The 10-year (2011-2020) Financial Sector Blueprint (FSBP) was unveiled by BNM yesterday. Under FSBP, the insurance products that will play significant role include: a) private pension products; b) higher value-added medical and health insurance; c) microinsurance and microtakaful products; d) political risk insurance; e) credit guarantee insurance.
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Licensing: New insurance and takaful licences are possible under FSBP, especially to financial institutions that can bring in specialised expertise. Similarly, there are hints that foreign equity higher than 70% could be allowed to those parties with specialised expertise. The dual licensing regime for financial advisers and financial planners will also be streamlined.
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Most, if not all newspapers seem to fail to report that under FSBP, the composite insurer/takaful operator concept will be history. The life and general businesses, and family and general takaful businesses will need to be carried out under separate entities.
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Distribution channel: insurers and takaful operators are encouraged under FSBP to offer their products through alternative distribution channels to enhance the reach.
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Risk management: under FSBP, risk management will play a more important role in insurance companies. Insurers and takaful operators will need to have independent and dedicated heads of risk.
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MIFC: in extending the MIFC initiatives, Malaysia will be positioned to become the international retakaful centre under FSBP.
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Actuaries will play a more prominent role in general insurers and general takaful operators under the Financial Sector Blueprint. Their role and interactions with key control functions in insurance companies will also be reviewed. There will also be further clarification on the actuaries' responsibilities in life insurers and family takaful operators. http://bit.ly/unhFJZ
The corporate governance of financial institutions and market discipline is expected to be enhanced when the recommendations under the Financial Sector Blueprint are implemented.
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Allianz is looking at Malaysia very closely and would be ready to include takaful in their portfolio when the opportunity arises. Allianz will use its experience gained in Indonesia as a base for future expansion. It started the takaful business in Indonesia in April 2006. http://bit.ly/rCBb67
Insurance News - Allianz Seeks to Expand Takaful Effort From Its Indonesia Base
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Acquiring Kurnia would make AmG the largest general insurer in Malaysia. However, pricing is key to the success of the acquisition. Speculation has it that the deal would be struck at 2.5 to 3 times book value. http://bit.ly/uDgJ3g PETALING JAYA: Pricing would be a key consideration in the proposed sale of Kurnia Asia Bhd’s general insurance arm Kurnia Insurans (M) Bhd (KIMB) to AmG Insurance Bhd, analysts said.
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Prudential's Chairman Harvey McGrath will step down in 2012 once a successor is found. His early departure is seen by some as "an overhang from the failed AIA deal" which costed Prudential £377 mil in bills. McGrath suggested that he had been surprised by the time taken by the job as Chairman and he intended to devote more time to his other interests. http://bit.ly/vLM9Za Shareholders blamed Harvey McGrath for the failure of the AIA bid – which left the company with a bill for £377m
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From 1 Jan 2012, if you want to buy an investment-linked product in Singapore, your agent will need to conduct a "Customer Knowledge Assessment" to assess whether you have the relevant knowledge or experience to understand the risks and features of ILP. Agents will look at your educational qualifications, investment and work experiences in the assessment. If the conclusion is that you do not have the relevant knowledge or experience, you will need to undergo learning modules before you are allowed to buy ILP! http://bit.ly/sCSa8B http://bit.ly/vGOWgY SINGAPORE: Buying a mutual fund in Singapore may not be a cakewalk anymore.
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The Kurnia deal as reported in Australia: IAG owns 49% of AmG. IAG would fund its purchase of Kurnia from internal resources. http://bit.ly/uN44TE
IAG seeks approval for Malaysian insurance deal
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PruBSN will open more branches and launch more products next year although the CEO did not reveal the details. http://bit.ly/v0Wuu3
KUALA LUMPUR: Prudential BSN Takaful Bhd (PruBSN) plans to add new branches and launch more products next year.
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