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Sunday, 17 October 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?
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.
GE KAT 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.
Market Share 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 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 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.
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.
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.
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.
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

1 comment:

  1. It is not wrong that MTUC insists on it being Government managed as there is the perception of a guarantee in the event of failure of the scheme. Nonetheless, if it is privately run then there is also the expectations of higher returns and efficiency. It ideally should be left to just one or two established pension players with the expertise and financial credibility and in return for this exclusivity of management the returns from the economy of scale passed back to the pensions savers. There has to be strict governance guidelines and even representations to their SPV Board from a wide range of stakeholders like EPF, MTUC, MOF etc so that the consumers' interest is protected and safeguarded. The purpose of a private pension scheme is also to allow savers with a bigger risks appetite and more savvy investors to manage their savings for higher but proportionally risked returns - this approach should be an opt out option. The opt in option should be for risks averse savers - say for a staggered approach of savings up to RM25-50k should be risks free and higher risked savers for higher sums allowed to opt for a range of investments savings accumulation strategies (range of funds to be offered). Costs of distribution must be minimal so that pricing could be more beneficial to savers; maybe all touch points like Pos Malaysia, EPF, SOSCO etc should be accessible for savers to remit and/or purchase the private pension plans. We should not forget that private equates profits but private may also equates better returns from the synergies, economies of scale, capacity and capability/expertise derived from these MNCs to fulfill these expectations and conditions.