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Purpose: This blog provides brief insurance news and digest for the busy executives. It is a handy archive covering major insurance news in Malaysia and nearby countries. 

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News Posts 20120924-20120930 


 
 
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[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 11:04Edit
 
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.  http://bit.ly/TAS0929a http://bit.ly/TAS0929b


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. http://bit.ly/TAS0928d
BNM completes review of corporate governance framework »
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. http://bit.ly/TAS0928b
 
[Budget 2013] Finance and insurance and transport are expected to expand slower at 4.2% and 5.2%. http://bit.ly/TAS0928a
Economic Report 2012/2013: Slower growth in 2012 »
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.http://bit.ly/TAS0928c
E&Y says awareness on private pension schemes is important »
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 & Youn...

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.http://bit.ly/TAS0927b


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. http://bit.ly/TAS0927a


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.  http://bit.ly/TAS0926c
Malaysia's takaful market healthy, sustainable, says S&P »
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.http://bit.ly/TAS0926b


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.http://bit.ly/TAS0926a


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.  http://bit.ly/TAS0925a


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. http://bit.ly/TAS0924a


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.

 

 

Posted by Loo Hai Sunday, September 30, 2012 4:47:00 PM Categories: AmG Aviva BNM Budget Etiqa GETSB LIAM Merger PRS Tune
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News Posts 20120917-20120923 

 

 
 
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Insurance News

21:01  -  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. http://bit.ly/TAS0923a
2012年09月23日 - 國行:符個別經營理念‧或讓保險業擬佣金架構 - 國內 - 星洲日報 »
(吉隆坡22日訊)國家銀行副總裁拿督莫哈末依布拉欣指出,國行正考慮給予保險業與公司更多靈活性,以擬定適合個別經營理念的傭金架構。

 

 
 
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. http://bit.ly/TAS0922a


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?http://bit.ly/TAS0921a


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.http://bit.ly/TAS0920a http://bit.ly/TAS0920b


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.

 

Posted by Loo Hai Sunday, September 23, 2012 6:50:00 PM Categories: Budget Commission Executive Movement GETSB Prudential Tax
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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. http://bit.ly/TAS0914c
BERNAMA - Takaful Ehsan To Expand Marketing Branch Offices From Next Year »
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. http://bit.ly/TAS0914b


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. http://bit.ly/TAS0914a


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. http://bit.ly/TAS0911a
AIA front-runner to buy ING's Malaysia, Thai insurance units »
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...

 

Posted by Loo Hai Monday, September 17, 2012 4:45:00 PM Categories: AIA Axa Affin Budget ING Tax
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News Posts 20120903-20120909 

 
It is confirmed that Sanlam is eyeing 49% equity stake in P&O. BNM has granted approval for the preliminary negotiations to proceed.http://bit.ly/TAS0908a


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. http://bit.ly/TAS0907a


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. http://bit.ly/TAS0906a
Maybank targets RM250m premiums from retirement planning products »
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. http://bit.ly/TAS0905a


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. http://bit.ly/TAS0904c
2012年09月04日 - 大東方:大部份課題解決‧僅小部份代理請願 - 國內 - 星洲日報 »
(吉隆坡3日訊)大東方壽險有限公司指出,今午在公司總部大廈前舉行和平請願者只是一小部份代理,他們的意見並不代表全體1萬7千名代理員的意見。

Insurance News

4 Sep 2012  -  Public
 
The picketing in Miri requested the removal of the CEO of Great Eastern.http://bit.ly/TAS0904b
Peaceful picketing – BorneoPost Online | Borneo , Malaysia, Sarawak Daily News | Largest English Daily In Borneo »
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.http://bit.ly/TAS0904a
2012年09月04日 - 大東方代理不滿福利被忽視‧15地請願 - 國內 - 星洲日報 »
(吉隆坡3日訊)近千名馬來西亞大東方壽險代理員公會(GELFAAM)與馬來西亞大東方集團經理公會(GSM)的會員舉行和平請願行動,要求公司管理層正視代理的福利與問題。
 

 

Posted by Loo Hai Sunday, September 9, 2012 12:19:00 PM Categories: Etiqa Great Eastern ING Merger P&O PruBSN
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News Posts 20120827-20120902 

Insurance

 

News

1 Sep 2012 21:20  -  Public
 
With the acquisition of Jerneh, ACE Jerneh aims to increase its agency business to 40% of its total business within 5 years. The company currently has 1,800 agents. It intends to adopt multi-product, multi-distribution strategy going forward. http://bit.ly/TAS0901b


ACE Jerneh Insurance Bhd expects its agency business to contribute about 40 per cent to its total business in five years, its top executive said.
 
Oliver Tan has been appointed Head of Kuala Lumpur branch and director of reinsurance by Swiss Re. Oliver's areas of responsibility include Vietnam, Cambodia and Laos. http://bit.ly/TAS0901a


KUALA LUMPUR: Swiss Reinsurance Co Ltd (Swiss Re) has appointed Oliver Tan as its head of Kuala Lumpur branch and director of reinsurance.

Insurance

News

31 Aug 2012  -  Public
 
With the adoption of RBC framework for the takaful industry in 2014, there may be opportunities for Zurich to venture into takaful. The company also thinks that the Malaysian takaful market alone is too small for its liking but together with the Indonesian market, it would be different.  Meanwhile Zurich is still discussing with Koperasi on its exit plans with regards to its stake in MCIS Zurich.http://bit.ly/TAS0831b


KUALA LUMPUR: Zurich Financial Group Ltd (Zurich), Switzerland’s biggest insurer, has not ruled out venturing into the takaful business in Malaysia.

Insurance

 

News

31 Aug 2012  -  Public
 
Namlifa has called on BNM to review the OCC guidelines and Replacement of Policy definition. http://bit.ly/TAS0831a
65% of insurance agents earn below RM20,000 a year »
GENTING HIGHLANDS: Figures show that 65% of insurance agents earn below RM20,000 per year.

Insurance

 

News

30 Aug 2012  -  Public
 
ING may now split the auction of its Asian operations into more pieces - 1) Japan; 2) South Korea; 3) Hong Kong; 4) Malaysia & Thailand. The Malaysia & Thailand piece is facing complication as the regulators do not allow 100% foreign ownership. http://bit.ly/TAS0830b


ING is exploring a separate sale of its roughly US$1 billion (RM3.12 billion) Hong Kong insurance business, sources said, a move that could further complicate the auction of its Asian operations. 

Insurance

 

News

30 Aug 2012  -  Public
 
Zurich Insurance is keen to enter into Takaful market in Malaysia.http://bit.ly/TAS0830a


KUALA LUMPUR (Aug 30): Zurich Insurance Group Ltd, a composite insurer, is considering a foray in the Islamic insurance market in Malaysia.

Insurance

News

29 Aug 2012  -  Public
 
Zurich launched 3 new products: 1) CondoPAC 2) ShopPAC & OfficePAC and 3) SmiPAC. These are comprehensive insurance protection plans with 5-in-1 and 10-in-1 coverage. http://bit.ly/TAS0829a


THREE NEW PRODUCTS: Its target is to achieve 5pc of the value for first year and 10pc for second and third years

Insurance

 

News

28 Aug 2012  -  Public
 
Great Eastern sold 25% of its stake in its China Joint Venture to Chongqing City Construction Investment (Group) Co. Ltd. http://bit.ly/TAS0828e


Sale of 25% stake in China Joint Venture to Chongqing City Construction Investment Group

Insurance

 

News

28 Aug 2012  -  Public
 
Etiqa's motor takaful won bronze for 'Best Digital Promotion Marketing Campaign' and 'Best Use of the Internet in a Promotion Marketing Campaign', and silver for 'Best Activity Generating Brand Volume' awards.http://bit.ly/TAS0828d


Etiqa's Motor Takaful clinched three awards at the Promotion Marketing Awards of Malaysia. 

Insurance

 

News

28 Aug 2012  -  Public
 
GE Takaful, which currently ties up with OCBC and MBSB in bancatakaful, aims to secure another 3 strategic tie-ups by 2015. Bancatakaful is expected to contribute 20% of the new business for the operator. http://bit.ly/TAS0828c


KUALA LUMPUR: Great Eastern Takaful Sdn Bhd wants to have at least five bancatakaful partnerships by 2015 in order to become one of the country's top three takaful players.

 

Posted by Loo Hai Sunday, September 2, 2012 5:53:00 PM Categories: ACE Jerneh Etiqa Great Eastern ING Namlifa Swiss Re Zurich
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