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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. 

Disclaimer: While all attempts are made to ensure the accuracy of the news herein, we are not liable for any loss arising from the use of any information contained in this blog.

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LIAM's response to Budget 2015 

LIAM welcomes the increase in tax relief for treatment of serious diseases but hopes that the current tax relief for medical and education insurance can be increased from RM3,000 to RM6,000. http://bit.ly/TAS141011a

Saturday, October 11, 2014 11:20:00 PM Categories: Budget LIAM
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Budget 2015: Insurance related items 

  1. Government will replace the group takaful or i-BR1M with Family Bereavement Scheme.  The new scheme will entitle the next of kin of BR1M recipients to receive RM1,000 effective for a year.
  2. Government will establish a Malaysia Protection & Indemnity Club under Exim Bank.  The Club will offer 3rd party liability protection at reasonable premiums for cargo ships with gross tonnage not exceeding 300 tonnes.  Currently, most large cargo ship owners in Malaysia have 3rd party liability coverage through Protection & Indemnity overseas.
  3. The Government will introduce an Employment Insurance System aimed at assisting retrenched workers by giving temporary financial assistance as well as providing opportunities for reskilling and upskilling.
Friday, October 10, 2014 5:47:00 PM Categories: Budget
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LIAM's Budget wish list 

LIAM's wish list for budget: a) A separate RM6,000 tax relief for life insurance premiums, rather than combined with EPF. b) Increase medical and education tax relief from RM3,000 to RM6,000. http://bit.ly/TAS141008a

Wednesday, October 8, 2014 8:40:00 PM Categories: Budget LIAM
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LIAM wants i-BR1M as well 

Insurance News

  -  October 28, 2013
LIAM has appealed to the government to extend the i-BR1M scheme to conventional life insurers in addition to takaful operators as announced in Budget 2014.
LIAM: Extend i-BRIM protection scheme to all insurance firms - The Sun Daily PETALING JAYA (Oct 28, 2013): The Life Insurance Association of Malaysia (LIAM) hopes the government will extend the Group Takaful Rakyat 1Malaysia (i-BR1M) protection scheme to all 14 insurance companies operating in the country, allowing recipients of the Bantuan Rakyat 1Malaysia (BR1M) more alternatives to choose from.

 

Posted by Loo Hai Monday, October 28, 2013 7:05:00 PM Categories: Budget LIAM
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Budget 2014: summary of insurance-related announcement 

Insurance News

  -  October 25, 2013
  1. RM50 will be paid to the Group Takaful Rakyat 1Malaysia (i-BR1m) for all BR1M household recipients, providing coverage of up to RM30,000 in the event of death and permanent disability.
  2. 1Malaysia Pension Scheme (SP1M) - government contributions will increase from 5% to 10%, or from max RM60 to RM120 per year. Effective: 1.1.2014 to 31.12.2017
  3. PRS - a one-off incentive of RM500 to contributors who participate in the PRS scheme with a minimum cumulative investment of RM1,000 within a year, available to those aged between 20 and 30 years. Effective for 5 years starting 1.1.2014
  4. GST to be implemented on 1.4.2015 at 6%. Income tax (personal and corporate) will be reduced by 1 to 3%.

 

Posted by Loo Hai Friday, October 25, 2013 6:52:00 PM Categories: Budget
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School bus insurance covers up to RM100,000 

Insurance News

  -  Dec 27, 2012
The insurance covering students taking licensed school buses as announced in Budget 2013 will have a limit of RM100,000 on death and permanent disability due to accident.
Insurance coverage for 1.5 million students from January - The Star KUALA LUMPUR: Some 1.5 million students in primary and secondary schools who take school buses will be protected with insurance cover starting January 2013.
Posted by Loo Hai Thursday, December 27, 2012 10:17:00 PM Categories: Budget
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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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