Post on 03-Jul-2018
ANNUAL REPORT 2016 | A
Making Waves - a Year of Change
A N N U A L R E P O R T 2 0 1 6
| ANNUAL REPORT 2016B
OUR CORE VALUES
Professionalism
Industry-focused
Accountability
Make a difference
ANNUAL REPORT 2016 | 01
• ArticulateOneUnifiedVoiceforandonbehalfoftheindustry
• CreateFavourableBusinessEnvironmentformembercompanies
• PromoteImageoftheindustryanditsRoleintheEconomy
• EducateConsumersonGeneralInsuranceProducts• FosterPublicconfidencebyprotectingtheinterestsof
Consumers• EstablishaSoundandEfficientInsuranceInfrastructure
withBestPractices• RaiseProfessionalismandensureStandardsin
Distribution• HarmonizeApproachesandSolutionstoIndustryIssues• Buildapipelineoftalentandprofilegeneralinsurance
asacareerofchoice• FacilitateInformationSharingwithinboundariesof
CompetitionAct
OUR CORPORATE OBjECTiVES
TobeaDynamicTradeAssociationservingtheinterestsofourmembersbycreatingafavourablebusinessenvironmentandworkingcloselywithallstakeholderstosupporttheinitiativesunderourNationalAgenda.
OUR MiSSiONSTATEMENT
aBoUT USThehistoryofPersatuanInsuransAmMalaysia(PIAM),i.e.theGeneralInsuranceAssociationof
Malaysia,originatedfromtheestablishmentofvariousinsuranceandtariffassociationssetupin
1885thatplayedaroleasacollectivevoiceoftheinsuranceindustryinMalayaandSingapore,
shortlyafter the independenceofMalaya in 1957. InJune1961, the InsuranceAssociationof
Malaya was formed to maintain tariff discipline, respond to new insurance legislations and
promotesoundinsurancepractices.Forthefirsttime,anAssociationwasestablishedinKuala
Lumpurtosafeguardthecountry’sgeneralinsuranceinterest.
Subsequently,PIAMwasincorporatedinMay1979asastatutorytradeassociationrecognised
by the Government of Malaysia for all registered insurers who transact general insurance
business.Currently,PIAMhas27membercompaniescomprisingdirectgeneralinsuranceand
reinsurancecompaniesoperatinginMalaysia.
| ANNUAL REPORT 201602
ConTenTs01
ABOUTUS
03CORPORATEINFORMATION
04PIAMMANAGEMENT
COMMITTEE2016/2017
35INDUSTRYISSUESANDACTIVITIES
93ACKNOWLEDGEMENT
102INSURANCEINDICATORS
105ROLLOFHONOUR
1984-2017
98LISTOF
MEMBERS
06REPRESENTATIVESIN
OTHERORGANISATIONS
07SUB-COMMITTEE
MEMBERS2016/2017
23REGIONALMEETINGSANDCONFERENCES
11ANNUALREPORT
2016/2017
13THEINDUSTRYLANDSCAPE
ANDPERFORMANCE
17KEYINDUSTRYDEVELOPMENTS
ANNUAL REPORT 2016 | 03
CorPoraTe INFORMATION
The2016annualreportcoverdesign
is all about change. Since 2014,
PIAMhastransformedintoavibrant
and dynamic trade association.
Along the way it has elevated the
profile and enhanced the image of
theindustry. Ridingonthewavesof
change in 2016 PIAM is committed
to forging strong partnerships with
all stakeholders for the benefit
of all its member companies.
Thereby, fostering the growth and
developmentofgeneralinsurancein
Malaysia.
MAkiNg WAVES -A YEAR Of ChANgE
REgiSTERED OffiCELevel3,WismaPIAM150,JalanTunSambanthan50470KUALALUMPUR
AUDiTORSSJGrantThorntonLevel11,SheratonImperialCourtJalanSultanIsmail50250KUALALUMPUR
ChAiRMANMr.AntonyLeeFookWeng
ChiEf EXECUTiVE OffiCERMr.MarkLimKianWei
BANkERSHongLeongBankBerhad150,JalanTunSambanthan50470KUALALUMPUR
| ANNUAL REPORT 201604
PiaM ManageMenT CoMMiTTee 2016/2017
Mr. David Fike (Convenor, Accident, Health and Others)
Encik Zainudin Ishak(Convenor, Education/HRD)
Mr. Mark Lim Kian Wei (Chief Executive Officer)
Mr. Antony Lee(Chairman)
From left to right:
ANNUAL REPORT 2016 | 05
Encik Zaharudin Daud (Convenor, Claims Management/PARS)
Mr. David Tan See Dip (Convenor, Finance &
Corporate Governance/ERM)
Mr. Derek Roberts (Convenor, Motor) - up to 7 Dec 2016
Mr. Chua Seck Guan (Deputy Chairman and Convenor,
Distribution Management)
Mr. Randy Hong(Convenor, Regulatory &
Industry Development)
Mr. Looi Kong Meng
(Convenor, Fire, Marine
& Engineering)
Mr. Steve Crouch (Convenor, Public Relations/CSR)
Not in Photo:
| ANNUAL REPORT 201606
rePresenTaTives in OThER ORGANISATIONS
ASEAN iNSURANCE COUNCiLMr. Antony Lee(AIG Malaysia Insurance Bhd)
Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)
ThE MALAYSiAN iNSURANCE iNSTiTUTE (Mii)Mr. Antony Lee(AIG Malaysia Insurance Bhd)
NATiONAL ROAD SAfETY COUNCiLMs. Joy Lim(Persatuan Insurans Am Malaysia)
MALAYSiAN RATiNg CORPORATiON BhD (MARC)Mr. Chua Seck Guan(MSIG Insurance (Malaysia) Bhd)
OMBUDSMAN fOR fiNANCiAL SERViCES (OfS)Mr. Antony Lee (AIG Malaysia Insurance Bhd)
MALAYSiAN MOTOR iNSURANCE POOL (MMiP)Mr. Steve Crouch (Chubb Insurance Malaysia Berhad)
NATiONAL TRANSiT TRANSPORT COORDiNATiNg COMMiTTEE (Protocol 5)Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)
iSM iNSURANCE SERViCES MALAYSiA BhDMr. Derek Roberts(AmGeneral Insurance Berhad)
up to 7 Dec 2016
CENTRAL ADMiNiSTRATiON BUREAU (CAB) SUPERViSORY BOARDMr. Antony Lee(AIG Malaysia Insurance Bhd)
jOiNT iNSURANCE TAkAfUL COUNCiLMr. David Fike(Zurich Insurance Malaysia Bhd)
Mr. Chuang Chee Hing(Lonpac Insurance Bhd)
Mr. Michael Wong Teck Kat(Independent)
VEhiCLE ThEfT REDUCTiON COUNCiL (M) BhDMr. Antony Lee (AIG Malaysia Insurance Bhd)
Mr. Chua Seck Guan(MSIG Insurance (Malaysia) Bhd)
Encik Muhammad Azlan Noor Che Mat(Etiqa Insurance Berhad)
Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)
Mii CAPACiTY BUiLDiNg fUND (STEERiNg COMMiTTEE)En. Zainudin Ishak(Malaysian Reinsurance Bhd) Puan Nor Azima Binti Abdul(QBE Insurance (Malaysia) Berhad)
Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)
NATiONAL PAYMENTS ADViSORY COUNCiL (NPAC)Mr. Antony Lee(AIG Malaysia Insurance Bhd)
PORT kELANg AUThORiTY CONSULTATiVE COMMiTTEEMs. Lee Ying Ying (AIG Malaysia Insurance Bhd)
NATiONAL COMMiTTEE ON MANAgED CAREMs. Lum Sau Mei (Progressive Insurance Bhd)
Ms. Jenny Yeoh Yeok Len(MSIG Insurance (Malaysia) Bhd)
ANNUAL REPORT 2016 | 07
sUB-CoMMiTTee MeMBers2016/2017
DiSTRiBUTiON MANAgEMENT
CONVENORMr Chua Seck GuanMSIG Insurance (Malaysia) Bhd
DEPUTY CONVENORMr Ronnie Lee Seong KarEtiqa Insurance Bhd
MEMBERSMr Kevin RajaratnamAIG Malaysia Insurance Berhad
Mr Foo Chuen HouAllianz General Insurance Co.
(Malaysia) Bhd
Ms Grace Quah Seok ChenAmGeneral Insurance Bhd
up to 7 Dec 2016
Ms Sia Meu IngLonpac Insurance Bhd
Mr Teoh Guan HuatMSIG Insurance (Malaysia) Bhd
Ms Linda Ho Yen LaiOverseas Assurance Corp (M) Bhd
Mr William FooQBE Insurance (Malaysia) Bhd
Mr Choon Kim HoeRHB Insurance Berhad
Mr Liew Eng SeongTune Insurance Malaysia Berhad
CLAiMS
CONVENOREncik Zaharudin Bin DaudEtiqa Insurance Bhd
DEPUTY CONVENORMr Harminder Singh a/l Seva SinghMSIG Insurance (Malaysia) Bhd
MEMBERSMr Dilsher SinghAIG Malaysia Insurance Berhad
Mr Sivakumar a/l RamanlingamAllianz General Insurance Co.
(Malaysia) Bhd
Mr Darren Joseph RyanAmGeneral Insurance Bhd
up to 7 Dec 2016
Mr Leong See MengBerjaya Sompo Insurance Bhd
Ms Siew Yoke PengBerjaya Sompo Insurance Bhd
Encik Muhammad Azlan Noor Bin Che MatEtiqa Insurance Berhad
Mr Richard Tee Chion ChiekLiberty Insurance Berhad
Ms Chan Cheng SimPacific & Orient Insurance Co. Bhd
Mr Alan Sii How PingRHB Insurance Bhd
Ms Dorine ChangTokio Marine Insurans (M) Bhd
Ms Andrea LooiZurich Insurance Malaysia Berhad
ACCiDENT, hEALTh & OThERS
CONVENORMr David FikeZurich Insurance Malaysia Bhd
DEPUTY CONVENORMr Kevin Choong Wui TeckChubb Insurance Malaysia Bhd
MEMBERSMs Mira Florence DesaiAIG Malaysia Insurance Bhd
Ms Elaine Kok Yoke FoongAmGeneral Insurance Bhd
up to 7 Dec 2016
Mr Sim Siew FuangBerjaya Sompo Insurance Bhd
En Azmy Bin TaibEtiqa Insurance Bhd
Mr Matthews a/l GeorgeLiberty Insurance Bhd
Ms Jenny Yeoh Yeok LenMSIG Insurance (Malaysia) Bhd
Ms Christine TehOverseas Assurance Corp. (M) Bhd
Ms Lum Sau MeiProgressive Insurance Bhd
Ms Lily TehTune Insurance Malaysia Bhd
| ANNUAL REPORT 201608
sUB-CoMMiTTee MeMBers 2016/2017
fiRE, MARiNE AND ENgiNEERiNg
CONVENORMr Looi Kong MengLonpac Insurance Bhd
DEPUTY CONVENORPuan Nur Basmin Md AminEtiqa Insurance Bhd
MEMBERSMs Lee Ying YingAIG Malaysia Insurance Berhad
Mr Christopher Robert TandyAmGeneral Insurance Bhd
up to 7 Dec 2016
Mr Yap Foo VeeBerjaya Sompo Insurance Bhd
Mr Jayaparagasam a/l MugunenLiberty Insurance Bhd
Encik Mohd Zamri Bin ZainudinLonpac Insurance Bhd
Encik Abd Halim Anuar SharifMalaysian Reinsurance Bhd
Ms Amy Tan Gow HouMSIG Insurance (M) Bhd
Ms Elaine Chan Choy FongOverseas Assurance Corp (M) Bhd
Mr Yong Moh PengProgressive Insurance Bhd
Ms Wendy TanSwiss Reinsurance Company Ltd
Encik Asri Bin SuratmanTokio Marine Insurans (M) Bhd
Ms Teresa WongZurich Insurance Malaysia Berhad
EDUCATiON/hRDSUB-COMMiTTEE
CONVENOREncik Zainudin IshakMalaysian Reinsurance Berhad
DEPUTY CONVENORPuan Nor Azima Binti AbdulQBE Insurance (Malaysia) Berhad
MEMBERSMs Vimala Bhoo PathyAIG Malaysia Insurance Berhad
Ms Wong Siew Yong, NicoleAmGeneral Insurance Bhd
up to 7 Dec 2016
Encik Mokhtar Abdul RazakEtiqa Insurance Berhad
Cik Farina Mohamad RamlanLiberty Insurance Berhad
Puan Iszatul Mashani (Jun) IshakMalaysian Reinsurance Berhad
Mr Bernard OngMSIG Insurance (Malaysia) Bhd
Ms Kathryn Kok Poh CheeTune Insurance Malaysia Berhad
Ms Hemalatha KrishnanZurich Insurance Malaysia Berhad
Mr Liew Yoke OnThe Malaysian Insurance Institute
fiNANCE ANDCORPORATE gOVERNANCE/ERM
CONVENORMr David Tan See DipLiberty Insurance Bhd
DEPUTY CONVENORMr Ng Seng KhinLonpac Insurance Bhd
MEMBERSMr David Oo Chih SuAIA Bhd
Puan Zawinah Bte IsmailAIG Malaysia Insurance Berhad
Ms Felicia Lee Chi KwanAllianz General Insurance Co.
(Malaysia) Bhd
Ms Dang Mei YinAmGeneral Insurance Bhd
up to 7 Dec 2016
Mr Vincent FongAsia Capital Reinsurance (M) Sdn Bhd
Mr Thomas LianLiberty Insurance Bhd
Encik Muhammad RidzuanBin IsmailMalaysian Reinsurance Bhd
Ms Khoo Sook HooiOverseas Assurance Corp. (M) Bhd
Ms Kan Poh YeeProgressive Insurance Bhd
Ms Seng Soo WyQBE Insurance (Malaysia) Berhad
Ms Maggie Chong Sook Yin RHB Insurance Bhd
Mr Prithpal RupraiZurich Insurance Malaysia Berhad
ANNUAL REPORT 2016 | 09
sUB-CoMMiTTee MeMBers 2016/2017
MOTOR
CONVENORMr Derek RobertsAmGeneral Insurance Bhd
up to 7 Dec 2016
DEPUTY CONVENORMr Jimmy Tan Ooi ChaiAllianz General Insurance Co.
(Malaysia) Bhd
MEMBERSMs Sarala PuvanesanAIA Bhd
Mr Patrick Wong Cheong YewAsia Capital Reinsurance (M) Sdn Bhd
Ms See Toh Lai CheeAmGeneral Insurance Bhd
up to 7 Dec 2016
En Azmi Abdul WahabHannover Re Malaysian Branch
Mr Peter Ong Wooi LoonLiberty Insurance Bhd
Puan Yahani HashimMalaysian Reinsurance Berhad
Ms Sophia Chan Soi FongMSIG Insurance (Malaysia) Bhd
Ms Chan Cheng SimPacific & Orient Insurance Co. Bhd
Mr Goh Eng Chun
RHB Insurance Berhad
Mr Tan Chew KuanZurich Insurance Malaysia Bhd
REgULATORY AND iNDUSTRY DEVELOPMENT
CONVENORMr Randy HongSwiss Reinsurance Company Ltd
DEPUTY CONVENOR Ms Fiona Yew Chubb Insurance Malaysia Bhd
MEMBERS Ms Sara Jayne RamalingamAIA Bhd
Ms Tee Rin Na
AIG Malaysia Insurance Bhd
Mr Patrick Lim Kok KeongAllianz General Insurance Co.
(Malaysia) Bhd
Ms Joy Tey Hong TengAmGeneral Insurance Bhd
up to 7 Dec 2016
Mr P. MaheshwarChubb Insurance Malaysia Bhd
Ms Asha a/p M. Thomas VergheseLiberty Insurance Bhd
Encik Muhammad TirmiziMuhammad YewMalaysian Reinsurance Berhad
Ms Gan Sye NiMSIG Insurance (Malaysia) Bhd
Mr Cheng Chuen CheeOverseas Assurance Corp. (M) Bhd
Mr Vincent Ong Hock LimRHB Insurance Berhad
Mr Alan HoZurich Insurance Malaysia Bhd
PUBLiC RELATiONS/CSR
CONVENORMr Steve CrouchChubb Insurance Malaysia Bhd
DEPUTY CONVENORMr. Yogendra ThavakumarAIG Malaysia Insurance Bhd
MEMBERSMs Darshini MahendranathanAIA Bhd
Mr Benedict Gerald RozarioAmGeneral Insurance Bhd
up to 7 Dec 2016
Puan Haliza HashimLiberty Insurance Berhad
Puan Noorazimah TahirMalaysian Reinsurance Bhd
Ms Jennifer Hsu Chin Fen
MSIG Insurance (Malaysia) Bhd
Ms Lakshimi K.A.
Tune Insurance Malaysia Berhad
Puan Roziana Mohd YatimZurich Insurance Malaysia Berhad
| ANNUAL REPORT 201610
sUB-CoMMiTTee MeMBers 2016/2017
PARS
CHAIRMANEn Muhammad Azlan Noor Bin Che MatEtiqa Insurance Bhd
MEMBERS
Mr Yew Sin Nam
AIG Malaysia Insurance Bhd
Ms Penny Sivam Sedase Von Pillay
Allianz General Insurance Co.
(Malaysia) Bhd
Mr Ho Wai Hei
AmGeneral Insurance Bhd
up to 7 Dec 2016
Mr David Chok Voon Peng
Berjaya Sompo Insurance Berhad
Puan Haslenda Md Moktar Rudin
Etiqa Insurance Bhd
Mr Jaspal Singh
MSIG Insurance (Malaysia) Bhd
Mr Siow Chon Siong
MPI Generali Insurans Berhad
Mr Alan Sii How Ping
RHB Insurance Bhd
Mr Ronnie Chan Yoon Kong
Tune Insurance Malaysia Berhad
Encik Azico Bin Abdul Rahim
Overseas Assurance Corp. (M) Bhd
SABAhLiAiSONgROUP
CONVENORMr Simon Teng Lung HaiAmGeneral Insurance Bhd
up to 7 Dec 2016
MEMBERS
Ms Chin Vun Fong
Berjaya Sompo Insurance Berhad
Mr Michael Wong Ho On
Liberty Insurance Berhad
Mr Benedict Majin
Progressive Insurance Berhad
Ms Jocelyn Choo
Tune Insurance Malaysia Bhd
Mr Liew Chi FuiZurich Insurance Malaysia Berhad
SARAWAkLiAiSONgROUP
CONVENORMr Eric Tan Hui ChuingLiberty Insurance Berhad
MEMBERSMr Alex Ong Liang LiangBerjaya Sompo Insurance Bhd
Mr Tan Wee GieeProgressive Insurance Bhd
Mr Desmond Chan Chee SinTokio Marine Insurans (M) Bhd
Mr Hong Swee LeongZurich Insurance Malaysia Berhad
ANNUAL REPORT 2016 | 11
2016/ 2017
annUaL rePorT
| ANNUAL REPORT 201612
“ “
TheAnnualReportofPIAM2016/2017providesanoverviewofthegeneralinsuranceindustryandhighlightsthemajoractivitiesandprojectsoftheAssociationfortheperiodunderreview.
ASSOCiATiON MEMBERShiP
As at 1 Apr 2017, the Association had 27 memberscomprisinglicensedgeneralinsuranceandreinsurancecompanies operating in Malaysia. There were 18general insurers,4composite insurersand5generalreinsurers.Outofthe27membercompanies,12weredomesticoperationswhilst15wereforeignowned.
Generalcomposite
Reinsurance5
184
OVERALL BUSiNESS REPORT
For the year 2016, the Malaysian economy grewat a commendable rate of 4.2% down from 5% in2015, despite the many global challenges. The keycontributorstothegrowthweretheconstructionsectorwhichgrewby7.4%followedbyservicessectorwhichgrewat5.6%.
Thefinanceandinsurancesub-sectorturnedaroundtoregisterpositivegrowth,drivenbyhighernet interestincome and better performance of the life insurancesegment. The general insurance and takaful sectormoderatedinlinewitheconomicconditions.Whilethedeclineinnewmotorvehiclessalesimpactedthemotorclassofbusiness,thefireclassachievedsteadygrowth.Insurancepremiumretention in thecountryhasbeenflat at about90%since2008and the2016 retentionratiowasat90.4%
Thetotalunemploymentrateroseto3.5%in2016(2015:3.1%)duetoaslowerjobmarketasemployersadoptedacautiousstanceand refrained fromexpanding theirworkforce too quickly. The younger labour forcewasthemostaffectedas ithasbecomemorechallengingforyouthtosecureemployment.
Inflationary pressures in the economy remained lowwith headline inflation averaging 2.1% in 2016 (2015:2.1%).
In linewith the development of the economy and itschanging structure, it is important for the industry tostrengthen its capacity to supportmore complexandnon-traditional risks, both at a technical as well asfinanciallevel.
2017
annUaL rePorT2016/2017
ANNUAL REPORT 2016 | 13
Thegeneralinsuranceindustrygrowthtaperedto1.1%in2016,withgrosswrittenpremium income reachingRM17.67billion.Thiswashalfthe2.2%growthrateandRM17.5billionachievedin2015.(2014:5.9%growthwithRM17.1billiongrosswrittenpremium).
Motor insurance the dominant line of business grewmarginallyby0.8%maintainingitsmarketshareof46.2%withgrosswrittenpremiumsincreasingtoRM8.17billionfromRM8.09billionin2015.TheFireclassrecordeda5%growthtoRM3.27billion,andremainsthesecondlargestbusinesssegmentwithamarketshareof18.5%(2015:RM3.1billion,17.8%).
MedicalandHealth Insurance (MHI)surged6.6%withgross written premiums reaching RM1.03 billion. Thiswasapositiveturnaroundcomparedtothe4.0%declinein 2015. The Miscellaneous Class comprising Bonds,Liabilities,EngineeringandWorkmen’sCompensationregistereda 1.7%growthwithgrosswrittenpremiumsreachingRM2.35billion.
MarineAviation andTransit (MAT) insurancedeclinedsignificantly by 7.8% with gross written premiums ofRM1.56billionduelargelytothereductioninMarineHullinsuranceandthecontractionintheOil&Gassector.ThePersonalAccidentclassregisteredareductionof0.2%withgrosswrittenpremiumsofRM1.30billion.
The inDUsTrY LanDsCaPe AND PERFORMANCE
On the financial performance of general insurancecompanies,theindustryachievedahigherunderwritingprofitofRM1.530billionin2016,comparedtoRM1.464billionin2015andRM1.488billionin2014.
Thecollaborativeeffortsbetweentheindustryandthelaw enforcement agencies continued to show goodresultswithadeclineof20%inmotortheftcount.Thetotalnumberofstolenvehicles forallclasses in2016amountedto19,307–areductionfrom24,154in2015and30,583in2014.Alltypesofvehiclesexperiencedreductionswiththemotorcyclesrecordingthehighestpercentageof24%.
BUSiNESS MARkET ShARE
Intermsofmarketshare,Motor Insurancemaintaineditspositionasthelargestclasswithashareof46.2%ofthetotalbusinessunderwritten(2015:46.3%).ThiswasfollowedbytheFireinsuranceclasswhichincreasedto18.5%(2015:17.8%).
MAT9.7%
MAT8.8%
CAR & Eng 3.8%
CAR & Eng 3.9%
Fire 17.8% Fire 18.5%
Liabilities 3.2% Liabilities 3.3%
MhI 5.5% MhI 5.8%
Others 4.5% Others 4.4%
PA 7.4% PA 7.3%
WC EL 1.3%
WC EL 1.2%
Bonds 0.3% Bonds 0.4%
Motor 46.3%
Motor 46.2%
2015 2016
| ANNUAL REPORT 201614
ANNUAL REPORT 2016 | 15
CLAiMS RATiO BY SECTORS
Fire
50.0%
0
100.0%
150.0%
200.0%
250.0%
Motor MotorAct
27.7%
28.3% 6
6.9%
72.0%
126.0%
219.6%
70.5%
54.0%
28.8%
25.9%
40.3%
34.7%
47.5% 56.7%
24.2%
17.4%
9.9%
9.4%
44.2%
48.8%
2016 2015
PersonalAccident
MAT CAR&ENG
Liability WC&EL OthersMedical
NET CLAiMS iNCURRED RATiO (NCiR) BY SECTORS
TheoverallNetClaimsIncurredRatio(NCIR)reducedto54.5%in2016from56.5%in2015.TheoverallMotorNCIRdippedto66.9%(2015:72.0%),whilstMedicalincreasedfrom54%to70.5%(2014:57.4%).MATincreasedto34.7%in2015(2014:33.9%).
TheNCIRfor“MotorAct”cover(i.e.coverforcompulsorythirdpartybodilyinjuryanddeathliabilities),reducedsignificantlyto126.0%from219.6%in2015(2014:222.0%).ThiswasnotsolelyduetolesserclaimsbeingreceivedbyinsurersbutalsoduetothereleaseofreservesbytheMalaysianMotorInsurancePool(MMIP)inearly2016.
UNDERWRiTiNg MARgiN
The general insurance industry recorded an underwritingmargin of 12.0% amounting to RM1.6 billion with anoperatingresultofRM2.650billion(2015:11.7%amountingtoRM1.461billionwithanoperatingresultofRM2.265billion).Thecombinedmanagementexpensesandcommissionsratioofinsurancecompaniesincreasedto33.5%from31.8%in2015(2014:30.9%).
underwriting margin 11.7%
managementexpenses 21.9%
commission 9.9%
net claims 56.5%
2015
underwriting margin 12.00%
managementexpenses 23.6%
commission 9.9%
net claims 54.5%
2016
| ANNUAL REPORT 201616
ANNUAL REPORT 2016 | 17
PhASED LiBERALiSATiON Of ThE MOTOR AND fiRE TARiffS
ThePolicyDocumentonPhasedLiberalisationofMotorandFireTariffswas issuedbyBankNegaraMalaysia(BNM)on30Jun2016.
ThispolicydocumentoutlinesthephasesandhighlightsthedetailedrequirementsinthegradualdisapplicationoftheMotorandFireTariffs. TheguidingprinciplesofthePhasedLiberalisationare:-
• Gradualmarket transition tomarket-basedpricingsupported by prudent risk management andpractices
• Access tobasicprotectionorcompulsory lines toremainaffordable.Anyadjustmenttothepricesofsuchproductsisimplementedgradually
• Consumers’ interests remain protected throughenhanced transparency and improved sales andmarketingpractices
• Stabilityinthegeneralinsuranceandtakafulmarketispreserved
Thispolicydocumentcameintoeffectfrom1Jul2016.Itallowsinsurerstheflexibilitytointroducenewproductsat premiums based on market rates determined by the insurers. BNM has set some parameters for thisflexibility and any products outside these thresholdsrequiretheapprovaloftheregulator.
PIAM’s role is to ensure that the introduction of newproducts are with common terms that are consistentandwillnotconfusetheconsumerorpolicyowner. Inthis regard, insurersare required tosubmit thepolicywordingsforallnewproductstobeintroduced,toPIAMforreview.Forthisprocesstobeundertakensmoothly,PIAM had set up an Industry Product Review Board(IPREB)effective1Aug2016.
OPERATiONALiSATiON Of fiNANCiAL OMBUDSMAN SChEME
The Financial Ombudsman Scheme (FOS) which isoperatedundertheOmbudsmanforFinancialServices(OFS) was formed by BNM in accordance with theFinancialServicesAct (FSA)and the IslamicFinancialServicesAct(IFSA),2013.
The OFS commenced its operations on 1 Oct 2016fromthepreviousorganizationknownastheFinancialMediation Bureau (FMB). OFS is an alternativecomplaint/dispute resolution body which assistsconsumers to resolve their complaints/disputes withfinancialinstitutions.AllfinancialserviceprovidersaremembersofOFS.
ThemandateoftheOFSisto:-
• Provide consumers an avenue for effective andprompt resolution of complaints/disputes arisingfrom products and services provided by financialinstitutionona“freeofcharge”basis
• Resolve complaints/disputes in an independent,impartial and fair manner
• Collaborate with the financial institutions inresolvingcomplaints/disputes
• Createawarenessonmattersofcommon interesttoconsumersandthefinancialindustry
OFS has set differentmonetary limits for complaints/disputes to be handled by it. For the insurance andtakaful industry, the coverage of complaints/disputesareformotor thirdpartypropertydamageclaimsatamonetarylimitofRM10,000andbelow.
keY inDUsTrY DEvELOPMENTS
| ANNUAL REPORT 201618
The regulator has taken on the role to provide aregulatory environment that is conducive for thedeploymentoffintechthroughitsFinancialTechnologyRegulatory Sandbox Framework. This includesreviewing and adapting regulatory requirements orprocedures thatmayunintentionally inhibit innovationor render them non-viable. The Framework was alsointroduced to enable this innovation to be deployedand tested in a live environment, within specifiedparametersandtimeframes.Thisframeworkcameintoeffecton18Oct2016.
OPERATiONAL RiSk POLiCY DOCUMENT
TheOperationalRiskPolicyDocumentissuedbyBNMstrengthensthegovernanceframeworkandprocessesformanagingoperationriskwithinfinancialinstitutions.Under the policy document, emphasis is also oneffectivecoordinationinthemanagementofoperationalrisk with that of other risks to provide a holistic andintegrated approach to a financial institution’s overallriskmanagementstrategy.Therequirementsunderthispolicyfocusonboard’soversight,seniormanagement’srole, enterprise-wide operational risk managementfunction, internal audit review governance, a soundinternal control environment, identification andassessmentofoperationalrisksandreporting.
Thispolicydocumentwillbeeffectiveafteroneyearofitsissuanceon10May2016.
REViEW Of PiAM CONSTiTUTiON
AnextensivereviewofthePIAMConstitutionfocusingon the disciplinary measures and punitive actions/penalties applicable on breaches by members hasbeen undertaken by the Regulatory and IndustryDevelopment Sub-committee. This review is tostreamlineproceduresandprocessesontheformationoftheDisciplinaryCommitteetomakeitmoreefficient.The Sub-committee also included a review of theprovisions in the Constitution to meet the currentlegislativeandenvironmentalchanges.
TheproposedamendmentswillbetabledataSpecialGeneralMeetingforadoptionbymembercompanies.
LEgiSLATiVE DEVELOPMENTS
CODE Of PRACTiCE ON PERSONAL DATA PROTECTiON fOR ThE iNSURANCE AND TAkAfUL iNDUSTRY iN MALAYSiA
PIAM,LIAMandMTAhavedevelopedaCodeofPrivacyPracticeonthePersonalDataProtectionActwhichwasofficiallylaunchedon24Feb2017.
ThedevelopmentofthisCoderesultedfromanindustry-ledefforttoestablishstrictprocedurestosafeguardtheuseofpersonaldataintheinsuranceindustry.TheCodesetsout thebestpracticetoharmonisetheprinciplesto safeguard personal information that is collectedandprocessed.Thereisarulingforthisinformationtobedisclosedtoapprovedpartiesonly.TheCodealsoaddressestherightsofpolicyholdersordatasubjectsand the penalty that will be imposed in the event offailuretocomplywiththeAct.
TheindustryisalsodevelopingaComplianceFrameworkwhich will assist member companies to ensure theiroperatingprocedurescomplywiththesevenprinciplesoutlinedintheCode.Tofurtherenhanceourmembercompanies’andtheir intermediaries’understandingoftheCode,theAssociationsarealsodevelopingtrainingmaterials and a trainer’s guide for use by insurancecompanies.
COMPANiES ACT 2016
The Companies Act was revised by the CompaniesCommissionofMalaysiaandhasbeenenforcedonastaggeredbasiswitheffectfrom31Jan2017.Someofthechangesundertakenweretheintroductionofsinglemember/director and documentation requirements,abolitionoftheauthorizedcapitalconceptandshareswith nominal values, abolition of the requirement forannual general meetings of private companies anddecouplingoflodgementofannualreturnsandfinancialstatements.
fiNANCiAL TEChNOLOgY REgULATORY SANDBOX fRAMEWORk
With the Phased Liberalisation of theMotor and FireTariffs making significant changes in the generalinsuranceindustry,newbusinessmodelsandsolutionshave become the priority of insurance companies.Advanced financial technology (fintech) has beenaggressivelypromotedasitwillcontributetoefficiencyand better risk management solutions for insurancecompanies.
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STAkEhOLDER ENgAgEMENT
CLOSED DOOR DiALOgUE WiTh gOVERNOR, BNM
TheAnnualClosedDoorDialoguebetweentheinsuranceindustryandtheGovernor,BNMwasheldon18Oct2016andattendedbytheCEOsofinsuranceandtakafulcompanies.
Industry issues discussed at thissession were on the migrationto e-payment in the insuranceindustry, efforts on advancingto digital technology, havingaccessible and affordable micro-insurance products for theunderserved, strategizing thetalentdevelopmentinitiativesintheinsurance industry for more impact andupgradingtheprofessionalismoftheintermediaries.
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REgiONAL MEETiNgS AND CONfERENCES
PiAM LiAiSON MEETiNgS WiTh REgiONAL ASSOCiATiONS
The Management Committee ofPIAM maintains close liaison withgeneral insurance associations inSingapore,BruneiandThailand.
AliaisonmeetingwiththeGeneralInsuranceAssociationofSingapore(GIA)andtheBruneiInsuranceandTakafulAssociation(BITA)washeldon 26 Oct 2016 at the MandarinOrientalSingapore.
PIAMalsohostedaliaisonmeetingwith the Thai General InsuranceAssociation (TGIA) on 11Nov2016inKualaLumpur.
These meetings provide anexcellent platform for the variousassociationsinvolvedtosharetheirrespective industry’s experiencesand update each other onmarket developments, industryperformance and key projectsundertaken.
regionaLMeeTings ANDCONFERENCES
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CEOS iNDUSTRY BRiEfiNgS AND NETWORkiNg SESSiONS
PIAM organised 2 CEOs’ industry briefings andnetworking sessions in 2016 on 2 Mar and 23 Augrespectively. The objectives of these get-togethersare to keep member companies updated on industry developments and projects undertaken by theAssociation. The half yearly and full year industryperformancestatisticsarealsosharedwithmembers.
The Association has found these sessions to behighly interactiveasfeedbackandviewsof theCEOsare obtained on critical areas affecting the generalinsurance industry.Membersarealsoupdatedon theworkdonebythevarioussub-committees.
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ThE 28Th EAST ASiAN iNSURANCE CONgRESS
The 28th East Asian InsuranceCongress (EAIC) was held from11 to 15Oct 2016 at TheVenetianin Macau. The EAIC has been animportant platform in the regionwheremembercitiesandinsurancepractitioners meet and shareinformation whilst networking andforgingcloserties.
Themed“TheFutureof Insurance:Customer-Centricity”, the28thEAICclearly set the direction for thefuture of insurance in the region.The topics discussed not onlyhighlighted the importance ofcustomer-centricity, but also themanychallengesthatareexpectedinthenearfuture.
Participants at this congress werefrom insurance companies and other insurance organizationsin the East Asian region as wellas insurance practitioners from countriesaroundtheworld.
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ALL ABOUT AUTOMOBiLES
VEhiCLE ThEfT REDUCTiON COUNCiL (VTREC)
The vehicle theft situation in Malaysia has improvedconsiderably over the last 5 years. In 2012, therewere a total of 33,394 vehicle theft claims lodgedagainstinsurancecompaniesandtakafuloperators,oranaverageof98vehicle theft claimsperday,withabreakdown of 31 PrivateCars, 62Motorcycles and 5CommercialVehicles.
By 2016, the number of claims on stolen vehiclesreducedtoanaverageof50claimsperday.Since2013,thetotalnumberoftheftclaimsmadeagainstinsurancecompaniesandtakafuloperatorsfor themainclassesof Private Car, Motorcycle and Commercial Vehiclehaddeclinedby65%,oratanaveragerateof22%peryear.Thissignificantdecline in thenumberofvehicletheft claims was the result of our collaboration withall relevant stakeholders in implementing the variousinitiatives following our Workshop held in May 2014,andtherelentlesseffortbytheenforcementagenciesinbustingtheftsyndicates.
During the year VTREC continued to monitor andcoordinate the following projects with the relevantstakeholders:
i. theconstructionofadditionalrapidscanneratWestPort,PortKelang;
ii. the enhancement of risk assessment processthroughCustomsVerificationInitiatives(CVI);
iii. the exchange of information between PersatuanInsuransAmMalaysia(PIAM)andThailandGeneralInsuranceAssociation (TGIA)onvehiclesenteringThailandthroughthenorthernborders;
iv. Online Inspection System of BER/ATL byPUSPAKOM-JPJ;
v. PublicawarenessandcampaignprogramswiththeJabatan Pencegahan Jenayah dan KeselamatanKomuniti(JPJKK)ofBukitAman.
On the recovery of stolen vehicles from abroad, atotal of 39 stolen Malaysian cars were repatriatedfrom Thailand through the close cooperation of theMalaysianPoliceforceandtheofficeoftheMalaysianEmbassy inBangkok.Wearealsomaking in-roads inoureffort to retrievevehicles fromSouthernThailandfollowing several meetings with theMalaysian PoliceandtheofficeoftheConsulateGeneralofMalaysiainSongkhla,Thailand.
Moving on from the existing initiatives, we will beengagingourASEANneighbours inworking togethertowards our common objective of continuous andsustainablevehicletheftreductionwithintheregion.
MALAYSiAN MOTOR iNSURANCE POOL (MMiP)
Malaysian Motor Insurance Pool (MMIP) was formedin1992byallgeneralinsurancecompanies.Themainobjectiveof thePool is toprovidemotor insurancetovehicle owners who are unable to obtain insuranceprotectionfortheirvehicles.ItwaspreviouslyknownastheHighRisksMotorInsurancePoolanditsformationwasbasedonapoolingconceptonequalsharingbasisthroughacollectiveagreementsignedbyallmembersofthePool.ThePoolisadministeredbyMMIPServicesSdnBhd(MSSB),asubsidiaryofMNRBHoldings,whichalsohandlestheThirdPartyBodilyInjuries(TPBI)claims.
Sinceitsinception,theMMIP’sissuanceofmotorcovernotesandpoliciesaswellashandlingofOwnDamage(OD)/ThirdPartyPropertyDamage(TPPD)claimswereundertakenbytwodirect insurancecompaniesactingasServicingInsurers.InJuly2009,thePoolappointedPOS Malaysia as its Servicing Agent, to make itsservices more accessible to the public at large. TheMMIP’sservicehadbeenfurtherexpandedinMay2011whenBNMissuedadirectivetoallInsurersandTakafulOperators to act as Servicing Agents for MMIP toguaranteeavailabilityofinsurancecover.Thiswasafterthe introduction of theNewMotor Cover Frameworkwhich allowed gradual increases in premium for Actcover. TheMMIPwas also required to provide coverfor“displaced”vehicles,mostlyPrivateCars,underthisrevampedscope.POSMalaysiahashowever,stoppedbeingaServicingAgentafter the introductionofGSTin2015.
inDUsTrY issUes AND ACTIvITIES
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STATiSTiCS ON DAiLY/MONThLY USAgE Of AACC 2015/2016CALL PERfORMANCE 2016 VS 2015
ThePool’sbusinessincreasedfromamereRM5millionpremiumin2008toapeakofRM350millionin2013,where40%ofitsbusinesswasPrivateCars.ThePoolisexperiencingadownwardtrendfromtheyear2014to2016anditisdifficulttoforecastthePool’sperformanceafterdetarifficationsince94%ofthePool’sbusinessareThirdPartycover.Since2009thePool’sriskprofilehasundergonearadicaltransformationfromhighriskinsurertonumberoneThirdPartyCoverproviderinthemarket.ItisevidentnowthatmembercompaniesarewritingmoreThirdPartyCoverorofferThirdPartyFire&Theftcoverwiththegoalofincreasingmarketshareduringliberalisation.
Fortheyearending2016,thePoolrecordedapremiumincomeofRM129million,whichwasareductionof33%fromthepreviousyear.ThelargestreductioncamefromthePrivateCarsegmentat40%.ThepolicycountasatDec2016was363,243comparedto552,137in2015,areductionof34%.MMIP’sportfoliofor2016consistsmainlyofThirdPartyCover(94%)withthebalance(6%)beingcomprehensivepolicies.
ACCiDENT ASSiST CALL CENTRE (AACC)
CallshandledbyAACCdoubledinvolumefrom15,303in2015to29,913in2016.
CallsreceivedforDec2016increasedby49%comparedto2015forthesamemonth.CallsreceivedforDec2016increasedby4%comparedtoNov2016.
Jan
1500
500
1000
0
2000
2500
3000
3500
Feb Mar
923
1619
1039
1924
1129
1061 1162
2675
1291
2233
1429
1370
1372 1392 1495 16
40
2883
2651
2618
2933
2912 30
33
2116
2316
2015 2016
May Jun Jul Aug OctSep Nov DecApr
Source: Telekom Malaysia
ANNUAL REPORT 2016 | 37
Granu
larrev
iewofthe
type
sofcallshan
dled
bytheCen
tre
20
16
Acc
iden
t To
win
gTo
tal
Roa
dA
ssis
tTo
tal
gen
eral
C
laim
in
quir
yTo
tal
Spe
cific
Cla
im in
quir
yTo
tal
Com
plai
nt
Tota
lEm
erge
ncy
Oth
ers
Unr
elat
ed
Cal
lsO
vera
ll
iCC
AA
CC
iCC
AA
CC
iCC
AA
CC
iCC
AA
CC
iCC
AA
CC
PAR
Sw
orks
hop
Jan
108
27135
677
116
793
68
97
165
499
58
01
01
00
209
1,361
80%
20%
85%
15%
41%
59%
84%
16%
0%
100%
0%
Feb
137
33170
740
108
848
133
78211
447
51
00
33
07
295
1,585
81%
19%
87%
13%
63%
37%
86%
14%
0%
0%
100%
Mar
146
32178
893
158
1,051
118
104
222
57
966
11
02
02
293
1,814
82%
18%
85%
15%
53%
47%
86%
14%
50%
50%
0%
Apr
181
34215
986
112
1,098
140
8022
041
1152
01
12
00
317
1,904
84%
16%
90%
10%
64%
36%
79%
21%
0%
50%
50%
May
182
1920
11191
150
1,341
148
110
258
4412
56
00
00
11
354
2,212
91%
9%
89%
11%
57%
43%
79%
21%
0%
0%
0%
Jun
145
22167
975
104
1,079
141
69
210
4316
59
01
01
10
380
1,897
87%
13%
90%
10%
67%
33%
73%
27%
0%
100%
0%
Jul
262
3529
71078
173
1,251
222
113
335
7539
114
10
01
00
527
2,525
88%
12%
86%
14%
66%
34%
66%
34%
100%
0%
0%
Aug
170
1118
11066
107
1,173
235
82317
62
1577
00
11
00
531
2,28
094%
6%
91%
9%
74%
26%
81%
19%
0%
0%
100%
Sep
201
2122
21064
781,142
192
7526
761
2283
00
00
00
501
2,215
91%
9%
93%
7%72
%28
%73
%27
%0%
0%
0%
Oct
242
1025
21231
751,3
06
177
50
227
496
55
01
01
02
554
2,39
796%
4%94%
6%
78%
22%
89%
11%
0%
100%
0%
Nov
211
1522
61170
94
1,264
208
50
258
52
1062
00
00
10
574
2,38
593%
7%93%
7%81%
19%
84%
16%
0%
0%
0%
Dec
221
1623
71240
67
1,307
170
7024
019
423
00
00
10
674
2,48
293%
7%95%
5%
71%
29%
83%
17%
0%
0%
0%
Ove
rall
YTD
2,48
113,653
2,930
756
124
125,209
25,057
Ove
rall
YTD
(%)
9.90%
54.49
%11.69%
3.02%
0.05%
0.02%
0.05%
20.79%
Sou
rce:
Tel
ekom
Mal
aysi
a
| ANNUAL REPORT 201638
CASE CATEgORY 2015 & 2016
Source: Telekom Malaysia
Accident Towing Road Assist general Claim inquiry Specific Claim inquiry2015 2016 %inc 2015 2016 %inc 2015 2016 %inc 2015 2016 %inc
Jan 61 135 121% 368 793 115% 225 165 -27% 35 58 66%Feb 101 170 68% 404 848 110% 175 211 21% 39 51 31%Mar 102 178 75% 421 1051 150% 201 222 10% 47 66 40%Apr 88 215 144% 424 1098 159% 168 220 31% 46 52 13%May 91 201 121% 471 1341 185% 215 258 20% 43 56 30%Jun 111 167 50% 491 1079 120% 229 210 -8% 34 59 74%Jul 116 297 156% 495 1251 153% 227 335 48% 62 114 84%Aug 97 181 87% 588 1173 99% 182 317 74% 18 77 328%Sep 128 222 73% 477 1142 139% 171 267 56% 29 83 186%Oct 111 252 127% 604 1306 116% 168 227 35% 36 55 53%Nov 140 226 61% 737 1264 72% 170 258 52% 21 62 195%Dec 162 237 46% 787 1307 66% 188 240 28% 37 23 -38%
Emergency Complaint Others Unrelated Calls2015 2016 %inc 2015 2016 %inc 2015 2016 %inc 2015 2016 %inc
Jan 0 0 0% 0 1 100% 13 0 -100% 145 209 44%Feb 0 0 NA 0 3 300% 11 7 -36% 178 295 66%Mar 0 0 NA 0 2 200% 15 2 -87% 186 293 58%Apr 1 0 100% 0 2 200% 14 0 -100% 163 317 94%May 0 1 100% 1 0 -100% 11 1 -91% 176 354 101%Jun 1 1 0% 1 1 0% 9 0 -100% 239 380 59%Jul 0 0 NA 1 1 -100% 15 0 -100% 238 527 121%Aug 1 0 -100% 1 1 0% 17 0 -100% 217 531 145%Sep 0 0 NA 0 0 NA 19 0 -100% 180 501 178%Oct 1 0 -100% 0 1 100% 22 2 -91% 185 554 199%Nov 2 1 -50% 1 0 -100% 24 0 -100% 237 574 142%Dec 1 1 0% 3 0 -100% 29 0 -100% 243 674 177%
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MOTOR
Re-constitution of the Motor Sub-committee and Formation of Motor Underwriting Task Force
The Motor Sub-committee has been restructuredby establishing a Motor Underwriting Task Forcefrom the existingmembers. The Task Forcewill dealwith technical underwriting issues and be involvedin developing, supporting and providing technicalunderwriting decisions and input to the Motor Sub-committee. It will also make recommendations andissuepractice guidelines regarding the improvement,replacement or cancellation of underwriting terms asapplicablesoastoalignwithcurrentandfuturemarkettrendsinmotorinsurance. Implementation of Private Car and Motorcycle Plain Language Policies
Effective 1 Nov 2016 (i.e. policy commencementdate), the insurance industryhas implementedbothPrivateCarandMotorcyclePlainLanguagePoliciesfollowing consultation between the Task Forcemembers, Malaysian Takaful Association, the legalcounselandBNM.
Initiatives to Promote the AACC
A project team was set up in Feb 2016 immediatelyafter an industry brainstorming session to review theAACC.The following initiatives arebeingpursuedbythisProjectTeam:-
• Call999–AdoptionofroadaccidentcallsbyMERS
• CollaborationwithHighwayAuthority
• Application for a short form telephone code andLEDadvertisingofthe15500hotlinenumber.
TM’steamacceleratedtheapplicationprocessandsecuredtheshortformcodeforAACCintherecordtime of 1month. Subsequently, TM also provideda2months freeLEDadvertisementof the 15500numberontheMenaraTMatFederalHighwayforJanandFeb2017.
• TowtruckAps
• TM’sScheduleofServicesforoffertoindustry
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Compliance and Co-operation Index (CCI) for Motor
ThenewstructureandformatofMotorinspectionwhichmeasures companies’ compliance and co-operationlevelviaanindexhasbeenimplementedinApril2016.
CCI also coversmembers’ response to Underwriting,System, Compliance of Motor Anti-Fraud Register(MAFR)alertsandothernon-complianceareasoffrauddetectionandprevention.
CLAiMS MANAgEMENT
Voluntary Trust for Third Party Claimants under Disability in TPBI Claims
PIAM is involved in a project on voluntary trust fornursingcareandpersonsunderdisabilityinTPBIclaims.ATrustDeedhasbeendrawn-upbyPIAM’ssolicitorsandisundernegotiationwithAmanahRayaBhd(ARB)tofacilitatethesekindofsettlements.
Upon finalizing the Trust Deed, PIAM will arrange apresentation toBNMon the functionofARBand thestructureof this trustarrangement.Thismeeting is toseekBNM’sapprovalandalsotodiscusshowPIAMcanbestapproachtheJudiciaryonthematter.
Briefing by the Ombudsman for Financial Services (OFS)
PIAM organized a market briefing on 14 Oct 2016which was attended by 94 participants from Claims,Underwriting, Compliance, Legal, Administration andGeneral Management departments of insurance andtakaful companies. This was the Ombudsman’s firstliaisonwiththegeneralinsuranceandtakafulindustrysinceitsincorporationon1Oct2016.
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The CEO of OFS spoke on the operations andproceduresandthiswasfollowedbyalivelyquestionandanswersession.Oneofthekeyareasofmembers’concernwasthenon-refundablecasefeeofRM1,500that would be charged upfront on per case referredbasis,evenifrepudiationhadbeencorrectlyenforced.
Collaboration with Jabatan Pengangkutan Jalan (JPJ)
Initiatives for the industry in collaboration withVTREC, ISM, Financial Link, PUSPAKOM and JPJ areinthefinalstagesof implementationtofacilitateJPJ’sadministrative procedures regarding ownership,roadworthiness and the prevention of the ‘rebirthingof vehicles’ using direct online transaction platformswhichwill improve administrative ease andquality oftransactions.Theareascoveredare:-
• ‘BeyondEconomicRepairs’(BER)Inspection
• OnlinedelistingofStolenVehiclesandTotalLossVehicles(ATL)
• TemporaryandFinalOwnershipTransferonSaleofBERandWrecks(STMS)
• OnlineVehicleOwnership(VOC)
TheBERProjectisinthefinalstageofconclusionandJPJ’sendapproval isrequiredbeforeimplementation.Forcountry-widepromotion,aSchedulewillbesetforroadshowsandtrainingthatwillbeheldatPUSPAKOMvenues across the country. This will involve insurers,workshops,adjusters,PUSPAKOMstaffandJPJstaff.
With regards to ATL and STMS, the procedures canbeindependentlylaunchedbyPIAMiftheBERprojectimplementation isdelayed. ISMis inthefinalstageofconcludingasecurityprocedureregardingsubmissionofATLdata,onlinetoJPJinviewthatJPJwillnotpermitawrongsubmissiontobereversed.
Meeting with Police (PDRM) on their request to review need for Lodgement of Police Reports
AmeetingwasheldwiththePoliceon19Oct2016todiscussthenecessityofpolicereportsindocumentinginsuranceclaims.ThePolicehavefavourablyacceptedthatthepracticeofpolicereportscancontinuealthoughapolicefileforinvestigationsneednotbeopened.
Review of Knock for Knock (KfK) Application in a Detariff Environment
Based on the industry survey conducted, memberspreferred to continue with the practice of the KfKAgreementinthefuturedetariffmarketuntilsuchtimethere isadramaticchangetothecoveragesofferred.It was felt that the cost of subrogation was a criticalinhibitivefactor. Under recommendation of the Task Force, anothersurvey was conducted with regards to enhancementof the KfK Agreement to allow a handling insurer tovolunteersettlementonbehalfofathirdpartyinsurer.The outcome was favourable and changes will bemadetoenablememberswhowereinterestedtousethefacility.
PIAM Approved Repairers Scheme (PARS)
ThePARSOnlinePortalwent liveon 1Aug2015withnewfeaturesofuploadingdocumentsande-paymentsthrough system gateway for ease of workshops insubmitting their applications and renewals online. Itavoids the need to dispatch originals and allows forinsurerstocheckdatainformationinasecuredonlineenvironment. Onsite inspections by adjusters arecaptured and translated into a point system to simplify theassessmentandrecordingofmemberworkshops.PARSCertificationsaretaggedandissuanceautomatedonline.Communicationsarealsoissuedandfiledonline. WorkshoploginthroughourproviderMerimen’ssystembychoosingthePARSOnlinePortalfromtheMainMenuscreentosubmittheapplication.
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A full cycle of the PARS registration was completed on 31 Dec 2016 and achieved a total of 655 workshopregistrations.
AnupdatedlistingofapprovedworkshopsispostedonPIAM’swebsite.
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TEChNiCAL AND DiSTRiBUTiON MANAgEMENT
DiSTRiBUTiON MANAgEMENT
Overview on Registered Agents
Thetotalnumberofregisteredagentsasat31Dec2016standsat38,794(2015:39,220).
Ananalysisofthebusinessgeneratedin2016byinsuranceagentsandotherdistributionchannelsisasappended:-
Year Agents Direct BusinessChannels
insurance Brokers Others Total
2016 RM11.2billion64%
RM3.0billion17%
RM2.8billion16%
RM0.6billion3% RM17.6billion100%
2015 RM10.8billion62%
RM3.2billion19%
RM2.9billion16%
RM0.5billion3%
RM17.4billion100%
Guidelines on Online Channels and E-Insurance Portals Appointed and/or Engaged by Agents
With the continuous development of internet andmobile applications, the general insurance industrywitnessed a growing trend in which intermediariesutilizeonline channelsnotbelonging toor appointedby insurers to seek more business opportunities as well astopromote,transactandservicetheircustomers.
To ensure the orderly functioning and use of onlinechannelsbyagentsand toprotect the interestof theinsuringpublicaswellasinsurers,proposedGuidelineson the Online Channels and E-Insurance PortalsAppointedand/orEngagedbyAgentshavebeendrawnup.TheGuidelineshavebeensubmittedtotherelevantauthoritiesforclearancepriortoitsimplementation.
Development Roadmap for General Insurance Agents
A task force named “Agents Professionalism andExcellence (APEX)” has been set up comprisingselected members of the Distribution ManagementandEducation/HRDSub-committees.ThefocusoftheAPEX task force is todevelopa roadmap forgeneralinsuranceagentstohelpthemconfrontthechallengesin a liberalised market. The roadmap will take intoaccount theeducationalaspectsaswellas tochartacontinuousprofessionaldevelopmentpathfornewandexistingagents.
The Exposure Draft is expected to be circulated tomembersonceitisreadybyQ32017.
Fromtheanalysis,theroleplayedbyinsuranceagentsintheMalaysianmarketisstillverysignificant.
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General Insurance Agents Convention (GIAC) 2016 - Distribution in a Liberalised Environment
The theme for the GIAC 2016“Distribution in a LiberalisedEnvironment” was to impart andsharewith the agents the PhasedLiberalisationoftheMotorandFireTariffswhichwillhaveasignificantimpact on the insurance industryandthedistributionlandscape.
TheGIAC 2016was held in KualaLumpuron4Aug2016withatotalof852participantsattendingthemainconvention. Half-day Roadshowswere also held in Johor Bahru,Penang,KotaKinabaluandKuchingand a total of 683 participantsattendedatthese4locations.
The topics covered were MarketLiberalisation – “A Race to theBottom?”,IndustryPerformanceandUpdate on Phased Liberalisation,EmpowermentandTransformation,Impact of Social Media and BigDataonDistributionandThrivinginaCompetitiveMarket–AnAgent’sPerspective.
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Agent’s E-Identification and E-GIARR
Effective 15Dec2016, theAgent’sE-Identification was rolled out toreplace the physical IdentificationCard which was issued to agentsin the past. Agents can now viewand retrieve their respectiveE-Identification and E-GIARR fromPIAM’swebsiteatwww.piam.org.my.
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ACCiDENT, hEALTh AND OThERS
Ministry of Health’s Proposal to Revise/Increase the Benefits of the Foreign Workers Hospitalisation and Surgical Insurance Scheme (SKHPPA)
TheOverallAnnualLimit(OAL)perInsuredPersonwasincreasedfromRM10,000toRM20,000effective1Aug2016.
WiththeincreaseinOALtheAssociationhadengagedActuarialConsultantJPWALLtosubmitanAddendumonbehalfofmembercompanies.
Purchase of Mandatory Insurance for Foreign Workers
Bestinet commenced imposing the transaction feesofRM3perforeignworkerforthefacilitationofonlinepurchase of foreignworkers insurance via the onlineinsurancemoduleof theForeignWorkersCentralisedManagementSystem(FWCMS)effective1Jul2016.
A specimen copy of the “Agreement for Purchase ofMandatory Insurance for Foreign Workers betweenBestinetSdnBhdandParticipatingInsuranceProviders”inconnectionwiththetermsandconditionsforuseoftheFWCMSwascirculatedtomembercompanieson7Sep2016forexecutionbetweenBestinetandindividualinsurancecompanies.
Managing Medical Healthcare Cost - Proposal to BNM on Published Rate by Private Hospitals
With the increasing costs of healthcare nationwide,the Life Insurance Association of Malaysia (LIAM) iscurrently leading theabove initiativeonbehalfof theindustry.
One of the quick-win measures identified that couldbeintroducedimmediatelytocurbthevastdisparityofmedical charges by different private hospitalswas torequireallprivatehospitalstopublishtheirchargesoncommonsurgeriesandtreatmentsiftheywishtobeonthepanelofinsurers.
In this regard, LIAM had written on behalf of theindustry to BNM with the proposal to mandate theprivatehospitalstopublishtheirchargesfortreatmentofcommonconditions,asapre-requisiteforthemtobeappointedaspanelhospitalsofanyinsurancecompanythatmarketmedicalhealthcareproducts.InadditionitisrecommendedthatallprivatehospitalsshouldadopttheStandardisedBillingformat.
Joint Technical Committee (JTC) of LIAM, PIAM and MTA on Medical and Health Insurance
It was agreed by the JTC on 11 Jan 2005 that theposition of theChairman is to be rotated among theAssociationsevery2yearsandtheSecretariatwillbetheAssociationfromwhichtheChairmaniselected.
The JTCwashandedoverbyPIAM toMTAon 1 Jan2016.MTAhadappointedDrSharlizaMohdSallehfromPrudentialBSNTakafulBhdasthenewChairmanoftheJTCfor2016/2017.
Revised Hospital & Surgical Insurance (HSI) Underwriting Guide (now re-named as the Revised Hospital & Surgical Insurance/Takaful Guide [HSI Guide])
BNMrevertedwiththeircommentsontherevisedGuideon9May2016.FollowingtheJTC’smeetingwithBNMon30Jun2016,theJTCmadesomefurtherrevisionstotheHSIGuideanditwasresubmittedon12Oct2016.TheJTCisawaitingBNM’sapprovaloftheGuide.
fiRE, MARiNE AND ENgiNEERiNg
Building Cost Calculator
The services of a Quantity Surveying company wereengagedtodeveloptheBuildingCostCalculator(BCC).TheBCCaimstoprovideamoreaccurateestimateonthesuminsuredofresidentialproperties,simpleshophousesandshopoffices.
The Fire, Marine and Engineering Sub-committee iscurrently in itsfinalstageofverifying theaccuracyofthevaluesgeneratedbytheBCCbeforetheofficialrollouttotheindustry.
Marine Insurance Knowledge Seminar (MIKS)
The Association continues to hold its MIKS series toenhance the knowledge of industry practitioners andtouplift theprofileof themarineclassofbusiness inMalaysia.
During2016,twoMIKSserieswereheld:
• 16Mar2016withthetheme“ClaimsAdjustmentonCargowithCaseStudies”
• 10Nov2016withthetheme“MarineCargoLiabilityand Port Risks including Assessment of RisksAccumulation”
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gOVERNANCE, fiNANCE AND RiSk MANAgEMENT
fiNANCE, CORPORATE gOVERNANCE AND ENTERPRiSE RiSk MANAgEMENT
Goods and Services Tax – Industry Appeal on Input Tax Credit on Repair Costs of Accident Vehicles
TheGoodsandServicesTax(GST)whichwasintroducedin April 2015 disallows insurance companies fromclaiming Input Tax Credit on repair costs of accidentvehicles. The Association has made several appealsand submissions to the Customs and the Ministry ofFinanceforareliefonthisprohibition.
CustomsstipulatesthatITCisnotclaimablebyvirtueofRegulation47(2A)(b)oftheGSTRegulations2014.Theindustry however is of the view that Customs’ standon themattermeans that there is double taxation ofGSTasGSThasalreadybeenpaidonthesparepartsusedforrepairsinthefirstinstancebytherepairerorworkshop.PIAMispursuingthematterfurtherwiththeauthoritiesonbehalfofinsurancecompanies.AsimilarreliefwasgrantedintheSingaporegeneralinsuranceindustry.
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Compliance Officers Networking
TheComplianceOfficers’NetworkingsessionsareheldtoprovideComplianceOfficersofmembercompaniesa platform to exchange and share experiences oncomplianceissuesintheindustryandtheirrespectivecompanies.
The Compliance Working Group (WG) which reportsto the Finance and Corporate Governance/ERMSub-committee organized an engagement sessionwith BNM on the Compliance Policy Document. Thisnetworking session was held on 11 May 2016 andprovided an avenue for ComplianceOfficers to seekclarificationsonthePolicyDocumentfromBNMandtobetterappreciatethedemarcationbetweenoperationandcompliancerisks.PIAMalsoinvitedtheComplianceOfficers from the lifeand takafulsector toattend thissession.
Compliance Risk Assessment Template
TheComplianceWGhasalsoformulatedaComplianceRiskAssessmenttemplateforusebymembercompaniesas a guide for assessment of their compliance risks.Membercompaniesareatlibertytoamendorchangethistemplatetosuittheirowncompanies’requirements.
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Enterprise Risk Management
TheEnterpriseRiskManagement(ERM)WorkingGroupwhichreportstotheFinanceandCorporateGovernance/ERM Sub-committee promotes and facilitates thedevelopment of enterprise risk management in theindustrybyprovidingaplatformforknowledgesharingon riskmanagement issues.ThisWGalso representsthe industry’s views onmatters concerning ERM andassists industry members to identify and respond to newemergingrisks.
TheWGorganizedaroundtabledialogueonKeyRiskIndicators (KRIs) on 20 Apr 2016 and the focus wasonchallengesandsolutionstoidentify,selectandsetthresholdsforKRIs.TheparticipantsalsodiscussedthetrackingandreportingofKRIsbymembercompanies.
A Knowledge Sharing Forum on Business ContinuityManagement (BCM) and Crisis Management washeld on 20 Sep 2016. The Session focused on BCMplanning methodology and case scenarios with roleplays.Positive feedbackwas received from themanyparticipantsacrossallmembercompanies.
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Accounting Standards
AWorkingGrouponAccountingStandardshasbeenformedwhichwill be thecontactpointonallmattersrelating to accounting standards impacting membercompanies. This WG will provide a platform fordiscussion and response to MASB, BNM and otherGovernmentagenciesonaccountingmatters.WiththeimpendingintroductionofMFRS9,theWGorganizedabriefingbyPricewaterhouseCooperson23Sep2016formembercompaniestodiscusstheimpactofthesestandardsonmembercompanies’operations.
E-payment Migration
Themigrationtoe-paymentinthefinancialsectorundertheFinanceSectorBlueprint2011–2020isanationalagendaandBNMhassetseveraltargetsforinsurancecompaniestoachieveunderthismigrationinitiative.
Onanindustryaverage,generalinsurancecompaniesprocess 90%of their payments using electronic fundtransfer,whereastheircollectionsareat79%.ThefocusoftheWorkingGroupoverseeingthisprojectistoreducecheque usage for payments received (collections) byinsurers.TheWGisworkingwithelectronicpaymentsservice providers on promoting their services toconsumers via a contest. TheWG is also in constantcontactwithmembercompaniestoalertthemonareaswhichneedtobeimprovedandhowtheycansupporttheoverallinitiativesoftheindustry.
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TALENT
EDUCATiON AND hUMAN RESOURCE DEVELOPMENT
Industry Forum on Human Capital and Talent - “Stepping Up for Tomorrow’s Workplace”
ThefourthIndustryForumonHumanCapitalandTalentwasheldon20Oct2016.
Since its inception, this forumhasbeenan importantnetworkingplatformforindustrypractitionerstoengageinbrainstormingoncriticalissuesfacinghumancapitalin the industry.Themed “SteppingUp forTomorrow’sWorkplace”, the fourth forum attracted more than40 Human Resource practitioners from membercompanies.
Inhisopeningspeech,EncikZainudinIshak,Convenorof PIAM Education/HRD Sub-committee emphasizedthat it was important to leverage on the talents thattheindustryhas,citingastudybytheAsianInstituteofFinance (AIF) in2015which showedanalarming skillgapsacrossallsectorsinthefinancialservicesindustryinMalaysia.Hefurtherstressedthatempowermentandretentionareessentialtoensurecompetencybuildingwiththerequiredskillset.Healsourgedthatsuccessionplanningbegivenprominenceonthecorporateagendaatthehighestlevel.Thiswillensurethesustainabilityofahighlyskilledworkforcetocatertogrowingbusinessneeds,continuityofacapableworkforce,theprogressofthebusinessaswellasfortheindustry.
External speakers shared key development tips onLeveraging Talent for Organisation and Industry,Developing HR Core Competencies in StrategicThinkingaswellasPlanningandRaisingEngagementforBusinessResults.
ThiswasfollowedbyapaneldiscussionwherevaluableinsightsonHRdevelopmentandindustrybestpracticesweredeliberatedupon.
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The 6th Young Managers’ Forum - “Changes and Choices”
The6thYoungManagers’Forum(theForum)washeldon 26 Apr 2016 with an encouraging turn-out of 82youngleadersfrommembercompanies.
Themed “Changes and Choices”, this was the sixthyear theYoungManagersThinkTank (YMTT)ofPIAMorganizedtheForumsinceitsfirstforumin2010.TheForumhad since gained strong support amongst theyoungtalentsoftheindustry.
TheForum isaimedat synergizing thecapabilitiesofthese young talents whilst providing a networkingopportunitytofosteracohesivespiritamongthem.
PIAM CEO, Mr. Mark Lim started the first session byproviding an update on industry performance anddevelopment. Speakers from organizations such asTalent Corporation Malaysia Berhad (TalentCorp) andAsian Instituteof Finance (AIF) shared their expertiseontalentmanagementandchallenges.
WhilsttheForumhadpreviouslyinvitedspeakersfromotherindustriestosharetheircareerexperiences,thisyeartheYMTTdecidedthat theyoungtalentsshouldhavetheopportunitytohearfromandbemotivatedbyourindustryCEOs.
PIAMChairman,Mr.AntonyLeerecountedhiseventfuljourney from being an architect to IT Consultancybeforelandingintheworldofgeneralinsurance.Itwasindeedinterestingtohearhisstoryashedescribedthecircumstanceswhichbroughthimintotheindustry.Heurgedyoungleaderstobuildontheirpassion,strivetoenjoyandexcelintheirwork.
ConvenorEncikZainudinIshakencouragedparticipantstosettheirtargetshighandalwaysbewillingtoexplorenewlearningopportunitiestoacceleratetheirpersonalgrowth.
AnotherhighlightoftheForumwasthesharingbyfouryoung leadersof the industryontheircareer journey,their “secret recipe formula” forsuccess in theirworkassignments. The forum ended with a brainstormingworkshop for the participants to share their innerthoughts and ideas on how the industry can worktogether to leverageon the talentpool for long termbenefit.
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YMTT 2nd Leadership Camp and CSR Project 2016
YMTT organized the 2nd Leadership Camp and CSRProjecton7and8Oct2016atPortDickson.Befittingthe theme “Changes and Choices”, the objective ofthecampwastoencourageyoungmanagerstostrivebeyondtheirexistingcapabilitiesandarmthemselveswithskillsets to tackle impending industrychanges inan increasingly dynamic working environment. Thecampalsoaimedtocreateaplatformofsharinggoodleadership behaviours, empowering, motivating andinspiringeachparticipant.
The learning experience for the 44 youngmanagerswhoattendedthisLeadershipCampwasconductedinbothindoorclassroomandoutdoorsettings.
TheCSRProjectonDay2allowedyoungmanagerstoappreciate thepowerandbeautyofuplifting the lessfortunatemembersofoursociety.Theyoungmanagershosted orphans from Pusat Jagaan PertubuhanKebajikan Kanak-Kanak Yatim Dan Miskin WawasanPort Dickson with interesting activities. As a token,PIAMcontributedRM5,000 incashand inkindto theorphanage.
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YMTT 6th Breakfast Talk
On9Nov2016,YMTThadits6thBreakfastTalkwithatotalof45youngleadersfromPIAMmembercompaniesattending.ThespeakeratthissessionwasthefounderofBFM89.9businessradiostation,EncikMalekAli.
Inlinewiththisyear’sthemeof“ChangesandChoices”,Malek shared his journey of “Taking the Road LessTravelled”.Hesaidasanentrepreneur, it is importantto experiment and try new things, and be preparedforhuge“bumps”inlife.Headdedthatentrepreneursshouldbeconfidentintheirproductsandservices,asitisnoteasytodelivernewinnovativeproductsespeciallywhenideasandconceptsarenewandunfamiliartothemarket.
PIAM’s CEO, Mr Mark Lim shared his takeaway froma key note speech delivered by Dato’ MuhammadIbrahim, theGovernor of BankNegaraMalaysia. TheGovernor highlighted the importance of the 3Ts i.e.Technology,TrustandTalentforthegeneralinsuranceindustry.Markbelievesthattheyoungleadersoftodayshouldembracethe3Tsinordertostriveandgrowinaneverchangingbusinessenvironment.
TheBreakfastTalk isanannualeventwhichprovidesyoungmanagersintheindustrywithanopportunitytolistentorenownedandinspiringspeakersoutsidetheinsuranceindustrywhosharetheirwordsofwisdomaswellaspassioninworkandlife.Thistalkalsoactsasanetworkingandmotivationplatformfortheindustry’syoungtalents.
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General Insurance Internship for Talent (GIIFT) Project
It hasbeenone-and-a-half years sincePIAMofficiallylauncheditsGIIFTProjectinJuly2015.AsofDec2016,a total of 117 interns had undergone their internshiptrainingatPIAMmembercompanies.
GIIFTispositionedasanawarenessbuildingprogramtoreachoutandshowcasetheindustrytothepoolofyoungtalentatouruniversities.Itisaimedatenhancingthe profile and uplifting the image of the industry byhighlightingtheglobalnatureofgeneralinsuranceandthespectrumofcareeropportunitiesavailable. In thiswayitwillattracttoptalentamongtheundergraduatepoolfromlocalandinternationaluniversitiesinMalaysiatobuildupapipelineoftalentfortheindustry.
The 12-week structured program equips studentswithhandsonworkexperience.Placing studentsasinterns in the insurance companies increases theiremployability upon graduation. As of end 2016, 17interns have been recruited as permanent staff inmembercompaniesofPIAM.
GIIFTisfundedbytheCapacityBuildingProjects(CBP)schemeadministeredbyAIFfromJul2015toDec2016.
PIAMwishes toexpress itsappreciation toBNM,AIF,MII, member companies and the various institutionsof higher learning for their steadfast support andcommitment to this project. PIAM look forward to asustained and dedicated effort by all stakeholdersconcernedtomakeGIIFTanongoingsuccessformanyyearstocome.
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CORPORATE COMMUNiCATiONS
PUBLiC RELATiONS/CSR
Media Briefings
In 2016, the Association organised two high profilemediabriefingson3Marand24Augrespectively.Theprimaryobjectivesofthesebriefingsaretoupdatethemediaontheindustry’sperformanceandcommunicatekeymessagesoncritical issuesaffecting the industryto the general public. PIAM received overwhelmingresponse from the media with regards to theirattendanceatthesesessionsandgarneredwidespreadcoverageacrossallmainstreammedia in theEnglish,MalayandChineselanguages.
Through these media briefings, PIAM also took theopportunity to educate themedia representatives ongeneral insuranceand its contribution toournationaleconomy.
Media Engagements
TheAssociationcontinuouslyengagedwiththemediathroughvariousinterviewsonbothprintandbroadcastchannels.
These interviews covered awide range of insurancetopicsimpactingtheconsumers,economicenvironmentand legislativechangesaffecting the industry.Oneofthehighlightsfor2016wasthePhasedLiberalisationoftheMotorandFireTariffs.
Toeducatethegeneralpublicondetariffication,PIAMissuedamediastatementon‘Top10ThingsThatYouShould Know about Phased Liberalisation of MotorandFire Tariffs’.On topof that,media releaseswerealsoissuedonpracticalstepstobetakenintheeventof a road accident, as well as a flood advisory withrecommendations and precautionary measures in preparationforthemonsoonseason.
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General Insurance Day (GID) 2016
The General Insurance Day (GID) 2016 wascommemorated with a Drive Safe Campaign at ashoppingcomplexinKualaLumpuron22Oct2016.
The campaign, which was themed “Every Road UserHasAFamily,DriveSafe”focusedonRoadSafety,asthe number of road accidents in Malaysia has beensteadilyincreasingoverthepastfewyearsresultinginlossofpreciouslivesandseverepropertydamages.Allthesearealsoconsideredtobealossofproductivitytocompaniesandthecountryingeneral.
The GID 2016 event also ran parallel with a socialmedia campaignbyPIAM that promoted thehashtag#DriveSafe4Family.Guests and visitorswhoattended
theeventhadfamilyportraitstakensuperimposedwithroad safety messages which were shared on socialmedia.
OtheractivitiesorganisedwereanedutainmentDriveSafe activity where visitors, especially the youngchildren, were invited to experience driving remotecontrolled carswith various road signs andobstaclesalongthewaytomakethemmoreconsciousoftrafficsafetyrulesanddefensivedriving.Carandmotorcyclestickerswith themeaningful tagline“EveryRoadUserHasAFamily,DriveSafe”weredistributedatthevenue.These stickerswere alsomade available formembercompaniestodistributetotheirpolicyholders.
Overall the campaign served as an education andcommunicationsplatform to thepublicon thePhasedLiberalisation of Motor Tariffs by spreading the roadsafetymessageandshapingthebehaviourofmotoriststodrivesafelyatalltimes.
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PIAM 55th Anniversary Celebration
2016witnessedthecommemorationofPIAM’s55thyear ofexistencesince1961whentheInsuranceAssociationofMalayawasfirstsetupinKualaLumpur.Tomarktheauspicious occasion, a 55th year Emerald anniversarycelebrationwasorganized.Theoccasionwasgracedby the past Chairmen of PIAM and present at thismemorable event were Y. Bhg Datuk Abdul ShukurHassan,Mr.WongKimTeck,Y.BhgDato’AdrianLoh,MrCliffLeeandMr.TanKokGuan.
Members who had represented the ManagementCommittee in previous years joined in the fun-filled event together with invited guests from otherorganisationsandstafffrommembercompanies.
Stageperformancesandcrowdparticipationmadetheeventamemorableoneindeed.
ACkNOWLEDgEMENT
PIAM and theManagement Committee would like toexpressitsgratitudetoallmembercompaniesfortheirsupportandcommitment.InparticulartheAssociationwishestoputonrecorditsdeepestappreciationtoallmembersof thevariousSub-committees,TaskForcesandWorkingGroupswhohavegenerouslycontributedtheirprecioustimeforthebenefitoftheindustry.
PIAM would also like to thank the officers of BNM,Ministries of Finance and Transport, Royal MalaysianCustoms Department, Royal Malaysian Police, RoadSafety Department, JPJ, MIROS, OFS, MalaysianInsuranceInstitute,AsianInstituteofFinanceandmanyotherkeystakeholdersfortheirsteadfastsupportandinvaluableguidanceovertheyears.
aCknoWLeDgeMenT
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LisT of MEMBERS
5. Berjaya Sompo insurance Berhad(62605-U)1-38-1&1-38-2,MenaraBangkokBankLamanSentralBerjayaNo.105JalanAmpangP.OBox1243350778KualaLumpur
Tel:603-21172118Fax:603-21447297Web:www.berjayasompo.com.my
6. Chubb insurance Malaysia Berhad(9827-A)18thFloor,WismaChubb38,JalanSultanIsmail50250KualaLumpur
Tel:603-20583000Fax:603-21458436Web:www.chubb.com.my
7. Liberty insurance Berhad(16688-K)9thFloor,MenaraLiberty1008,JalanSultanIsmail50250KualaLumpurP.O.Box6120(Pudu)55916KualaLumpur
Tel:603-26199000Fax:603-26930111Web:www.libertyinsurance.com.my
8. Lonpac insurance Bhd(307414-T)6thFloor,BangunanPublicBank6,JalanSultanSulaiman50000KualaLumpurP.O.Box1070850722KualaLumpur
Tel:603-22628688Fax:603-27151332Web:www.lonpac.com
gENERAL iNSURANCE BUSiNESS
1. Aig Malaysia insurance Berhad(795492-W)Level18,MenaraWorldwide198,JalanBukitBintang55100KualaLumpur
Tel:603-21180188Fax:603-21180288Web:www.aig.my
2. Allianz general insurance Company (Malaysia) Berhad (735426-V)Level29,MenaraAllianzSentral203,JalanTunSambanthanKualaLumpurSentral50470KualaLumpur
Tel:603-22641188Fax:603-22641199Web:www.allianz.com.my
3. Amgeneral insurance Berhad (44191-P)MenaraShellNo.211,JalanTunSambanthan50470KualaLumpurG.P.O.Box1122850740KualaLumpur
Tel:603-22683333Fax:603-22682222Web:www.amgeneralinsurance.com
4. AXA Affin general insurance Berhad(23820-W)GroundFloor,WismaBoustead71,JalanRajaChulan50200KualaLumpurP.O.Box1220050770KualaLumpur
Tel:603-21708282Fax:603-20317282Web:www.axa.com.my
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9. MPi generali insurans Bhd(14730-X)8thFloor,MenaraMulti-PurposeCapitalSquareNo.8,JalanMunshiAbdullah50100KualaLumpurP.O.Box1012250704KualaLumpur
Tel:603-20349888Fax:603-26945758Web:www.mpigenerali.com
10. MSig insurance (Malaysia) Bhd (46983-W)Level15,MenaraHapSeng2PlazaHapSengNo.1,JalanP.Ramlee50250KualaLumpur
Tel:603-20508228Fax:603-20268086Web:www.msig.com.my
11. Overseas Assurance Corporation (Malaysia) Berhad (102249-P)Level18,MenaraGreatEastern303,JalanAmpang50450KualaLumpurG.P.O.LockedBagNo.1103650734KualaLumpur
Tel:603-42597888Fax:603-48132737Web:www.oac.com.my
12. Pacific & Orient insurance Co. Berhad(12557-W)11thFloor,WismaBumiRayaNo.10,JalanRajaLaut50350KualaLumpurP.O.Box1095350730KualaLumpur
Tel:603-26985033Fax:603-26938145Web:www.pacific-orient.com
13. Progressive insurance Bhd(19002-P)9th&10thFloors,MenaraBGI,PlazaBerjaya12,JalanImbi55100KualaLumpurP.O.Box1002850700KualaLumpur
Tel:603-21188000Fax:603-21188103Web:www.progressiveinsurance.com.my
14. QBE insurance (Malaysia) Berhad(161086-D)No.638,Level6,BlockB1PusatDagangSetiaJaya(LeisureCommerceSquare)No.9,JalanPJS8/946150PetalingJayaSelangorDarulEhsanP.O.Box1034550720KualaLumpur Tel:603-78618400Fax:603-78737430Web:www.qbe.com.my
15. RhB insurance Berhad(38000-U)Level12,WestWing,TheIconNo.1,Jalan1/68FJalanTunRazak55000KualaLumpur
Tel:603-21803000Fax:603-92812729Web:www.rhb.com.my/insurance/main
LisT ofMEMBERS
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16. The Pacific insurance Berhad (91603-K)40-01,Q-Sentral2A,JalanStesenSentral2KualaLumpurSentral50470KualaLumpurP.O.Box1249050780KualaLumpur
Tel:603-26338999Fax:603-26638998Web:www.pacificinsurance.com.my
17. Tokio Marine insurans (Malaysia) Berhad(149520-U)29th&30thFloor,MenaraDion27,JalanSultanIsmail50250KualaLumpurP.O.Box1079450724KualaLumpur
Tel:603-27838383Fax:603-20269708Web:www.tokiomarine.com.my
18. Tune insurance Malaysia Berhad(30686-K)Level9,WismaTuneNo.19,LorongDungunDamansaraHeights50490KualaLumpur
Tel:603-20879000Fax:603-20941366Web:www.tuneprotect.com
COMPOSiTE BUSiNESS
1. AiA Bhd(790895-D)MenaraAIANo.99,JalanAmpang50450KualaLumpurP.O.Box1014050704KualaLumpur
Tel:603-20561111Fax:603-20562992Web:www.aia.com.my
2. Etiqa insurance Berhad (9557T)Level22,TowerCDataranMaybankNo.1,JalanMaarof59000KualaLumpur
Tel:603-22971888Fax:603-22971800Web:www.etiqa.com.my
3. Prudential Assurance Malaysia Berhad (107655-U)Level17,MenaraPrudentialNo.10,JalanSultanIsmail50250KualaLumpurP.O.Box1002550700KualaLumpur
Tel:603-20318228Fax:603-20323939Web:www.prudential.com.my
4. Zurich insurance Malaysia Berhad(8029-A)MenaraZurich,No.12,JalanDewanBahasa50460KualaLumpurP.O.Box1055350716KualaLumpur
Tel:603-21468000Fax:603-21425863Web:www.zurich.com.my
LisT ofMEMBERS
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REiNSURANCE BUSiNESS
1. Asia Capital Reinsurance Malaysia Sdn Bhd(762294-T)UnitA-12A-8Level12AMenaraUOABangsar5JalanBangsarUtama159000KualaLumpur
Tel:603-22996800Fax:603-22996900Web:www.asiacapitalre.com.my
2. hannover Rueck SE Malaysian Branch (993601-H)Suite29-01,IntegraTowerTheIntermark348JalanTunRazak50450KualaLumpur
Tel:603-26873600Fax:603-26873760Web:www.hannover-re.com
3. Malaysian Reinsurance Berhad(664194-V)12thFloor,BangunanMalaysianReNo.17,LorongDungunDamansaraHeights50490KualaLumpurP.O.Box1106850990KualaLumpur
Tel:603-20968000Fax:603-20967000Web:www.malaysian-re.com.my
4. Swiss Reinsurance Company Ltd(993718-U)No.10,PersiaranKLCCLevel13A-2,NazaTower@PlatinumPark50088KualaLumpur
Tel:603-26335800Fax:603-26335803Web:www.swissre.com
5. The Toa Reinsurance Company, Limited (993924-T)KualaLumpurBranch,28thFloor,UBNTower10,JalanP.Ramlee50250KualaLumpur
Tel:603-27325911Fax:603-27325915Web:www.toare.co.jp
LisT ofMEMBERS
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insUranCe INDICATORS
WRiTTEN PREMiUMS
WRiTTEN PREMiUMS
RMMILLION
RMMILLION
YEAR100.0
0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Fire
2015 20162014201320122011201020092008
YEAR1,000
0
2,0003,0004,0005,0006,0007,0008,0009,000
2015 20162014201320122011201020092008
Written Premiums (RM Million)
Written Premiums (RM Million)
Source: ISM
Source: ISM
YEAR FIRE MOTOR MAT MEDICAL P.A.2008 2,123.7 4,911.5 1,248.4 550.0 852.22009 2,237.3 5,288.2 1,231.5 587.3 965.72010 2,291.8 5,968.6 1,353.6 643.5 1,088.42011 2,398.9 6,382.4 1,489.4 822.2 1,151.22012 2,571.2 6,978.3 1,565.5 875.7 1,173.22013 2,793.4 7,524.2 1,519.3 920.0 1,236.22014 2,954.7 7,932.8 1,651.9 1,006.3 1,264.62015 3,118.6 8,097.5 1,695.1 963.3 1,301.32016 3,273.7 8,165.2 1,562.9 1,027.0 1,298.3
Motor
MATMedical
P.A.
BondsCar&Eng
LiabilityWC&EL
YEAR BONDS CAR & ENG LIABILITY WC & EL2008 49.6 454.8 376.5 149.72009 47.0 457.3 411.5 147.42010 38.6 423.5 415.6 159.62011 43.3 524.3 446.4 171.32012 52.0 610.5 496.3 205.52013 53.0 644.7 495.8 233.22014 51.1 672.8 547.9 240.62015 60.6 670.1 560.6 232.32016 74.2 695.7 577.1 220.2
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YEAR
CLAiMS RATiO BY SECTOR
CLAiMS RATiO BY SECTOR
CLAIMSRATIO(%)
CLAIMSRATIO(%)
20092008 2010 2011 2012 2013 2014 2015 2016
20092008 2010 2011 2012 2013 2014 2015 2016
0%
20%
-20%
40%
60%
80%
Claims Ratio By Sector (RM Million)
Claims Ratio By Sector (RM Million)
Source: ISM
YEAR BONDS CAR & ENG LIABILITY WC & EL2008 2.3% 60.2% 13.5% 22.0%2009 7.6% 23.9% 33.3% 16.5%2010 -8.9% 48.9% 33.1% 19.2%2011 10.4% 45.8% 41.1% 16.0%2012 0.6% 55.0% 29.8% 14.4%2013 -1.3% 40.4% 26.9% 12.2%2014 9.7% 44.5% 20.1% 9.7%2015 9.4% 56.5% 17.4% 9.4%2016 7.1% 47.5% 24.2% 9.9%
YEAR FIRE MOTOR MAT MEDICAL P.A.2008 30.7% 82.7% 74.7% 50.0% 36.0%2009 26.4% 79.8% 73.6% 31.1% 35.7%2010 28.7% 79.5% 82.7% 34.5% 33.0%2011 30.8% 76.8% 64.4% 38.8% 31.5%2012 27.6% 72.3% 56.6% 29.8% 28.9%2013 29.4% 72.7% 50.6% 31.1% 26.5%2014 28.8% 71.5% 57.4% 33.9% 29.4%2015 28.3% 72.0% 54.0% 34.7% 26.0%2016 27.7% 66.9% 70.5% 40.3% 28.8%
Source: ISM
BondsCar&Eng
LiabilityWC&EL
FireMotor
MATMedical
P.A.
insUranCeINDICATORS
YEAR
20%
40%
0%
60%
80%
100%
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UNDERWRiTiNg EXPERiENCERMMILLION
YEAR2,000.0
0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
2015 20162014201320122011201020092008
Underwriting Experience (RM Million)
Source: ISM
EarnedPremiums
NetClaims
Comissions
U/WritingMargin
ManagementExpenses
YEAR EARNED NET CLAIMS COMMISSIONS MANAGEMENT U/WRITING PREMIUMS EXPENSES MARGIN2008 7,696.9 5,041.4 757.1 1,735.4 163.02009 8,241.0 5,067.8 802.5 1,757.8 612.92010 8,741.1 5,495.7 818.9 1,787.5 639.02011 9,359.7 5,683.2 901.9 1,866.9 907.82012 10,120.8 5,743.9 1,000.4 2,079.1 1,297.42013 11,189.0 6,340.3 1,144.6 2,242.5 1,461.62014 11,979.0 6,790.0 1,241.6 2,460.5 1,486.92015 12,548.4 7,090.0 1,246.9 2,747.5 1,464.02016 12,822.9 6,991.9 1,270.9 3,030.5 1,529.6
insUranCeINDICATORS
ANNUAL REPORT 2016 | 105
roLL of honoUr 1984 TO 2017TERM ChAiRMAN DEPUTY ChAiRMAN
2016-2017 Mr Antony Lee Mr. Chua Seck guan (AIG Malaysia Insurance Bhd) (MSIG Insurance (Malaysia) Bhd)
2015-2016 Mr. Chua Seck guan Mr Antony Lee (MSIG Insurance (Malaysia) Bhd) (AIG Malaysia Insurance Bhd)
2012-2015 Mr. Chua Seck guan Mr. kong Shu Yin (MSIG Insurance (Malaysia) Bhd) (RHB Insurance Berhad) (from 31 October 2012) (from 31 October 2012) Mr. Wong kim Teck Mr. Chua Seck guan (Kurnia Insurans (Malaysia) Berhad) (MSIG Insurance (Malaysia) Bhd) (from 23 April to 30 October 2012) (from 23 April to 30 October 2012)
2011-2012 En. hashim harun Mr. Wong kim Teck (Malaysian Reinsurance Bhd) (Kurnia Insurans (Malaysia) Bhd)
2010-2011 En. hashim harun Mr. Tan kok guan (Malaysian Reinsurance Bhd) (Lonpac Insurance Bhd)
2009-2010 En. hashim harun Mr. jahanath Muthusamy (Malaysian Reinsurance Bhd) (AXA Affin General Insurance Bhd)
2008-2009 Mr. Cliff Lee koon Yew En. Mohd Yusof idris (Tahan Insurance Malaysia Berhad) (Oriental Capital Assurance Bhd) (from 13 March 2008 to 31 March 2009)
2007-2008 En. Zainal Abidin Mohd Noor Mr Cliff Lee koon Yew (Etiqa Insurance Berhad) (Tahan Insurance Malaysia Berhad) (from 20 April 2007 to 29 February 2008)
2006-2007 En. hashim harun En. Mohd Yusof idris (Uni.Asia General Insurance Bhd) (Oriental Capital Assurance Bhd)
2005-2006 En. hashim harun En. Anuar Mohd hassan (Uni.Asia General Insurance Bhd) (Malaysian National Reinsurance Bhd)
2002-2005 En. Anuar Mohd hassan En. hashim harun (Malaysian National Reinsurance Bhd) (Uni.Asia General Insurance Bhd)
2000-2002 En. kassim Zakaria En. Anuar Mohd hassan (Mayban General Assurance Bhd) (Malaysian National Reinsurance Bhd)
1999-2000 En. Anuar Mohd hassan - (Malaysian National Reinsurance Bhd)
1997-1999 En. Anuar Mohd hassan Mr. Adrian Loh heong Chow (Malaysian National Reinsurance Bhd) (Kurnia Insurans (M) Bhd)
1994-1997 Mr. Adrian Loh heong Chow En. Anuar Mohd hassan (Hong Leong Assurance Bhd) (Malaysian National Reinsurance Bhd)
1993-1994 En. Subri Abdullah En. Dzulkifli Mohd Salleh (Malaysian Co-operative Insurance Society Ltd) (Malaysian National Reinsurance Bhd)
1990-1993 En. Dzulkifli Mohd Salleh En. A. Subri Abdullah (Malaysian National Reinsurance Bhd) (Malaysian Co-operative Insurance Society Ltd)
1988-1990 YBhg Datuk Abdul Latiff hussain En. Dzulkifli Mohd Salleh (Malaysia British Assurance Bhd) (Malaysian National Reinsurance Bhd)
1985-1988 En. Dzulkifli Mohd Salleh Mr Lau khuan Siew (Malaysian National Reinsurance Bhd) (Malaysia British Assurance Bhd)
1984-1985 Tuan haji Mansor Masikon En. Abdullah Bin ishak (Progressive Insurance Sdn Bhd) (Arab Malaysian Insurance Sdn Bhd)
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