News Digest 20100321-20100327

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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 ...

TM Asia's market share target and strategies

TM Asia targets to achieve 10% market share in 3 to 5 years time. Its market share was 1.5% in 2007.

Strategies to achieve the target:

• Increase number of agents: from 2,700 currently to 3,500 in the next 2 years
• Rebrand
• Bancassurance: in talk with 1 bank currently
• Group insurance: targets 1,400 Japanese companies in Malaysia

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

TM Asia expects to hit target

TM Asia expects to achieve its 2009 target of RM183 mil premium. In 2008, it recorded RM158 mil.

2 capital-protected investment-linked products: Asia TriMax and Asia Jade brought in RM40 mil.

Source: Bernama

New CEO for TM Asia Life

Kenneth Wong has been appointed as the CEO for TM Asia Life Malaysia.

Earlier posts:

• Kenneth Wong leaving BNM
• More actuaries are becoming CEOs

Source: The Star

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

Insurers to cut bonuses

Policyholders in Singapore can expect their bonuses on endowment and whole life policies to be cut following a dismal investment performance in 2008.

Company that have decided to cut: Great Eastern
Company yet to decide: AIA
Companies declined to comment: Prudential, NTUC Income, Manulife
Company not cutting: TM Asia

Source: Asiaone

TM Asia grew strongly in East Malaysia

TM Asia Life relocated its Sibu branch this week, after relocating the KL main office and Butterworth branch last year. In the pipeline is Kota Kinabalu branch.

Some business statistics:

• East Malaysia contributed 35% of total new business premium at 63% growth rate in 2008
• Target new business premium for East Malaysia in 2009: RM40 mil
• 7,300 customers in Sibu, target to double that in 2 years
• TM Asia Life aims to be 1 of the top 5 players by 2011

Source: TM Asia's Press Release

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

TM Asia's Plan for Branches

TM Asia will continue to relocate its branches in Malaysia to a more strategic location. This year, TM Asia has relocated its headquarters and Butterworth office.

Offices to be opened: Klang, Selangor and Sibu.

Source: Business Times

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