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

AmLifestyle

AmAssurance launched a new investment-linked product called AmLifestyle.

Some of the product features:

• Funds managed by AmInvestment Management Sdn Bhd
• Annual premium from RM1,800
• 1st 2 switches in a policy year are free
• Subsequent switches are subject to a maximum charge of RM50 per switch
• Minimum amount to switch: RM500 or entire fund
• 3 AmLifestyle packages available

Some of AmAssurance's business targets:

• RM77 mil first year premium collected
• 20% business growth

Source: Bernama

Secure Income Plus - the Main Product for Manulife

Secure Income Plus seems to be doing well for Manulife. Since the launch of the product in July 2008, Manulife has collected more than RM50 mil in premiums. The target for this year is RM100 mil and in 2009 RM200 mil.

Secure Income Plus will contribute >50% of the total NB premiums of Manulife this year.

To sign up for the Plan, one needs at least US$30,000 although Manulife recommends customers to put in at least US$100,000.

Source: The Star

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

Etiqa Sells GHS to IRB

Etiqa Insurance closes a Group Hospitalisation & Surgical (GHS) scheme with Inland Revenue Board, covering over 9,000 IRB employees and 18,500 immediate family members of the employees. Premium is expected to be RM6.6 mil in the first year.

Source: Business Times

HLA Promise Looks Promising

HLA has given assurance that it is not affected by the current financial crisis as almost all its assets are locally invested.

HLA's new product, HLA Promise, has also exceeded RM50 mil in annualised premium in less than 3 months.

Source: Business Times

MAA Takaful Teams Up with Celcom

MAA Takaful Bhd has teamed up with Celcom to sell PA Takaful Scheme to mobile subscribers of the latter. This follows similar scheme offered by AIG to Digi's subscribers.

In our Post dated 12 September 2008, we raised the question whether Maxis and Celcom would follow suit. Celcom has responded, will Maxis be next?

Scheme features:

Celcom Blue Prepaid

• Free RM20,000 PA for 1st year
• RM12 contributions per year from 2nd year onwards

Postpaid Customers

• RM40,000 PA

Xpax Customers

• RM1 contribution per month from day 1

MAA Takaful targets RM2-3 mil contribution from this product in the 1st year of launch. Celcom has 8 mil subscribers, 3 mil more than Digi.

Source: The Star, Business Times

Citibank to Distribute Secure Income Plus

Citibank Bhd has been appointed by Manulife to distribute its investment-linked retirement income plan - Secure Income Plus.

"Citibank has strong network customers who fit the profile of the Secure Income Plus target market", according to Manulife.

Source: The Star

Etiqa Signed Up NUBE

Etiqa is offering its Group Hospitalisation and Surgical (GHS) Takaful plan to National Union of Bank Employees (NUBE).

Out of 28,000 members of NUBE, 20,000 members are targeted to sign up the scheme within the next 3 months, paying RM300 each, bringing in total contribution of RM6 mil.

On other news, Etiqa assured that they have no direct investment in US. Etiqa Takaful was also in talks with several parties in the Middle East to build its distribution channels there.

Source: Business Times, The Star

DBS and HSBC to Update Investors

The structured products sold in Singapore that invested in Lehman mini bonds were sold by both DBS and HSBC. Both banks have been asked by Monetary Authority of Singapore to update their investors on a timely basis.

Source: Business Times

How Safe is Your Investment in Structured Products

There are quite a number of structured products out there now sold by financial institutions including banks, insurance companies and takaful operators. Investors should know that most of these products are capital-protected, which is not the same as capital guaranteed.

The capital protection is linked to the credit of the underlying investments. With the latest Lehman event, investors in Hong Kong and Singapore who purchased Lehman-linked minibonds may stand to lose most or all of their original investment.

So make sure you fully understand the risks before purchasing such capital-protected structured products.

Read more:

Asian retail investors cry foul

Tan Kin Lian's Blog

Annuity Plus

While annuity is not a common product in this market, it is worth knowing some of the latest development overseas in underwriting and product design of such product.

Legal & General has introduced a product called Annuity Plus, which claims to provide 12% higher annuity payments to certain annuitants.

This is achieved by adding further rating factors in addition to age and gender. Additional information is sought at underwriting stage which includes smoking habits, blood pressure, height & weight, cholesterol and diabetes, post code. Depending on the underwriting outcome, an individual may get additional annuity payment.

Source: Insurance Daily

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

Takaful Puteri

Prudential BSN Takaful launched 2 new riders: Takaful Puteri and Takaful Puteri Plus.

Product features:

• To be attached to Takafulink Plan
• Entry age: 19 to 60
• Expiry age: 60, 70 and 80
• Takaful Puteri provides lady care benefits: women-related illnesses, specified treatments such as skin grafting due to skin cancer and burns, facial reconstructive surgery due to accidents
• Takaful Puteri Plus has mother care benefits which covers pregnancy complications and infant congenital illnesses
• 3 sums assured to choose from: RM50,000, RM100,000 and RM150,000

Source: Business Times & TAS Research

Dimension

Axa Affin Life Insurance Bhd launched a new product called Dimension.

Product Features:

• Whole life protection, access to 4 investment-linked funds
• Guarantees 4% of SA as annual income after 10 years in force and continues until age 100
• Target age group: 30 to 50
• Minimum annual premium: RM3,000
• Minimum SA: RM20,000
• Target premium: RM10 mil

Source: The Star, Bernama and Business Times

HSBC's New 3-Year Capital Protected Plan

HSBC Amanah Takaful launched another 3-year structured investment-linked plan on 2 Sept 2008. This type of product was first launched in March 2007 and generated RM92 mil contributions in 3-week period.

Some Features:

• Structured investment linked to the performance of a basket of 10 shares from China/Hong Kong, Taiwan and Korea
• Single contribution
• Capital protected
• Surplus sharing on maturity
• Minimum contribution RM20,000
• Offer period until 10 Oct 2008

Source: The Star & TAS Research

AIG Travel Assist

AIG Travel Assist opened its centre in Kuala Lumpur recently. There are 4 other such centres in the world, 2 in North America and 1 each in South America and Europe.

AIG Travel Assist provides assistance to policyholders who are covered under the travel assist product. The premium ranges from RM6 for domestic holidays to RM300 for annual package and it depends on holiday destination and length of stay.

Source: Business Times

Update on Allianz

Allianz has embarked on an initiative to enhance productivity and competitiveness by streamlining its operations for both its general and life businesses within 20 months. The aim was to create a more customer-centric organisation.

On the integration of its general insurance business with that of Commerce Assurance Berhad (CAB), all CAB's branches have been integrated within 6 months.

2 products from Allianz: PowerWealth and PowerLink are gaining more importance.

PowerLink: Investment-linked product with optional riders: critical illness, H&S, waiver of premium, PA etc.

PowerWealth: Whole life plan, guaranteed cash payment is made every year after 8 years in force until age 90.

Source: The Star

MHinsure

Etiqa has been selected by Malaysia Airlines (MAS) to offer online travel insurance called MHinsure. MHinsure has access to 24-hour worldwide assistance provided by Mondial Assistance.

Product Features:

• Covers medical expenses, cancellations, baggage losses, delays and other travel disruptions.
• First-time claims below RM2,000 will be settled without documentation within a week.
• Premium starts from RM20 (Malaysian domestic), RM29 (Malaysia to any Asian destination), RM40 (international travel beyond Asia), RM50 (international travel to North America).

Target premium is RM20 mil for FYE June 2009.

Source: Business Times

Pesona Lady

Etiqa launched 2 non-life personal accident products: Pesona Lady and Takaful Pesona Lady. Target sales: RM13 mil in 1 year and 52,000 customers.

Product Features:

• Coverage: female cancers, ATM cash withdrawal losses, facial reconstructive surgery or dental treatment due to accident, infertility due to accident, delivery of twins, snatch theft, kidnap and abduction.
• Pesona Lady: premium starts from RM22/month
• Takaful Pesona Lady: contribution starts from RM24/month

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

PruBSN to Boost Non-Muslim Market

Prudential BSN Takaful Bhd (PruBSN) plans to strengthen its position in the non-Muslim market, which makes up 35% of its customers.

Some business initiatives in the pipeline:

• A pure protection product for bancatakaful to be introduced this year.
• 2 new products and 2 new riders to be launched next year for agency distribution.
• Offices to be set up by end-end in Shah Alam, Johor Bahru. 3 more in other areas next year.

A marketing and administration centre was set up in Wangsa Maju last Friday.

Source: Bernama

BizPac

Etiqa Takaful launched a comprehensive package for SMEs/SMIs involved in the manufacturing industry, targeting RM14 mil in contributions.

BizPac is distributed through 39 Maybank Business Centres nationwide. It is reported that there are more than 590,000 SMEs/SMIs operators in the country.

Source: Bernama

Posassurance

RHB Insurance Bhd has signed up Pos Malaysia as its distribution channel for its hospital cash income plan.

Plan Features:

• Premiums from RM80 p.a.
• RM200 per day hospital cash up to 180 days per year
• RM400 per day hospital cash for ICU up to 30 days per year
• Lump sum RM1,000 for hospitalisation > 15 consecutive days

Source: Business Times

INGeasi for Women

ING has launched a comprehensive all-in-one financial solution called INGeasi. Several products will be launched under the INGeasi series within a year. The 1st product under such series is INGeasi for Women.

Product Features:

• 4 plans are available: Dream, Success, Harmony and Cherish
• Protection for accidental death, disability, critical illness and female-related diseases
• Dream: for women just entering the workforce
• Success: for professional women with higher earning power
• Harmony: for working mother with children
• Cherish: for homemakers

For men, I guess we have to wait for INGeasi for Men to be rolled out?

Source: Business Times

MAA Takaful CancerCare

MAA recently launched a standalone comprehensive cancer plan that covers all forms of cancer.

Product Features:

• For 10 gender-specific cancers, benefits are paid at the 1st stage of cancer
• Entry ages: birth to age 65
• Expiry age: 75
• Coverage: RM25,000 to RM500,000
• Contribution starts from RM67 p.a.
• Extra 25% benefits on male cancers: lung, prostate, colon, small intestine, nasopharyngeal and female cancers: cervical, uterine, ovarian, breast, vagina
• Advanced payment of 25% benefits at the stage of Carcinoma in Situ
• Funeral expenses: RM10,000
• Surplus sharing: 50%

Other information:

• Target contribution for this product in 1st year: RM10 mil
• Secured 138 certificates since launch in early July
• Products in the pipeline: capital-protected endowment, medical plans, specialised PA

Source: The Star

Takaful Al-Waqi

Mayban Takaful (Etiqa Takaful) launched a new product: Takaful Al-Waqi last week.

Product Features:

• Single contribution investment-linked
• 2-year term
• Target fund size: RM200 mil
• 90% invested in fixed income investments
• Balance in commodity related portfolio
• Minimum contribution: RM20,000
• Entry ages: 18 to 70 years

Other business news on Maybank:

• 6 new products are planned for the next 12 months

Source: Maybank, Bernama

HLA Promise

HLA has collected RM10 mil in premiums since the soft launch on 14 July of its new product HLA Promise.

Product Features:

• Participating endowment providing S.T.A.R. benefits:
• S: Savings - guaranteed lump sum at maturity
• T: Total Protection - TPD & death benefits
• A: Assured Income - guaranteed increasing regular cash payments
• R: Reinforced Benefits - Option to continue receiving cash benefits until maturity in event of TPD, Critical Illness (CI) or Death (double payment in the event of CI)
• Entry age: 1 month to 55 years
• Minimum sum assured: RM20,000
• Flexible payment period: 6, 8 and 10 years

Other statistics on HLA:

• Regular premium sales grew 154% for FY 2008
• Life insurance customer base: 350,000

Source: The Star, Business Times & TAS Research

Secure Income Plus

Manulife has launched an investment-linked product for retirees with Guaranteed Withdrawal Benefit (GWB).

Product Features:

• GWB: either regular stream of income for at least 20 years (apparently at 5% of account value) or lifetime income from age 66.
• Loyalty bonus is granted (apparently 25% of GWB if no withdrawal in first 5 policy years and 5% for each year from years 6 to 10 reaching a maximum of 50%)
• Step-up mechanism: (apparently on every 5th policy anniversary if the market value of the account is higher than the GWB, the GWB is stepped up to the market value)
• Switching is allowed
• 3 Secure Income Plus lifestyle portfolios are available
• Distributed through HSBC

Source: Business Times & TAS Research

AUD Guaranteed Income Savers II

Hong Leong Assurance has come up with Series II of its AUD Guaranteed Income Savers product, to be distributed through Hong Leong Bank.

Product features:

• 4 year non-participating endowment plan
• 100% capital guaranteed at maturity
• Initial investments from RM30,000
• Offer period: 17 July - 4 August 2008
• Fund size: RM36 mil
• Guaranteed annual income of up to 7.55%
• Death benefits of up to 235% of annual premium paid

Series I that was launched in May 2008 exceeded initial target fund size of RM42 mil within 8 days and the fund size was increased by RM36 mil.

In Australia, fixed deposit interest rate for term of 24 months can be as high as 8.3% p.a.

Source: Hong Leong Bank, HLA & TAS Research

Enhanced Motor Insurance Package

It is believed that Allianz General Insurance has teamed up with BMW to offer a comprehensive motor insurance package.

Some special features are:

• A brand new replacement car during the first 12 months BMW ownership in the event of total loss from accident or theft
• Guarantee use of only authorised BMW dealerships, service centres and genuine BMW parts
• Absence of premium loading and market value adjustment for subsequent renewals

Source: Motor Trader

AmHigh Takaful

AM Islamic Bank has teamed up with Takaful Ikhlas to sell bancatakaful products. 2 investment-linked plans were launched recently: Single Premium (SP) and Regular Premium (RP).

Some product features:

• Minimum contribution: RM200 per month (RP), RM5,000 (SP)
• Term: 10 - 52 years (RP), 1 to 52 years (SP)
• Entry age: 18 to 60
• Death benefit: higher of NAV or sum insured
• Sum insured (SP): 125% (entry age 18 - 50) or 105% (entry age 51 - 60) of single contribution
• Sum insured (RP): 60% or 100% of total expected regular contributions
• Death benefit excludes AIDS related death
• Up to 50% of NAV invested overseas
• 2 funds: AmHigh Islamic Cash and AmHigh Islamic Equity

Sales targets: 11,000 certificates worth RM40 mil

Source: The Star & TAS Research

MAA Expects to be Back in the Black

MAA expects to write back RM49 mil and recover 40% of its NPLs by end of the year. Todate the group has recovered 15% of its NPLs.

The writeback of RM49 mil is thru handing over an interest rate swap transaction to a bank. FRS 139 accounting standards have negative impact on such swap arrangement.

MAA plans to launch 6 more products this year.

MAA is still in discussion with AmAssurance on strategic partnership for its general insurance and takaful business.

Source: Business Times

Takaful Medic-Save Rider

Etiqa Takaful recently launched Etiqa Takaful Medic-Save Rider. This is a medical rider that can be attached to basic family takaful plans and it comes with a medical card for hassle-free admission.

Etiqa Takaful targets 20,000 policies and has achived 5,000 policies since the product soft launch in Feb 2008.

Some product features:

• H&S benefits
• Emergency & outpatient benefits
• Guaranteed renewal up to 75 years old

Source: Bernama

TM Asia's Goals and Statistics

TM Asia Life Malaysia Bhd has set the following goals:

• New business premium in 2008: RM190 mil, 76% growth
• Gross premium in 2008: RM553 mil, 26% growth
• To be top 5 life insurer by 2011
• Increase its market share to 5% in 4 years from 3% currently
• Increase agency force to 3,500 from 2,674 by year-end 2008
• To increase full-time agents from 30% to 45%
• Develop bancassurance channel
• Grow group insurance business by targeting Japanese companies in Malaysia
• Launch 4 products, mainly group retirement products
• Increase no. of policyholders to 280,000 from 220,000 by end of 2008

Some other statistics:

• Sold 7,000 policies for its 3 new products: Asia Precious Child, Asia Supreme Protector and Asia Cancer Shield since last year
• 16 branches in Malaysia
• 100 agency offices
• Total assests: RM3.4 bil
• Life insurance fund: RM3.1 bil

Source: Business Times & The Star

Motor Takaful through Tune Money