News Posts 20101206-20101212

Insurance News Best Re has moved its headquarters to Labuan. It has 2 new entities there providing general reinsurance and family re-takaful business respectively. The gross written premium is expected to reach US$350 mil this year.

Dubai Islamic reinsurer shifts HQ to Labuan

Best Re plans RM480 million investment in two new entities that will provide general reinsurance and family re-takaful business.
December 12, 2010

Insurance News Great Eastern Takaful targets RM180 mil AP in 1st year of operations. The company launched its takaful product lineup today, almost 1 month ahead of the original target of Jan 2011 and is the 1st out of the 4 new takaful licensees to do so.

Great Eastern expects RM1bln from takaful business by 2015

KUALA LUMPUR: Great Eastern Holdings Ltd expects RM1 billion in contributions by 2015 from its new takaful business via its new joint venture company, Great Eastern Takaful Sdn Bhd.
December 10, 2010

Insurance News Great Eastern Takaful will use distribution channel of OCBC Al-Amin and also leverage on KAT's 140,000 members and probably recruit soldiers who opt for early retirement to become their agents. 2 new products were launched: I-Idaman and I-Abadi, focusing on protection and investment respectively.

New takaful player sets RM1b target

NEWLY-FORMED Great Eastern Takaful Sdn Bhd has set a target to win more than RM1 billion in premiums by 2015 by focusing on Malaysia and regional countries like Singapore and Indonesia.

December 11, 2010

News Posts 20101129-20101205

Insurance News Pacific Insurance will be sold to Fairfax for RM201 mil in cash, plus incremental NTA from 31 Dec 2008. The price represents 1.68 times NTA at 31/12/2008. The deal is expected to complete by March 2011. As a comparison, RHB Insurance was valued at 1.85 times book value while Jerneh Insurance was priced at 1.07 times.

PacificMas signs deal to sell PIB stake for RM201mil

PETALING JAYA: PacificMas Bhd has signed a share sale agreement to sell its entire equity interest in The Pacific Insurance Bhd (PIB) to Fairfax Asia Ltd.
December 4, 2010

Insurance News Prudential has set itself targets of doubling 2009 value of its Asian life and asset management pre-tax operating profit and doubling its 2009 Asian premiums. Both targets to be achieved in year 2013.

Prudential UK aims to double Asian premiums

LONDON: The boss of Britain’s biggest insurer Prudential Plc has outlined a plan to double Asian premiums by 2013, a move seen as bolstering his grip on the top job after a bungled takeover in the high-growth region.
December 2, 2010

Insurance News The Malaysian Association of Suppliers and Managers of Foreign Workers said that the insurance companies will be making a clean profit of more than 90% on the Foreign Worker Health Insurance Scheme. The allegation is totally lack of common sense!

Ruling only benefits insurance firms

KUALA LUMPUR: The directive requiring all foreign workers except domestic maids to have health insurance will only benefit insurance companies, said the Malaysian Association of Suppliers and Managers of Foreign Workers.
December 2, 2010

Insurance News MAA has not reached agreement with potential buyers of its general insurance business because it is holding out for more than RM300 mil. The price previously negotiated with AmG Insurance was RM274.8 mil. MAA has until August 2011 to raise capital to meet CAR requirement.

MAA: No deal to sell general insurer yet

MAA Holdings Bhd (1198) has yet to sell its general insurance business arm to AmBank Group because it is holding out for more than RM300 million.

December 1, 2010

Insurance News Kurnia delivered a weak quarterly results with lower underwriting surplus before expenses and higher management expenses.

Kurnia Asia swings into losses in 3Q

KUALA LUMPUR: KURNIA ASIA BHD swung into the red with net losses of RM3.74 million in the quarter ended Sept 30, 2010 as it was impacted by higher management expenses while there was an underwriting deficit.
November 30, 2010

Insurance News The Malaysia Deposit Insurance Corporation Bill 2010 was tabled for 1st reading in Dewan Rakyat. The bill will provide for the establishment of an explicit national takaful and insurance benefits protection system.

Bill tabled to insure deposits up to RM250,000

KUALA LUMPUR: The Malaysia Deposit Insurance Corporation Bill 2010 was tabled for first reading in Dewan Rakyat on Tuesday, paving the way to increase the deposit insurance limit from the current RM60,000 to RM250,000 for next year.
November 30, 2010

Insurance News MAA is considering raising more capital, either via rights or medium term note to meet the capital requirements by BNM. MAA is still in talks with various parties to sell its general insurance arm.

MAA mulls plans to raise more capital

KUALA LUMPUR: MAA HOLDINGS BHD is mulling over raising more capital to increase its buffer.
November 30, 2010

Insurance News The government will speed up the review of TPBID scheme, after having had discussions with the insurance industry in August to September. The proposed mechanism will be presented to the government early next year after follow-up consultation with various interested parties. The average claim for private and commercial vehicles older than 10 years is about 17.5% higher than vehicles less than 10 years old.

How to get insurance for old cars?

KUALA LUMPUR: The Government will speed up the process to come up with a mechanism to provide third party insurance coverage, especially for motor vehicles aged 10 years and above.
November 29, 2010

Insurance News Actuaries are good candidates for financial institution board and risk management committee members because they have a different way of thinking about risk, possess advanced risk analysis skills and have vast experience gained at board level. As a professional group. actuaries are also supported by strong standards to ensure the quality of their analysis and advice.

Call for more actuaries on insurance boards

The Institute of Actuaries of Australia (IAA) has called for more of its members to be included on the boards and risk management teams of insurance companies.
November 29, 2010

Insurance News The proposed private pension system will be voluntary. The development of the framework will be addressed in the 2nd Capital Market Masterplan targeted to be released before year-end.

Capital Market Masterplan will address private pension fund, other issues

PETALING JAYA: The second Capital Market Masterplan (CMP2) for Malaysia from 2011 to 2020, which is expected to be released before year-end, will address key areas such as the development of a private pension fund framework, boosting retail participation in the local stock market, working capital improvement and higher attention to governance.

November 29, 2010

News Posts 20101122-20101128

Insurance News PruBSN launched a new product called PruBSN Ummah, a savings and protection plan that helps to defray the high cost of performing haj. Part of the savings can be withdrawn any time after the 5th certificate year. PruBSN has also partnered Amanah Raya Bhd to provide will writing services to participants of the plan.

PruBSN Ummah set to be big seller, says CEO

PRUDENTIAL BSN Takaful Bhd (PruBSN) expects significant contribution from its latest family takaful plan, PruBSN Ummah, after receiving positive response since its launch earlier this month.

November 26, 2010

Insurance News In memory of Hemalatha Kasippillai, a staff of Hannover Re based in KL, who was unfortunately killed in Mumbai terror attacks 2 years ago.

Pain of losing loved one in Mumbai terror attacks haunts victim’s kin

PETALING JAYA: Every Nov 27, S. Nishalini and S. Dhinesh say a silent prayer for their mother Hemalatha Kasippillai.

November 26, 2010

Insurance News The Foreign Worker Health Insurance scheme proposed under ETP will kick in on 1 Jan 2011. The annual premium is RM120, lower than RM200 previously announced.

Health insurance compulsory for foreign workers from Jan 1 (Updated)

PUTRAJAYA: All foreign workers employed in Malaysia must be covered by medical insurance, in a Government ruling which will take effect on Jan 1 next year.
November 25, 2010

Insurance News Christopher Wei, who recently quit as the Group Chief Marketing Officer of AIA, is joining Great Eastern as its new Group CEO effective 10 February 2011. Interestingly, the previous Group CEO of Great Eastern, Ng Keng Hooi, has actually crossed over to AIA. Christopher is an associate of the Casualty Actuarial Society.

Great Eastern appoints Christopher Wei as New Group CEO

24 November 2010 – Great Eastern Holdings Limited announced today that it has appointed Mr Christopher Wei as its new Group CEO. Mr Wei, a Canadian Chinese, will be joining the company with effect from 10 February 2011
November 25, 2010

Insurance News HLTMT launched a new product "HLTMT i-Ihsan" and is expecting RM1 mil contributions in 6 months from the product. The product has high sum covered multiples and is targeted at lower income segment.

HONG Leong Tokio Marine Takaful targets more young customers

HONG Leong Tokio Marine Takaful Bhd (HLTMT) wants to have more young customers, especially among those defined as Generation Y.
November 24, 2010

News Posts 20101115-20101121

Insurance News The AIA takaful JV is officially named AIA AFG Takaful Berhad. It targets to start operation in Q1 next year.

Alliance Financial unit, AIA in tie-up

KUALA LUMPUR: Alliance Financial Group Bhd’s subsidiary Alliance Bank Malaysia Bhd has entered into an agreement with American International Assurance Bhd (AIA) to set up a joint-venture company, AIA AFG Takaful Bhd.
November 19, 2010

Insurance News The ING Takaful JV aims to be profitable in year 4 of operations; Great Eastern Takaful also previously set the same target. The ING JV aims to launch its first product in April 2011 and eventually will expand into Indonesia and Hong Kong.

ING-PBB tie-up aims for profit in Y4

ING and Public Bank Bhd(PBB) new takaful firm aims to be profitable by its fourth year of business as it taps Malaysia’s underserved insurance market, and eventually expand into Indonesia and Hong Kong, its owners said today.

November 18, 2010

Insurance News M&A of insurance companies often fails due to disagreement on price. Traditional valuation methods such as price earnings ratio and net asset value are not appropriate. Some recent failed M&As include P&O with Prudential, Tahan with Tokio Marine, Shriram, Fairfax and Allianz, Prudential with AIA.

Price the main barrier in insurance stake sale talks

PETALING JAYA: The stake sale or takeover negotiations among insurance companies often come to nought as both parties are unable to agree on a price.
November 17, 2010

Insurance News BNM has approved the sale of Pacific Insurance to Fairfax Asia. The details of the sale including the price has yet to be announced.

PacificMas gets nod

PACIFICMAS Bhd said it has got the approval from the Minister of Finance through Bank Negara Malaysia to dispose its entire stake in The Pacific Insurance Bhd to Fairfax Asia Ltd.
November 17, 2010

Insurance News For insurance companies with both conventional and takaful licences, should they use the same agency to sell both products or should they have separate agency channels? Companies like Great Eastern, Prudential and AIA seem to prefer one agency while MAA prefers separate agencies. It is not clear which way ING will go.

Insurance companies leverage on conventional and takaful platform

PETALING JAYA: The dual agency concept, where conventional and takaful policies are sold by the same agents, is gaining popularity, especially among bigger insurance players, as an effective way to boost market share and deepen the penetration rate of insurance in the country.

November 16, 2010

Insurance News Nor Shamsiah will replace Dato' Zamani as the new Deputy Governor.

BNM Press Statements

Bank Negara Malaysia wishes to announce the appointment of Puan Nor Shamsiah Mohd Yunus as Deputy Governor for a three year tenure effective 16 November 2010. Puan Nor Shamsiah takes on the position of Deputy Governor following the retirement of Dato' Zamani Abdul Ghani on the completion of his term on 15 November 2010.

November 15, 2010

News Posts 20101108-20101114

Insurance News The proposed acquisition of P&O by Prudential has been called off.

P&O proposed divestment of insurer called off

KUALA LUMPUR: Pacific & Orient Bhd has called off the preliminary negotiations for the proposed divestment of an equity interest in Pacific & Orient Insurance Co. Bhd to Prudential Holdings Ltd.
November 13, 2010

Insurance News Has insurance industry lost its focus? Instead of selling on protection, are we now emphasising too much on investment return? Insurance veteran Captain Chia thinks so. The unhealthy trend nowadays in the industry is consumers are pursuaded at shopping malls, through SMS/internet to buy insurance for its short premium payment period and high illustrated return. Many have lost track of the fundamental of insurance which is "love and responsibility". The consequences are low persistency, lack of needs based selling and also agents shying away from customers when investment return is worse than illustrated. Insurance products should not be sold on its return. Your views?

回酬至上·本末倒置 保险变了样

保险，顾名思义，原是讲求和着重保障的金融产品，但国内外保险市场上近期出现的一些乱象，令这个传统保障型产品已变相被当成另一种讲求投资回报的产品。

November 12, 2010

Insurance News It seems that the sale of Pacific Insurance to Fairfax Asia will need to complete by 17 April 2011.

OCBC gets 6 more months, instead of one year, to comply in PacMas takeover

KUALA LUMPUR: Bank Negara Malaysia (BNM) has given Oversea-Chinese Banking Corporation Ltd (OCBC) another six months from Oct 17, for the latter to comply with the approval conditions in the acquisition of PACIFICMAS BHD
November 11, 2010

Insurance News ING will demerge its banking and insurance operations by having 2 IPOs for its insurer, one in US and one in Europe.

ING plans insurance IPOs in US, Europe

AMSTERDAM: Dutch banking and insurance group ING yesterday said it was planning two initial public offerings for its insurance activities as part of a split of the group.
November 11, 2010

Insurance News The role of the actuary will evolve in the years ahead "to deliver more robust ERM, including designing potential scenarios rather than solely performing retrospective statistical analysis", according to Aon Benfield. "Managing emerging risks is an opportunity for actuaries to add significant value to the risk management function."

Actuaries: a new role in enterprise risk management

Aon Benfield is highlighting what it sees as the future "critical" role of actuaries in managing emerging risks for the re/insurance industry.
November 10, 2010

Insurance News Takaful Malaysia will look for growth opportunities in countries like Indonesia as the competition in the local industry becomes stiffer following the issuance of 4 new takaful licences. Takaful Malaysia's Indonesian venture currently contributes 5% of the group revenue. The strategy in Indonesia for Takaful Malaysia is to focus on bancaassurance.

Takaful Malaysia eyes Indonesia expansion

STIFFER competition in the local takaful industry, brought on by the issuance of new takaful family licences to four new players, is driving Takaful Malaysia to look beyond the country for more growth opportunities.
November 10, 2010

News Posts 20101101-20101107

Insurance News SC said it has consulted the unit trust fund managers on the broad framework of PPF. Meanwhile FIMM said that SC is still working with MoF to come up with the final framework before they engage the industry and players in the market.

SC: Stakeholders consulted on pension fund plan

THE Securities Commission (SC) has denied it left unit trust fund managers out in the cold on the proposed Private Pension Fund (PPF), saying that it has consulted them on the broad framework of the scheme.
November 4, 2010

Insurance News The improvements in corporate governance practices and capital positions of insurance and takaful industry has been uneven between institutions and overall progress could be further accelerated. M&A would be 1 option to accelerate this. The role of signing actuaries may be expanded to support the more robust risk management particularly with respect to underwriting and solvency assessments.

Zeti: Observe prudent underwriting standards

KUALA LUMPUR: Meanwhile, in the insurance and takaful industry, Zeti said there had been continued improvements in corporate governance practices and further strengthening of the capital positions of individual institutions.
November 4, 2010

Insurance News Allianz wants to expand distribution channel by tapping the internet or social media networks and conducting worksite marketing with non-financial based companies, in addition to the current agency force and bancassurance channel. The new channels would bring in close to 10% of revenue over the next 3 to 5 years.

Allianz eyes alternative distribution channels

KUALA LUMPUR: Allianz Malaysia Bhd will focus on two main fronts which it is confident will generate new revenue streams for the company and put it on a stronger footing in the competitive insurance landscape.

November 4, 2010

Insurance News Insurance companies may be required to appoint dedicated risk heads. The role of signing actuaries is under review. BNM will issue regulatory framework for takaful by end of this year.

Malaysia mulls risk heads for insurance firms

Malaysia’s central bank is considering whether to require insurance companies to appoint dedicated heads of risk, according to a speech by Governor Tan Sri Dr Zeti Akhtar Aziz sent to the media today.
November 3, 2010

Insurance News FIMM opines that the no. of scheme managers for the proposed private pension fund should not be limited to 5 or 6. It should be opened to unit trust companies, insurance companies and takaful operators that have got the economies of scale in managing such scheme.

Fund managers still in the dark over private pension plan

MALAYSIA'S unit trust fund managers are still in the dark about the proposed private pension scheme (PPS) but they stressed that it should be run by existing companies and not by brand new start-ups.
November 3, 2010

Insurance News Zakri Mohd Khir will take over the role of CEO for Allianz General from Ng Hang Ming. Zakri was previously the non-independent and non-executive director of the parent company - Allianz Malaysia Bhd. There is no immediate news on where Ng Hang Ming is heading.

Zakri named as new CEO of Allianz General

PETALING JAYA: Zakri Mohd Khir is now the new chief executive officer of Allianz General Insurance Company (M) Bhd (AGIC) pending approval from Bank Negara.
November 2, 2010

Insurance News The number of life insurance companies in Malaysia will officially reduce from 16 to 15 soon as Etiqa is reaching the final stage of merging Mayban Life to Etiqa Insurance. The number of Takaful operators will also reduce by 1 accordingly.

Etiqa at final stage of merger process

ETIQA says it has reached the final stage of its merger process as it transfers the businesses, assets and liabilities of Mayban Life Assurance Bhd to Etiqa Insurance Bhd from today.
November 1, 2010

News Posts 20101025-20101031

Insurance News Great Eastern Takaful's targets: a) Expand operations to Indonesia and Brunei by 2H 2011 b) Penetrate Singapore and China markets within 3-5 years c) RM1 bil contributions in the next 5 years.

i-Great eyes regional market for takaful JV

KUALA LUMPUR: i Great Capital Holdings Sdn Bhd (i-Great), the parent of the new joint venture (JV) takaful licensee Great Eastern Takaful Sdn Bhd, hopes to expand its Islamic insurance operations in Indonesia and Brunei by the second half of next year.

October 30, 2010

Insurance News Some highlights of Great Eastern's Q3 results: regular premium ILP in Malaysia grew 55% in 2010; CAR above 200% in Malaysia; group profit grew 15%; group weighted premium rose 12%.

Great Eastern Announces Q3 Results

27 October 2010 – Great Eastern Holdings Limited today reported Group profit attributable to shareholders of $168.6 million in Q3-10 compared to $33.6 million in the same period last year.
October 28, 2010

Insurance News Takaful operators can expand fast especially in a new market by allowing their products to be white-labelled or to be the outsourcing partner of a local player in that new market. Some key success factors for proper takaful industry development include strong legal and shariah framework and mutual recognition of financial standards and products.

Takaful outsourcing on the rise

THERE is a rising trend of outsourcing and white labelling in the takaful industry as companies seek to expand faster.
October 28, 2010

Insurance News The Insurance Regulatory and Development Authority (IRDA) has banned universal life products in India. More than 500 life insurance products were banned since 2007 for being opaque or against the interest of policyholders. There are differing views on the role of appointed actuaries (AAs) in ensuring products are fair and equitable, given the different hats that AAs may wear. There are also suspicions that the product bans are not purely due to equity issue but are driven by parties who try to meet their self interests.

Scrapped insurance products bring actuaries in spotlight

Chennai, Oct 24 (IANS) The Indian actuarial profession is in the spotlight with more than 500 life insurance products being scrapped by the insurance regulator since 2007 for being opaque or against...
October 26, 2010

News Posts 20101018-20101024

Insurance News MTUC is now objecting PPF as the investment returns are not guaranteed. In particular MTUC seems to be against insurance companies.

MTUC against private pension fund

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has called on the 10 million contributors to the Employees Provident Fund (EPF) not to participate in the proposed Private Pension Fund (PPF) as returns for their investment are not guaranteed.
October 20, 2010

Insurance News The SC will be the regulator for private pension fund. A small number (5 to 6) of reputable and credible unit trust and insurance players will be picked to manage the fund. Additional tax relief will be granted gradually.

SC said to regulate private pension fund

The Securities Commission (SC) will regulate and monitor the Private Pension Fund, which will be tabled in parliament next year, said Finance Ministry sources today.
October 20, 2010

Insurance News HSBC Amanah Takaful's CEO predicts that takaful industry will overtake conventional insurance in 10 years' time in terms of penetration rate (defined as premiums expressed as % of GDP). This is in view of the 4 new takaful licences issued recently. The challenge of growth however lies in sufficient supply of shariah compliant investment instruments.

Takaful needs more assets to grow further

MALAYSIA'S Islamic insurance industry will surpass its conventional counterpart in 10 years with the entry of new players but it needs more assets to expand further, an Islamic insurer said yesterday.

October 19, 2010

Insurance News With the award of 4 new takaful licences, the talent war has intensified and some staff pinching is expected. Areas identified include actuarial, product development and investment.

Hunt for talent in takaful

MALAYSIA'S Islamic insurance industry will surpass its conventional counterpart in 10 years with the entry of new players but it needs more assets to expand further, an Islamic insurer said yesterday.

October 18, 2010

Insurance News AIA shares are being offered in an IPO from today to Thursday and expect to raise up to US$20 bil.

AIA seeks to raise up to US$20b in IPO

HONG KONG: AIA Group Ltd said yesterday it could raise up to US$20 billion (US$1 = RM3.09) in its global public offering this month, putting it on track to be the world's second biggest IPO of 2010.
October 18, 2010

Insurance News Deputy Finance Minister said government may manage the private pension fund.

Govt may manage private pension fund

The Government may manage the Private Pension Fund but is waiting for feedback on the fund proposed under Budget 2011, says Deputy Minister of Finance Datuk Donald Lim Siang Chai.
October 18, 2010

News Posts 20101011-20101017

Insurance News MTUC wants government to control the PPF as "the scheme might collapse if left in the hands of the profit-driven private sector". Do you agree?

MTUC: Govt should control PPF

THE much talked about Private Pension Fund (PPF), targeted at those outside the current pension scheme and the self-employed, should not be left in the hands of profit-driven companies.
October 16, 2010

Insurance News Budget 2011: Double tax deduction will be given on payment of takaful contribution for export credit to companies approved by MoF. Currently only payment of conventional premium for such purpose is given double taxation. This Budget announcement will result in equal tax treatment between conventional insurance and takaful.
October 15, 2010

Insurance News Budget 2011: Private Pension Fund to be launched in 2011. Existing RM6,000 tax relief for EPF and insurance premiums combined can be used to purchase private pensions. No additional tax relief granted, not as proposed under Economic Transformation Programme whereby additional RM6,000 tax relief is to be made available.
October 15, 2010

Insurance News Great Eastern Takaful will launch 2 products early next year: I Great Damai (protection) and I Great Abadi (investment). 15 riders will also be made available.

Great Eastern takaful tie-up prepares to ‘hit the ground running’

KUALA LUMPUR: The new joint-venture (JV) takaful unit formed by Great Eastern Holdings Ltd and Koperasi Angkatan Tentera Malaysia Bhd (KAT) hopes to start operations by January, subject to receiving the operating licence from Bank Negara.

October 15, 2010

Insurance News Bancassurance channel dominates the SP sales with 66% market share but when it comes to RP business it only commands 12% market share. On total premium basis, bancassurance is the 2nd largest channel with 32% share of the premiums.

Bancassurance gains ground

PETALING JAYA: Bancassurance is fast becoming a formidable No. 2 distribution channel in the insurance industry behind agency.

October 15, 2010

Insurance News Great Eastern takaful JV sets itself a target date of 11 Jan 2011 to be operational and 4 years to bring in the 1st profit. The JV will also make Malaysia the headquarters for takaful and commits to expand business overseas within 1 year. Brunei and Indonesia are the 2 likely markets.

Great Eastern to boost takaful services

Great Eastern Holdings Ltd plans to recruit more Bumiputera agents to further strengthen its agency infrastructure, especially in takaful services.
October 14, 2010

Insurance News AmLife will distribute its AmMedic plan through IHM and targets to secure RM2 mil premiums in 1st year and RM3 mil yearly thereafter.

AmLife eyes RM3m premiums from IHM tie-up

AmLife Insurance Bhd (AmLife), previously known as AmAssurance Bhd, aims to generate RM3 million premiums annually from its partnership collaboration with Integrated Healthcare Management Sdn Bhd (IHM).
October 13, 2010

Insurance News Manulife Holdings Bhd's single largest shareholder is making a conditional take-over offer but intends to maintain the listing status of the company.

MHCN makes takeover bid for Manulife

Manulife Century Holdings (Netherlands) B.V. (MHCN), which now has 48.66 per cent equity interest in Manulife Holdings Bhd (MHB), has offered RM3.22 per share for the remaining shares it does not own under a conditional take-over offer.
October 13, 2010

Insurance News In the effort of fighting insurance frauds which cause policyholders money through higher premium rates, the Australians launched a fraud hotline for frauds to be reported in an anonymous and convenient ways.

Fraud hotline launched

A new phone service is encouraging Australians to report suspected insurance fraud. The Insurance Fraud Hotline, set up by a Sydney-based investigations company, provides an online hub to report fraud information. People can upload pictures, videos and scanned documents. It is secure and users can ...
October 11, 2010

Insurance News Tokio Marine Life launched Opt-Income policy, a 20-year participating anticipated endowment plan and targets to secure RM20 mil premium within a month.

Tokio Marine expects RM20mil sales with new opt-income policy

KUALA LUMPUR: Tokio Marine Life Insurance Malaysia Bhd expects to secure RM20mil in sales within a month from its new Opt-Income policy.
October 11, 2010

Insurance News LIAM hopes that in the coming Budget government would remove the 8% tax on investment income in life fund. The removal of tax would benefit policyholders and put life insurance funds on level playing field with other investments such as unit trusts.

LIAM wants govt to remove tax on investment earnings

KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) wants the government to remove the 8% tax on investment earnings that is currently imposed on life insurance funds in the Budget 2011 to be tabled in Dewan Rakyat this Friday.
October 11, 2010

News Posts 20101004-20101010

Insurance News Jerneh group says it would not consider getting back into insurance due to it's tight regulations.

Jerneh Asia confirms stake sale to Ace

KUALA LUMPUR: Jerneh Asia Bhd chairman Datuk Lim Chee Wah said the deal to sell the company’s 80% stake in Jerneh Insurance Bhd was signed earlier Thursday.
October 7, 2010

Insurance News AIA's IPO values the company at US$30.5 bil, slightly higher than the offer from Prudential of US$30.4 bil. The value is also equivalent to 1.2 to 1.3 times embedded value.

AIA: Failed Prudential deal may impact business

HONG KONG: AIA Group Ltd, which aims to raise about US$15bil through a Hong Kong listing, flagged a series of business risks including the collapsed bid from Prudential Plc as it launched the share offering yesterday.
October 6, 2010

Insurance News MAA's total new business premium market share has dropped from 12.6% in 2008 to 8.7% in 2009. BNM has also given MAA until March 2011 to comply with minimum capital adequacy requirement.

RAM downgrades MAA Holdings’ debt facility rating

PETALING JAYA: RAM Rating Services Bhd has downgraded the stand-alone rating of MAA Holdings Bhd’s RM200mil Commercial Papers/Medium-Term Notes (CP/MTN) under its CP/MTN programme (2007/2014), from BBB3/P3 to BB3/NP.
October 6, 2010

Insurance News The life insurance industry is expected to grow 20% this year after achieving 24% growth in 1H. True insurance penetration rate is lower than 41% if multiple policies are taken into account. A separate tax relief of RM6,000 for life insurance alone rather than combined with EPF contributions is essential as the country moves to become high-income nation. Post-retirement distribution phase needs must be addressed in the private pension initiative.

Life insurers upbeat on 20pc growth this year

The Life Insurance Association of Malaysia (Liam) expects the local life insurance industry to grow 20 per cent this year backed by strong economic growth in the first six months.

October 5, 2010

Insurance News Life insurers are ideal provider of private pension scheme as they have the characteristics of holding long-term investment view, capacity to handle ever-increasing fund size and ability to design various solutions to suit different investment objectives at different life stages. The investment objectives can be significantly different pre and post retirement age.

Thumbs up for private pension funds

KUALA LUMPUR: The initiative by the Government to set up private pension funds is expected to promote the private pension industry and retirement planning in Malaysia. However, it needs skilled insurers and fund managers that have long-term views for it to be effective.

October 4, 2010

Insurance News Friends Provident intends to make their takaful JV in Malaysia their global takaful centre of excellence. FP is supportive of Malaysia's ambition to be the leading global Islamic financial hub.

Big plans for Friends-AMMB takaful ops

The UK-listed life and pension company, Friends Provident Group plc, plans to turn its new takaful joint venture in Malaysia into its global takaful centre of excellence.
October 4, 2010

Insurance News Bijak Malaysia, the leading bancassurance product, should secure >RM50 mil gross premiums by year end. Other products in the pipeline from NIAM include guaranteed renewable medical plan, takaful term plan and critical illness plan.

Niam sees higher premiums for Bijak Malaysia

HONG KONG: The National Insurance Association of Malaysia (Niam) is confident of doubling its gross premiums in excess of RM50mil for Bijak Malaysia by year-end, fuelled by surging demand for bancassurance products.

October 4, 2010

News Posts 20100927-20101003

Insurance News The 15.2% stake in RHB Insurance is valued at RM44.49 mil or 1.85 times book value. Earlier Jerneh Insurance was priced at 1.07 times book value.

RHB Capital buys out 15.2pct stake of RHB Insurance for RM44.49m

KUALA LUMPUR: RHB CAPITAL BHD [] is buying out a 15.2% stake in RHB Insurance Bhd from Nissay Dowa General Insurance Co. Ltd for RM44.49 million.
September 30, 2010

Insurance News ING expects its Takaful JV with Public Bank to gain 20% market share within 5 years. Public Bank group owns 40% of the JV and not 60% as reported in the article by BT.

ING, Public Bank in takaful venture

ING Insurance Bhd and Public Bank Bhd will set up their joint-venture company for family takaful business next year, ING Insurance's chief financial officer Anusha Thavarajah said today.
September 30, 2010

Insurance News Peter Miller, the Head of Insurance at CIMB Group, is joining Tune Money as its new CEO. It is believed that Miller's position at CIMB would be filled by a CEO of one of the life insurance companies.

Tune Money names Peter Miller CEO

TUNE Money Sdn Bhd, the one-stop online financial services company under Tune Group, today announced the appointment of Peter Miller as its new chief executive officer effective Friday (Oct 1).
September 29, 2010

Insurance News RHB Capital has received BNM's approval to acquire 15.2% of RHB Insurance from Nissay Dowa.

RHB gets central bank’s approval

PETALING JAYA: RHB Investment Bank Bhd has received Bank Negara’s approval for RHB Capital to acquire 15.2% of the paid-up share capital of RHB Insurance from Nissay Dowa, it told Bursa Malaysia yesterday.
September 28, 2010

Insurance News Agents have a big potential to improve the current insurance penetration rate of 41%. In Malaysia, only 20.5% of the agents are bumiputras.

Agents can help expand market, says Liam

PETALING JAYA: Insurance agents in Malaysia have a big potential to expand the life insurance market since its penetration rate has only reached 41%, Life Insurance Association of Malaysia president Adnan Zain said.

September 27, 2010

News Posts 20100920-20100926

Insurance News AIA is expected to list on HK stock exchange on 29/10/2010.

AIG gets nod for Asian unit IPO

HONG KONG: Troubled US insurer AIG has won approval for a Hong Kong share sale of its Asian unit, AIA, worth up to US$15 billion (RM46.4 billion), in what could be the world's second biggest stock offering this year.
September 23, 2010

Insurance News Another ex-Prudential staff, Bill Lisle, has joined Mark Tucker in AIA. Bill was once the CEO of Prudential Malaysia.

Former Agency Head of Prudential Asia Rejoins AIA in New Role

AIA Group Ltd. has appointed Bill Lisle, a former agency development head for Prudential Corporation Asia, as group chief distribution officer based in Kuala Lumpur.
September 21, 2010

Insurance News MAA Takaful signed an agreement with LIMRA and CERT for the development and implementation of a comprehensive Shariah-compliant Leadership Development Programme.

MAA Takaful targets RM1b revenue in 5yrs

KUALA LUMPUR: MAA Takaful Bhd is expecting RM1 billion in total revenue in five years time with the strengthening of its distribution channels, says chief executive officer Salim Majid Zain.
September 20, 2010

ETP - Foreign Worker Health Insurance

Private Health Insurance will be mandated for all foreign workers to address under insurance and to avoid unpaid bills in government hospitals. Employers and foreign workers to share premium of RM200 p.a. Coverage includes accidental death due to employment injury, disablement (total & partial, permanent & temporary), medical benefits (occupational & non-occupational).

ETP - Private Pensions

ETP proposes to develop Private Pension Funds (PPFs) through: 

1. Employers' contributions exceeding 12% to channel to PPFs 
2. Allow EPF members to move part of savings to PPFs 
3. EPF members with >RM 1 mil in EPF will enjoy a lower return 
4. PPFs allowed to manage EPF fund 
5. Self-employed enjoys same tax relief if contribute to PPFs 
6. Pension income from PPF is tax exempt 
7. Additional RM6000 tax relief for PPF contributions.

ETP - Life Insurance

The Economic Transformation Programme (ETP) proposes to increase life insurance penetration (as % GDP) from the current 3% to 4% in 2020 and the ratio of number of life policies over population from the current 47% to 75%. This is to be achieved by separating the current combined tax relief for EPF and insurance to RM6,000 each. An Employee Insurance Scheme with auto term coverage will be created, CI and HB covers optional.

News Post 20100913-20100919

Insurance News FSA inked an agreement with HLTMT to distribute its takaful products.

FSA Offering Syariah Perspective Financial Planning

FIRST Sovereign Advisory Sdn Bhd (FSA), the country's first licensed Islamic financial advisory firm, hopes to form partnerships with more takaful and financial companies over the next 12 months.
September 18, 2010

Insurance News Matt Harris was appointed as CEO for Chartis effective 3 August. He was previously CEO of Chartis NZ.

Chartis appoints Harris as CEO

CHARTIS Malaysia Insurance Bhd, a property-casualty and general insurance provider, has appointed Matt Harris as chief executive officer (CEO) from August 3.
September 18, 2010

Insurance News Charlie believes that Prudential has solid strategy that does not require many changes. Putting right people in critical positions is key to ensure initiatives are executed to meet objectives. On products, quality beats quantity, product launch should be of value, less can be more. He believes that Pru's competitive advantage lies in service excellence mandate for staff, leading by example policy for management and professionalism & stability of distribution channels.

A strategy that makes Prudential stand out

PRUDENTIAL Assurance Malaysia Bhd, under the stewardship of Charlie Oropeza, has been about having the right people in critical positions and adjusting its initiatives to support economic and market environment, and competition.

September 17, 2010

Insurance News Heavyweight Chinese investors could potentially bid for Prudential, with the intention of offloading Pru's US and UK divisions, keeping only the flagship Asian division. Factors that may affect the potential bid include the relative pricing of AIA's IPO and whether Pru's US and UK divisions can be offloaded at an attractive price.

China bid for UK Prudential seen hinging on AIA

* Pru shares up 4.5 pct, breaching 602 pence pre-AIA price * Potential Chinese bid depends on AIA IPO price-analyst * Lack of buyers for Pru UK, U.S. units impedes deal-banker By Myles Neligan and ...
September 14, 2010

Insurance News The confirmed buyer of Jerneh Insurance is ACE INA, for a transaction amount of RM654 mil, subject to final adjustments to transaction price to reflect book value at disposal date.

Proposed Disposal of Equity Interest in Jerneh

Reference is made to the announcements dated 18 May 2010 that JAB and Paramount Global Assets Sdn Bhd (“PGA”), a wholly-owned subsidiary of Paramount Corporation Berhad (“PCB”), have submitted an application to Bank Negara Malaysia (“BNM”) for the approval of the Minister of Finance (“MoF”) pursuant to Section 67 of the Insurance Act 1996, to enter into an agreement with a potential buyer for the proposed disposal by JAB and PGA of their respective 80% and 20% equity interests in JIB to the said potential buyer.
September 14, 2010

Insurance News PruBSN launched 3 products: PruBSN Protect (Term), PruBSN ProtectPlus (Term with increasing SA) and PruBSN CrisisCover (covers 36 CIs, optional death monthly income).

Prudential BSN Takaful launches 3 insurance plans

KUALA LUMPUR: Prudential BSN Takaful Bhd (PruBSN) had on Monday, Sept 13 launched three insurance plans -- PruBSN Protect, PruBSN ProtectPlus and PruBSN CrisisCover.
September 13, 2010

Insurance News Niosh is calling for insurance coverage to be provided to the mentally ill.

Lee: Provide cover for the mentally ill

PETALING JAYA: Insurance coverage should be provided for the mentally ill, while their parents should be given income tax relief, said National Institute of Occupational Safety and Health (Niosh) chairman Tan Sri Lee Lam Thye.
September 13, 2010

News Post 20100906-20100912

Insurance News Great Eastern China, which currently has its presence in Chongqing and Sichuan, is targeting a branch in Shaanxi this year and another 6 in the next 3 years. The Singapore PM visited their Chongqing head office recently.

Great Eastern joint venture making great strides in China

AFTER stamping its mark on western China over the last four years, Singapore's leading life insurance group Great Eastern Life now wants a greater footprint in the country by expanding across the central and eastern regions.

September 9, 2010

Insurance News KATM, Great Eastern's JV partner in takaful, is no stranger to the OCBC group and in that sense to Great Eastern. OCBC owns significant share of both Great Eastern and Pacific Insurance and KATM has significant ownership in Pacific Insurance. The takaful JV may be able to capitalise on KATM's 140,000 members.

Great Eastern, KATM in win-win alliance

The Great Eastern Life Assurance Co Ltd says its alliance with Koperasi Angkatan Tentera Malaysia Bhd (KATM) will provide access to the latter's 140,000 members nationwide.

September 9, 2010

Insurance News Charlie Oropeza, the CEO of Prudential, was presented with "Outstanding Entrepreneur" award which recognises outstanding individuals for displaying entrepreneurial attributes.

Prudential Assurance chief recognised

PRUDENTIAL Assurance Malaysia Bhd, an insurance and financial services provider, yesterday announced the award of "Outstanding Entrepreneur" given to its chief executive officer Charlie Oropeza (picture) at the Asia-Pacific Entrepreneurship Awards 2010 Malaysia.

September 9, 2010

Insurance News New bancassurance product from HLA with the following features: Term Life, double SA on accidental death, refund of premiums (including extra loadings) on expiry.

Hong Leong launches bancassurance plan

KUALA LUMPUR, Sept 9 (Bernama) -- Hong Leong Bank (HLB) has launched a bancassurance plan that promises customers a refund on premiums paid.
September 9, 2010

Insurance News 1 more article on the issuance of 4 new takaful licences and its impact. Most of the points have been covered and reported previously.

The going gets tough for takaful industry

Malaysia'a takaful industry is expected to step up its performance now that an additional four operators have been issued licences to start business next year, said industry players.

September 8, 2010

Insurance News OAC wants to build its agency force and brand name. The acquisition of Tahan Insurance would increase its agency force from 2,600 to more than 3,000 and strengthen its brand.

Overseas to leverage on Tahan takeover for bigger market share

PETALING JAYA: Building the agency force and brand name are two key areas Overseas Assurance Corp (M) Bhd (OACM) will bank on to strengthen its position in the insurance market with the acquisition of Tahan Insurance Malaysia’s general insurance business.

September 8, 2010

Insurance News AIG has filed an application last Thursday to list AIA on the HK Stock Exchange. CIMB is 1 of the 11 bookrunners.

CIMB picked as one of 11 bookrunners for AIA’s IPO

PETALING JAYA: CIMB Group has been selected as one of the 11 bookrunners for AIA Group Ltd’s US$15bil initial public offering (IPO).
September 6, 2010