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

BNM Met with Insurance and Takaful Leaders

BNM held a dialogue with leaders of the insurance and takaful industries today to discuss the developments in the economy and wide ranging issues facing the industries.

Among others, the insurers are ready for the implementation of RBC come 1 Jan 2009. The insurers and takaful operators will be more vigilant against fraudulent claims and potential fraud. BNM has also make available liquidity facility to insurance companies and takaful operators.

Source: BNM

Prudential has twice the capital required under RBC

Prudential has twice the solvency capital required under RBC. It also achieved 39% new business growth in Q3 2008. For 1st 3 quarters in 2008, new business sales went up 20%.

While consumer confidence will be affected with the recent financial turmoil, Prudential is confident that it can weather the crisis due to its strong corporate governance and risk management.

Source: Business Times, The Star

Increase Capital to Weather Financial Storm

Daljit Dhesi of The Star has commented that the worldwide credit crunch was a wake-up call for insurers in Malaysia to increase capital to weather the financial storm.

Comment was also made on increasing capital to be in compliance with RBC. "The RBC framework to be implemented in January 2009 will benefit policyholders and insurers as the latter will become stronger and more competitive globally to face the growing challenges."

Source: The Star

Revised Capital Framework Key Priority

BNM said that the implementation of the revised capital frameworks for the banking and insurance industries would remain as its key priority this year.

Earlier there was some confusion that Basel II deadline for the banking industry would be extended, it has since been clarified that the deadline remains at 2010.

Source: The Edge Daily

Citi to Help in RBC

Citigroup said it would help insurers:

• Cope with RBC reporting
• Increase insurance penetration rate

Citi quoted its experience in Singapore in providing securities and fund services. It introduced a format to assist insurers there for easy submission of financial reporting to the regulators.

Source: The Star