders: AD&D, accidental medical reimbursement and weekly indemnity.
• Contribution starts from RM20.

Source: Business Times

HLA's Perfect Series

HLA launched its latest investment-linked products - the Perfect Series packages.

There are 3 main features:

• Perfect Education
• Perfect Protection
• Perfect Retirement

We stand to be corrected but based on the limited information available, these look like normal ILP packaged differently to suit different target groups. Most insurers in town would have something similar available.

Source: The Star

HLTMT i-Grad Scheme

Hong Leong Tokio Marine Takaful Bhd launched an education scheme named HLTMT i-Grad.

Product features:

• Maturity age: 19, 21, 23, 25
• Minimum contribution: RM70 per month
• RM100 per year at the beginning of each school year from age 8 to 18 years old
• RM100 for every 'A' in UPSR, PMR and SPM
• RM1,500 for CGPA >=3.5 for diploma graduates
• RM2,000 for CGPA >=3.5 for university graduates

Source: Business Times

INGeasi for Family

ING has rolled out INGeasi for Family, the latest in the series, after launching INGeasi for Women in July last year. The latest product is expected to bring in RM50 - 60 mil.

INGeasi for Family comprises of protection, health, education and investment.

ING targets RM830 mil new premiums in 2009, lower than RM870 mil achieved in 2008.

Source: Business Times

Jerneh targets 10% growth

Jerneh targets a 10% growth for 2009, lower than the 15% growth achieved in 2008.

Other business facts:

• 2 large business segments: properties (40%) and motor insurance (30%)
• 3% market share in motor insurance
• Partners with AAM for its newly-launched product AAMJ2U, which provides 24 hours' accident assistance, post-repair inspection, 12 months' warranty on repair, fast claim approvals, door-to-door insurance, road tax service

Source: Business Times 1 & 2

Super Fortune

MAA has launched an endowment plan, Super Fortune Plan, and targets RM100 mil premium within a year.

Product features:

• Entry age: 10 to 55 years
• Guaranteed annual cash payments (GACP) from end of 10th policy year
• At maturity, 120% of SA is payable
• TPD up to age 60 and Death benefits are provided
• Premium payments can be completed in 6, 10, 15 or 20 years
• Maturity age: 50 for entry age 10 - 20, 4% GACP from end of 10th year
• Maturity age: 60 for entry age 21 - 30, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• Maturity age: 70 for entry age 31 - 40, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• Maturity age: 80 for entry age 41 - 55, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• SA starts from RM25,000
• Riders are allowed
• Sample premium: Male, non-smoker, 35, SA RM100,000, AP=RM15,540 for 6 yrs
• For more sample premium rates, please contact us

Other business targets/strategies:

• RM1 bil life insurance premium sales
• Moving away from single premium business

M&A update:

• Deal with AmBank group to be completed in 4 to 6 weeks
• General insurance unit sold for RM274.8 mil
• 4.9% of takaful unit sold for RM16.2 mil

Source: The Star, Business Times, The Edge, TAS Research

ManuCare100

Manulife today launched ManuCare100, a medical plan that covers until age 100.

ManuCare100 is expected to contribute 20% of NB premiums in 2009. In 2008, medical plans contributed 10% of NB premiums for Manulife.

Source: The Star

PowerSaver

Allianz recently launched a new plan called PowerSaver with the following features:

• 30-year participating endowment plan
• Premium term = 8 years
• At the end of 5th policy year, can convert to fully paid-up policy
• Yearly guaranteed cash payment = 4% of basic SA, payable after 5th policy year

Source: The Star, TAS Research

Teras Malaysia Extra

NIAM launched Teras Malaysia Extra on 9 February 2009, targeting RM20 mil premiums this year. The earlier version, Teras Malaysia was launched in 1998, generated RM222 mil premiums from 236,000 policyholders.

The product is sold by AMLife, Etiqa, HLA, MAA and MCIS Zurich.

Product Features:

• Term with 100% refund of premiums
• Death: 100% SA
• TPD: 100% SA (up to age 54), max limit: RM1 mil, payment: 20%/80%
• Accidental death: 200% SA (up to age 65)
• CI: RM10,000, covering 36 CIs
• Daily hospital allowance: RM50/day, up to 45 days per year, lifetime limit: 300 days
• Funeral expenses: RM2,000
• 4 different terms: 15, 20, 25 and 30 years; premium payment term = policy term
• SA: min: RM50,000, max: subject to u/w
• Payment mode: Annual, Semi, Quarterly and Monthly
• Min entry age: 16 next birthday
• Max maturity age: 70
• Sample premium: Male age 30, term 30, SA: RM100,000, annual premium: RM1,896

Source: The Star, TAS Research

RBS Smart Save

AXA Affin has launched a new plan called RBS Smart Save, to be distributed through Royal Bank of Scotland Bhd.

Product features:

• Single premium investment-linked
• 4 funds available
• Sum assured = 125% of Single Premium

Source: Business Times

Centennial Wonder

Great Eastern launched Centennial Wonder last week.

Product features:

• Limited-pay endowment
• Guaranteed annual income for 25 or 35 years
• Sales period: 2 months from 16/2/2009

Other business statistics:

• NB sales (total premium) in 2008: RM975 mil, 30% growth over 2007, boosted by Centennial Max, SP ILP
• 4 to 5 products planned for 2009, including retirement plan and revamped medical plan

Source: Business Times 1 & 2

Asia PRISM

TM Asia Life launched Asia PRISM and targeting RM20 mil premiums in 2009.

Product features:

• PRISM stands for Protection, Retirement, Income and Savings, packaged within 1 Managed fund.
• Premium payment term: 20 years
• Guaranteed cash payment after 10 years (5 to 6.5% of SA), payable up to age 90
• After 10 years in force, can be converted to a fully paid-up policy
• It is a 3-generation product, similar to other such products in the market
• Entry age: 1 month to 65 years
• Sample premium: Age 35, SA: RM25,000, Premium: RM4,500
• Waiver of premiums if diagnosed with 36 CIs

On related news, Kenneth Wong (rightmost in picture) is now the General Manager of TM Asia, after leaving BNM.

Source: Business Times, TAS Research

PPI sales to be restricted

UK will ban the sale of Payment Protection Insurance (PPI) alongside unsecured loans and credit agreements from 2010. The reason is the cover is frequently mis-sold and the rates are uncompetitive.

PPI provide cover for repayment of unsecured loans if the borrower loses their job, becomes too ill to work, or dies.

Source: Insurance Daily

ACE to launch specialty lines products

ACE Synergy plans to launch specialty personal lines products that provide coverage for an individual's personal possessions such as notebooks, mobile phones, cameras, credit cards and other important documents such as identity cards.

Source: Business Times

Alpha Crescent Investment Plan

Hong Leong Tokio Marine Takaful (HLTMT) launched The Alpha Crescent Investment Plan.

Product features:

• 3-year shariah-compliant capital-protected investment-linked plan
• Potential investment returns at maturity is referenced against the Alpha Crescent Index
• Distributed by Hong Leong Bank
• Min contribution: RM10,000, max: RM2 mil
• Takaful coverage: 125% of investment amount

Source: The Star

Smart Medic and AddVantage Plus

Great Eastern launches 2 new products: Smart Medic and AddVantage Plus.

Smart Medic:

• Medical rider for ILP
• Annual limit up to RM200,000 and lifetime limit up to RM1.6 mil
• Annual limit will be increased every 5 years if no claims during the 5-year period

AddVantage Plus:

• Regular whole life ILP
• Bonus allocation totalling 50% over 10-year period

Source: Business Times

PB-ING One Educate

ING has launched a new product named PB-ING One Educate to be distributed through Public Bank branches.

Product Features:

• Investment-linked education plan
• Monthly premium starts from RM175
• A monthly income of up to RM1,000 is payable over 5 years on untimely death of payor
• Entry age of life assured: 30 days to 15 years

Source: Business Times, The Star

PruBSN to open 7 new branches

Prudential BSN Takaful Bhd (PruBSN) will open 7 new branches in 2009 costing RM1 mil each. The branches will be located in state capitals.

Some business statistics:

• Total new regular contributions of RM340 mil (95% family takaful, 5% general takaful)
• 35% market share in NB growth
• 200 staff, 9,000 agents
• 70% agents non-Muslim
• 190,000 takaful participants (34% non-Muslim)

A new product called PruBSN ASAS will be launched in Q1 2009.

Source: Bernama

STMB is confident despite economic slowdown

Syarikat Takaful Malaysia Berhad (STMB) is confident that it will not be impacted by the economic slowdown because:

• Its service is of necessity and slowdown-proof
• It invests conservatively

For its latest 5-year capital protected product, Al-Afdhal, it is targeting contributions of RM100 mil. Distribution will be through agents as well as Bank Islam Malaysia Bhd, sister company of STMB.

Source: The Star

PRUmultiple Crisis Cover

Prudential launches it multiple crisis cover product this week and expects the plan to contribute 10% of its new business premiums by the end of next year.

Product Features:

• Multiple claims of up to 3 critical illnesses
• Coverage of 2 instances of cancer
• Protection against death and disability
• Premium is 20% higher than its conventional plans
• PRUwaiver can be attached to waive premiums on diagnosis of first critical illness
• Critical illnesses are categorised into 6 groups
• Once a claim is made from a particular group, the group is excluded from future claims

Source: The Star

STMB Launches Wakalah-Based Products

Syarikat Takaful Malaysia Berhad (STMB) launched 4 wakalah-based products yesterday: Takaful MyMedicare, MySiswa, MyImpian and MySinar. STMB is moving from mudharabah to wakalah model to be more competitive. The company is also planning to launch 4 more wakalah-based products next year.

Other news on STMB:

• Its unit in Indonesia PT Syarikat Takaful is seeking a strategic banking partner to take up a 30% equity stake by end-2009
• BNM has approved the injection of capital of RM21.825 mil into PT Asuransi Takaful Keluarga to address the minimum solvency ratio requirement deficit under the RBC framework of Indonesia

Source: The Star, Bursa, Business Times

PRUretirement Accumulator

Prudential launched a regular premium investment-linked product designed for retirement named PRUretirement Accumulator.

Product features:

Accumulation Phase

• Term of 5 to 40 years
• Minimum premium per month: RM100
• Withdrawal is allowed
• Top-up is allowed

Payout Phase

• Guaranteed monthly income
• Withdrawal is allowed
• Top-up is allowed?
  

Death and TPD cover is avaliable. Earlier this year, Manulife also launched an investment-linked retirement product call Secure Income Plus.

Meanwhile, Prudential UK has announced 5 to 10% cut in its maturity bonus.

Source: Bernama, Telegraph

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

STMB to launch a range of products

Syarikat Takaful Malaysia Berhad (STMB) will launch a range of highly competitive takaful products by year-end, to commemorate its 25th anniversary in 2009.

Source: Business Times