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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.

Sunday, 23 September 2012

News Posts 20120917-20120923

Insurance News   23 Sep 2012   -  Public
BNM is considering giving more flexibility to insurance companies to set their own commission levels. The liberalisation of commissions will also be accompanied by more transparency (commission disclosure?) to protect the policyholders. BNM is also evaluating measures including incentives to encourage more agents to become financial advisors.

Insurance News   22 Sep 2012   -  Public

Prudential is likely to appoint Philip Seah as its new CEO, replacing Charlie Oropeza who stepped down on 12/9. Seah's appointment is apparently pending approval from BNM.
KUALA LUMPUR: Prudential Assurance Malaysia Bhd is expected to appoint Philip Seah, former head of Prudential group's unit in Singapore, as it new chief executive officer.

Insurance News  21 Sep 2012  -  Public
Is it true that GETSB's CEO is quitting this month? Where is he going then?
KUALA LUMPUR: Great Eastern Takaful Sdn Bhd's chief executive officer Mohamad Salihuddin Ahmad is quitting the company he helped set up in 2010.

Insurance News  20 Sep 2012  -  Public
GETSB has called for a special tax relief for takaful contributions, on top of the existing combined EPF and life insurance tax relief of RM6,000.  Meanwhile an independent financial advisor has also called for the tax relief for retirement contribution to be increased from RM3,000 to RM10,000. Feel free to share with us your wish list for the upcoming Budget 2013.
KUALA LUMPUR (Sept 20): Takaful operators would like to see the government allocate a specific tax rebate for Takaful premiums in a bid to boost the industry in the upcoming Budget 2013, said Great Eastern Takaful chief executive officer Mohamed Salihuddin Ahmad.

Monday, 17 September 2012

News Posts 20120910-20120916

Insurance News  14 Sep 2012  -  Public
ING Public Takaful launched Investment-Linked Takaful Education plan yesterday. The operator set a target of RM90 mil in contributions company wide for 2012 and has collected RM50 mil up to August.
By Nasir Hassan KOTA BAHARU, Sept 13 (Bernama) -- ING Public Takaful Ehsan Bhd (Takaful Ehsan) will expand its operations by opening more marketing branch offices nationwide from early next year. Its ...

Insurance News  14 Sep 2012  -  Public

Lets hope that as predicted by CIMB, the RM6,000 cap of tax relief on life insurance premium is increased in this coming Budget.
KUALA LUMPUR: The upcoming Budget 2013 is unlikely to propose any bold taxes that will hamper consumption, but may instead provide sweeteners for targeted households, says CIMB Investment Bank.

Insurance News  14 Sep 2012  -  Public
Emmanuel Nivet is the new CEO for AXA Affin General Insurance effective today.
AXA Affin General Insurance Bhd has appointed Emmanuel Nivet as the new chief executive officer effective today, replacing Jahanath Muthusamy, who has retired.

Insurance News  11 Sep 2012  -  Public
AIA has apparently emerged as the front runner to buy ING's Malaysia and Thailand insurance operations.
HONG KONG: Asian insurer AIA Group Ltd has emerged as the front-runner to buy ING's Malaysia and Thailand insurance operations, sources with knowledge of the matter said, in a deal that could be worth...

Sunday, 9 September 2012

News Posts 20120903-20120909

Insurance News  8 Sep 201   -  Public
It is confirmed that Sanlam is eyeing 49% equity stake in P&O. BNM has granted approval for the preliminary negotiations to proceed.
KUALA LUMPUR: Pacific & Orient Bhd has obtained approval
from Bank Negara Malaysia to begin preliminary negotiations for the proposed divestment of its equity interest in Pacific & Orient Insurance Co Bhd. 

Insurance News 7 Sep 2012  -  Public
PruBSN's market share hit 29.1%, according to its CEO. The company would focus on product innovation, meeting customers' needs and building wide distribution network to stay as No. 1.
KUALA LUMPUR: Prudential BSN Takaful (PruBSN) intends to
maintain its position as the number one takaful operator in Malaysia this year, said its chief executive officer, Azim K. Mithani.

Insurance News 6 Sep 2012  -  Public
Maybank launched 2 retirement products: 1) Smart Retirement - RP endowment (20 or 30-year term) with guaranteed yearly cash payout. 2) Golden Retirement - SP investment-linked plan with 10 years guaranteed payout, each payout is 11% of SP.
Malayan Banking Bhd has launched two new retirement plans, tapping into a growing market segment and targeting to garner some RM250mil in premiums in the first year.

Insurance News 5 Sep 2012  -  Public

Buyers of ING's Asian units are asked to to acquire part of the Japanese unit together with the Southeast Asian and HK business, according to an unconfirmed source.
ING Groep NV, facing a regulatory deadline to sell its insurance business, is pressing prospective buyers of operations in Southeast Asia and Hong Kong to also acquire part of its Japanese unit, three people with knowledge of the matter said.

Insurance News 4 Sep 2012  -  Public
Great Eastern pointed out that the picketing yesterday was by a small group of its 17,000 agents and did not represent the majority. Most outstanding agency issues had been addressed through bilateral dialogues and the company had to balance the interests of shareholders, policyholders, agents and other interested parties in its decision.

Insurance News 4 Sep 2012  -  Public

The picketing in Miri requested the removal of the CEO of Great Eastern.
MIRI: Twenty- four life insurance agents led by Great Eastern Life Field Force and Agents Association of Malaysia (Gelfaam) Miri chairlady Tan Ah Choo (in a picket in front of the Great Eastern Life A...

Insurance News 4 Sep 2012  -  Public

Great Eastern's agents held peaceful picketing at 15 locations in the country yesterday requesting management to resolve outstanding issues in the agency contract and to treat agents as business partners and not as employees.