Life Insurance Association of Malaysia

Life Insurance Association of Malaysia annual report 2012 LIFE INSURANCE ASSOCIATION OF MALAYSIA No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 503...
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Life Insurance Association of Malaysia

annual report

2012

LIFE INSURANCE ASSOCIATION OF MALAYSIA No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 50300 Kuala Lumpur Tel: 603 2691 6168/ 2691 6628/ 2691 8068 Fax: 603 2691 7978 Website: www.liam.org.my Email: [email protected]

Contents Page 2

17

PRESIDENT’S MESSAGE

REPORT OF THE MANAGEMENT COMMITTEE

6

23

PERUTUSAN PRESIDEN

LAPORAN JAWATANKUASA PENGURUSAN

10

28

MEMBERS OF THE MANAGEMENT COMMITTEE 2012/ 2013

PERFORMANCE OF THE LIFE INSURANCE INDUSTRY

11

35

MANAGEMENT COMMITTEE 2012/ 2013

MEMBERS OF LIAM

12

COMMITTEES AND WORKING COMMITTEES 2012/ 2013

Life Insurance Association of Malaysia No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 50300 Kuala Lumpur Tel: 603 2691 6168/ 2691 6628/ 2691 8068 Fax: 603 2691 7978 Website: www.liam.org.my Email: [email protected]

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

President’s Message

On behalf of the Management Committee, it is my privilege to present the Life Insurance Association of Malaysia (LIAM) Annual Report for 2012 and highlight several milestones of significance.

Financial Services Bill The Financial Services Bill 2012, passed in the Parliament in 2012, is set to replace several existing Acts, including the Insurance Act 1996, the Banking and Financial Institutions Act 1989, the Payment Systems Act 2003 and Exchange Control Act 1953. The financing needs of the economy is expected to rise further and become increasingly more complex and diversified with greater regionalization and globalization of the Malaysian financial system. A stronger and integrated framework for the finance and banking sector is needed to counter future risks to ensure financial stability. With the Bill’s introduction, it is expected to provide a uniformed framework in regulating all the sectors in the financial services industry. Under the Financial Services Bill, composite insurers excluding professional reinsurers would be required to convert to single insurance business which means insurers Vincent Kwo Shih Kang

can only focus on either life or general insurance business. Significant change is also expected with regard to insurable interest for a life insurance policy whereby insurable interest would only be required at the time the insurance policy is effected and it is no longer a criterion at the time of payment of policy monies. The free look period is also extended to persons under a group policy where the premium is paid by the person insured and privity of contract in certain circumstances is extended to persons insured under a group policy. As for payment of policy monies, delay in payment will be subject to interest on the claim amount based on the average 12 months fixed deposit rate for licensed banks published by Bank Negara Malaysia (BNM) plus one per cent.

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president’s message

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Under the Financial Services Bill, the existing duty for

Guidelines on Deferred Annuity Business specifying the

consumers to volunteer all relevant information will no

minimum standards for the management and administration

longer be applicable. Instead, insurers would be required

of annuity products.

to ask specific questions to solicit information relevant to their decision making as to whether they should accept the risk or otherwise. Consumers, however, need to take reasonable care not to make misrepresentation in

26th East Asian Insurance Congress

answering the insurer’s questions.

The last East Asian Insurance Congress (EAIC) in Kuala

Under the Bill, it is expected that stricter penalties will be

anticipated and was held successfully in Kuala Lumpur

meted out for financial crimes. On LIAM’s part, a task force comprising industry senior personnel is being formed to study the impact of the Bill on the industry.

Retirement Planning The industry hailed the removal of the 8% investment income tax on Deferred Annuity in the 2013 Budget as a major boost in retirement planning for the public. This tax incentive in addition to the RM3,000 personal tax relief granted for contribution to a Private Retirement Scheme (PRS) and deferred annuity as announced in the 2012 Budget, will encourage more individuals to invest in annuity schemes to provide savings for retirement. It is estimated that by 2030, 15% of the Malaysian population would be aged 60 and above. Thus, as the country moves towards a high-income nation with an ageing society, there is a dire need for suitable tax efficient

Lumpur was in 1988, thus the 26th EAIC was much from 29 October to 2 November 2012. The EAIC has come a long way as the 2012 edition marked its fifth decade in propagating the development and consolidation of the insurance industry in East Asia. It also marked the 50th Anniversary of EAIC since its formation in 1962. The Congress was jointly organized by LIAM, General Insurance Association of Malaysia (PIAM), Malaysian Takaful Association (MTA) and Labuan International Insurance Association. A cake cutting ceremony with all the EAIC Board Members was held during the opening ceremony of the Congress. The event was witnessed by the Governor of BNM Yang Berbahagia Tan Sri Dr Zeti Akhtar Aziz who also officiated the Opening Ceremony. With the theme ‘Transforming the East Asian Insurers – Time for Action Now’, the congress presented a line-up of learned and well-known speakers to share their thoughts and views on various topics.

retirement products to enable the people to maintain a

The keynote presentations focused on Transforming

comfortable lifestyle in their golden years.

the East Asian Insurers

The launch of the Private Retirement Scheme (PRS) in Malaysia on 18 July 2012 also marked a significant milestone towards retirement planning for the people. The PRS is a voluntary retirement scheme structured by private sector fund providers. Individuals who invest in PRS or deferred annuity are eligible for a tax relief of RM3,000 and the PRS and deferred annuity fund is also free of tax. To boost the orderly expansion of annuity, LIAM in consultation with BNM has drawn up the

and New Horizons in Talent

Development and Retention – Engaging Generation Y and Beyond while the plenary sessions featured presentations on Adapting to Changing Perceptions – Becoming the Preferred Choice, Enhancing Synergies Between Conventional Insurance and Takaful Systems and Revisiting the Aftermath of Recent Natural Disasters – Can We Do Better? LIAM also had the opportunity to coordinate the EAIC Executive Board Meetings which were usually held in

26th EAIC

president’s message

3

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

conjunction with the congress. As per the practice of

be from Malaysian-owned companies has been removed.

previous congress, the Executive Board of EAIC had

At present, the number of Malaysian owned companies

drawn up a city declaration in closing the 26th Congress

has reduced to seven, out of the total 17 companies while

as follows:

the number of expatriate Chief Executive Officers has

• The EAIC reaffirmed its commitment to enhance

increased.

regional co-operation within the insurance industry. • The EAIC noted that Japan and Thailand had responded to the major disasters namely ‘The Great East Japan Earthquake and ‘The Thai Floods in 2011’ with resilience and distinction. The EAIC called on the industry to be more proactive in meeting the needs of the marketplace through innovative means to promote the value of insurance to society in an inclusive manner. • The EAIC agreed to give top priority to act now to make insurance a ‘pull’ industry. • In conjunction with the golden jubilee of the EAIC, an essay and EAIC logo design competition would be launched on re-energizing the insurance industry of the East Asian Market for the next 50 years. The declaration would be a rough guide for the selection of

A new system of electing the Management Committee members would be introduced with effect from the Annual General Meeting in March 2013. The new system which combines election and appointment would be adopted to provide greater opportunities for all Chief Executive Officers to participate on the Management Committee of LIAM. In addition, the monthly Management Committee meetings have been changed to at least six times a year, similar with the practices of a number of associations. The revised Constitution was approved by the Registrar of Societies in June 2012.

the theme and presentation topics in the organisation of the

Engagement with Consumers

next EAIC in 2014 to be hosted by Taipei.

To provide even further confidence to the market and

It is an honour for me to be appointed as the new President of EAIC for the next two years during the Incoming and the Outgoing EAIC Executive Board Member meeting. This is certainly a challenging task, taking over from Mr Teddy Hailamsah who had done a wonderful job as head of the EAIC Executive Board for the last two years. During

establish a stronger base for consumer protection, the industry and BNM established the Treat Customers Fairly (TCF) framework which was introduced in 2011 whereby all member companies are required to fully comply by 1 January 2012. It is in the interest of the industry to promote healthy market conduct and consumer protection.

the two-year tenure as EAIC President, on behalf of the

LIAM’s members are committed to putting this principle

Malaysian industry, I pledge to give my best and look

into practice and the Association has urged its members

forward to working with the team from Taipei to ensure

to show their dedication to uphold the essence of the

another successful congress in 2014.

guidelines in its operations. It is important to note how the TCF is being implemented and to gauge the commitment

LIAM Constitution Arising from the liberalization of the financial services sector, there have been gradual changes in the equity structure and management of insurance companies whereby the number of foreign companies and non-Malaysian Chief

philosophy. LIAM has put in place a monitoring framework, whereby CEOs annually sign a declaration of compliance with the industry guidelines. Efforts to raise consumer awareness on the benefits of life

Executive Officers have increased.

insurance are also high on the Association’s agenda. In fact,

In response to these changes, LIAM had reviewed its

is constantly seeking collaborations with local newspapers

Constitution to ensure that the Association continues to have a pool of dedicated leaders in the Management Committee. The criteria imposed on the appointment of President and composition of Management Committee

it is an infinite objective. Therefore towards this end, LIAM to publish educational articles on life insurance. For the 2012 Consumer Education Series, LIAM started collaborating with the Malay Mail amongst others. LIAM’s

members was relaxed.

collaboration with the national daily has provided the

Under the revised Constitution, the requirement that the

urban and suburban, English speaking market.

President and Management Committee members have to

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level of insurance companies to develop TCF as a company

president’s message

industry an opportunity to reach the young, middle income,

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

The articles which were published in the Malay Mail

In the meeting with the Deputy Finance Minister, Y.B.

include Confusion on Medical Insurance Coverage, Critical

Senator Datuk Ir. Donald Lim Siang Chai, LIAM presented

Illness Adds Cover to Medical Insurance, Understanding

its views and proposals on several issues namely Tax on Life

Critical

Policy

Fund, Annuity Tax Relief, Annuity and Private Retirement

Key Consideration, 1Malaysia Micro Protection Plan,

Schemes, Goods and Services Tax on Life Insurance, ETP

Insurance for Children and Choosing the Right Policy.

and life insurance for the Ministry’s consideration.

Illness

Claims

Rejections,

Medical

All these articles are available on LIAM’s website at www.liam.org.my. LIAM also continued to share educational articles on insurance with the Federation of Malaysian Consumers Association (FOMCA) for their magazine entitled RINGGIT. This is a monthly bulletin published in the national language by FOMCA and BNM to raise awareness among consumers on the importance of financial management. RINGGIT is circulated to various organizations including universities, government and private agencies, libraries

Acknowledgement To conclude, I would like to record my thanks and appreciation

to

all

my

fellow

colleagues

on

the

Management Committee, the various Committees and Working Committees as well as all LIAM members for their unwavering support and commitment. The industry’s concerted efforts and collaboration has certainly been the cornerstone to the success of the Association’s activities.

and other public places for the benefit of all communities.

I would also like to take this opportunity to accord my

For the year 2012, RINGGIT published three LIAM articles

the Vice President for 2012 and not forgetting his many

namely Insurans Wanita: Sekadar Gimik Pemasaran atau Melindungi, Kekeliruan Mengenai Perlindungan Insurans Perubatan and Pelan Insurans Penyakit Kritikal Tambahan

appreciation to Mr Khor Hock Seng who had served as years of contribution as a member of the Management Committee of LIAM.

Perlindungan Kepada Insurans Perubatan.

On behalf of LIAM, I wish to express my heartfelt

In addition to the above, LIAM was also involved in a series

Ministry of Finance, Treasury, Ministry of Health and related

of BNM road shows to reach out to the consumers in many underserved areas across the nation. The details are reported in the Management Committee report.

LIAM Courtesy Visit to Ministry of Finance As part of our effort to engage with the Government in the pursuit to achieve targets outlined in the Economic

appreciation to the offices of Bank Negara Malaysia, Government agencies as well as the regulatory authorities for the guidance and cooperation extended to LIAM. Last but not least, my appreciation to the Secretariat staff for their dedication and efforts in ensuring the smooth operation of LIAM. Vincent Kwo Shih Kang President

Transformation Programme (ETP) and Financial Sector Blueprint, LIAM made a courtesy visit to the Ministry of Finance on 6 April 2012. LIAM’s entourage comprised of members of the Management Committee and senior representatives from member companies.

LIAM Courtesy visit to Ministry of Finance president’s message

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ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Perutusan Presiden

Bagi pihak Jawatankuasa Pengurusan, saya dengan

dibayar oleh orang yang diinsuranskan dan priviti kontrak

berbesar

dalam keadaan tertentu diperluaskan kepada orang yang

hati

membentangkan

Laporan

Tahunan

Persatuan Insurans Hayat Malaysia (LIAM) bagi tahun 2012 dengan beberapa sorotan dan pencapaian penting.

Berkenaan dengan bayaran wang polisi, kelewatan pembayaran akan tertakluk kepada faedah atas amaun

Rang Undang-Undang Perkhidmatan Kewangan

tuntutan berdasarkan kadar purata deposit tetap 12 bulan bagi bank-bank berlesen yang disiarkan oleh Bank Negara

Rang Undang-Undang Perkhidmatan Kewangan 2012, yang telah diluluskan di Parlimen pada tahun 2012, akan menggantikan beberapa Akta yang sedia ada, termasuk Akta Insurans 1996, Akta Bank dan Institusi-Institusi Kewangan 1989, Akta Sistem Pembayaran 2003 dan Akta Kawalan Pertukaran Wang 1953.

Malaysia (BNM) dengan penambahan satu peratus. Di

bawah

Rang

Undang-Undang

Perkhidmatan

Kewangan, kewajipan pengguna untuk secara sukarela memberikan semua maklumat yang berkaitan tidak lagi terpakai. Sebaliknya, penanggung insurans dikehendaki bertanyakan soalan-soalan tertentu bagi mendapatkan

Keperluan pembiayaan ekonomi dijangka meningkat serta menjadi semakin kompleks dan terpelbagai menyebabkan sistem kewangan Malaysia lebih bersifat keserantauan dan lebih global. Rangka kerja yang bertambah kukuh dan bersepadu bagi sektor kewangan dan perbankan diperlukan bagi mengatasi risiko masa depan demi memastikan kestabilan kewangan. Dengan pengenalan Rang Undang-Undang tersebut, ia dijangka menyediakan

maklumat yang berkaitan dalam pembuatan keputusan mereka sama ada mereka patut menerima risiko atau tidak. Pengguna, bagaimanapun, perlu mengambil langkah yang sewajarnya untuk tidak membuat salah nyataan dalam menjawab soalan penanggung insurans. Di bawah Rang Undang-Undang ini, denda yang lebih tegas dijangka akan dikenakan untuk jenayah kewangan.

rangka kerja yang seragam dalam mengawal selia semua

Di pihak LIAM, sebuah jawatankuasa khas yang terdiri

sektor dalam industri perkhidmatan kewangan.

daripada tenaga kerja kanan industri telah dibentuk bagi

Di

bawah

Kewangan,

Rang

Undang-Undang

penanggung

insurans

Perkhidmatan komposit,

tidak

termasuk penanggung insurans semula professional,

mengkaji kesan Rang Undang-Undang ini terhadap industri ini.

dikehendaki menukar kepada perniagaan insurans tunggal.

Perancangan Persaraan

Ini bermakna penanggung insurans hanya boleh memberi

Pihak industri telah menyambut baik pemansuhan cukai

tumpuan kepada sama ada perniagaan insurans hayat atau insurans am sahaja. Perubahan ketara juga dijangka berlaku berhubungan dengan kepentingan yang boleh diinsuranskan dengan polisi insurans hayat di mana kepentingan yang boleh diinsuranskan akan hanya diperlukan pada masa polisi insurans diambil dan tidak lagi menjadi satu kriteria semasa pembayaran wang polisi. Di bawah polisi kumpulan, tempoh tengok percuma diperluaskan di mana premium

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diinsuranskan.

perutusan presiden

pendapatan pelaburan 8% ke atas Anuiti Tertunda dalam Bajet 2013 dan menganggapnya sebagai rangsangan utama dalam perancangan persaraan untuk orang ramai. Insentif cukai ini di samping pelepasan cukai perseorangan sebanyak RM3,000 diberikan untuk caruman kepada Skim Persaraan Swasta (PRS) dan anuiti tertunda seperti yang diumumkan dalam Bajet 2012, akan menggalakkan lebih ramai individu melabur dalam skim anuiti sebagai simpanan untuk persaraan.

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Menjelang tahun 2030, sebanyak 15% daripada penduduk

Development and Retention – Engaging Generation

Malaysia dianggarkan akan mencapai umur 60 tahun ke

Y and Beyond, sementara sesi pleno menampilkan

atas. Oleh itu, ketika negara bergerak ke arah menjadi

pembentangan tentang topik Adapting to Changing

negara berpendapatan tinggi dengan masyarakat menua,

Perceptions – Becoming the Preferred Choice, Enhancing

maka produk persaraan yang sesuai dan cekap cukai

Synergies Between Conventional Insurance and Takaful

amatlah diperlukan bagi mengekalkan gaya hidup yang

Systems dan Revisiting the Aftermath of Recent Natural

selesa di usia emas mereka.

Disasters – Can We Do Better?

Pelancaran Skim Persaraan Swasta (PRS) di Malaysia

LIAM

pada 18 Julai 2012 juga menandakan pencapaian penting

Lembaga

ke arah perancangan persaraan untuk rakyat. PRS adalah

sempena kongres tersebut. Sepertimana amalan kongres

skim persaraan sukarela yang distrukturkan oleh penyedia

terdahulu, Lembaga Eksekutif EAIC telah membuat

dana sektor swasta. Individu yang melabur dalam PRS atau

perisytiharan Kuala Lumpur dalam upacara penutup

anuiti tertunda layak mendapat pelepasan cukai sebanyak

Kongres Ke-26 seperti berikut:

RM3,000 dan PRS dan anuiti tertunda juga bebas cukai.

• EAIC

Untuk meningkatkan pengembangan anuiti yang teratur, LIAM

menerusi

rundingannya

dengan

BNM

telah

menyediakan Garis Panduan Perniagaan Anuiti Tertunda yang menetapkan piawaian minimum bagi pengurusan dan pentadbiran produk anuiti.

juga

berpeluang

Eksekutif

mengkoordinasi

EAIC

yang

menegaskan

biasanya

Mesyuarat diadakan

komitmennya

untuk

mempertingkatkan kerjasama serantau dalam industri insurans. • EAIC akui bagaimana Jepun dan Thailand telah bertindak dengan penuh daya tahan dan cemerlang terhadap bencana alam yang dahsyat, iaitu ‘Gempa Bumi Dahsyat Di Jepun Timur’ dan ‘Banjir Di Thailand pada Tahun 2011’. EAIC menyeru industri ini supaya

Kongres Insurans Asia Timur Ke-26 Kongres Insurans Asia Timur (EAIC) yang terakhir di Kuala Lumpur ialah pada tahun 1988. Oleh itu, EAIC ke-26 amat dinanti-nantikan dan telah berlangsung dengan jayanya di Kuala Lumpur dari 29 Oktober hingga 2 November 2012. EAIC telah mencapai kejayaan besar kerana edisi 2012 menandakan dekad kelimanya dalam menyebarluaskan pembangunan dan penyatuan industri insurans di Asia Timur. Ia juga menandakan Ulang Tahun EAIC yang ke-50 sejak penubuhannya pada tahun 1962. Kongres ini adalah anjuran bersama LIAM, Persatuan Insurans Am Malaysia (PIAM), Persatuan Takaful Malaysia (MTA) dan Persatuan Insurans Antarabangsa Labuan (LIIA). Upacara memotong kek bersama kesemua Ahli Lembaga EAIC telah diadakan semasa upacara pembukaan Kongres tersebut. Upacara tersebut telah disaksikan oleh Gabenor BNM Yang Berbahagia Tan Sri Dr Zeti Akhtar Aziz yang turut juga merasmikan Upacara Pembukaan.

lebih proaktif dalam memenuhi keperluan pasaran melalui cara-cara yang inovatif bagi mempromosikan nilai insurans kepada masyarakat dengan cara yang inklusif. • EAIC bersetuju memberi keutamaan untuk bertindak sekarang bagi menjadikan insurans sebuah industri ‘tarikan’. • Sempena jubli emas EAIC,

peraduan menulis esei

dan merekabentuk logo EAIC akan dianjurkan. Ianya berkonsep untuk mencergaskan semula industri insurans Pasaran Asia Timur bagi tempoh 50 tahun akan datang. Perisytiharan ini akan menjadi panduan kasar bagi pemilihan

tema

dan

topik

pembentangan

dalam

penganjuran EAIC yang berikutnya pada tahun 2014 yang akan diadakan di Taipei. Perlantikan sebagai Presiden baru EAIC untuk dua tahun akan datang pada mesyuarat Ahli Lembaga Eksekutif EAIC yang lalu merupakan satu penghormatan bagi saya. Ini pastinya suatu tugas yang amat mencabar untuk mengambil alih daripada Encik Teddy Hailamsah yang

Dengan tema ‘Transforming the East Asian Insurers –Time

telah menjalankan tugasnya dengan begitu baik sebagai

for Action Now’, kongres tersebut menampilkan barisan

Ketua Lembaga Eksekutif EAIC sepanjang dua tahun

penceramah yang terkemuka untuk berkongsi buah fikiran

lepas. Dalam tempoh dua tahun menjadi Presiden

dan pandangan mereka mengenai pelbagai topik.

EAIC, bagi pihak industri Malaysia, saya berikrar

Pembentangan dasar tertumpu kepada topik Transforming the East Asian Insurers dan New Horizons in Talent

untuk memberikan yang terbaik dan saya teruja untuk bekerjasama dengan pasukan dari Taipei bagi memastikan kejayaan kongres seterusnya pada tahun 2014. perutusan presiden

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ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Perlembagaan LIAM Ekoran

liberalisasi

sektor

menunjukkan dedikasi mereka bagi mendukung intipati

perkhidmatan

kewangan,

terdapat perubahan beransur-ansur dalam struktur ekuiti dan pengurusan syarikat insurans di mana bilangan syarikat asing dan Ketua Pegawai Eksekutif bukan warga Malaysia telah dipertingkatkan.

semula Perlembagaannya bagi memastikan Persatuan terus mempunyai barisan ketua yang berdedikasi dalam Jawatankuasa Pengurusan. Kriteria yang ditetapkan bagi perlantikan Presiden dan komposisi ahli Jawatankuasa Pengurusan telah dilonggarkan.

ukuran terhadap tahap komitmen syarikat insurans dalam mengembangkan TCF sebagai falsafah syarikat. LIAM telah menyediakan rangka kerja pemantauan di mana pematuhan garis panduan industri setiap tahun. Usaha

untuk

meningkatkan

kesedaran

pengguna

mengenai manfaat insurans hayat juga menjadi agenda utama Persatuan. Bahkan, ia merupakan objektif yang tidak terbatas. Justeru itu, ke arah matlamat ini, LIAM sentiasa mendapatkan kerjasama akhbar-akhbar tempatan untuk

Di bawah semakan Perlembagaan ini, syarat bahawa Presiden dan ahli Jawatankuasa Pengurusan mestilah daripada syarikat milik Malaysia telah dimansuhkan. Pada masa ini, bilangan syarikat milik Malaysia telah berkurangan kepada tujuh daripada jumlah 17 syarikat, manakala bilangan Ketua Pegawai Eksekutif ekspatriat telah meningkat.

menerbitkan artikel - artikel mengenai insurans hayat. Untuk Siri Pendidikan Pengguna 2012, LIAM mula bekerjasama dengan akhbar Malay Mail antara lainnya. Kerjasama LIAM dengan akhbar nasional ini telah memberi peluang kepada industri ini untuk menembusi pasaran pembaca muda, berpendapatan sederhana, di bandar dan pinggir bandar, yang boleh bertutur bahasa Inggeris.

Sistem baru pemilihan ahli-ahli Jawatankuasa Pengurusan akan diperkenalkan bermula dari Mesyuarat Agung pada

diberikan kepada bagaimana TCF dilaksanakan sebagai

Ketua Pegawai Eksekutif menandatangani pengakuan

Sebagai reaksi kepada perubahan ini, LIAM telah mengkaji

Tahunan

garis panduan ini dalam operasinya. Perhatian harus

Mac

2013.

Sistem

baru

yang

menggabungkan pemilihan dan perlantikan ini akan diterima pakai untuk membuka peluang kepada semua Ketua Pegawai Eksekutif untuk menyertai Jawatankuasa Pengurusan LIAM.

Mail ialah Confusion on Medical Insurance Coverage, Critical

Illness Adds

Cover

to

Medical

Insurance,

Understanding Critical Illness Claims Rejections, Medical Policy Key Consideration, 1Malaysia Micro Protection Plan, Insurance for Children dan Choosing the Right Policy. Kesemua artikel ini boleh didapati di laman web LIAM di

Selain itu, mesyuarat Jawatankuasa Pengurusan bulanan telah diubah kepada sekurang-kurangnya enam kali setahun, sejajar dengan amalan sebilangan

Artikel-artikel yang telah disiarkan dalam akhbar Malay

Persatuan

yang lain.

www.liam.org.my. LIAM juga sentiasa berkongsi artikel pendidikan tentang insurans

dengan

Gabungan

Persatuan

Pengguna

Malaysia (FOMCA) untuk majalah mereka yang berjudul

Semakan perlembagaan ini telah diluluskan oleh Jabatan

RINGGIT. Ini merupakan buletin bulanan yang diterbitkan

Pendaftaran Pertubuhan Malaysia (ROS) pada Jun 2012.

dalam bahasa kebangsaan oleh FOMCA dan BNM untuk meningkatkan kesedaran di kalangan pengguna mengenai

Penglibatan dengan Pengguna Untuk mempertingkatkan keyakinan kepada pasaran dan mewujudkan asas yang lebih kukuh bagi perlindungan pengguna, industri insurans dan BNM telah membentuk rangka kerja Layan Pelanggan Dengan Adil (TCF). TCF

telah diperkenalkan pada tahun 2011 di mana

semua syarikat ahli dikehendaki mematuhi rangka kerja itu sepenuhnya selewat-lewatnya pada 1 Januari 2012. Menggalakkan tatalaku pasaran yang sihat dan melindungi pengguna memang dititikberatkan oleh industri ini. Ahli-ahli LIAM komited untuk mengamalkan prinsip ini dan Persatuan telah menggesa ahli-ahlinya supaya

8

perutusan presiden

kepentingan pengurusan kewangan. RINGGIT diedarkan ke pelbagai organisasi termasuk universiti, agensi kerajaan dan swasta, perpustakaan dan tempat-tempat awam lain bagi manfaat semua komuniti. Bagi tahun 2012, RINGGIT telah menerbitkan tiga artikel LIAM, iaitu Insurans Wanita: Sekadar Gimik Pemasaran atau Melindungi, Kekeliruan mengenai Perlindungan Insurans Perubatan dan Pelan Insurans Penyakit Kritikal Tambahan Perlindungan Kepada Insurans Perubatan. Selain itu, LIAM juga terlibat dalam siri jelajah BNM untuk mendekati pengguna di kawasan yang kurang mendapat perkhidmatan di seluruh negara. Butir-butir lanjut dilaporkan dalam laporan Jawatankuasa Pengurusan.

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Kunjungan Hormat LIAM ke Kementerian Kewangan Sebagai

sebahagian

daripada

usaha

kami

Penghargaan Akhir kata, saya ingin merakamkan rasa terima kasih untuk

dan sekalung penghargaan kepada semua rakan sekerja

melibatkan diri dengan Kerajaan dalam mencapai sasaran

saya

yang digariskan dalam ETP dan Pelan Tindakan Sektor

Jawatankuasa dan Jawatankuasa Kerja serta semua ahli

Kewangan, LIAM telah mengadakan kunjungan hormat ke

LIAM atas sokongan dan komitmen mereka yang tidak

Kementerian Kewangan pada 6 April 2012. Rombongan

berbelah bahagi. Usaha bersepadu dan kerjasama industri

LIAM terdiri daripada ahli-ahli Jawatankuasa Pengurusan

sesungguhnya menjadi asas kepada kejayaan aktiviti

dan wakil kanan dari syarikat-syarikat ahli.

Persatuan.

Dalam mesyuarat dengan Timbalan Menteri Kewangan,

Saya juga ingin mengambil kesempatan ini untuk

Y.B. Senator Datuk Ir. Donald Lim Siang Chai, LIAM

menyampaikan penghargaan LIAM kepada Encik Khor

mengemukakan pandangan dan cadangan berhubung

Hock Seng yang telah berkhidmat sebagai Naib Presiden

beberapa isu, termasuklah Cukai ke atas Dana Hayat,

bagi tahun 2012 dan sumbangan beliau sebagai ahli

Pelepasan Cukai Anuiti, Skim Anuiti dan Persaraan Swasta,

Jawatankuasa Pengurusan LIAM selama ini.

Cukai Barang dan Perkhidmatan ke atas Insurans Hayat serta peranan insurans hayat dalam Program Transformasi Ekonomi (ETP) untuk pertimbangan Kementerian.

dalam

Jawatankuasa

Pengurusan,

pelbagai

Bagi pihak LIAM, saya ingin menyampaikan rasa penghargaan yang tulus ikhlas kepada Bank Negara Malaysia,

Kementerian

Kewangan,

Perbendaharaan,

Kementerian Kesihatan dan agensi-agensi berkaitan Kerajaan serta pihak-pihak berkuasa kawal selia di atas panduan dan kerjasama yang diberikan kepada LIAM. Akhir sekali, saya ingin merakamkan rasa penghargaan saya kepada kakitangan Sekretariat di atas dedikasi dan usaha mereka dalam memastikan kelancaran operasi LIAM. Vincent Kwo Shih Kang Presiden

perutusan presiden

9

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Members of the Management Committee 2012/ 2013

Seated (from left): YBhg Dato Koh Yaw Hui, Mr Vincent Kwo Shih Kang and Mr Jens Reisch. Standing (from left): Ms Nancy Tan, Mr Toi See Jong, Mr Paul Low Hong Ceong, Encik Kamaludin Ahmad and Mr Loke Kah Meng. Not in the photograph: Mr Cheong Chee Meng.

10

members of the management committee 2012/ 2013

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Management Committee 2012/ 2013 PRESIDENT Mr Vincent Kwo Shih Kang Uni.Asia Life Assurance Berhad

VICE-PRESIDENT Mr Khor Hock Seng

American International Assurance Bhd. (until 30 November 2012)

MEMBERS

Allianz Life Insurance Malaysia Berhad Main Representative Alternate Alternate

: Mr Jens Reisch : Mr Charles Ong Eng Chow : Ms Lim Li Meng

AmLife Insurance Berhad

Main Representative Alternate Alternate

: Mr Paul Low Hong Ceong : Mr Patrick Cheah Gim Guan : Mr Alex Lee Foo Yuen

AXA AFFIN Life Insurance Berhad Main Representative Alternate

: Mr Loke Kah Meng : Mr Lee Kok Wah

Etiqa Insurance Berhad Main Representative Alternate Alternate

: Encik Kamaludin Ahmad : Mr Barend Van Dam : Puan Siti Nita Zuhra Mohd Nazri

Great Eastern Life Assurance (Malaysia) Berhad Main Representative Alternate

: YBhg Dato Koh Yaw Hui : Mr Bruce Lee Yee Lam

Tokio Marine Life Insurance Malaysia Bhd. Main Representative Alternate Alternate

: Mr Toi See Jong : Ms Kang Yu Fen : Mr Wong Kang Yuan

Uni.Asia Life Assurance Berhad Main Representative : Mr Vincent Kwo Shih Kang Alternate : Mr Raymond Lai You Kim Alternate : Mr Nikolaos Stampoulis

Zurich Insurance Malaysia Berhad Main Representative : Mr Cheong Chee Meng Alternate : Mr John Leong

As at 31 December 2012

management committee 2012/2013

11

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Committees and Working Committees 2012/ 2013 ADMINISTRATION & FINANCE COMMITTEE

DISTRIBUTION SYSTEM COMMITTEE

Chairman

Chairman

Mr Khor Hock Seng (until 30 November 2012) American International Assurance Bhd.

Mr Cheong Chee Meng Zurich Insurance Malaysia Berhad

Members

Members

YBhg Datin Veronica Selvanayagy American International Assurance Bhd.

Mr Tan Kun Hung Allianz Life Insurance Malaysia Berhad

Mr Melvyn Cheong Chee Mun AmLife Insurance Berhad

Mr Chuah Chin Seong American International Assurance Bhd.

Mr Raymond Cheah Beng Chye Etiqa Insurance Berhad

Encik Roslan Ahmad AmLife Insurance Berhad

Mr Mah Poon Keong Great Eastern Life Assurance (Malaysia) Berhad

Mr Vincent Ku AXA AFFIN Life Insurance Berhad

Mr Rohan Kananathan Hannover Life Re, Malaysian Branch

Encik Wan Mohd Kamil bin Wan Jaafar Etiqa Insurance Berhad

Mr Arun Sivaramakrishnan ING Insurance Berhad

Mr Leong Chee Soong Etiqa Insurance Berhad

Mr Andrew Sims Prudential Assurance Malaysia Berhad

Mr Song Hock Wan Great Eastern Life Assurance (Malaysia) Berhad

Mr Yang Chin Lee Zurich Insurance Malaysia Berhad

Mr Lee Eng Guan Hong Leong Assurance Berhad Mr Tan Kheng Seng Hong Leong Assurance Berhad Mr Jeffrie Teh Cheng Keat Manulife Insurance Berhad Mr Tuen Poh Mang Manulife Insurance Berhad Mr C. Kumaran MCIS ZURICH Insurance Berhad Ms Khoo Ai Lin Prudential Assurance Malaysia Berhad

12

committees and working committees 2012/ 2013

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Mr Ng Ah Bah Tokio Marine Life Insurance Malaysia Bhd. Mr Liew Kim Wah Tokio Marine Life Insurance Malaysia Bhd. Mr Jacky Chan Pen Lon Uni.Asia Life Assurance Berhad Mr John Leong Choon Wai Zurich Insurance Malaysia Berhad

EDUCATION & EXAMINATION COMMITTEE Chairman YBhg Dato Koh Yaw Hui Great Eastern Life Assurance (Malaysia) Berhad

Members

INDUSTRY PROMOTION COMMITTEE Chairman Mr Jens Reisch Allianz Life Insurance Malaysia Berhad

Members Ms Joannica Dass Allianz Life Insurance Malaysia Berhad Ms Mala Patmarajah American International Assurance Bhd. Ms Kok Pui Kuan AXA AFFIN Life Insurance Berhad Ms Tricia Loh CIMB Aviva Assurance Berhad

Ms Ang Siew Gaik Allianz Life Insurance Malaysia Berhad

Ms Wong Shuk Mei CIMB Aviva Assurance Berhad

Mr Tan Choon Hock American International Assurance Bhd.

Ms Vivienne Beh Etiqa Insurance Berhad

Mr Vincent Ku AXA AFFIN Life Insurance Berhad

Ms Yeo I-Peng Etiqa Insurance Berhad

Encik Mohd Jafni Abdul Jalil Etiqa Insurance Berhad

Ms Leong Pei Yee Great Eastern Life Assurance (Malaysia) Berhad

Mr Andy Ng Great Eastern Life Assurance (Malaysia) Berhad

Ms Kathy Lim Great Eastern Life Assurance (Malaysia) Berhad

Ms Chia Chu Yong Hong Leong Assurance Berhad

Mr Eric Tan Hong Leong Assurance Berhad

Ms Chan Sok Jing ING Insurance Berhad

Mr Ravinder Singh Hannover Life Re, Malaysian Branch

Mr Darren Yau Manulife Insurance Berhad

Ms Darshini Mahendranathan ING Insurance Berhad

Mr Magenteran Sinnasamy MCIS ZURICH Insurance Berhad

Ms Maureen Lam ING Insurance Berhad

Ms Kang Poh Lee Prudential Assurance Malaysia Berhad

Puan Norliza Alias Malaysian Life Reinsurance Group Berhad

Ms Hooi Wai Sum Tokio Marine Life Insurance Malaysia Bhd.

Ms Susan Ong Manulife Insurance Berhad

Mr Jason Soh Uni.Asia Life Assurance Berhad

Ms Amy Loke Manulife Insurance Berhad

Mr Woo Man Loong Zurich Insurance Malaysia Berhad

Ms Praleena Gengatharan MCIS ZURICH Insurance Berhad committees and working committees 2012/ 2013

13

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Ms Fiona Liao Prudential Assurance Malaysia Berhad

Mr Mark Wang ING Insurance Berhad

Ms Michelle Tew Tokio Marine Life Insurance Malaysia Bhd.

Mr Mooi Kin Seng ING Insurance Berhad

Encik Abdul Latiff Puteh Uni.Asia Life Assurance Berhad

Encik Wan Mohd Fakruddin Razi MCIS ZURICH Insurance Berhad

Puan Roziana Mohd Yatim Zurich Insurance Malaysia Berhad

Ms Sze Yuet Ping Prudential Assurance Malaysia Berhad

INVESTMENT, ACCOUNTING STANDARDS & TAXATION COMMITTEE

Ms Ilene Chong Prudential Assurance Malaysia Berhad

Chairman

Mr Teh Chi-Cheun Prudential Assurance Malaysia Berhad

Mr Toi See Jong Tokio Marine Life Insurance Malaysia Bhd.

Members Ms Chin Yien Ping Allianz Life Insurance Malaysia Berhad Ms Esther Ong Chen Woon Allianz Life Insurance Malaysia Berhad

14

Mr Tan Sze Teck Tokio Marine Life Insurance Malaysia Bhd. Ms Eubee Ong Uni.Asia Life Assurance Berhad Ms Jing Li Zurich Insurance Malaysia Berhad

Mr Lee Poh Cheong American International Assurance Bhd.

LIFE OPERATIONS

Ms Philomena Jan AmLife Insurance Berhad

Ms Pua Geok Tan Allianz Life Insurance Malaysia Berhad

Mr Lee Kok Wah AXA AFFIN Life Insurance Berhad

Ms Anusha Thavarajah American International Assurance Bhd.

Mr Chew Chin Lim CIMB Aviva Assurance Berhad

Mr Chan Yuet Wah AXA AFFIN Life Insurance Berhad

Ms Jacklyn Ngim CIMB Aviva Assurance Berhad

Encik Ghazali Mohdi Etiqa Insurance Berhad

Ms Dawn Lem Seow Fong Etiqa Insurance Berhad

Mr Jeffrey Yem Great Eastern Life Assurance (Malaysia) Berhad

Mr Raymond Ong Great Eastern Life Assurance (Malaysia) Berhad

Mr Chris Cheong Hong Leong Assurance Berhad

Mr Richard Lin Great Eastern Life Assurance (Malaysia) Berhad

Mr Christopher Woon ING Insurance Berhad

Mr Tang Loon Khoon Hong Leong Assurance Berhad

Mr William Ng Cheng Chuan Manulife Insurance Berhad

Ms Joanne Marie Lopez Hong Leong Assurance Berhad

Mr K. Edward MCIS ZURICH Insurance Berhad

committees and working committees 2012/ 2013

Members

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Ms Tan LiLing Prudential Assurance Malaysia Berhad

Mr Khoo Han Chuan MCIS Zurich Insurance Berhad

Mr Kuan Jia Shyang Tokio Marine Life Insurance Malaysia Bhd.

Mr Ong Kheng Heng Prudential Assurance Malaysia Berhad

Mr Lim Poh Yeow Uni.Asia Life Assurance Berhad

Mr Wong Kang Yuan Tokio Marine Life Insurance Malaysia Bhd.

Mr Kenny Tai Zurich Insurance Malaysia Berhad

Mr Nikolaos Stampoulis Uni.Asia Life Assurance Berhad

PRODUCT SERVICES & TECHNICAL COMMITTEE

SPECIAL PROJECTS COMMITTEE CLAIMS WORKING GROUP

Chairman

Chairman

Mr Loke Kah Meng AXA AFFIN Life Insurance Berhad

Ms Lim Saw Im Malaysian Life Reinsurance Group Berhad

Members

Members

Mr Chin Tze How Allianz Life Insurance Malaysia Berhad

Ms Felicia Leong Allianz Life Insurance Malaysia Berhad

Mr Chai Tze Siang American International Assurance Bhd.

Ms Agnes Lee American International Assurance Bhd.

Mr Patrick Cheah AmLife Insurance Berhad

Ms Loh Pit Lan American International Assurance Bhd.

Mr Gan Tze Lian AXA AFFIN Life Insurance Berhad

Puan Azllynah Bakar AmLife Insurance Berhad

Mr Anthony Martin Davies CIMB Aviva Assurance Berhad

Cik Nur Shahirah Ng AXA AFFIN Life Insurance Berhad

Mr Lok Hoe San Etiqa Insurance Berhad

Ms Christine Michael CIMB AVIVA Assurance Berhad

Mr Yap Chee Keong Great Eastern Life Assurance (Malaysia) Berhad

Puan Zaharatun Noor Etiqa Insurance Berhad

Mr Seow Fan Chong Hong Leong Assurance Berhad

Ms Lau Pick Kee Etiqa Insurance Berhad

Ms Lim Pei Bin Hannover Life Re, Malaysian Branch

Ms Thong Wai Yin Great Eastern Life Assurance (Malaysia) Berhad

Mr Tan Kok How ING Insurance Berhad

Dr Malini Tharmanason Hannover Life Re, Malaysian Branch

Mr Ching Ing Chian Malaysian Life Reinsurance Group Berhad

Ms Tay Hooi Yan Hong Leong Assurance Berhad

Ms Gho Han Jaa Manulife Insurance Berhad

Ms Goh Chet Kee ING Insurance Berhad

committees and working committees 2012/ 2013

15

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Ms Jennee Loh Manulife Insurance Berhad Ms Regina Lee Chooi Wan MCIS ZURICH Insurance Berhad Ms Lynna Ng Prudential Assurance Malaysia Berhad

JOINT TECHNICAL MEDICAL COMMITTEE Chairman Dr Myralini S. Thesan American International Assurance Bhd.

Members

Ms Yap Yen Hoong Tokio Marine Life Insurance Malaysia Bhd.

Ms Lau Pick Kee Etiqa Insurance Berhad

Encik Jeffry Azmi Mohd Shah Uni.Asia Life Assurance Berhad

Dr Neoh Wee Keong Great Eastern Life Assurance (Malaysia) Berhad

Encik Zulkifli Samad Zurich Insurance Malaysia Berhad

Dr Sharliza Mohd Salleh Great Eastern Life Assurance (Malaysia) Berhad Ms Loo Soo Yin Prudential Assurance Malaysia Berhad Dr Andrew Tye Prudential Assurance Malaysia Berhad Dr V. Shanmugalingam Prudential BSN Takaful Berhad Ms Yap Yen Hoong Tokio Marine Life Insurance Malaysia Bhd.

As at 31 December 2012

16

committees and working committees 2012/ 2013

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Report of the Management Committee During the year under review, a number of projects and

(PIAM) and LIAM was set up to facilitate the transition to

assignments were undertaken and this has been made

e-payments by insurance companies and other financial

possible with the support and contribution of the various

sectors.

Committees. Following are the highlights of the key activities and issues handled by LIAM.

Personal Data Protection Act The Personal Data Protection Act (PDPA) will have important ramifications for the insurance industry. Although the Act has been gazetted on 10 June 2010, the Personal Data Protection Department, under the Ministry of Information, Communications and Culture, which oversees the enforcement of the Act, has yet to announce the official implementation date of the Act. Under the PDPA, the collection, possession, processing and the use of personal data by any person or organization will be regulated and a set of common rules and guidelines will be introduced to provide adequate security and privacy in handling personal information. Non-conformance with

The objective of this Working Group is to identify issues which are of concern to the industry and to establish solutions to resolve the concerns jointly with BNM and the commercial banks. The implementation was undertaken in two stages. Stage 1 was for payments made to agents, employees of insurance companies, statutory bodies, utility companies and panel hospitals. Stage 2 of this project would be for insurance companies to provide an option for e-payment to their policyholders and beneficiaries. The life insurance sector has made encouraging progress in the adoption of e-payment. To date, life insurance companies have attained over 90% in the utilisation of e-payment for agency commission, staff salaries, hospital bills and statutory bodies/government agencies. The life insurers have proceeded with the next stage of offering e-payment option to policyholders and beneficiaries.

the Act may result in penalties from financial to legal liabilities. In preparation for the implementation of the Act, a task

The Takaful and Insurance Benefits Protection System

force comprising senior legal, operations and compliance

In 2011, life insurance companies began contributing to the

personnel from member companies has been formed to

Takaful and Insurance Benefits Protection System (TIPS),

review the impact of the Act on the industry. A Code of

which is a consumer protection scheme, managed by

Practice for the life insurance industry has been drafted

Perbadanan Insurans Deposit Malaysia (PIDM).

and will be submitted to the Commissioner to self-regulate the processing of personal data in the industry.

E-Payment Implementation in the Insurance Industry As envisioned in the Financial Sector Blueprint 2011-2020, the migration to electronic payments was an area that has been given emphasis. A Working Group on E-Payment comprising Bank Negara Malaysia (BNM), Malaysian

PIDM had introduced a differential levy system for assessment of Year 2013 onwards. Unlike the previous method of a flat-rate premium, the new assessment system differentiates members into different levy categories based on the individual company risk profiles and consists of quantitative and qualitative methods. LIAM has continuously engaged with PIDM to discuss on the industry’s contribution to TIPS.

Electronic Payment System (MEPS), Association of Banks in Malaysia, General Insurance Association of Malaysia

report of the management committee

17

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Revised Guidelines to Control Operating Costs of Life Insurance/ Family Takaful Business and Guidelines on Investment-Linked Insurance/ Takaful Business

The agency financing scheme is an interest free/non-profit

The Guidelines to Control Operating Costs of Life Insurance

Plain Language Policies

(OCC Guidelines) was introduced in 1996 to instill financial discipline, public accountability and increased operational efficiency in the life insurance business.

loan/financing on monthly basis to help new agents to stabilize their income during the early stages of their career and to encourage part-time agents to become full-time agents.

The Guidelines on Product Transparency and Disclosure which came into effect on January 2010 require insurers to use plain language in contracts, agreements and policy

BNM recently issued the revised OCC Guidelines which

documents. The Joint Technical Committee comprising

took effect on 1 January 2013. The Agency Related

representatives from LIAM, PIAM and Malaysian Takaful

Expenses was revised to allow life insurers to set up

Association (MTA) is handling the simplification of the

benefit schemes for their agency force, subject to a limit of

Hospital and Surgical Insurance policy contract. The

3% of annual premiums for both traditional and investment-

project is in the final stage of completion.

linked policies. For investment-linked policies, the agency related expenses must be sourced from the non-unit fund for insurers. The limit of RM60,000 for agency office maintenance has been removed.

A task force comprising medical practitioners and claims personnel was formed to review and simplify the common wordings of the definitions of the Critical Illness (CI). The final draft of the revised wordings has been completed. The common wordings for CI were introduced by LIAM in

The Guidelines on Investment-Linked Insurance/ Takaful

2002 to promote greater transparency and uniformity of CI

Business was first implemented in July 2011 setting

coverage and to reduce the disparities in claims assessment

minimum standards for the management and administration

due to different interpretations used. The wordings were

of investment-linked insurance/takaful business. Under the

last revised and updated in November 2009 to take into

revised guidelines which took effect on 1 January 2013, the

consideration the changes emerging from advancement in

agency related expenses must be sourced from the non-

medical science and new diagnostics methods.

unit fund for insurers and the shareholders’ fund for takaful operators.

Grant of Credit Facilities by Licensed Insurers and Takaful Operators BNM has relaxed the limits under the Agency Financing Scheme allowing life insurers and takaful operators to provide higher and more flexible financing limits of RM5,000 per month or 80% of last drawn salary whichever is higher. Academic qualification has also been removed as a criterion for the eligibility of loans because based on

Conventions • Bumiputera Life Convention 2012

Insurance

Agents

On 22 September 2012, LIAM jointly organised the annual Bumiputera Life Insurance Agents Convention with the Malaysian Insurance Institute (MII) at Putra World Trade Center with the theme ‘Profesionalisme Tunggak Kejayaan’. The convention was graced by Yang Berbahagia Dato’ Muhammad Ibrahim, Deputy Governor, Bank Negara Malaysia, who also delivered the Opening Speech,

the experience of life insurance companies, the education qualification has no direct link with the productivity and competency of agents. A new category of financing for newly appointed leaders has been introduced. Under this item, life insurers can provide newly appointed leaders with a maximum financing of RM10,000 or 80% of last drawn salary, whichever is higher. Bumiputera Life Insurance Agents Convention 2012

18

report of the management committee

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

In conjunction with the convention, MII acknowledged top

and types of insurance in the market, the operations and

Bumiputera agency managers and producers through the

technology used within the industry as well as to gain

Bumiputera Agency Managers Award which recognises

exposure to some knowledge on basic statistical concepts

the top Bumiputera agency managers of the life insurance

relating to the insurance environment.

industry and the Top Personal Producer Award which recognises the top personal producer from each member company.

• Malaysian Department of Insolvency LIAM co-organised a Talk with the Malaysian Department of Insolvency (MDI) on ‘Insurance and the Administration of Bankruptcy Cases in Malaysia’ for the MDI officers. It

Talks • Briefing Session Insurance Authority

was held on 18 June 2012. LIAM was represented by Encik

for

Afghanistan

Badrillan Abdullah, Head of Legal from Etiqa Insurance and Takaful Berhad at the talk.

LIAM was invited to deliver a presentation to the

The two-hour presentation covered a wide scope including

Afghanistan Insurance Authority at a briefing session

types of insurance policy, status of insurance policy towards

held at BNM on 26 December 2012. LIAM was invited

an individual who has been declared bankrupt and other

by MII to share information about the Association’s roles

relevant information on insurance.

and functions as well as the activities carried out during the year. The delegation from the Afghanistan Insurance Authority which was on a study tour to Kuala Lumpur was also briefed by BNM and MTA.

Talk on ‘Insurance and the Administration of Bankruptcy Cases in Malaysia’ with the Malaysian Department of Insolvency

• FSTEP: Prominent Leaders Session Briefing Session for Afghanistan Insurance Authority

Encik Md Adnan Md Zain, former LIAM President, represented LIAM to speak at the ‘Session with Industry

• Universiti Teknologi MARA (UiTM) Dungun, Educational Visits to Uni.Asia Life Assurance Berhad and Allianz Life Insurance Malaysia Berhad

Prominent Speakers’ organized by the Financial Sector

On 10 February 2012, LIAM coordinated an Educational

experience and insight on the life insurance industry with

Visit for students from the Diploma in Banking and

some 119 FSTEP participants.

Talent Enrichment Programme (FSTEP) on 18 July 2012. Encik Md Adnan who was the Chief Executive Officer of MCIS ZURICH Insurance Berhad at that time shared his

Insurance Faculty, Universiti Teknologi MARA, Dungun Branch. The students were brought to Uni.Asia Life and Allianz Life Insurance to get exposure on the functions

Session with Industry Prominent Speakers organized by FSTEP

UiTM students’ visit to Allianz Life Insurance Malaysia Berhad report of the management committee

19

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

FSTEP is an initiative of BNM and the financial services sector to develop dynamic talent for the financial services industry. It is an intensive one-year training programme covering conventional banking, investment banking, Islamic banking and insurance and takaful. The programme encompasses

classroom

training,

which

includes

simulations, workshops and case studies, and internship programmes with financial institutions.

Courtesy Visits • LIAM’s Courtesy Visit Publications (M) Bhd

BNM MobileLINK Road show

to

the

Star

As part of the on-going efforts to engage with the media, LIAM had arranged a visit to The Star, the nation’s leading English language newspaper, on 7 June 2012. LIAM’s entourage which included key personnel from member companies were led by the President, Mr Vincent Kwo, while The Star was represented by the Executive Deputy Chairman of Star Publications Yang Berbahagia Datuk Vincent Lee Fook Long as well as Mr Ho Kay Tat, the

to provide information on life insurance products and on-ground advice and briefing on the need to have life insurance. The first engagement was held in Tanah Merah, Kelantan on 30 June 2012 to 1 July 2012 whereby LIAM cooperated with Tokio Marine Life Insurance Malaysia Bhd. In Kedah and Perlis, LIAM collaborated with MCIS Zurich Insurance Berhad and it was held over three days from 14 July to 16 July 2012 in several selected communities.

Group Managing Director and Chief Executive Officer of

In Alor Gajah, Melaka, LIAM cooperated with Prudential

Star Publications.

Assurance Malaysia Berhad to set up a booth. The event

LIAM’s entourage had the opportunity to meet and establish contact with the senior Editors of The Star newspaper as well as being briefed on the various facets of the media group at the Star Gallery.

was held during the fasting month on 8 August 2012 at Kompleks Japerun Machap, Pusat Khidmat Masyarakat, Majlis Jaksa Pengaman Negeri Melaka, Dun Machap, Alor Gajah, Melaka. LIAM collaborated with Etiqa Insurance Berhad for the sessions that were held in Pahang on 30 and 31 January 2013 at the MES Brigade Tenggara Kuantan and Dewan Orang Ramai FELDA Kemasul, Bentong respectively.

• FOMCA: Hari Pengguna Malaysia LIAM also took part in the Consumers’ Day organized by the Federation of Malaysian Consumers Associations (FOMCA) in Johor on 14 July 2012. LIAM collaborated with American International Assurance Bhd to set up a LIAM’s Courtesy Visit to the Star Publications (M) Bhd

booth at the Universiti Teknologi Malaysia, Skudai, Johor

Road shows • BNM MobileLINK Road shows LIAM was invited to participate in the BNM MobileLINK Engagement, a series of road shows to raise financial understanding to the communities in the underserved areas. During the road shows, LIAM collaborated with different member companies at different locations to set up a booth

20

report of the management committee

Consumers’ Day in Johor organized by FOMCA

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

in conjunction with the Prize Giving Ceremony of Hari

The

event

was

Pengguna Malaysia. The event was officiated by Secretary-

Persatuan

General, Ministry of Domestic Trade, Cooperatives and

Malaysian Takaful Association (MTA), Malaysian Insurance

Consumerism.

and Takaful Brokers Association (MITBA), Association of

Insurans

jointly Am

organized Malaysia

with (PIAM),

Malaysian Loss Adjusters (AMLA) and MII. Themed as

Other Activities • Media Interviews

‘Your Friend for Life’, the Insurance and Takaful Day aimed to bring the financial association and its members closer to the community.

During the year, LIAM participated in radio and television interviews in its continuous efforts to raise insurance awareness. On 12 April 2012, LIAM was invited to participate in a programme called ‘Money Talks’ from Capital TV. The Chairman of the Industry Promotion Committee of LIAM Mr Jens Reisch appeared as one of the guest speakers on this programme, which was broadcasted on IPTV, Telekom Malaysia’s broadband channel. Mr Jens Reisch also represented LIAM in an interview on BFM 89.9, a business radio station, on 21 June 2012 speaking about ‘Life Insurance and Insuring Your Children’

Insurance and Takaful Day 2012

• LIAM’s Blood Donation Drive As part of the LIAM Corporate Social Responsibility (CSR)

and he was also interviewed on Bernama Biz Talk

programme, a Blood Donation Campaign was organized

Programme on 27 November 2012 on ‘The Importance of

on 4 October 2012 at Maju Junction Mall to support

Human Capital Development for the Malaysian Insurance

Pusat Darah Negara to replenish their blood stock. The

Industry Pool’.

event drew encouraging support not only from member

• Website Enhancement

companies’ staff and agents but also from the public. The

With more and more people having easy access to the internet, be it through their personal computers or mobile

National Blood Bank managed to collect about 91 blood packs during this event.

phones, the need to provide timely and accurate information became more crucial. The enhancement exercise on the LIAM website, which started in 2011, was completed and went live on 28 March 2012. New features include branch location maps, frequently asked questions, gallery, an event page and a career page.

• Insurance and Takaful Day 2012 LIAM organised the first Insurance and Takaful Day by celebrating with two children’s homes at McDonald’s, M2 Mall in Kuala Lumpur on 5 July 2012. The two homes, Shelter Home for Children and Asrama Darul Falah

Blood Donation Campaign

PERKIM, received donation-in-kind to improve their daily lives. The donation is part of the industry’s effort to create better relations with the community whilst helping the needy.

report of the management committee

21

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Insurance and Takaful Industry Annual Cocktail 2012

• Insurance and Takaful Industry Annual Cocktail 2012 Following last year’s theme, the industry annual gathering was held on 7 December 2012 at the Prince Hotel & Residence. The essence of having an industry cocktail was to encourage all guests to meet and greet as well

22

Conclusion The past year was indeed another busy year for LIAM. The Management Committee would like to thank all LIAM member companies for their unwavering support towards the Association’s initiatives and activities.

as to provide a platform for them to network among

LIAM will continue to be responsive to the issues and

fellow industry professionals. The organization of this

challenges faced by member companies and will seek to

year’s Annual Cocktail was led by MTA with strong

enhance the good working rapport with its key stakeholders

support from LIAM, PIAM, MII, MITBA and AMLA.

ranging from the regulators, consumer bodies and the

Lucky draws were held and there were many prizes up

media in our strive to meet the needs of the consumers

for grabs including mobile phones, cameras, shopping

and to promote further development and progress in the

vouchers and hampers.

life insurance industry.

report of the management committee

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Laporan Jawatankuasa Pengurusan Laporan Jawatankuasa Pengurusan

elektronik merupakan satu aspek yang telah diberi penekanan. Kumpulan Kerja E-Bayaran yang terdiri

Dalam tahun tinjauan, beberapa projek dan tugasan telah dilaksanakan dan berjalan lancar dengan sokongan dan

sumbangan

daripada

pelbagai

Jawatankuasa.

Berikut adalah sorotan aktiviti utama dan isu-isu yang dikendalikan oleh LIAM.

Akta Perlindungan Data Peribadi Akta Perlindungan Data Peribadi (PDPA) dijangka memberi kesan penting kepada industri insurans. Walaupun Akta tersebut telah diwartakan pada 10 Jun 2010, Jabatan Perlindungan Data Peribadi di bawah Kementerian Penerangan, Komunikasi dan Kebudayaan yang menyelia penguatkuasaan Akta tersebut belum lagi mengumumkan tarikh pelaksanaan rasmi Akta itu. Di bawah PDPA, pengumpulan, pemilikan, pemprosesan dan penggunaan data peribadi oleh mana-mana orang atau organisasi akan dikawal selia dan satu set peraturan dan garis panduan umum akan diperkenalkan bagi menyediakan keselamatan dan privasi yang secukupnya dalam mengendalikan maklumat peribadi. Ketidakpatuhan kepada Akta ni akan dikenakan pelbagai denda dari segi liabiliti kewangan mahupun liabiliti undang-undang. Dalam proses persediaan bagi pelaksanaan Akta ini, sebuah Jawantankuasa yang terdiri daripada tenaga

daripada Bank Negara Malaysia (BNM), Malaysian Electronic Payment System (MEPS), Persatuan BankBank Di

Malaysia, Persatuan Insurans Am Malaysia

(PIAM) dan LIAM telah ditubuhkan untuk memudah cara peralihan kepada e-bayaran oleh syarikat insurans dan sektor kewangan lain. Objektif Kumpulan Kerja ini ialah untuk mengenalpasti isuisu yang menjadi kebimbangan industri ini serta mencari penyelesaian bagi kebimbangan tersebut bersama dengan BNM dan bank-bank perdagangan. Pelaksanaan dijalankan dalam dua peringkat. Peringkat 1 ialah untuk bayaran yang dibuat kepada ejen, para pekerja syarikat insurans, badan berkanun, syarikat utiliti dan hospital panel. Peringkat 2 projek ini memerlukan syarikat insurans menyediakan pilihan bagi e-bayaran kepada para pemegang polisi dan waris mereka. Sektor insurans hayat telah mencatatkan kemajuan yang memberangsangkan dalam penerapan e-bayaran. Sehingga kini, syarikat insurans hayat telah mencapai lebih daripada 90% dalam penggunaan e-bayaran untuk komisen agensi, gaji kakitangan, bil hospital dan agensi berkanun. Penanggung insurans hayat telah meneruskan usaha mereka ke peringkat seterusnya, iaitu menawarkan pilihan e-bayaran kepada pemegang polisi dan waris mereka.

kerja kanan undang-undang, operasi dan pematuhan dari syarikat-syarikat ahli telah ditubuhkan untuk mengkaji semula kesan Akta ini kepada industri insurans. Tata amalan untuk industri insurans hayat telah digubal dan akan dikemukakan kepada Pesuruhjaya bagi mengawal selia sendiri pemprosesan data peribadi dalam industri ini.

Pelaksanaan E-Bayaran dalam Industri Insurans Seperti yang dibayangkan dalam Pelan Tindakan Sektor Kewangan 2011-2020, penghijrahan kepada pembayaran

Sistem Perlindungan Manfaat Takaful dan Insurans Pada tahun 2011, syarikat insurans hayat mula mencarum kepada Sistem Perlindungan Manfaat Takaful dan Insurans (TIPS), yang merupakan skim perlindungan pengguna, yang diuruskan oleh Perbadanan Insurans Deposit Malaysia (PIDM). PIDM telah memperkenalkan sistem levi berbeza untuk taksiran Tahun 2013 dan seterusnya. Tidak seperti kaedah

laporan jawatankuasa pengurusan

23

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

kadar premium sama rata sebelumnya, sistem taksiran

dan pengendali takaful menyediakan had pembiayaan

baru ini membezakan ahli ke dalam kategori levi yang

yang lebih tinggi dan lebih fleksibel sebanyak RM5,000

berbeza berdasarkan profil risiko syarikat individu dan

sebulan atau 80% daripada gaji terakhir, mana-mana yang

terdiri daripada kaedah kuantitatif dan kualitatif.

lebih tinggi. Kelayakan akademik juga telah dimansuhkan

LIAM masih meneruskan perbincangan dengan pihak PIDM tentang caruman industri insurans kepada TIPS.

sebagai satu kriteria untuk kelayakan pinjaman kerana berdasarkan

pengalaman

syarikat

insurans

hayat,

kelayakan pendidikan tidak mempunyai kaitan langsung dengan produktiviti dan kecekapan ejen.

Semakan Garis Panduan Kawalan Kos Operasi Perniagaan Insurans Hayat/ Takaful Keluarga dan Garis Panduan Perniagaan Insurans/Takaful Berkaitan Pelaburan Garis Panduan Kawalan Kos Operasi Insurans Hayat (Garis Panduan OCC) telah diperkenalkan pada tahun 1996 untuk memupuk

disiplin

kewangan,

kebertanggungjawaban

awam dan meningkatkan kecekapan operasi dalam perniagaan insurans hayat. BNM baru-baru ini telah mengeluarkan semakan Garis Panduan OCC yang berkuatkuasa pada 1 Januari 2013.

Kategori baru pembiayaan untuk ketua yang baru dilantik telah diperkenalkan. Di bawah butiran ini, penanggung insurans hayat boleh menyediakan pembiayaan maksimum sebanyak RM10,000 atau 80% daripada gaji terakhir, mana-mana yang lebih tinggi, kepada ketua yang baru dilantik itu. Skim

pembiayaan

agensi

merupakan

pinjaman/

pembiayaan tanpa faedah/tanpa untung secara bulanan untuk membantu ejen baru menstabilkan pendapatan pada peringkat awal kerjaya serta menggalakkan ejen sambilan menjadi ejen sepenuh masa.

Perbelanjaan Berkaitan Agensi telah disemak untuk

Polisi dalam Bahasa yang Mudah

membolehkan penanggung insurans hayat menubuhkan

Garis

skim manfaat untuk pasukan agensi mereka, tertakluk

yang berkuatkuasa pada Januari 2010 menghendaki

kepada had 3% daripada premium tahunan untuk polisi

penanggung

tradisional dan juga polisi berkaitan pelaburan. Bagi

mudah dalam kontrak, perjanjian dan dokumen polisi.

polisi

berkaitan

Jawatankuasa Teknikal Bersama yang terdiri daripada

agensi mestilah diperoleh daripada dana bukan unit bagi

wakil-wakil dari LIAM, PIAM dan Persatuan Takaful

penanggung insurans.

Malaysia (MTA) mengendalikan pemudahan kontrak polisi

berkaitan

pelaburan,

perbelanjaan

Had sebanyak RM60,000 bagi penyelenggaraan pejabat agensi telah dimansuhkan. Garis Panduan Perniagaan Insurans/Takaful Berkaitan Pelaburan mula-mula dilaksanakan pada Julai 2011, menetapkan

piawaian

minimum

untuk

pengurusan

dan pentadbiran perniagaan insurans/takaful berkaitan pelaburan. Di bawah semakan garis panduan yang

Panduan

Ketelusan

insurans

dan

Penzahiran

menggunakan

Produk

bahasa

yang

Insurans Hospital dan Pembedahan. Projek tersebut kini dalam peringkat akhir penyiapan. Sebuah Jawatankuasa yang terdiri daripada pengamal perubatan dan pegawai–pegawai tuntutan telah dibentuk untuk mengkaji semula dan mempermudahkan definisi biasa Penyakit Kritikal (CI). Draf terakhir semakan definisi ini telah pun lengkap.

berkuatkuasa pada 1 Januari 2013, perbelanjaan berkaitan

Definisi umum bagi CI telah diperkenalkan oleh LIAM

agensi mestilah diperoleh daripada dana bukan unit bagi

pada tahun 2002 bagi menggalakkan

penanggung insurans dan dana pemegang saham bagi

keseragaman untuk perlindungan CI serta mengurangkan

pengendali takaful.

ketaksamaan

dalam

taksiran

ketelusan dan

tuntutan

disebabkan

tafsiran berbeza yang digunakan. Kali terakhir definisi ini

Pemberian Kemudahan Kredit oleh Penanggung Insurans dan Pengendali Takaful Berlesen BNM telah melonggarkan had di bawah Skim Pembiayaan Agensi, lantas membolehkan penanggung insurans hayat

24

laporan jawatankuasa pengurusan

disemak dan dikemaskini ialah pada November 2009 dan mengambil kira perubahan yang timbul daripada kemajuan dalam sains perubatan dan kaedah diagnostik baru.

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Konvensyen

Jabatan Insolvensi Malaysia (MDI) mengenai ‘Insurans

• Konvensyen Ejen Bumiputera 2012

Insurans

Hayat

Pada 22 September 2012, LIAM dan Institut Insurans Malaysia (MII)

telah menganjurkan Konvensyen Ejen

Insurans Hayat Bumiputera di Pusat Dagangan Dunia Putra dengan tema ‘Profesionalisme Tunggak Kejayaan’. Konvensyen ini telah diserikan dengan kehadiran Yang Berbahagia Dato’ Muhammad Ibrahim, Timbalan Gabenor

dan Pentadbiran Kes Muflis di Malaysia’ untuk pegawaipegawai MDI. Ceramah ini telah diadakan pada 18 Jun 2012. LIAM telah diwakili oleh Encik Badrillan Abdullah, Ketua Undang-Undang dari Etiqa Insurans dan Takaful Berhad. Pembentangan selama dua jam itu meliputi skop yang luas termasuk jenis polisi insurans, status polisi insurans terhadap individu yang telah diisytiharkan muflis dan

Bank Negara Malaysia, yang turut menyampaikan Ucapan

maklumat berkaitan tentang insurans.

Pembukaan.

• FSTEP: Sesi bersama penceramahpenceramah terkemuka Industri

Sempena konvensyen tersebut, pihak pengurus agensi dan

penghasil

penganugerahan

Bumiputera

terbaik

telah

menerima

daripada MII, menerusi Anugerah

Pengurus Agensi Bumiputera yang mengiktiraf pengurus agensi terbaik dalam industri insurans hayat dan Anugerah Penghasil

Perseorangan

Terbaik

yang

mengiktiraf

penghasil perseorangan terbaik dari setiap syarikat ahli.

Encik Md Adnan Md Zain, bekas Presiden LIAM, mewakili LIAM untuk memberi ceramah pada ‘Session with Industry Prominent Speakers’ yang dianjurkan oleh Program Meningkatkan Tenaga Mahir dalam Sektor Kewangan (FSTEP) pada 18 Julai 2012. Encik Md Adnan yang merupakan Ketua Pegawai Eksekutif MCIS ZURICH Insurance Berhad pada masa itu berkongsi pengalaman dan pemahamannya tentang industri insurans hayat

Ceramah

bersama 119 peserta FSTEP.

• Sesi Taklimat untuk Pihak Berkuasa Insurans Afghanistan

FSTEP adalah inisiatif BNM dan sektor perkhidmatan

LIAM telah dijemput untuk menyampaikan pembentangan

industri perkhidmatan kewangan. Ia merupakan program

kepada Pihak Berkuasa Insurans Afghanistan pada

latihan intensif satu tahun yang meliputi perbankan

sesi taklimat yang diadakan di BNM pada 26 Disember

konvensional, perbankan pelaburan, perbankan Islam

2012. LIAM berkongsi maklumat tentang peranan dan

serta insurans dan takaful. Program ini merangkumi latihan

fungsi Persatuan serta aktiviti yang dijalankan sepanjang

bilik darjah termasuk simulasi, bengkel dan kajian kes,

tahun tersebut. Delegasi dari Pihak Berkuasa Insurans

serta program internship dengan institusi kewangan.

kewangan untuk mengembangkan bakat dinamik bagi

Afghanistan yang mengadakan lawatan sambil belajar ke Kuala Lumpur juga diberi taklimat oleh BNM dan MTA.

• Lawatan Pendidikan ke Uni.Asia Life Assurance Berhad dan Allianz Life Insurance Malaysia Berhad oleh Universiti Teknologi MARA (UiTM) Dungun

Kunjungan Hormat • Kunjungan Hormat Publications (M) Bhd

LIAM

Ke

Star

Sebagai sebahagian daripada usaha berterusan untuk

Pada 10 Februari 2012, LIAM telah mengkoordinasikan

bekerjasama dengan media, LIAM telah mengaturkan

Lawatan Pendidikan untuk para penuntut Diploma dari

lawatan ke The Star, iaitu akhbar berbahasa Inggeris

Fakulti Perbankan dan Insurans, Universiti Teknologi

utama negara, pada 7 Jun 2012. Rombongan LIAM yang

MARA, Cawangan Dungun. Para penuntut tersebut

terdiri daripada tenaga kerja utama syarikat-syarikat ahli

dibawa ke Uni.Asia Life dan Allianz Life Insurance untuk

diketuai oleh Presiden, Encik Vincent Kwo, manakala

mendapatkan pendedahan tentang fungsi dan jenis

The Star diwakili oleh Timbalan Pengerusi Eksekutif Star

insurans dalam pasaran, operasi dan teknologi yang

Publications Yang Berbahagia Datuk Vincent Lee Fook

digunakan dalam industri ini serta pendedahan tentang

Long serta Encik Ho Kay Tat, Pengarah Urusan Kumpulan

konsep statistik asas yang berkaitan dengan persekitaran

dan Ketua Pegawai Eksekutif Star Publications.

insurans.

• Ceramah untuk Malaysia (MDI)

Jabatan

Insolvensi

LIAM telah menganjurkan ceramah bersama dengan

Rombongan LIAM berpeluang bertemu dan berbincang dengan pengarang-pengarang kanan akhbar The Star serta diberi taklimat mengenai pelbagai aspek kumpulan media ini di Star Gallery. laporan jawatankuasa pengurusan

25

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Siri Jelajah

Pada 12 April 2012, LIAM telah dijemput untuk menyertai

• Siri Jelajah BNM MobileLINK

Pengerusi Jawatankuasa Promosi Industri LIAM, Encik

program yang dinamakan ‘Money Talks’ dari Capital TV.

LIAM telah dijemput untuk mengambil bahagian dalam

Jens Reisch tampil sebagai salah seorang panel undangan

BNM MobileLINK Engagement, iaitu siri jelajah bagi

dalam program yang telah disiarkan di IPTV, saluran jalur

meningkatkan pemahaman tentang kewangan kepada

lebar Telekom Malaysia.

komuniti di kawasan-kawasan yang kurang mendapat perkhidmatan.

Encik Jens Reisch juga mewakili LIAM dalam temu bual

Semasa siri jelajah tersebut, LIAM bekerjasama dengan

Jun 2012 dan membicarakan tentang ‘Insurans Hayat dan

syarikat ahli yang berlainan di setiap lokasi untuk

Menginsuranskan Anak Anda’. Beliau juga telah ditemu bual

menyampaikan maklumat tentang produk insurans hayat

dalam Program Anjuran Bernama bertajuk Biz Talk pada

dan nasihat langsung serta taklimat tentang perlunya

27 November 2012 mengenai ‘Kepentingan Pembangunan

mempunyai insurans hayat.

Modal Insan bagi Kumpulan Industri Insurans Malaysia”.

Siri jelajah yang pertama telah diadakan di Tanah Merah,

• Peningkatan Laman Web

Kelantan pada 30 Jun 2012 hingga 1 Julai 2012 di

Dengan

mana LIAM telah bekerjasama dengan Tokio Marine Life

semakin ramai yang mempunyai akses yang mudah

Insurance Malaysia Bhd, sementara di Kedah dan Perlis,

kepada internet, sama ada menerusi komputer peribadi

LIAM bekerjasama dengan MCIS Zurich Insurance Berhad

atau

dari 14 Julai hingga 16 Julai 2012 di beberapa komuniti

maklumat yang tepat dan terkini diberi keutamaan. Usaha

terpilih.

mempertingkatkan laman web LIAM, bermula pada tahun

di BFM 89.9, sebuah stesen radio perniagaan, pada 21

Di Alor Gajah, Melaka, LIAM bekerjasama dengan Prudential Assurance Malaysia Berhad. Acara ini diadakan pada bulan puasa iaitu pada 8 Ogos 2012 di Kompleks Japerun Machap, Pusat Khidmat Masyarakat, Majlis Jaksa

peningkatan

telefon

bimbit,

2011 telah lengkap

teknologi

keperluan

dan

memandangkan

untuk

menyediakan

dan disiarkan pada 28 Mac 2012.

Ciri-ciri baru termasuklah peta lokasi cawangan syarikatsyarikat ahli, soalan lazim, galeri, halaman acara dan halaman kerjaya.

Pengaman Negeri Melaka, Dun Machap, Alor Gajah,

• Hari Insurans dan Takaful 2012

Melaka.

LIAM telah menganjurkan Hari Insurans dan Takaful yang

Di Pahang, LIAM telah bekerjasama dengan Etiqa Insurans Berhad pada 30 dan 31 Januari 2013. Sesi tersebut telah dijalankan di MES Brigade Tenggara Kuantan dan Dewan Orang Ramai FELDA Kemasul, Bentong.

dianjurkan oleh Gabungan Persatuan Pengguna Malaysia (FOMCA) di Johor pada 14 Julai 2012. LIAM bekerjasama International

Assurance

2012. Shelter Home for Children dan Asrama Darul Falah PERKIM, telah menerima sumbangan berupa barangan ini merupakan sebahagian daripada usaha industri ini untuk

LIAM juga mengambil bahagian dalam Hari Pengguna yang

American

kanak di McDonald’s M2 Mall di Kuala Lumpur pada 5 Julai

bagi memperbaiki kehidupan harian mereka. Sumbangan

• FOMCA: Hari Pengguna Malaysia

dengan

pertama dengan meraikannya bersama dua rumah kanak-

Bhd.

di

Universiti Teknologi Malaysia, Skudai, Johor sempena Upacara Penyampaian Hadiah Hari Pengguna Malaysia. Acara ini telah dirasmikan oleh Ketua Setiausaha, Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan.

menjalinkan hubungan yang lebih baik dengan komuniti di samping membantu golongan yang memerlukan. Acara

ini

Insurans

dianjurkan Am

Malaysia

bersama (PIAM),

dengan

Persatuan

Persatuan

Takaful

Malaysia (MTA), Persatuan Broker-Broker Insurans dan Takaful Malaysia (MITBA), Persatuan Penyelaras Kerugian Malaysia (AMLA) dan MII. Bertemakan ‘Teman Anda Sepanjang Hayat’, Hari Insurans dan Takaful bermatlamat mendekatkan

ahli-ahli

persatuan

kewangan

kepada

komuniti.

Aktiviti Lain • Temu Bual Media LIAM juga telah menyertai beberapa temubual radio dan televisyen dalam usaha berterusannya untuk meningkatkan kesedaran mengenai insurans.

26

laporan jawatankuasa pengurusan

• Kempen Derma Darah LIAM Sebagai sebahagian daripada program Tanggungjawab Sosial Korporat (CSR), LIAM telah menganjurkan Kempen Derma Darah pada 4 Oktober 2012 di Maju Junction Mall demi

membantu Pusat Darah Negara menambah stok

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

darah. Acara ini mendapat sambutan yang menggalakkan bukan sahaja daripada kakitangan dan ejen syarikat ahli tetapi juga daripada masyarakat

ramai. Pusat Darah

Negara berjaya mengumpul lebih 91 pek darah dalam acara ini.

Seperti tahun-tahun yang lalu, perjumpaan tahunan industri pada tahun ini telah diadakan pada 7 Disember 2012 di Prince Hotel & Residence. Majlis tahunan industri ini menggalakkan semua tetamu berjumpa dan beramah serta

Tahun 2012 merupakan satu lagi tahun yang bermakna bagi LIAM. Jawatankuasa Pengurusan ingin mengucapkan terima kasih kepada semua syarikat ahli LIAM di atas sokongan mereka yang tidak berbelah bahagi kepada

• Majlis Koktel Tahunan Industri Insurans dan Takaful 2012

mesra

Kesimpulan

menyediakan

landasan

untuk

mereka

mengeratkan hubungan sesama rakan profesional industri. Penganjuran Majlis Koktel Tahunan tahun ini diterajui oleh MTA dengan penuh kerjasama daripada LIAM, PIAM, MII,

inisiatif dan aktiviti Persatuan. LIAM akan terus responsif kepada isu dan cabaran yang dihadapi oleh syarikat ahli dan akan berusaha untuk meningkatkan hubungan kerja yang baik dengan pihak berkepentingan yang terdiri daripada pengawal selia, badan pengguna dan media dalam usaha kami untuk memenuhi keperluan pengguna serta menggalakkan lagi pembangunan dan kemajuan dalam industri insurans hayat.

MITBA dan AMLA. Cabutan bertuah telah diadakan dengan hadiah dimenangi termasuk telefon bimbit, kamera, baucer beli-belah dan hamper.

laporan jawatankuasa pengurusan

27

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Performance of the Life Insurance Industry malaysian economy The Malaysian economy grew 5.6% in the year of 2012 despite the challenging global economic environment. The quarterly GDP growth rates were 5.1%, 5.6%, 5.3% and 6.4% respectively. The corresponding quarterly growth rates in 2011 were 5.0%, 4.3%, 5.7% and 5.2%. Activity in the services sector moderated in the fourth quarter albeit still outperforming the overall economy and grew 6.3% (Q3: 7.0%). The growth in the sector was supported by government services (Q4: 11.4%), finance and insurance (Q4: 10.9%) and communication (Q4: 8.5%) sub-sectors.

The International Monetary Fund has moderately adjusted upward its projection on world GDP growth for 2013 to 3.5% as policy actions have lowered acute crisis risks in the Euro area and the United States. The economies in Developing Asia are expected to continue to outgrow the world economy and are projected by IMF to grow at 7.1% on average in 2013. The Malaysian economy is expected to grow at 5 – 6% in 2013 driven by the strong domestic demand. With these developments and the low sum insured per capita in the country, the life insurance industry is forecast to achieve a growth in the region of 10% in 2013.

The finance and insurance sub-sector growth was driven by expansion in bank lending activity as well as higher growth in insurance premiums. Domestic demand continued to expand at the pace of 7.5%

References: 1. Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2012, BNM 2. World Economic Outlook Update, International Monetary Fund

in Q4 (Q3: 11.4%). Private consumption registered a growth of 6.1% in Q4 (Q3: 8.5%), supported by stable labour market conditions and improved consumer sentiments. Public consumption grew by 1.1% in Q4 (2.3% in Q3) attributable to continued spending on emoluments amidst

Based on the data as at February 2013, the life insurance

lower spending on supplies and services.

industry in Malaysia grew 3.6% in 2012, as measured

The inflation rate, as measured by annual change in

premium in 2012 was RM8.20 billion, as compared to

the Consumer Price Index (CPI), continued to moderate to 1.3% in the fourth quarter of 2012 (Q3: 2012: 1.4%), reflecting lower inflation in the food and non-alcoholic

by new business total premium. The new business total RM7.92 billion in 2011. Table 1

Total Premium RM billion

2011

2012

Growth

-1.1%) while prices of the imported components remained

Individual - Traditional - Investment-linked Group

2.81 2.68 2.43

2.48 3.24 2.49

-11.7% 20.9% 2.1%

unchanged (Q3: 0.7%).

TOTAL

7.92

8.20

3.6%

beverages category. Meanwhile the Producer Price Index (PPI) continued to decline, contracting by 3.7% on an annual basis in Q4 (Q3: 2012: -0.7%). Prices of the local components of the PPI declined by 5.2% in Q4 (Q3:

The overnight policy rate (OPR) remains unchanged at 3.00% during the fourth quarter of 2012, which is at a level that is supportive of economic activity. The ringgit appreciated against the US dollar by 0.3% in the fourth quarter supported by investor optimism over growth prospects for the region, including Malaysia. The performance of ringgit against regional currencies was mixed.

28

Life Insurance Business New Business January – December 2012

performance of the life insurance industry

January to December

The growth was mainly due to the strong performance of investment-linked business which grew 20.9%. Traditional business saw a decline with more insurers switching to investment-linked business which is less capital intensive. Investment-linked products are also more flexible and provide better transparency and are increasingly becoming the consumers’ preferred choice.

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Table 2

Annualised Premium RM million

January to December

Mix (January to December)

2011

2012

Growth

2011

2012

Individual - Traditional - Investment-linked

2,226 1,828

2,133 1,998

-4.2% 9.3%

54.9% 45.1%

51.6% 48.4%

TOTAL

4,054

4,130

1.9%

100.0%

100.0%

Group insurance business enjoyed a small growth rate of

Table 3

2.1% in 2012.

RM million

2011

2012

In absolute terms, the size of individual traditional business with annualised premium of RM2.1 billion is slightly higher

Individual – Traditional - Annualised Premiums - Single Premiums

13,981 758

14,896 777

6.5% 2.5%

than the size of individual investment-linked business

TOTAL

14,739

15,674

6.3%

with annualised premium of RM2.0 billion. Traditional to

Individual – Investment-linked - Annualised Premiums - Single Premiums

6,948 382

7,973 348

14.8% -9.0%

TOTAL

7,330

8,321

13.5%

74 48 798

75 46 921

0.6% -4.9% 15.3%

921

1,041

13.1%

22,989

25,035

8.9%

investment-linked business mix as at 31 December 2012 was 51.6%:48.4% as compared with 54.9%:45.1% a year earlier.

Group - Annualised Premiums - Single Premiums (YRT) - Single Premiums (Others)

In-Force Policies In line with the growth in new business, the total premium

TOTAL

for in-force policies also grew by 8.9% for individual and

TOTAL (Individual + Group)

group policies combined. For individual policies, the growth came mainly from annual premium policies while single premium investment-linked business saw a decline in inforce premiums. Annual premium investment-linked business enjoyed a stronger growth of 14.8% against the traditional annual premium business which grew at 6.5%. In absolute terms, traditional annual premium business added slightly less than RM1 billion in-force premiums during the year. The investment-linked annual premium business outpaced traditional business with addition of slightly more than RM1 billion premiums in 2012.

Growth

Group insurance also recorded a strong growth in in-force premiums in year 2012 especially in Single Premiums (Others) category (Table 3). In aggregate, the life insurance industry provided cover amounting to RM1.02 trillion in sum assured for all policies combined in 2012. The amount was 8.0% higher than the corresponding figure of RM946 billion in 2011 (Table 4). The sum assured per capita in 2012 increased slightly to RM34,711 from RM32,553 in 2011 (Table 5).

Table 4

Type

2011

2012

Difference

Growth

Traditional

390,791,153,089

369,580,838,848

(21,210,314,241)

-5.4%

Investment-Linked

214,803,833,364

248,305,252,495

33,501,419,131

15.6%

Group

340,311,431,317

403,691,907,905

63,380,476,588

18.6%

TOTAL

945,906,417,770

1,021,577,999,248

75,671,581,478

8.0%

Table 5

Total Sum Insured Population Sum Insured per Capita

2011

2012

945,906,417,770

1,021,577,999,248

29,057,000

29,431,000

32,553

34,711

(Source: Life Insurance Association of Malaysia [LIAM], Department of Statistics, Malaysia – for population)

performance of the life insurance industry

29

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Life Insurance Business (2007 – 2011)

12,145,520

12,000,000

11,809,112

10,909,842

11,522,202

15,000,000

12,452,946

Number of Policies

Units

9,000,000

New Business

1,502,110

1,426,280

3,000,000

1,387,724

1,337,514

1,585,846

6,000,000

Total Business in Force

0 2007

2008

2009

2010

2011

Year

881,935.9

771,274.8

722,679.4

200,000

287,097.5

274,776.8

239,605.9

400,000

219,066.9

600,000

185,066.0

Sums Insured (RM million)

800,000

791,360.8

1,000,000

948,666.3

Sums Insured

New Business Total Business in Force

0 2007

2008

2009 Year

Source: Bank Negara Malaysia (Annual Insurance Statistics 2011)

30

performance of the life insurance industry

2010

2011

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

New Business: Total Premiums

10,000 8,397.1 Total Premiums (RM million)

8,000

7,587.0

7,234.7

7,544.4

7,913.7

6,000

4,000

2,000

New Business

0 2007

2008

2009

2010

2011

Year

Total Business in Force: Annual Premiums

25,000

Annual Premiums (RM million)

21,130.4 19,295.7

20,000 17,347.4 15,000

14,538.8

15,446.4

10,000

5,000 Total Business in Force

0 2007

2008

2009

2010

2011

Year

Source: Bank Negara Malaysia (Annual Insurance Statistics 2011)

performance of the life insurance industry

31

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Benefit Payments 2010 (RM million) Others 900.2 (6.9%) Medical 1,596.1 (12.3%)

2011 (RM million) Others 977.7 (7.0%)

Death and Disability 1,027.9 (7.9%)

Death and Disability 1,092.3 (7.8%)

Medical 1,788.4 (12.8%)

Cash Bonuses 1,871.1 (13.4%) Cash Bonuses 1,462.5 (11.2%)

Maturity/Vesting 4,224.1 (32.4%) Maturity/Vesting 4,359.6 (31.2%)

Surrender 3,889.9 (27.8%)

Surrender 3,812.5 (29.3%)

Total: RM13,023.3 million

Total: RM13,978.9 million

2010 (RM million)

2011 (RM million)

Income

Profit on Sale of Assets and Miscellaneous Income 5,165.0 (15.9%)

Premium Income 21,804.7 (67.3%)

Net Investment Income 5,448.6 (16.8%)

Premium Income 22,794.1 (68.8%)

Net Investment Income 6,034.3 (18.2%)

Total: RM32,418.3 million Source: Bank Negara Malaysia (Annual Insurance Statistics 2011)

32

Profit on Sale of Assets and Miscellaneous Income 4,288.3 (13.0%)

performance of the life insurance industry

Total: RM33,116.7 million

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Outgo (Expenditure)

2010 (RM million) Loss on Disposal of Assets and Other Outgo 1,133.3 (5.9%)

Management Expenses 1,849.2 (9.6%)

Agency Remuneration 3,229.3 (16.8%)

Net Policy Benefits 13,023.4 (67.7%)

Total: RM19,235.2 million

2011 (RM million) Loss on Disposal of Assets and Other Outgo 2,154.9 (10.0%)

Management Expenses 2,085.4 (9.7%)

Agency Remuneration 3,360.4 (15.6%)

Net Policy Benefits 13,978.9 (64.7%)

Total: RM21,579.6 million

Source: Bank Negara Malaysia (Annual Insurance Statistics 2011)

performance of the life insurance industry

33

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Assets of Life Insurance Funds 2010 (RM million)

Cash and Deposits 9,167.8

Other Assets 2,593.7

Foreign Assets Property, Plant and Equipment 4,741.6 1,660.5 Loans 10,870.2

LOANS (RM10,870.2 million) comprised: • Mortgages • Policy • Others INVESTMENTS

Investment Properties 2,479.9

(RM109,944.5 million) comprised: • Malaysia Government Papers/ Guaranteed Loans • Corporate/Debt Securities Investments 109,944.5

• Others

Total: RM141,458.2 million

2011 (RM million)

Cash and Deposits 15,343.8

Foreign Assets Property, Plant and Equipment 4,768.3 1,645.4 Other Assets Loans 2,678.7 10,900.1

LOANS (RM10,900.1 million) comprised: • Mortgages • Policy • Others INVESTMENTS (RM114,345.0 million) comprised:

Investment Properties 2,289.7

• Malaysia Government Papers/ Guaranteed Loans • Corporate/Debt Securities Investments 114,345.0

Total: RM151,971.0 million

Source: Bank Negara Malaysia (Annual Insurance Statistics 2011)

34

performance of the life insurance industry

• Others

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Members of LIAM Allianz Life Insurance Malaysia Berhad

CIMB Aviva Assurance Berhad

Suite 3A-15, Level 15

Level 11

Block 3A, Plaza Sentral

No. 338, Jalan Tuanku Abdul Rahman

Jalan Stesen Sentral 5

50100 Kuala Lumpur

Kuala Lumpur Sentral

Telephone No: 03-2612 3600

50470 Kuala Lumpur

Fax No: 03-2698 7035

Telephone No: 03-2264 1188/ 2264 0688

Customer Careline: 1300 88 5055

Fax No: 03-2264 1199

E-mail: [email protected]

E-mail: [email protected]

http://www.cimbaviva.com

http://www.allianz.com.my

American International Assurance Bhd. Menara AIA 99 Jalan Ampang 50450 Kuala Lumpur Telephone No: 03-2056 1111 Fax No: 03-2056 2992 E-mail: [email protected] http://www.aia.com.my

AmLife Insurance Berhad Level 9, Bangunan AmAssurance No. 1 Jalan Lumut 50400 Kuala Lumpur Telephone No: 1300 88 8800 Fax No: 03-2171 3000 E-mail: [email protected] https://www.amassurance.com.my

AXA AFFIN Life Insurance Berhad

Etiqa Insurance Berhad Level 19, Tower C Dataran Maybank No. 1, Jalan Maarof 59000 Kuala Lumpur Telephone No: 03-2297 3888 Fax No: 03-2297 3800 Oneline Contact Centre: 1-300-13-8888 E-mail: [email protected] http://www.etiqa.com.my

Great Eastern Life Assurance (Malaysia) Berhad Menara Great Eastern 303 Jalan Ampang 50450 Kuala Lumpur Telephone No: 03-4259 8888 Fax No: 03-4259 8000 E-mail: [email protected] http://www.greateasternlife.com

3 Jalan Conlay

Hannover Rueckversicherung AG, Malaysian Branch

50450 Kuala Lumpur

Suite 31-1, 31st Floor

Telephone No: 03-2117 6688/1300 88 1616

Wisma UOA II

Fax No: 03-2117 6768

No. 21, Jalan Pinang

E-mail: [email protected]

50450 Kuala Lumpur

http://www.axa.com.my

Telephone No: 03-2687 3600

8th Floor Chulan Tower

Fax No: 03-2687 3760/ 2687 3762 http://www.hannover-re.com

members of LIAM

35

ANNUAL REPORT 2012 Life Insurance Association of Malaysia

Hong Leong Assurance Berhad

Prudential Assurance Malaysia Berhad

Level 3, Tower B, PJ City Development

Level 17, Menara Prudential

No. 15A Jalan 219, Seksyen 51A

10, Jalan Sultan Ismail

46100 Petaling Jaya

50250 Kuala Lumpur

Telephone No: 03-7650 1818

Telephone No: 03-2031 8228

Fax No: 03-7650 1991

Fax No: 03-2032 3939

Customer Service Hotline: 03-7650 1288

Customer Service: 03-2116 0228

Customer Service Hotfax: 03-7650 1299

E-mail: [email protected]

http://www.hla.com.my

http://www.prudential.com.my

ING Insurance Berhad

Tokio Marine Life Insurance Malaysia Bhd.

Menara ING

Ground Floor

84 Jalan Raja Chulan

Menara Tokio Marine Life

P.O. Box 10846

189, Jalan Tun Razak

50927 Kuala Lumpur

50400 Kuala Lumpur

Telephone No: 03-2058 4838

Telephone No: 03-2059 6188

Fax No: 03-2161 0549

Fax No: 03-2162 8068

Toll Free: 1 800 88 0303

E-mail: [email protected]

http://www.ing.com.my

Malaysian Life Reinsurance Group Berhad Unit 39-A-6, Level 39 Tower A, Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1 59000 Kuala Lumpur Telephone No: 03-2780 6611 Fax No: 03-2780 6622

Uni.Asia Life Assurance Berhad 8th Floor, Bangunan Uni.Asia 16 Jalan Tun Tan Siew Sin 50050 Kuala Lumpur Telephone No: 03-2687 2000

E-mail: [email protected]

Fax No: 03-2031 4689

Manulife Insurance Berhad

Customer Service Fax: 03-2026 6097

12th Floor, Menara Manulife

Customer Service Hotline: 03-2687 2020

6, Jalan Gelenggang

E-mail: [email protected]

Damansara Heights

http://www.uniasialife.com.my

50490 Kuala Lumpur Telephone No: 03-2719 9228 Fax No: 03-2095 3804 / 03-2096 2121 http://www.manulife.com.my

MCIS ZURICH Insurance Berhad Wisma MCIS ZURICH, Jalan Barat 46200 Petaling Jaya, Selangor Telephone No: 03-7955 2577 Fax No: 03-7957 5964/ 7652 3399 Customer Contact Centre: 03-7652 3388 E-mail: [email protected] http://www.mciszurich.com.my

36

http://www.tokiomarinelife.com.my

members of LIAM

Zurich Insurance Malaysia Berhad 11th Floor, Menara Zurich No. 12, Jalan Dewan Bahasa 50460 Kuala Lumpur Telephone No: 03-2146 8000 Fax No: 03-2142 5489 Call Centre: 1300 88 622/ 03-2146 9999 E-mail: [email protected] http://www.zurich.com.my

Life Insurance Association of Malaysia

annual report

2012

LIFE INSURANCE ASSOCIATION OF MALAYSIA No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 50300 Kuala Lumpur Tel: 603 2691 6168/ 2691 6628/ 2691 8068 Fax: 603 2691 7978 Website: www.liam.org.my Email: [email protected]