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Tuesday, 13 November 2012

Migration Completed

Migration of this blog is now complete.

For Insurance News from August 2012 onwards, visit:

For Insurance News between May 2010 to August 2012, visit:

For Insurance News prior to April 2010, visit:

Sunday, 4 November 2012

We are moving...

We are in the process of moving this blog.  New posts will appear in:  (not up yet)

and (access is available now)

Currently the new website is still under constructions and hence certain features may not function properly yet.  Please bear with us.

Wednesday, 17 October 2012

News Posts 20121008-20121014

Insurance News  14 Oct 2012  -  Public
So what will happen to car insurance if you own one of these driverless cars?  Would the car manufacturer take up the insurance instead of you because if there is an accident, it is no longer you that are at fault as you are a mere passenger.
Lloyds is questioning whether driverless cars will shift the need for insurance away from consumers and towards manufacturers. Autonomous, or driverless, cars navigate using sophisticated technologies...

Insurance News  12 Oct 2012  -  Public
More news on AIA ING merger, including: 1) Second largest bancassurer post merger; 2) No 1 in market share is as measured by total premiums (including in-force block?); 3) "Will take the best from both sides" "too early to consider retrenchment" "natural attrition would not be surprising" "reassure our colleagues from ING that whatever we do will be fair and transparent".
The purchase of ING by AIA does not affect AIA's ratings, according to S&P.
Standard & Poor's Ratings Services said today that its ratings and outlook on American International Assurance Co. Ltd. (AIA; local currency AA-/Stable/--; cnAAA/--) and American International...

Insurance News  12 Oct 2012  -  Public
Tune Insurance, previously named Oriental Capital Assurance and for which 80% of its stake was bought for RM151.91 mil, is slated for listing next year with an estimated market capitalisation of close to RM800 mil.
BUSAN: The initial public offering (IPO) fervour surrounding maverick businessman Tan Sri Tony Fernandes continues – now he is considering to float the Tune Group.

Insurance News  12 Oct 2012  -  Public
AmG wants to keep Kurnia's brand post merger.  The plan is for both AmG and Kurnia to be under AmG's licence.  It would be interesting to see whether this is allowed by BNM as this will create the first insurance company in Malaysia that sells products under two different brands.
The plan will possibly see Kurnia surrender its insurance licence and operate under AmG's operating licence.

Insurance News  11 Oct 2012  -  Public
AmG held a special event to welcome Kurnia into its family.  Post merger, AmG will become the largest general insurer in the country and market leader in motor insurance.
Ambank Group is eyeing 50 per cent growth for its motor insurance from 22 per cent currently, said Duncan Brain, Chief
Executive Officer AmG Insurance Bhd and Kurnia Insurans (M) Bhd.

Insurance News  11 Oct 2012  -  Public
It is interesting to see what would happen to ING Public Takaful Ehsan post AIA-ING merger. AIA already has a stake in AIA AFG Takaful and under the current BNM rules, they are not allowed to hold 2 takaful licences. Merging AIA AFG with ING Public will mean Public Bank and Alliance Bank having JV in takaful, feasible?

Insurance News  11 Oct 2012  -  Public
Contrary to the earlier report, AIA has claimed No. 1 in market share post merger with ING, unseating Great Eastern as well.
The deal catapults AIA to the top, displacing Great Eastern that has market share of 22.9%.

Insurance News  11 Oct 2012  -  Public
AIA has agreed to pay US$1.73 bil (another report says US$1.68 bil) in cash to buy ING's Malaysian insurance operations. The deal values ING at 1.8 times its embedded value, much higher than the value of AIA which is at 1.5 times. The purchase of ING will push AIA from the No. 4 position to No. 2 in Malaysia, unseating Prudential. AIA had earlier acquired Aviva's Sri Lankan operations less than a month ago.
AMSTERDAM: ING said it has agreed to sell its Malaysian insurance unit to pan-Asian insurer AIA Group Ltd for 1.3 billion euros (US$1.68 billion) in cash, kicking off the Dutch group's long-awaited di...

Insurance News  9 Oct 2012  -  Public
George Chew is Manulife's new CEO effective September 28.
KUALA LUMPUR: Manulife Insurance Bhd (Manulife Malaysia), a subsidiary of Manulife Holdings Bhd, has appointed George Chew as its new chief executive officer (CEO), effective September 28. 

Insurance News  8 Oct 2012  -  Public
So, is it true that Mohamad Salihuddin Ahmad stepped down as CEO of GETSB because he didn't want to report to Koh Yaw Hui?
Malaysia: Great Eastern Takaful CEO steps down amid structural changes. Great Eastern Takaful CEO Mohamad Salihuddin Ahmad has resigned from his position, with local media suggesting that it was in ...

News Posts 20121001-20121007

Insurance News  4 Oct 2012  -  Public
With the removal of the 8% tax on investment income of the annuity fund and RM3,000 tax relief on annuity premiums, insurance companies are likely to launch a slew of annuity products in the near future.
INSURERS are set to launch a slew of annuity products in the near future now that the government has proposed to remove the eight per cent investment income tax on deferred annuity.

Insurance News  4 Oct 2012  -  Public
The takeover deal of ING Malaysia and Thailand by AIA could be completed by year-end and it is worth US$1.8 bil.
PETALING JAYA: A deal worth about US$1.8bil could be struck very soon between AIA Group Ltd and ING Group for the former to acquire the latter’s insurance operations in Malaysia and Thailand as part o...

Insurance News  2 Oct 2012  -  Public

MII has been asked to conduct a research on the adequacy of medical cover and the reasonableness of medical insurance premiums in Malaysia.
KUALA LUMPUR: There is a need for a comprehensive research in the area of medical insurance to ensure consumers are adequately covered with reasonable charges, Deputy Finance Minister Datuk Donald Lim...

Insurance News  1 Oct 2012  -  Public

MAA Takaful claimed leadership in regular investment-linked (basic) and single premium investment-linked businesses with market shares of 31% and 54% respectively. It attributed the success to company's agency force, "war room" concept, products and services as well as its technology and online initiatives.
KUALA LUMPUR: MAA Takaful Bhd, a wholly-owned subsidiary of MAA Group Bhd, is confident of maintaining its market leadership in the investment-linked business, notably in the regular investment-link...

  1 Oct 2012  -  Public

Steve Ong, the previous CEO of ING Funds, has taken up a new role as the CEO of the Private Pension Administrator Malaysia.
PETALING JAYA: The Private Pension Administrator Malaysia (PPA) has appointed Datuk Steve Ong Chong Gain (pic) as its chief executive officer with effect from Oct 1.

Insurance News  1 Oct 2012  -  Public

Great Eastern is planning to launch an annuity product by year end to take advantage of the RM3,000 tax relief. Its new business weighted premium grew 8% in 1H, the number of agents grew 27% and the Malay agents grew 179%. In 2H, it would focus on protection-based products in particular medical and critical illness products.
Great Eastern Life Assurance (Malaysia) Bhd recorded 8% growth in total weighted new business premium in the first half of 2012 and it expects stronger momentum in the second half, with continuous foc...

Sunday, 30 September 2012

News Posts 20120924-20120930

[Budget 2013] Takaful sector
1) Takaful assets RM18.3 bil account for 9% of total insurance and takaful assets (Jul 2012) cf RM16.9 bil 8.6% (Dec 2011).
2) Net contributions RM2.6 bil (Jan-Jul 2012) cf RM2.2 bil (Jan-Jul 2011).
3) New family takaful contributions: RM2 bil (Jan-Jul 2012) cf RM1.6 bil (Jan-Jul 2011).
4) Market penetration rate for family takaful: 13% (Jul 2012) cf 12.8% (Dec 2011).
5) Gross direct contributions for general takaful grew 14.2% to RM1 bil (Jan-Jul 2012) cf 18.1% RM0.9 bil (Jan-Jul 2011).
6) Updated Guidelines on Valuation Basis for Liabilities of Family and General Takaful Business were issued on 15/5/2012.

[Budget 2013] Insurance sector
1) CAR: 216.7% (Jul 2012) cf 222.5% (Dec 2011).
2) Market penetration rate for life insurance: 54.4% (Jul 2012) cf 54.7% (Dec 2011).
3) ILP NB premiums grew 24.8% to RM1.7 bil (Jan-Jul 2012) cf 24.3% RM1.4 bil (Jan-Jul 2011).
4) GI gross direct premiums grew 9.1% to RM9.1 bil (Jan-Jul 2012) cf 7.1% RM8.4 bil (Jan-Jul 2011).
5) Lower overall loss ratio was recorded: 59.2% (Jul 2012) cf 60.8% (Jul 2011).
6) No. of direct insurance companies reduced from 37 (Life 9, General 22, Composite 6 - Dec 2011) to 36 (Life 9, General 21, Composite 6 - Jul 2012).
  Insurance NewsYesterday 11:04
Can anyone tell me why there is a big jump in the insurance penetration rate from 43+% to 54+%? Did BNM change the calculation basis and if so what was changed?

[Budget 2013] The only item on LIAM's wish list that received positive news yesterday in the Budget announcement was the removal of the 8% tax on investment income on deferred annuity. With the removal of the 8% tax, deferred annuity fund will now enjoy the same tax status as PRS and will be able to compete on level playing field for retirement savings.
The Life Insurance Association of Malaysia (LIAM) said the government's removal of the eight per cent investment
income tax on deferred annuity will allow policyholders to enjoy better returns on their retirement savings. 

Insurance News  28 Sep 2012  -  Public
[Budget 2013]
Government will allocate RM40 mil to provide insurance cover for 2 years for 2 mil students taking licensed school buses to and from school. The insurance will cover accidental death and TPD.

Group insurance scheme will be set up for the army and police force with maximum cover of RM15,000. The scheme will cover 242,000 members and costs RM12 mil to the government.

1.5 months bonus for public servants, 0.5 month has already been paid before Hari Raya, another 0.5 month will be paid in December, and the balance 0.5 month in January 2013.

1% reduction in personal income tax rate for chargeable income between RM2,500 to RM50,000.

Insurance News  28 Sep 2012  -  Public
Insurance industry can expect the "best practice" as described in the prudential framework on corporate governance to be elevated to principles or minimum expectations to be met. Areas that were covered by BNM in its recent review included independence and board size and composition.
Bank Negara Malaysia (BNM) has completed a review of the existing corporate governance framework for banking and insurance industries and expects to consult with the industry later this year, said as...

Insurance News  28 Sep 2012  -  Public
[Budget 2013] A group insurance scheme will be made available for registered hawkers and small businesses with coverage of up to RM5,000. The cost to the government for the scheme is RM16 mil a year.

[Budget 2013] Finance and insurance and transport are expected to expand slower at 4.2% and 5.2%.
The government expects the Malaysian economy to grow at a slower pace of between 4.5% and 5% in 2012 compared with 5.1% for 2011, weighed by downside risks from the external sector.

Insurance News  28 Sep 2012  -  Public
Having fewer PRS providers may not be a bad thing as it can result in administrative efficiency, according to EY. Increasing the awareness of PRS is important as we cannot simply assume that people will take up PRS voluntarily.
KUALA LUMPUR: Having fewer providers to manage a pension plan like the recently launched Private Retirement Scheme (PRS), will result in better administrative efficiency, according to Ernst & Young...

Insurance News  27 Sep 2012  -  Public
Oriental Capital Assurance has been rebranded as Tune Insurance. It plans to undertake M&A in Indonesia and Thailand to boost its capacity. The company has targeted RM330 mil gross premiums next year, up from RM260 mil in 2012.
Tune Insurance Malaysia Bhd will be the first entity under the Tune Group to go public. 

Insurance News  27 Sep 2012  -  Public
A few Malaysian takaful operators are interested in capturing the Indonesian market due to the high-growth potential. Takaful operators that have recently expressed their interest include GETSB and Etiqa.
Malaysian Islamic insurers are expanding into neighboring Indonesia to tap growth three times as fast as in their home market, where Standard & Poor’s predicts tighter rules will curb expansion.

Insurance News  26 Sep 2012  -  Public
S&P is more positive on the developments of takaful in Malaysia than in other countries. In particular it cited the more sophisticated regulatory oversight and the stronger investment profile of the industry as 2 factors. The main concern for takaful industry worldwide is the lack of global standards in accounting and Shariah compliance.
Malaysia's takaful industry appears to be more healthy and sustainable compared to its peers in other countries as its development is underpinned by strong fundamentals, says Standard & Poor...

Insurance News  26 Sep 2012  -  Public
AmG has completed the acquisition of Kurnia Insurans. KSK Group Bhd (formerly known as Kurnia Asia Bhd) will concentrate on its general insurance business in Indonesia and Thailand after pulling out of Malaysia.
PETALING JAYA (Sept 26): KSK Group Bhd, formerly known as KURNIA ASIA BHD [], has completed the deal to dispose its wholly-owned subsidiary Kurnia Insurans (Malaysia) Bhd to AmG Insurance Bhd for RM1.63 billion on Wednesday.

Insurance News  26 Sep 2012  -  Public
We may soon know whether CIMB will pull out from CIMB Aviva. It was reported that Prudential, Manulife and Sun Life could be potential buyers of CIMB Aviva.
KUALA LUMPUR: CIMB Group could make a decision as early as this Saturday if it will part with its 51 per cent stake in CIMB Aviva Assurance Bhd, people familiar with the matter said.

Insurance News  25 Sep 2012  -  Public
LIAM's Budget wishlist: 1) Separate the RM6,000 tax relief for life insurance premium from EPF contribution. 2) Increase the medical insurance premium tax relief from RM3,000 to RM6,000. 3) Abolish the 8% tax on investment income for both life fund and annuity fund. 4) The tax relief of RM3,000 on annuity premium is currently only available for year 2012 to 2021. To extend beyond 2021.
The Life Insurance Association of Malaysia (LIAM) has proposed the government give a separate tax relief of RM6,000 on insurance premiums alone in Budget 2013. 

Insurance News  24 Sep 2012  -  Public
And here is the English version of the article on commission liberalisation in Malaysia.
BANK Negara Malaysia is considering more flexibility for the insurance industry and insurance companies in order to formulate a commission structure which is suitable with their respective business philosophies.