Contents Page President’s Message ------------------------------------------------------------------------------------------------------------ 2 Perutusan Presiden ------------------------------------------------------------------------------------------------------------ 6 Members of the Management Committee 2013/2014 ------------------------------------------------------------------------------------------------------------ 10 Management Committee 2013/2014 ------------------------------------------------------------------------------------------------------------ 11 Committees and Working Committees 2013/2014 ------------------------------------------------------------------------------------------------------------ 12 Report of the Management Committee ------------------------------------------------------------------------------------------------------------ 18 Laporan Jawatankuasa Pengurusan ------------------------------------------------------------------------------------------------------------ 28 Performance of the Life Insurance Industry ------------------------------------------------------------------------------------------------------------ 35 Members of LIAM ------------------------------------------------------------------------------------------------------------ 42

LIFE INSURANCE ASSOCIATION OF MALAYSIA No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 50300 Kuala Lumpur, Malaysia. Tel : 603 2691 6168 / 2691 6628 / 2691 8068

Fax : 603 2691 7978

Website : www.liam.org.my

Email : [email protected]

Annual Report 2013 Life Insurance Association of Malaysia

PRESIDENT’S MESSAGE On behalf of the Management Committee, it is my pleasure to present the Annual Report of the Life Insurance Association of Malaysia (LIAM) for the year 2013. Following are some of the key issues dealt with by the Association during the year.

A STUDY ON UNDERINSURANCE IN MALAYSIA As a commitment of the industry to fulfill the national aspiration of having 75% of the population to be insured, LIAM engaged Universiti Kebangsaan Malaysia in June 2013 as its research partner to embark on a study on underinsurance in Malaysia.

Vincent Kwo

The mortality protection gap is often a true reflection of the potential demand for life insurance coverage. The protection gap refers to the difference between the resources needed and the resources that would be available to maintain the living standards of the dependants following the death of the primary wage earner.

The result of this study will provide a good insight of the extent of underinsurance among Malaysian policyholders and the general population and this would assist the industry to formulate new strategies to reduce the protection gap and to increase the penetration rate in Malaysia. The study focused on protection, medical and critical illness policies and covered samples from the 25 to 65 age groups.

DEVELOPMENT OF RETIREMENT PLANNING IN MALAYSIA Following a meeting with Yang Berbahagia Dato’ Muhammad Ibrahim, Deputy Governor of Bank Negara Malaysia (BNM) on 5 February 2013 for the regulators and private sectors to identify measures that will increase the take-up rate for annuity products, a working group led by LIAM and comprising representatives from BNM and Malaysian Takaful Association (MTA) were formed to study the development of retirement planning in Malaysia. As part of its fact-find exercise, LIAM organised a meeting with Mr Don Yeo, Deputy Chief of the Central Provident Fund (CPF) of Singapore on 18 September 2013. At the meeting, Mr Don Yeo shared the current progress of the retirement market, the choices of retirement products, the health care system for retirees as well as the CPF pay-out system in Singapore.

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LIAM further organised a meeting with the Chief Executive Officer of the Employees Provident Fund (EPF), Yang Berbahagia Datuk Shahril Ridza Ridzuan on 14 November 2013 to present a paper on ‘Malaysia - Preparing for Retirement’ which was prepared by Ms Brigitte Miksa, Head of Allianz International Pensions, and Editor of Project M magazine. Some of the key measures discussed in the meeting were the possibility of reviving the EPF Critical Illness scheme, the introduction of suitable annuity plans and the introduction of the financial literacy programme for Malaysians. LIAM also requested for the possibility of extending the Members Investment Scheme (MIS) to include life insurance. Currently, the MIS is only extended for withdrawals to purchase unit trust.

CONCEPT PAPER ON LIFE INSURANCE AND FAMILY TAKAFUL FRAMEWORK On 7 November 2013, BNM released a concept paper on Life Insurance and Family Takaful Framework for public consultation. The framework sets out various proposed liberalized measures aimed at spurring the penetration rate of insurance and takaful from the current 54% to 75%. As part of the liberalization of the market, the Concept Paper covers a wide range of areas including operating flexibility, product disclosure, development of new delivery channels and increased professional market practices. These proposed measures are intended to support the long-term sustainable growth and development of the life insurance and family takaful industry and is aimed to increase its value proposition to consumers. With the market becoming more competitive, there will be a larger segment of more discerning consumers demanding for more products and services to meet their needs. This affluent market expects service to be delivered through new distribution channels that are most convenient to them. Following the formation of a Steering Committee at the LIAM Strategic Meeting in Langkawi in November 2013, three working groups were subsequently set up to study the impact of the proposed measures in the Concept Paper in greater detail. Besides taking into account the necessity to balance the need for an increased level of professionalism, the committees also looked into providing greater transparency in the provision of products and services. A series of meetings were held to draw up the industry response on the Concept Paper which was submitted to BNM on 9 January 2014.

FINANCIAL SERVICES ACT 2013 The regulatory and supervisory framework of the financial services sector entered a new stage of its development as the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA) came into force on 30 June 2013. The FSA and IFSA amalgamate several separate laws to govern the financial sector under a single legislative framework for the conventional and Islamic financial sectors respectively, namely, the Banking and Financial Institutions Act 1989, Islamic Banking Act 1983, Insurance Act 1996, Takaful Act 1984, Payment Systems Act 2003 and Exchange Control Act 1953 which were repealed on the same date. The new legislations provide explicit powers for BNM to set and enforce standards on business conduct for financial service providers that ensure financial consumers are

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treated fairly. The laws also specifically prohibit financial service providers from engaging in unfair or deceptive business conduct including making false, misleading or dishonest representations, and tied selling. Among the highlights of this new legislation is the enhanced protection given in respect to consumers' pre-contractual disclosure obligations contained within the consumer insurance contracts. It is now the duty of insurers to request the proposer to answer specific questions to solicit information which is relevant to their decision making as to whether they should accept the risk or otherwise. The legislation also sets out various remedies that an insurer may rely upon depending on the type of pre-contractual misrepresentation made by the consumers. With greater transparency in mind, the new laws contain provisions that address directorship and holding companies whilst also specifically compelling insurers to operate either as a life or general entity and not as composites within 5 years. While the FSA is enforced on 30 June 2013, Schedule 9 of the Act is expected to be implemented with effect from 1 July 2014. Schedule 9 covers the pre-contractual disclosure and representations, and remedies for misrepresentations. To comply with these requirements, companies have to conduct an extensive review of their existing proposal forms and other relevant documents, renewal process, internal underwriting manual as well as to make changes to their systems and conduct the necessary training for their staff and intermediaries. To facilitate the implementation of Schedule 9, BNM has formed a Working Group comprising representatives from LIAM, General Insurance Association of Malaysia (PIAM) and MTA to address the compliance challenges faced by life insurers and takaful operators.

PERSONAL DATA PROTECTION ACT 2010 In keeping up with international business practice, the Personal Data Protection Act 2010 (PDPA) was enforced with effect from 15 November 2013. The PDPA regulates the collection, possession and processing and the use of personal data by any person or organization. Non-conformance with the Act may result in penalties from financial to legal liabilities. The life insurance industry is among the many business entities impacted by this Act. Collection and processing of personal data is vital to the life insurance business. Under this Act, member companies are required to be registered as data users. The Personal Data Protection (PDP) Department plans to have forums with the respective industries to discuss the setting up of data users forums and code of practices. The forum for the insurance industry has been scheduled for March 2014. Meanwhile, the LIAM Task Force on PDPA which comprises of senior legal, operations and compliance personnel from member companies has formulated the Code of Practice for the life insurance industry. The Code is to enable the industry to self-regulate the processing of personal data in the industry. However, following a joint meeting between PDP Department, LIAM, PIAM and MTA on 19 December 2013, the industry would be formulating a standard Code of Practice for submission to the PDP Department. 4 President’s Message

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COMPETITION ACT 2010 The Competition Act (CA) 2010, which came into force on 1 January 2012, applies to all commercial entities and is intended to prohibit enterprises from engaging in anti-competitive agreements or abuse of dominant positions. At the Association level, LIAM will continue to engage in dialogues with BNM and the Malaysia Competition Commission to ensure that the self-regulatory guidelines issued are not in breach of the Competition Act 2010. A review of the self-regulatory guidelines of LIAM would be undertaken together with the new regulations issued by BNM under the Financial Services Act 2013.

ASEAN ECONOMIC COMMUNITY With the move towards creating a single ASEAN market through the ASEAN Economic Community (AEC) Blueprint in 2015, the ASEAN Insurance Council (AIC) has taken concerted efforts to promote AEC awareness in the various ASEAN markets. The AIC Secretariat in Jakarta has taken the lead to organize the first AEC awareness programme in September 2013 and the various ASEAN member states will be organizing roadshows in their respective countries in 2014. As the new Chairman of the AIC, I will continue to ensure that the AIC provides a continuous platform for the region’s industry players to share knowledge and experience and prepare ourselves to take on the challenges of liberalization in the ASEAN financial services sector.

ACKNOWLEDGEMENT For the year ahead, LIAM will focus on the various projects at hand and continue to initiate proactive measures to address the challenges facing the members as well as to enhance the productivity and professionalism of the industry. On this note, I take this opportunity to express my gratitude and appreciation to the members of the management committee for spending their time and efforts on LIAM’s activities in dealing with the industry’s issues. My sincere thanks also go out to all member companies of LIAM for their unwavering and strong support towards LIAM’s initiatives. I would also like to record my appreciation to BNM, Ministry of Finance, the Treasury, Ministry of Health, Perbadanan Insurans Deposit Malaysia (PIDM), Employees Provident Fund (EPF) and other Government agencies for their guidance and cooperation extended to LIAM. Finally, I would also like to thank the Secretariat staff for their diligence in carrying out their duties and in serving the industry.

Vincent Kwo President

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Perutusan Presiden Bagi pihak Jawatankuasa Pengurusan, saya dengan sukacitanya membentangkan Laporan Tahunan Persatuan Insurans Hayat Malaysia (LIAM) bagi tahun 2013. Berikut ialah beberapa isu penting yang diuruskan oleh Persatuan sepanjang tahun ini.

KAJIAN TENTANG INSURANS TERKURANG DI MALAYSIA Sebagai satu komitmen industri ini untuk memenuhi aspirasi negara ke arah memastikan 75% penduduknya memiliki perlindungan insurans, LIAM telah melantik Universiti Kebangsaan Malaysia pada Jun 2013 sebagai rakan penyelidikannya untuk memulakan kajian tentang insurans terkurang di Malaysia. Jurang perlindungan mortaliti selalunya merupakan gambaran sebenar tentang potensi permintaan perlindungan insurans hayat. Jurang perlindungan merujuk kepada perbezaan antara sumber yang diperlukan dan sumber yang ada untuk mengekalkan taraf hidup tanggungan selepas kematian pencari nafkah utama. Keputusan kajian ini akan memberikan pemahaman yang lebih jelas tentang sejauh mana terkurangnya insurans di kalangan pemegang polisi di Malaysia dan penduduk umum dan ini akan membantu industri untuk merumuskan strategi baru bagi mengurangkan jurang perlindungan serta meningkatkan kadar penembusan di Malaysia. Kajian ini memfokus kepada polisi perlindungan, perubatan dan penyakit kritikal serta meliputi sampel daripada kumpulan yang berumur di antara 25 hingga 65 tahun.

PEMBANGUNAN PERANCANGAN PERSARAAN DI MALAYSIA Selepas mesyuarat bersama Yang Berbahagia Dato’ Muhammad Ibrahim, Timbalan Gabenor Bank Negara Malaysia (BNM) pada 5 Februari 2013 untuk pengawal selia dan sektor swasta mengenal pasti langkah-langkah yang akan meningkatkan kadar pengambilan untuk produk anuiti, sebuah kumpulan kerja yang diketuai oleh LIAM dan terdiri daripada wakil dari BNM dan Persatuan Takaful Malaysia (MTA) telah ditubuhkan untuk mengkaji pembangunan perancangan persaraan di Malaysia. Sebagai sebahagian daripada usaha pencarian faktanya, LIAM telah menganjurkan satu mesyuarat dengan Encik Don Yeo, Timbalan Ketua Kumpulan Wang Simpanan Pusat (CPF) Singapura pada 18 September 2013. Pada mesyuarat itu, Encik Don Yeo memaklumkan tentang kemajuan pasaran persaraan pada masa ini, pilihan produk persaraan, sistem penjagaan kesihatan untuk pesara serta sistem pembayaran wang CPF di Singapura. LIAM juga mengadakan mesyuarat dengan Ketua Pegawai Eksekutif Kumpulan Wang Simpanan Pekerja (KWSP), Yang Berbahagia Datuk Shahril Ridza Ridzuan pada 14 November 2013 untuk membentangkan kertas kerja bertajuk ‘Malaysia - Preparing for Retirement’ yang disediakan oleh Cik Brigitte Miksa, Ketua International Pensions Allianz, dan Editor majalah Project M. Antara langkah utama yang dibincangkan pada mesyuarat itu ialah kemungkinan memperkenalkan semula skim Penyakit Kritikal KWSP, pengenalan pelan anuiti yang sesuai dan pengenalan program celik kewangan untuk rakyat Malaysia. LIAM juga meminta kemungkinan memperluaskan Skim Pelaburan Ahli (MIS) supaya merangkumi insurans hayat. Pada masa ini, MIS hanya meliputi pengeluaran untuk membeli amanah saham.

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KERTAS KONSEP RANGKA KERJA INSURANS HAYAT DAN TAKAFUL KELUARGA Pada 7 November 2013, BNM telah mengeluarkan kertas konsep Rangka Kerja Insurans Hayat dan Takaful Keluarga untuk perundingan awam. Rangka kerja ini menetapkan pelbagai cadangan langkah liberalisasi yang bertujuan untuk meningkatkan kadar penembusan insurans dan takaful daripada 54% sekarang ini kepada 75%. Sebagai sebahagian daripada liberalisasi pasaran, Kertas Konsep ini meliputi pelbagai bidang termasuk memberikan fleksibiliti dalam kendalian, pendedahan produk, pempelbagaian saluran penyampaian dan pengukuhan amalan pasaran profesional. Langkah-langkah yang dicadangkan ini bertujuan untuk menyokong pertumbuhan dan pembangunan mampan industri insurans hayat dan takaful keluarga dalam jangka panjang serta bertujuan untuk meningkatkan nilai tawarannya kepada pengguna. Dengan pasaran yang semakin berdaya saing, permintaan daripada segmen pengguna arif untuk lebih banyak produk dan perkhidmatan bagi memenuhi keperluan mereka akan semakin meningkat. Pasaran mewah ini mengharapkan perkhidmatan disampaikan menerusi saluran penyampaian baru yang paling mudah bagi mereka. Selepas pembentukan Jawatankuasa Pemandu pada Mesyuarat Strategik LIAM di Langkawi pada November 2013, tiga kumpulan kerja kemudiannya ditubuhkan untuk mengkaji kesan langkah yang dicadangkan dalam Kertas Konsep ini secara terperinci. Di samping mengambil kira perlunya mengimbangkan keperluan terhadap peningkatan tahap profesionalisme, jawatankuasa ini juga berusaha untuk menyediakan lebih ketelusan dalam penyediaan produk dan perkhidmatan. Beberapa mesyuarat telah diadakan untuk menyediakan maklum balas daripada industri mengenai Kertas Konsep ini. Maklum balas tersebut telah dikemukakan kepada BNM pada 9 Januari 2014.

AKTA PERKHIDMATAN KEWANGAN 2013 Rangka kerja pengawalan dan penyeliaan sektor perkhidmatan kewangan telah memasuki tahap baru pembangunannya apabila Akta Perkhidmatan Kewangan 2013 (FSA) dan Akta Perkhidmatan Kewangan Islam (IFSA) berkuat kuasa pada 30 Jun 2013. FSA dan IFSA menyatukan beberapa undang-undang berasingan untuk mentadbir sektor kewangan di bawah satu rangka kerja perundangan masing-masing untuk sektor kewangan konvensional dan Islam, iaitu Akta Bank dan Institusi-Institusi Kewangan 1989, Akta Bank Islam 1983, Akta Insurans 1996, Akta Takaful 1984, Akta Sistem Pembayaran 2003 dan Akta Kawalan Pertukaran Wang 1953 yang telah dimansuhkan pada tarikh yang sama. Rang undang-undang baru ini memberikan kuasa yang jelas bagi BNM menetapkan dan menguatkuasakan piawaian tatalaku perniagaan untuk penyedia perkhidmatan kewangan yang memastikan pengguna kewangan dilayan dengan adil. Undang-undang ini juga melarang penyedia perkhidmatan kewangan daripada terlibat dalam tatalaku perniagaan yang tidak adil atau memperdaya termasuk membuat pernyataan yang palsu, mengelirukan atau tidak jujur, dan jualan terikat. Antara ciri penting rang undang-undang baru ini ialah pemerkasaan perlindungan yang diberi berhubung dengan kewajipan pendedahan prakontrak pengguna yang terkandung dalam kontrak insurans pengguna. Kini menjadi kewajipan penanggung insurans untuk meminta pencadang menjawab soalan tertentu bagi mendapatkan maklumat yang berkaitan dengan keputusan yang mereka buat sama ada mereka patut menerima risiko itu atau tidak. Rang undang-undang ini juga menetapkan pelbagai remedi yang boleh diharapkan oleh penanggung insurans, bergantung pada jenis salah nyata prakontrak yang dibuat oleh pengguna.

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Dengan menimbangkan lebih ketelusan, undang-undang baru ini mengandungi peruntukan yang menangani jawatan pengarah dan syarikat induk, di samping itu juga mendorong penanggung insurans beroperasi sama ada sebagai entiti hayat atau am dan bukan sebagai entiti komposit dalam tempoh 5 tahun. Walaupun FSA dikuatkuasakan pada 30 Jun 2013, Jadual 9 Akta ini dijangka dilaksanakan berkuat kuasa 1 Julai 2014. Jadual 9 meliputi pendedahan dan pernyataan prakontrak, dan remedi untuk salah nyata. Bagi mematuhi keperluan ini, syarikat perlu membuat kajian semula yang meluas ke atas borang cadangan mereka yang sedia ada dan dokumen lain yang berkaitan, proses pembaharuan, manual pengunderaitan dalaman serta membuat perubahan pada sistem mereka serta mengendalikan latihan yang perlu untuk kakitangan dan perantara mereka. Bagi memudahkan pelaksanaan Jadual 9, BNM telah menubuhkan Kumpulan Kerja yang terdiri daripada wakil dari LIAM, Persatuan Insurans Am Malaysia (PIAM) dan MTA bagi menangani cabaran pematuhan yang dihadapi oleh penanggung insurans dan pengendali takaful.

AKTA PERLINDUNGAN DATA PERIBADI 2010 Selaras dengan amalan perniagaan antarabangsa, Akta Perlindungan Data Peribadi 2010 (PDPA) telah dikuatkuasakan mulai 15 November 2013. PDPA mengawal selia pengumpulan, pemilikan dan pemprosesan serta penggunaan data peribadi oleh mana-mana orang atau organisasi. Ketakpatuhan kepada Akta ini boleh mengakibatkan penalti daripada liabiliti kewangan hinggalah kepada liabiliti undang-undang. Industri insurans hayat adalah antara entiti perniagaan yang banyak menerima kesan daripada Akta ini. Pengumpulan dan pemprosesan data peribadi amat penting kepada perniagaan insurans hayat. Di bawah Akta ini, syarikat ahli dikehendaki mendaftar sebagai pengguna data. Jabatan Perlindungan Data Peribadi (PDP) merancang untuk mengadakan forum dengan industri masingmasing bagi membincangkan penubuhan forum pengguna data dan tataamalan. Forum bagi industri insurans telah dijadualkan pada Mac 2014. Sementara itu, Pasukan Petugas PDPA LIAM yang terdiri daripada kakitangan undang-undang, operasi dan pematuhan kanan dari syarikat ahli telah merumuskan Tataamalan bagi industri insurans hayat. Tataamalan ini adalah untuk membolehkan industri ini mengawal selia sendiri pemprosesan data peribadi dalam industri ini. Walau bagaimanapun, selepas mesyuarat bersama antara Jabatan Perlindungan Data Peribadi (PDP), LIAM, PIAM dan MTA pada 19 Disember 2013, industri ini akan merumuskan Tataamalan standard untuk dikemukakan kepada Jabatan PDP.

AKTA PERSAINGAN 2010 Akta Persaingan (CA) 2010, yang berkuat kuasa pada 1 Januari 2012, terpakai untuk semua entiti perdagangan dan bertujuan untuk melarang pengusaha-pengusaha daripada terlibat dalam perjanjian antipersaingan atau penyalahgunaan kedudukan dominan. Pada peringkat Persatuan, LIAM akan terus mengadakan dialog dengan BNM dan Suruhanjaya Persaingan Malaysia bagi memastikan garis panduan kawal selia sendiri yang dikeluarkan tidak melanggar Akta Persaingan 2010. Kajian semula garis panduan kawal selia sendiri LIAM akan dijalankan bersama dengan peraturan-peraturan baru yang dikeluarkan oleh BNM di bawah Akta Perkhidmatan Kewangan 2013.

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KOMUNITI EKONOMI ASEAN Dengan langkah ke arah mewujudkan satu pasaran ASEAN melalui Pelan Tindakan Komuniti Ekonomi ASEAN (AEC) pada tahun 2015, Majlis Insurans ASEAN (AIC) telah mengambil usaha bersepadu untuk meningkatkan kesedaran AEC dalam pasaran ASEAN. Sekretariat AIC di Jakarta telah mengambil peranan utama untuk menganjurkan program kesedaran AEC yang pertama pada September 2013 dan beberapa negara anggota ASEAN juga akan menganjurkan siri jelajah di negara masing-masing pada tahun 2014. Selaku Pengerusi baru AIC, saya akan terus memastikan AIC menyediakan landasan yang berterusan untuk pemain industri di rantau ini berkongsi pengetahuan dan pengalaman serta menyiapkan diri kita untuk menghadapi cabaran liberalisasi dalam sektor kewangan ASEAN.

PENGHARGAAN Bagi tahun akan datang, LIAM akan memfokus kepada pelbagai projek yang sedia ada dan terus mengambil langkah proaktif untuk menangani cabaran yang dihadapi oleh ahli serta meningkatkan produktiviti dan profesionalisme industri ini. Dengan itu, saya mengambil kesempatan ini untuk menyampaikan rasa terima kasih dan penghargaan kepada ahli jawatankuasa pengurusan kerana meluangkan masa dan tenaga mereka untuk aktiviti LIAM dalam menangani isu-isu industri ini. Ucapan terima kasih yang tulus ikhlas daripada saya juga untuk semua syarikat ahli LIAM di atas sokongan padu mereka yang tidak berbelah bahagi terhadap inisiatif LIAM. Saya juga ingin merakamkan penghargaan saya kepada BNM, Kementerian Kewangan, Perbendaharaan, Kementerian Kesihatan, Perbadanan Insurans Deposit Malaysia (PIDM), Kumpulan Wang Simpanan Pekerja (KWSP) dan agensi Kerajaan lain di atas panduan dan kerjasama yang diberikan kepada LIAM. Akhir kata, saya juga ingin mengucapkan terima kasih kepada kakitangan Sekretariat di atas ketekunan mereka dalam menjalankan tugas mereka dan dalam memberi perkhidmatan kepada industri ini.

Vincent Kwo Presiden

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Members of the Management Committee 2013/2014

Seated (from left): YBhg Dato Koh Yaw Hui, Encik Kamaludin Ahmad, Mr Vincent Kwo Shih Kang and Mr Toi See Jong. Standing (from left): Mr Paul Low Hong Ceong, Mr George Chew, Mr Jens Reisch, Mr Bill Lisle, Mr Loke Kah Meng and Ms Nancy Tan (Executive Secretary).

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Management Committee 2013/2014 PRESIDENT MR VINCENT KWO SHIH KANG Uni.Asia Life Assurance Berhad

VICE-PRESIDENT ENCIK KAMALUDIN AHMAD Etiqa Insurance Berhad

MEMBERS AIA BHD. Main Representative Alternate

: Mr Bill Lisle : Mr Choo Sin Fook

ALLIANZ LIFE INSURANCE MALAYSIA BERHAD Main Representative : Mr Jens Reisch Alternate : Mr Charles Ong Eng Chow Alternate : Ms Lim Li Meng AMLIFE INSURANCE BERHAD Main Representative Alternate

: Mr Paul Low Hong Ceong : Mr Alex Lee Foo Yuen

AXA AFFIN LIFE INSURANCE BERHAD Main Representative : Mr Loke Kah Meng Alternate : 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 : YBhg Dato Koh Yaw Hui Alternate : Mr Bruce Lee Yee Lam MANULIFE INSURANCE BERHAD Main Representative Alternate Alternate

: Mr George Chew : Ms Jasbender Kaur : Mr Alex Wong

TOKIO MARINE LIFE INSURANCE MALAYSIA BHD. Main Representative : Mr Toi See Jong Alternate : Ms Kang Yu Fen Alternate : Mr Wong Kang Yuan UNI.ASIA LIFE ASSURANCE BERHAD Main Representative Alternate Alternate

: Mr Vincent Kwo Shih Kang : Mr Nikolaos Stampoulis : Mr Christopher Woon

As at 31 December 2013 Management Committee 2013/2014 11

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Committees and Working Committees 2013/2014

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Committees and Working Committees 2013/2014 13

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&

14 Committees and Working Committees 2013/2014

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LIFE OPERATIONS COMMITTEE

PRODUCT SERVICES & TECHNICAL COMMITTEE

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As at 31 December 2013. Committees and Working Committees 2013/2014 17

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Report of the Management Committee A number of activities were undertaken during the year of review. We are pleased to present the highlights of these activities and the key issues handled by LIAM.

IMPLEMENTATION OF E-PAYMENT In support of the national agenda on electronic payment (e-payment), LIAM has been working closely with BNM and member companies to reduce the level of cash and cheque transactions. Life insurance companies have achieved nearly 100% in the utilization of e-payment for agency commission, staff salaries, hospital bills and statutory bodies/government agencies. Out of the 14 life insurance companies, eight companies have begun offering the e-payment option to policyholders and beneficiaries for payment of claims. The remaining companies are working towards making this option available to the policyholders and beneficiaries by early 2014. The migration to e-payment which offers a more efficient, secure and cost effective means of transferring funds over paper-based payments, is one of the key areas envisioned in the Financial Sector Blueprint 2011-2020 to support greater economic efficiency. LIAM is part of the Working Group on E-payment which comprise BNM, General Insurance Association of Malaysia (PIAM), Malaysian Takaful Association (MTA), Association of Banks in Malaysia (ABM) and Malaysian Electronic Payment System (MEPS) to facilitate the transition to e-payment in the financial services sector. The objective of the Working Group is to identify the issues which are of concern to the industry and to seek the solutions jointly with BNM and the commercial banks.

FOREIGN ACCOUNT TAX COMPLIANCE ACT LIAM, together with a number of industry bodies are in engagement with the authorities to propose the signing of the Inter-Government Agreement on the Foreign Account Tax Compliance Act (FATCA). FATCA is a United States (US) legislation enacted by the US Congress to prevent offshore tax abuses by US persons and is expected to be enacted in July 2014. Financial institutions operating outside the US, including life insurance companies in Malaysia, which have business interests or invested assets in the US, would be required to comply with the FATCA requirements. This includes financial institutions that are part of a larger financial group that has affiliates with US investments or businesses.

GOODS AND SERVICES TAX The Government has announced that the Goods and Services Tax (GST) will be introduced effective from 1 April 2015 at the rate of 6%. The current sales tax and service tax will be abolished and will be replaced by tax based on the value added concept, GST. For the life insurance business, it will be placed under an exempt model whereby life insurance premiums will not be subject to tax. Premiums paid for non-life policies will be subject to the standard GST rate of 6%. In view that life insurance premiums are tax exempt, this means that life insurance companies will not be able to claim for any input tax that they have incurred in the course of running their life insurance business. The key impact to life insurers is that commission, outsourced expenses, and management fees and charges for investment-linked policies will be subject to GST. As the pricing of life insurance premiums are done on a level premium basis, insurance companies will have to bear the additional costs due to input tax.

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LIAM had engaged a tax consultant to negotiate with the Government to grant full recovery of GST for commission or a 50% fixed input tax credit to alleviate the additional costs of running the life insurance business. The proposals to the Government will be based on the experience of other jurisdictions in which GST had been implemented and the relief model that had been considered. During the year, two industry meetings were held on 9 January 2013 and 21 May 2013 respectively, to keep the members informed on the updates on GST on life insurance business. These meetings also provided a platform for LIAM members to address their concerns on GST issues with the tax consultant. The Royal Malaysian Customs and the Malaysian Insurance Institute (MII) had also organised a special briefing on ‘GST Treatment on Insurance/Takaful’ on 9 October 2013. LIAM was one of the supporting organisations for this event.

LIAM STRATEGIC PLANNING MEETING LIAM organised its Strategic Planning Meeting in Langkawi from 8 to 10 November 2013 for chief executive officers and senior managers of its member companies. The representatives from BNM who attended this meeting were Encik Aznan Abd Aziz, Director of the Financial Sector Development Department, Puan Junaidah Mohd Said, Deputy Director of the Financial Sector Development Department and other officers namely Ms June Lian Lay Choon and Encik Izian Sherwani Mansor from the Financial Sector Development Department, Encik Makhzani Mustaffa Ng from the Islamic Banking and Takaful Department and Puan Azlinda Arshad from the Consumer and Market Conduct Department. During this high-powered meeting, LIAM had a question and answer (Q and A) session with BNM on the recently launched Concept Paper on the Life Insurance and Family Takaful Framework. LIAM then formed a Steering Committee to look into the main pillars highlighted in the Concept Paper to set the strategic directions on the future of the industry. One of the immediate tasks of the Steering Committee was to review the Concept Paper and to consolidate the industry’s feedback and recommendations for BNM’s consideration.

LIAM Strategic Planning Meeting

The session was facilitated by Towers Watson consultancy firm.

39th ASEAN INSURANCE COUNCIL MEETING The 39th ASEAN Insurance Council (AIC) meeting was hosted by the Association of Vietnamese Insurers in Da Nang, Vietnam from 4 to 6 December 2013.

39th ASEAN Insurance Council Meeting

The AIC is a regional private sector grouping of insurance associations in ASEAN, formed to promote regional ties and cooperation among ASEAN insurers. The annual council meeting, which is attended by the heads of the associations, is held at a designated ASEAN country. This meeting serves as an effective platform, facilitating the exchange of information among participants on the latest development of their respective markets.

Among the items discussed at this year’s meeting included the Insurance Mediation Survey in the ASEAN region; report from the Technical Working Group on ASEAN Insurance related matters which had looked into areas such as the risk-based capital framework, taxation and microinsurance introduced among the ASEAN countries, possibility of producing the ASEAN statistics report as well as donations and support to the Typhoon Haiyan victims. Report of the Management Committee 19

Annual Report 2013 Life Insurance Association of Malaysia

During the Life Breakout session, the ASEAN life insurers exchanged notes on ways to increase insurance penetration rate, development of regulatory framework, promoting insurance products and consumer awareness as well as the 2015 ASEAN Economic Community. At this meeting, LIAM President Mr Vincent Kwo was appointed as the AIC Chairman for the 2013 – 2014 term replacing Mr Kornelius Simanjuntak of Indonesia who has completed his term in office. The AIC meeting which coincides with the ASEAN Regulators meeting, also provided an opportunity for the AIC members to have a discussion with the regulators on the issues facing the insurance industry in general.

CONVENTIONS • 2013 International Dragon Award Annual Meeting/ 17th Malaysia Chinese Life Insurance Congress Kuala Lumpur was proud to host the 2013 International Dragon Award (IDA) Annual Meeting/ 17th Malaysia Chinese Life Insurance Congress after a lapse of some 15 years when the last Conference was held in Kuala Lumpur. The event was officiated by the Honourable Prime Minister of Malaysia on15 August 2013. The four-day congress attracted some 5,000 participants from 16 countries including China, Taiwan, Hong Kong, South Korea and Australia. LIAM and RGA Reinsurance Company for Hong Kong and Southeast Asia, jointly hosted a dinner for the foreign delegates from insurance companies. LIAM also participated in a number of panel and breakout sessions, including the Glory Nite Awards for top agents from Malaysia.

2013 International Dragon Award

• Bumiputera Life Insurance Agents Convention 2013 On 21 September 2013, LIAM co-organised the Bumiputera Life Insurance Agents Convention 2013 with MII at Hotel Istana, Kuala Lumpur. Themed as “Berdaya Saing di Era Transformasi”, the one-day event aimed to provide a motivation platform to Bumiputera life agents as well as to honour top Bumiputera producers within the life insurance industry. With Yang Berhormat Encik Khairy Jamaluddin, the Youth and Sports Minister officiating the Convention, it truly reflected the government’s strong support towards the life insurance industry. This Annual Convention is held with the objectives of providing an arena for the life insurance agents to meet and learn from each other as well as to spur them to achieve their yearly targets. Among, the line-up of speakers were Encik Norman Abdul Halim from KRU Group Berhad who shared his secret for success in business, top MDRTs and a successful Indonesian achiever/ motivational speaker, Ms Lucy Dewani. 20 Report of the Management Committee

Annual Report 2013 Life Insurance Association of Malaysia

Etiqa Insurance Berhad and Prudential Assurance Malaysia Berhad were the co-sponsors for this Convention that was attended by close to 500 participants.

Bumiputera Life Insurance Agents Convention 2013

• Asia Distribution Conference The Asia Distribution Conference was held in Kuala Lumpur on 20 and 21 November 2013. Organized by LIMRA LOMA, the conference was officiated by Mr Jens Reisch, Chairman of the LIAM Industry Promotion Committee. In his opening address, Mr Reisch touched on the recent regulatory changes namely the Financial Services Act 2013, Personal Data Protection Act 2010, Life Insurance and Family Takaful Framework Concept Paper and the introduction of the Goods and Services Tax. Mr Reisch also highlighted on the key performance indicators of the Malaysian insurance industry which reflected growth opportunities in all distribution channels to offer higher and better protection to the consumers. The conference which featured a line-up of experienced Asia Distribution Conference industry leaders addressed crucial distribution issues including understanding the customer, managing channel conflict, best practices in direct marketing, creating a winning bancassurance partnership and transforming sales force effectiveness.

TALKS/ BRIEFINGS/ SEMINARS • Presentation to Politeknik Merlimau Students As part of LIAM’s key objective to raise the life insurance literacy level in society, LIAM and MII organised a Talk for the Politeknik Merlimau Diploma in Business Studies students on 16 January 2013. The half-day session was held at the Auditorium, The Malaysian Insurance Institute, Damansara Heights, Kuala Lumpur. MII shared some insights and information on the main components in the insurance market, current developments of the insurance industry as well as types of insurance products. LIAM gave an overview of its role in the industry, the regulations of the market as well as LIAM’s activities throughout the year and ended the Talk with a Q & A session with the students. Presentation to Politeknik Merlimau Students

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Annual Report 2013 Life Insurance Association of Malaysia

• LIAM-FALIA Seminar In keeping with its longstanding collaborative effort to develop and raise the standards and enhance the knowledge of its members, LIAM worked with FALIA to co-organise a Joint Seminar on 22 January 2013. This was followed by an Alumni Party given to their previous seminar participants at Bukit Kiara Equestrian and Country Resort. Mr Hideo Hatanaka, General Manager, Risk Management Department, The Dai-ichi Life Insurance Company, Limited, shared his insights and expertise in Risk Management to the participants. More than 25 participants from LIAM member companies attended this session. The FALIA team had arrived a day earlier to pay a courtesy visit to the LIAM Secretariat as well as a few LIAM member companies.

LIAM - FALIA Seminar

• Briefing on Financial Services Act 2013 LIAM organised a briefing for member companies on the Financial Services Act (FSA) 2013 which was led by Mr Brian Chia and Ms Wong Sue Wan from Messrs Wong & Partners on 15 April 2013 at the Bukit Kiara Equestrian and Country Resort. The briefing was attended by 50 member company representatives from various departments including legal, compliance as well as marketing. The half-day briefing touched on the impact of FSA on life insurance companies with much focus on the duties of directors, officers and shareholders, operations and the enforcement of FSA. The briefing ended with a Q and A session between the participants and the speakers.

• Workshop on Direct Debit and Financial Process Exchange LIAM co-organised a Workshop on Direct Debit and Financial Process Exchange with the Malaysian Electronic Clearing Corporation (MyClear) on 30 July 2013. MyClear was incorporated in October 2008 as a wholly-owned subsidiary of BNM to provide interbank payment settlement and securities services. In line with the Financial Sector Blueprint 2011-2020 in moving towards greater adoption of e-payment in the industry, LIAM and MyClear jointly organised this Workshop to encourage the participation of member companies in the usage of Direct Debit and the Financial Process Exchange methods.

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Talk on Personal Data Protection Act

• Talk on Personal Data Protection Act Prior to the enforcement of Personal Data Protection Act (PDPA), LIAM took the initiative to organise another briefing session for its members on 23 September 2013 at MFPC Conference Hall, 1Mont Kiara. LIAM invited Ms Jillian Chia, Senior Associate, Intellectual Property Division from Messrs SKRINE to share her knowledge in data protection. Her areas of expertise also include Information Technology, Telecommunications and Intellectual Property. The talk was attended by 50 representatives of various departments such as legal, compliance as well as marketing from LIAM member companies. The two-hour talk touched on the seven personal data protection principles, rights of data subjects, other pertinent issues relating to data protection and it ended with a fruitful dialogue session.

Annual Report 2013 Life Insurance Association of Malaysia

ENGAGEMENT WITH CONSUMERS LIAM Educational Consumer Series • Collaboration with i-SIHAT Magazine LIAM continued to partner with the print media this year to ensure the publication of its educational articles to enhance consumers’ literacy level on life insurance. Collaborating with i-SIHAT, a Bahasa Malaysia health magazine under Utusan Karya Sdn Bhd with a circulation of 40,000, the articles address the Malay readers in particular, by sustaining a monthly column in the Magazine. As at to-date, i-SIHAT has published 13 articles on a wide range of topics such as a basic introduction on life insurance, the importance of having life insurance, a guide to purchase life insurance, and also a special focus on medical and health insurance.

• Collaboration with The Malay Mail Besides running various articles focusing on consumer queries on life insurance, The Malay Mail also ran an exclusive Medical and Health Insurance Series for 10 weeks with Q & A styled articles based on Financial Mediation Bureau cases. Among the topics were ‘Unravelling Dilemmas in Medical Insurance’, ‘Getting the Most Out of Your Hospitalisation Insurance Card’, ‘Investment-Linked Insurance Plans Demystified’ and ‘How Much Insurance is Enough’. All these articles are available on the LIAM website at www.liam.org.my.

Collaboration with The Malay Mail

• Collaboration with Credit Counselling and Debt Management Agency As part of LIAM’s engagement with stakeholders, it partnered with the Credit Counselling and Debt Management Agency (AKPK) to raise the level of financial literacy among school children and youth. Together with several financial institutions, LIAM provided advertising support for two books published by AKPK namely POWER! and Money $ense which are targeted at this segment. AKPK was set up by BNM in 2006 to help individuals take control of their financial situation and gain peace of mind through wise use of credit facilities. Collaboration with Credit Counselling and Debt Management Agency

Roadshows And Quiz Tournament • BNM MobileLINK Roadshow BNM continues to extend their invitation to LIAM to participate in the BNM MobileLINK Roadshow across Peninsular Malaysia. This year, BNM allowed member companies to promote and market their financial products directly to consumers at the Roadshow. The extensive roadshow is part of BNM’s inclusive policy in extending financial services to the underserved areas. For this year, the roadshow reached out to communities in Pahang, Negeri Sembilan, Perak, Penang, Kelantan and Terengganu. LIAM also participated by setting up its information and marketing booths including engagement with booth visitors. Report of the Management Committee 23

Annual Report 2013 Life Insurance Association of Malaysia

• National Financial Planning Quiz Tournament 2013 LIAM was one of the supporting organizations of the Malaysian Financial Planning Council (MFPC) inaugural National Financial Planning Quiz which was held on 1 to 2 July 2013 at Universiti Utara Malaysia (UUM). The tournament attracted a participation of 15 universities. Universiti Tunku Abdul Rahman (UTAR) emerged as the Champion, winning the Championship Trophy and a cash prize of RM6,000. The quiz tournament aimed to promote the importance of financial planning among the undergraduates and it was endorsed by the Ministry of Finance, the Ministry of Education and Securities Commission Malaysia.

INTERNATIONAL COURTESY VISITS • Visit from Central Insurance of Iran and Iranian Insurance Research Centre LIAM played host to the regulators from Iran, namely the Central Insurance of Iran and Iranian Insurance Research Centre (IRC) on 10 January 2013. Led by Dr Ghadir Mahdavi, Head of Iranian Insurance Research Centre, the entourage was in Kuala Lumpur for a short educational visit to MII and BNM. The foreign regulators were briefed on LIAM’s role, the current industry regulations as well as the development of the insurance market in Malaysia.

• Visit from Zanzibar Insurance Corporation

Visit from Central Insurance of Iran and Iranian Insurance Research Centre

LIAM opened its doors to the delegation from Zanzibar Insurance Corporation on 25 April 2013. Besides studying the role and functions of LIAM in the life insurance industry, the delegates were keen to observe the current life insurance issues in Malaysia. The delegation led by Dr Hamed Rashid Hikman, Chairman of the Board of Directors, included Board Members and the Management Team of Zanzibar Insurance Corporation. During their visit, they also paid courtesy visits to BNM, Islamic

Visit from Zanzibar Insurance Corporation Banking and Finance Institute Malaysia (IBFIM), PIAM,

International Shari'ah Research Academy for Islamic Finance (ISRA), International Islamic University Malaysia (IIUM) as well as some insurance and takaful companies.

• Visit from MMI Holdings On 29 April 2013, LIAM received the delegation from MMI Holdings, the third largest South African financial services group listed on the JSE stock exchange. The visit was made possible by The Beijing Axis who currently supports MMI Holdings on their South East Asia/Asia market intelligence exercise. MMI’s core businesses include long and short-term insurance, asset management, savings, investment, healthcare administration and employee benefits.

Visit from MMI Holdings

MMI expressed their intention to engage with the insurance industry’s key stakeholders mainly to get a clear view of the local market and identify potential business opportunities. Their market study also includes knowledge on regulatory matters, sales and distribution, customers and so forth. 24 Report of the Management Committee

Annual Report 2013 Life Insurance Association of Malaysia

The delegation which was headed by Mr Johann le Roux, Chief Executive Officer of MMI, also attended briefing sessions with BNM, PIAM, MII and other financial institutions.

• Visit by Insurance Business Supervisory Board of Myanmar On 9 May 2013, LIAM conducted a briefing session to the Insurance Business Supervisory Board of Myanmar (IBSB) comprising Mr Aye Min Thein, Chairman, Ms Kyin Htay, Deputy General Manager, Ms Hla Hla Mon, Deputy Manager and Mr Than Tun Oo, Assistant Manager. The briefing was a joint effort by the Malaysian-Myanmar Business Council (MMBC) and Aetins Sdn Bhd to expose the IBSB to the Malaysian insurance industry model under the guidance of BNM. Aetins is a Malaysian based MSC IT Company involved Visit by Insurance Business Supervisory in the business of insurance software who also sponsored Board of Myanmar this visit. MMBC was represented by its President, Mr Gilbert Lee and AETINS were represented by Mr Vijalapuram Ravindra Mohan, Mr Sandal Sughosh, Ms Florence Yeung and Encik Imran bin Abdul Shukor. The visit is aimed at gaining knowledge on Malaysia’s experience, mainly in the development, regulation and supervision of the insurance industry. This effort is in line with the recent liberalisation of Myanmar’s insurance sector. LIAM was represented by Encik Kamaludin Ahmad, Vice-President of LIAM and Mr Jens Reisch, Chairman of the Industry Promotion Committee of LIAM. They shared the insights on LIAM’s operations, regulations, the industry’s framework as well as the current developments of the industry.

• Visit by Dai-ichi Life International Hong Kong LIAM welcomed the visitors from Dai-ichi Life International Hong Kong who were in Kuala Lumpur from 21 to 23 August 2013. During this visit, Mr Vincent Kwo, LIAM President shared a presentation on LIAM and its role, the current market structure as well as the performance of the life insurance industry. The entourage comprising Mr Daisuke Kamata, General Manager, Mr Takao Sabato, Manager and Mr Ryoji Nitta, Manager, also visited Great Eastern Life Assurance (Malaysia) Berhad and Etiqa Insurance Berhad.

MEDIA VISIT

Visit by Dai-ichi Life International Hong Kong

LIAM organised a media visit to The Sun on 2 July 2013 and received overwhelming response from member companies. The entourage was led by Mr C. Kumaran, General Manager of MCIS Zurich Insurance Berhad, members of the Industry Promotion Committee of LIAM as well as a number of representatives from member companies. The LIAM entourage was greeted by key personnel from the Editorial Department, Advertising and Marketing Department namely Mr Freddie Ng, Managing Editor, Mr Balan Moses, Executive Editor, Ms Kang Siew Li, Media Visit to The Sun Business Editor, Mr Prashun Dutt, Chief Marketing Officer and Ms Lee Siew Siew, Senior Manager (Agency). LIAM and the team from The Sun had an open discussion on insurance, branding, publicity and news.

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Annual Report 2013 Life Insurance Association of Malaysia

CORPORATE SOCIAL RESPONSIBILITY • Insurance and Takaful Day 2013/ EAIC CSR Fund The insurance and takaful fraternity of Malaysia, through the 26th East Asian Insurance Congress (EAIC) organising committee, joined forces to mark the 2013 Insurance and Takaful Day on 9 September 2013. The organising committee comprising LIAM, PIAM, MTA and Labuan International Insurance Association (LIIA) commemorated the celebration with a contribution of RM100,000 to four charitable organisations. The four beneficiaries were the Community Service Centre for the Deaf (Silent Teddies Insurance and Takaful Day 2013/ EAIC CSR Fund Café project), Kuala Lumpur; Pertubuhan Kebajikan Dan Penjagaan Nur Hidayah, Kuala Lumpur; the Orang Asli Community Service Centre, Jerantut, Pahang; and the Cancer Research Initiatives Foundation (CARIF), Kuala Lumpur, with each receiving a RM25,000 donation. The heads of the four organising Associations namely the President of LIAM, Mr Vincent Kwo; Chairman of PIAM, Mr Chua Seck Guan; Chairman of MTA, Encik Zainudin Ishak and Chairman of LIIA, Yang Berbahagia Dato’ Ahmad Farouk Faizi were present to personally present the cheques to the four beneficiaries. The 2013 Insurance and Takaful Day was also witnessed by the associations’ Management and Council members. The objective of the Insurance and Takaful Day is to spread the values of sharing, caring, goodwill and harmony by supporting various charitable organisations. These charitable organisations were selected as they were viewed to be truly making a difference in the communities and it is hoped that the contribution will help them to sustain their noble work. This event is an initiative which demonstrates the insurance and takaful industry’s support for various charitable organisations as part of its annual community relations program.

• LIAM Blood Donation Drive Once again this year, LIAM organised its Blood Donation Drive on 9 October 2013 at the lobby of Maju Junction Mall, Jalan Sultan Ismail from 10.00 a.m. to 5.00 p.m. This is one of LIAM’s yearly community service programs aimed at saving lives through blood donation. The blood donation drive received very encouraging support from its 16 LIAM member companies as well as the public from all walks of life. The one-day drive reached up to 97 packets of LIAM Blood Donation Drive blood for the Pusat Darah Negara (PDN). Goodie bags and light refreshments were also provided to all blood donors as a token of appreciation from LIAM and Pusat Darah Negara.

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OTHER EVENTS • Change of Office Bearer In the year 2013, LIAM organized an appreciation dinner for some of its Management Committee members. The outgoing members were LIAM President (2011) Encik Din Merican and Management Committee members namely Mr Khor Hock Seng, Yang Berbahagia Dato’ Nirmala Menon and Encik Muhamad Umar Swift. The dinner was held at Shangri-La Hotel Kuala Lumpur on 23 January 2013 to thank the Past Management Committee Members for their outstanding contribution and dedication in developing the industry. Among the guests included Past Presidents and Vice-Presidents of LIAM, current CEOs and senior personnel from member companies. During the year, LIAM had also received sad news on the passing of Mr Cheong Chee Meng, fondly known as Chee Cheong, the former Chief Executive Officer of Zurich Insurance Malaysia Berhad. LIAM would like to record its condolence to the family of Chee Cheong, who passed away peacefully on 17 September 2013.

Appreciation Dinner for Past Management Committee Members

• Insurance and Takaful Industry Annual Dinner 2013 The organization of the annual gathering for the industry this year was led by the Malaysian Insurance and Takaful Brokers Association (MITBA) and Association of Malaysian Loss Adjusters (AMLA) with support from LIAM, PIAM and MII. It was held on 15 November 2013 at Shangri-La Hotel Kuala Lumpur. The event was graced by Yang Berbahagia Dato’ Muhammad Ibrahim, Deputy Governor of BNM. In his speech at this dinner, Yang Berbahagia Dato’ Muhammad highlighted on the Concept Paper on Life Insurance and Family Takaful Framework and the Financial Services Act 2013.

Insurance and Takaful Industry Annual Dinner 2013

CONCLUSION The Management Committee would like to record their appreciation and thanks to all member companies for their support and participation towards LIAM’s activities and projects. As we take on more challenging initiatives in the coming months, we look forward to the unwavering commitment from member companies to ensure the success of these undertakings which will eventually benefit the consumers and further promote the growth of the industry. Report of the Management Committee 27

Annual Report 2013 Life Insurance Association of Malaysia

Laporan Jawatankuasa Pengurusan Beberapa aktiviti telah dijalankan pada tahun dalam tinjauan. Kami dengan sukacitanya membentangkan sorotan aktiviti-aktiviti ini dan isuisu utama yang dikendalikan oleh LIAM.

PELAKSANAAN E-PEMBAYARAN Sebagai menyokong agenda nasional bagi perpindahan kepada bayaran secara elektronik (e-pembayaran), LIAM telah bekerjasama rapat dengan Bank Negara Malaysia (BNM) dan syarikat ahli untuk mengurangkan paras urusniaga tunai dan cek. Syarikat insurans hayat telah mencapai hampir 100% dalam penggunaan e-pembayaran untuk komisen agensi, gaji kakitangan, bil hospital dan badan berkanun/agensi kerajaan. Daripada 14 syarikat insurans hayat, lapan syarikat telah mula menawarkan pilihan e-pembayaran kepada pemegang polisi dan waris mereka untuk bayaran tuntutan. Syarikat selebihnya sedang berusaha ke arah menyediakan pilihan ini kepada pemegang polisi dan waris mereka pada awal tahun 2014. Peralihan kepada e-pembayaran yang menawarkan cara yang lebih cekap, terjamin dan kos efektif untuk memindahkan wang berbanding dengan bayaran berasaskan kertas. Ia merupakan salah satu bidang utama dalam Pelan Tindakan Sektor Kewangan 2011-2020 untuk lebih menyokong kecekapan ekonomi. LIAM merupakan sebahagian daripada Kumpulan Kerja E-pembayaran yang terdiri daripada BNM, Persatuan Insurans Am Malaysia (PIAM), Persatuan Takaful Malaysia (MTA), Persatuan Bank-Bank di Malaysia (ABM) dan Sistem Pembayaran Elektronik Malaysia (MEPS) untuk memudahkan peralihan kepada e-pembayaran dalam sektor perkhidmatan kewangan. Objektif Kumpulan Kerja ini ialah untuk mengenal pasti isu-isu yang menjadi kebimbangan industri ini dan mencari penyelesaian bersama dengan BNM dan bankbank perdagangan.

AKTA PEMATUHAN CUKAI AKAUN ASING LIAM, bersama dengan beberapa badan industri sedang membuat pengaturan dengan pihakpihak berkuasa bagi mencadangkan supaya Perjanjian Antara Kerajaan berhubung Akta Pematuhan Cukai Akaun Asing (FATCA) ditandatangani. FATCA adalah rang undangundang Amerika Syarikat (AS) yang digubal oleh Kongres AS untuk menghalang penyalahgunaan 28 Laporan Jawatankuasa Pengurusan

cukai luar persisir oleh orang AS dan dijangka digubal pada Julai 2014. Institusi kewangan yang beroperasi di luar AS, termasuk syarikat insurans hayat di Malaysia, yang mempunyai kepentingan perniagaan atau aset yang dilaburkan di AS, dikehendaki mematuhi keperluan FATCA. Ini termasuk institusi kewangan yang merupakan sebahagian daripada kumpulan kewangan yang lebih besar yang mempunyai gabungan dengan pelaburan atau perniagaan AS.

CUKAI BARANGAN DAN PERKHIDMATAN Kerajaan telah mengumumkan bahawa Cukai Barangan dan Perkhidmatan (GST) akan diperkenalkan mulai 1 April 2015 pada kadar 6%. Cukai jualan dan cukai perkhidmatan yang ada sekarang ini akan dimansuhkan dan digantikan dengan cukai berasaskan konsep nilai ditambah, GST. Bagi perniagaan insurans hayat, ia akan diletakkan di bawah model dikecualikan di mana premium insurans hayat tidak akan tertakluk kepada cukai. Premium yang dibayar untuk polisi bukan hayat akan tertakluk kepada kadar GST standard 6%. Memandangkan premium insurans hayat dikecualikan cukai, ini bermakna syarikat insurans hayat tidak akan dapat menuntut apa-apa cukai input yang telah mereka tanggung dalam proses menjalankan perniagaan insurans hayat mereka. Kesan utama kepada penanggung insurans hayat ialah komisen, perbelanjaan sumber luar, yuran pengurusan serta caj untuk polisi berkaitan pelaburan akan tertakluk kepada GST. Oleh sebab penentuan harga premium insurans hayat dibuat berdasarkan premium paras, syarikat insurans perlu menanggung kos tambahan disebabkan cukai input. LIAM telah melantik perunding cukai untuk berunding dengan Kerajaan supaya syarikat insurans mendapat balik sepenuhnya GST bagi komisen atau 50% kredit cukai input tetap bagi mengurangkan kos tambahan menjalankan perniagaan insurans hayat. Cadangan kepada Kerajaan ini berdasarkan pengalaman bidang kuasa lain di mana GST telah dilaksanakan dan model pelepasan yang telah dipertimbangkan. Dalam tahun 2013, dua mesyuarat industri telah diadakan masing-masing pada 9 Januari 2013 dan

Annual Report 2013 Life Insurance Association of Malaysia

21 Mei 2013 untuk memastikan ahli-ahli dimaklumkan tentang maklumat terkini mengenai GST ke atas perniagaan insurans hayat. Mesyuarat ini juga menjadi landasan bagi ahli LIAM untuk menangani kebimbangan mereka tentang isu GST dengan perunding cukai.

dihadiri oleh ketua-ketua persatuan, telah diadakan di negara ASEAN yang telah ditetapkan. Mesyuarat ini bertindak sebagai landasan yang berkesan, memudahkan pertukaran maklumat di kalangan peserta mengenai perkembangan terkini pasaran mereka masing-masing.

Kastam Diraja Malaysia dan Institut Insurans Malaysia (MII) juga telah menganjurkan taklimat khas tentang ‘GST Treatment on Insurance/Takaful’ pada 9 Oktober 2013. LIAM merupakan salah sebuah organisasi yang membantu menjayakan acara ini.

Antara perkara yang dibincangkan pada mesyuarat tahun ini ialah Kaji Selidik Pengantaraan Insurans di rantau ASEAN; laporan daripada Kumpulan Kerja Teknikal mengenai hal-hal berkaitan Insurans ASEAN yang telah mengkaji aspek-aspek seperti rangka kerja modal berasaskan risiko, cukai dan mikroinsurans yang telah diperkenalkan di kalangan negaranegara ASEAN, kemungkinan untuk menghasilkan laporan statistik ASEAN serta derma dan sokongan kepada mangsa Taufan Haiyan.

MESYUARAT PERANCANGAN STRATEGIK LIAM LIAM telah menganjurkan Mesyuarat Perancangan Strategik di Langkawi dari 8 hingga 10 November 2013 untuk ketua pegawai eksekutif dan pengurus kanan syarikat-syarikat ahlinya. Wakil dari BNM yang menghadiri mesyuarat ini ialah Encik Aznan Abd Aziz, Pengarah Jabatan Pembangunan Sektor Kewangan, Puan Junaidah Mohd Said, Timbalan Pengarah Jabatan Pembangunan Sektor Kewangan dan pegawai-pegawai lain, iaitu Cik June Lian Lay Choon dan Encik Izian Sherwani Mansor dari Jabatan Pembangunan Sektor Kewangan , Encik Makhzani Mustaffa Ng dari Jabatan Perbankan Islam dan Takaful dan Puan Azlinda Arshad dari Jabatan Konsumer dan Amalan Pasaran. Semasa mesyuarat tertinggi ini, LIAM telah mengadakan sesi soal jawab dengan BNM tentang Kertas Konsep Rangka Kerja Insurans Hayat dan Takaful Keluarga yang dilancarkan baru-baru ini. LIAM kemudiannya menubuhkan Jawatankuasa Pemandu untuk meneliti prinsip utama yang dikemukakan dalam Kertas Konsep tersebut bagi menetapkan hala tuju strategik tentang masa depan industri ini. Salah satu tugas serta-merta Jawatankuasa Pemandu ini ialah mengkaji Kertas Konsep ini dan menyatukan maklumbalas dan saranan industri untuk pertimbangan BNM. Sesi ini dimudah cara oleh firma perunding Towers Watson.

MESYUARAT MAJLIS INSURANS ASEAN KE-39 Mesyuarat Majlis Insurans ASEAN (AIC) Ke-39 telah dianjurkan oleh Persatuan Penanggung Insurans Vietnam di Da Nang, Vietnam dari 4 hingga 6 Disember 2013. AIC adalah kumpulan persatuan insurans sektor swasta serantau di ASEAN, yang ditubuhkan untuk menggalakkan hubungan dan kerjasama serantau di kalangan penanggung insurans ASEAN. Mesyuarat majlis tahunan ini, yang telah

Pada sesi perbincangan insurans hayat, penanggung insurans hayat ASEAN bertukar pendapat tentang cara untuk meningkatkan kadar penembusan insurans, pembangunan rangka kerja kawal selia, mempromosikan produk insurans dan kesedaran pengguna serta Komuniti Ekonomi ASEAN 2015. Pada mesyuarat ini, Presiden LIAM Encik Vincent Kwo telah dilantik sebagai Pengerusi AIC bagi penggal 2013 - 2014, menggantikan Encik Kornelius Simanjuntak dari Indonesia yang telah tamat tempoh jawatannya. Mesyuarat AIC yang diadakan pada masa yang sama dengan mesyuarat Pengawal Selia ASEAN juga memberi peluang kepada ahli-ahli AIC untuk mengadakan perbincangan dengan pengawal-pengawal selia tentang isu-isu yang dihadapi oleh industri insurans pada amnya.

KONVENSYEN • Mesyuarat Tahunan International Dragon Award 2013/ Kongres Insurans Hayat Cina Malaysia Ke 17 Kuala Lumpur berbesar hati menjadi tuan rumah kepada Mesyuarat Tahunan International Dragon Award (IDA) 2013/Kongres Insurans Hayat Cina Malaysia Ke-17 selepas selang lebih kurang 15 tahun sejak kali terakhir Persidangan ini diadakan di Kuala Lumpur. Acara ini telah dirasmikan oleh Yang Amat Berhormat Perdana Menteri Malaysia pada 15 Ogos 2013. Kongres empat hari ini telah menarik kira-kira 5,000 peserta dari 16 negara termasuk China, Taiwan, Hong Kong, Korea Selatan dan Australia. LIAM dan RGA Reinsurance Company bagi Hong Kong dan Asia Tenggara telah sama sama menganjurkan majlis makan malam untuk delegasi antarabangsa dari syarikat insurans. LIAM juga mengambil bahagian dalam

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beberapa panel dan sesi perbincangan, termasuk Glory Nite Awards untuk ejen-ejen terbaik dari Malaysia.

• Konvensyen Ejen Insurans Hayat Bumiputera 2013 Pada 21 September 2013, LIAM bersama dengan MII menganjurkan Konvensyen Ejen Insurans Hayat Bumiputera 2013 di Hotel Istana, Kuala Lumpur. Bertemakan “Berdaya Saing di Era Transformasi”, acara satu hari ini bertujuan untuk menyediakan landasan motivasi kepada ejen-ejen insurans hayat Bumiputera serta memberi penghormatan kepada ejen Bumiputera terbaik dalam industri insurans hayat. Kehadiran Yang Berhormat Encik Khairy Jamaluddin, Menteri Belia dan Sukan merasmikan Konvensyen ini, sesungguhnya menggambarkan sokongan padu kerajaan terhadap industri insurans hayat. Konvensyen Tahunan ini diadakan dengan objektif untuk menyediakan arena untuk ejen insurans hayat bertemu dan saling mempelajari antara satu sama lain serta merangsang mereka untuk mencapai sasaran tahunan mereka. Antara barisan penceramah ialah Encik Norman Abdul Halim dari KRU Group Berhad yang berkongsi rahsia kejayaannya dalam perniagaan, MDRT terbaik serta Puan Lucy Dewani, pencapai/penceramah motivasi Indonesia yang berjaya. Etiqa Insurance Berhad dan Prudential Assurance Malaysia Berhad merupakan penaja bersama untuk Konvensyen ini yang dihadiri hampir seramai 500 peserta.

• Persidangan Pengedaran Asia Persidangan Pengedaran Asia telah diadakan di Kuala Lumpur pada 20 dan 21 November 2013. Dianjurkan oleh LIMRA LOMA, persidangan tersebut telah dirasmikan oleh Encik Jens Reisch, Pengerusi Jawatankuasa Promosi Industri LIAM. Dalam ucapan pembukaannya, Encik Reisch menyentuh tentang perubahan kawal selia baru-baru ini, iaitu Akta Perkhidmatan Kewangan 2013, Akta Perlindungan Data Peribadi 2010, Kertas Konsep Rangka Kerja Insurans Hayat dan Takaful Keluarga dan pengenalan Cukai Barangan dan Perkhidmatan. Encik Reisch juga memperkatakan tentang penunjuk prestasi utama industri insurans Malaysia yang menunjukkan peluang-peluang pertumbuhan dalam semua saluran pengedaran bagi menawarkan perlindungan yang lebih tinggi dan lebih baik kepada pengguna. Persidangan ini yang menampilkan barisan ketua-ketua industri yang berpengalaman, menangani isu-isu pengedaran yang penting termasuk memahami pelanggan, menguruskan 30 Laporan Jawatankuasa Pengurusan

konflik saluran, amalan terbaik dalam pemasaran langsung, mewujudkan perkongsian bankasurans yang berjaya dan mentransformasikan keberkesanan pasukan jualan.

CERAMAH/TAKLIMAT/SEMINAR • Pembentangan kepada Pelajar Politeknik Merlimau Sebagai sebahagian daripada objektif utama LIAM untuk meningkatkan tahap celik insurans hayat dalam masyarakat, LIAM dan MII telah menganjurkan ceramah untuk pelajar-pelajar Diploma Pengajian Perniagaan Politeknik Merlimau pada 16 Januari 2013. Sesi setengah hari ini telah diadakan di Auditorium, Institut Insurans Malaysia, Damansara Heights, Kuala Lumpur. MII telah berkongsi pengetahuan dan maklumat mengenai komponen penting dalam pasaran insurans, perkembangan semasa industri insurans serta jenis-jenis produk insurans. LIAM telah memberi gambaran keseluruhan tentang peranannya dalam industri ini, peraturan pasaran serta aktiviti LIAM sepanjang tahun. Ceramah ini diakhiri dengan sesi soal jawab bersama para pelajar.

• Seminar LIAM-FALIA Dalam meneruskan usaha kerjasama yang telah lama terjalin untuk meningkatkan standard dan menambahkan pengetahuan ahli-ahlinya, LIAM dan FALIA bersama-sama menganjurkan satu seminar pada 22 Januari 2013. Seminar ini kemudiannya disusuli dengan Majlis Alumni yang dianjurkan untuk peserta seminar sebelumnya di Bukit Kiara Equestrian dan Country Resort. Encik Hideo Hatanaka, Pengurus Besar, Jabatan Pengurusan Risiko, The Dai-ichi Life Insurance Company, Limited, berkongsi pengetahuan dan kepakarannya dalam Pengurusan Risiko dengan para peserta. Seramai lebih daripada 25 peserta dari syarikat ahli LIAM menghadiri sesi ini. Rombongan FALIA yang tiba sehari lebih awal juga mengadakan kunjungan hormat ke atas urusetia LIAM serta beberapa syarikat ahli LIAM.

• Taklimat mengenai Akta Perkhidmatan Kewangan 2013 LIAM telah menganjurkan taklimat untuk syarikat-syarikat ahlinya tentang Akta Perkhidmatan Kewangan (FSA) 2013 yang disampaikan oleh Encik Brian Chia dan Cik Wong Sue Wan dari Tetuan Wong & Partners

Annual Report 2013 Life Insurance Association of Malaysia

pada 15 April 2013 di Bukit Kiara Equestrian dan Country Resort. Taklimat ini dihadiri oleh 50 wakil syarikat ahli dari pelbagai jabatan termasuk undangundang, pematuhan dan juga pemasaran. Taklimat setengah hari ini menyentuh tentang kesan FSA terhadap syarikat insurans hayat dengan tumpuan utama diberikan kepada kewajipan pengarah, pegawai dan pemegang saham, operasi dan penguatkuasaan FSA. Taklimat ini diakhiri dengan sesi soal jawab antara peserta dan penceramah.

• Bengkel mengenai Debit Terus dan Pertukaran Proses Kewangan LIAM bersama dengan Malaysian Electronic Clearing Corporation (MyClear) telah menganjurkan Bengkel mengenai Debit Terus dan Pertukaran Proses Kewangan pada 30 Julai 2013. MyClear telah diperbadankan pada Oktober 2008 sebagai anak syarikat milik penuh BNM untuk menyediakan penyelesaian bayaran antara bank dan perkhidmatan sekuriti. Selaras dengan Pelan Sektor Kewangan 20112020 dalam bergerak ke arah penerimapakaian e-pembayaran yang lebih meluas dalam industri ini, LIAM dan MyClear sama-sama menganjurkan Bengkel ini untuk menggalakkan penyertaan syarikat-syarikat ahli dalam penggunaan Debit Terus dan kaedah Pertukaran Proses Kewangan.

• Ceramah mengenai Akta Perlindungan Data Peribadi Sebelum penguatkuasaan Akta Perlindungan Data Peribadi (PDPA), LIAM mengambil inisiatif untuk menganjurkan satu lagi sesi taklimat untuk ahli-ahlinya pada 23 September 2013 di Dewan Persidangan MFPC, 1Mont Kiara. LIAM telah menjemput Cik Jillian Chia, Sekutu Kanan, Bahagian Harta Intelektual dari Tetuan SKRINE untuk berkongsi pengetahuannya dalam perlindungan data. Bidang kepakaran beliau juga meliputi Teknologi Maklumat, Telekomunikasi dan Harta Intelektual. Ceramah ini dihadiri oleh 50 orang wakil dari pelbagai jabatan seperti undang-undang, pematuhan dan juga pemasaran dari syarikat ahli LIAM. Ceramah selama dua jam ini menyentuh tentang tujuh prinsip perlindungan data peribadi, hak subjek data, isu-isu lain yang berkaitan dengan perlindungan data dan diakhiri dengan sesi dialog yang berhasil.

PENGLIBATAN DENGAN PENGGUNA Siri Pendidikan Pengguna LIAM • Usaha Sama dengan Majalah i-SIHAT Dalam usaha berterusan untuk meningkatkan tahap celik pengguna tentang insurans hayat, LIAM terus bekerjasama dengan media cetak tahun ini demi memastikan penerbitan artikel pendidikannya. LIAM bekerjasama dengan i-SIHAT, sebuah majalah kesihatan dalam Bahasa Malaysia di bawah Utusan Karya Sdn Bhd dengan edaran 40,000 naskhah. Artikel pendidikan ini ditujukan khusus untuk pembaca Melayu, dengan ruangan tetap bulanan dalam majalah itu. Setakat ini, i-SIHAT telah menerbitkan 13 artikel yang membicarakan pelbagai topik seperti pengenalan asas tentang insurans hayat, pentingnya mempunyai insurans hayat, panduan membeli insurans hayat dan juga fokus khas kepada insurans perubatan dan kesihatan.

• Usaha Sama dengan The Malay Mail Di samping menerbitkan pelbagai artikel yang memfokus kepada pertanyaan pengguna tentang insurans hayat, The Malay Mail juga menerbitkan Siri Insurans Perubatan dan Kesihatan eksklusif selama 10 minggu dengan artikel berbentuk soal jawab berdasarkan keskes Biro Pengantaraan Kewangan. Antara topiknya ialah ‘Unravelling Dilemmas in Medical Insurance’, ‘Getting the Most Out of Your Hospitalisation Insurance Card’, ‘Investment-Linked Insurance Plans Demystified’ dan ‘How Much Insurance is Enough’. Semua artikel ini boleh juga didapati di laman sesawang LIAM di www.liam.org.my.

• Usaha Sama dengan Agensi Kaunseling dan Pengurusan Kredit LIAM juga bekerjasama dengan pihak berkepentingan, Agensi Kaunseling dan Pengurusan Kredit (AKPK) untuk meningkatkan kadar celik kewangan di kalangan kanakkanak sekolah dan belia. Bersama dengan beberapa institusi kewangan, LIAM memberikan sokongan pengiklanan terhadap dua buah buku yang diterbitkan oleh AKPK, iaitu ‘POWER!’ dan ‘Money $ense’ yang disasarkan kepada golongan ini. AKPK telah ditubuhkan oleh BNM pada tahun 2006 untuk menolong individu mengawal

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situasi kewangan mereka dan memperoleh ketenangan fikiran melalui penggunaan kemudahan kredit secara bijak.

Siri Jelajah (‘Roadshow’) dan Kejohanan Kuiz • Siri Jelajah BNM MobileLINK BNM terus mempelawa LIAM untuk menyertai Siri Jelajah BNM MobileLINK di seluruh Semenanjung Malaysia. Pada siri jelajah tahun ini, BNM membenarkan syarikat ahli untuk mempromosikan dan memasarkan produk kewangan mereka terus kepada pengguna. Siri jelajah ini merupakan sebahagian daripada dasar inklusif BNM dalam memperluaskan perkhidmatan kewangan ke kawasan yang kurang mendapat pendedahan. Pada tahun ini, siri jelajah ini mendekati komuniti di Pahang , Negeri Sembilan, Perak, Pulau Pinang, Kelantan dan Terengganu. LIAM juga mengambil bahagian dengan menyediakan gerai maklumat dan produk sambil melayani para pengunjung kaunter.

• Kejohanan Kuiz Perancangan Kewangan Kebangsaan 2013 LIAM merupakan salah sebuah organisasi yang membantu menjayakan acara sulung Kejohanan Kuiz Perancangan Kewangan Kebangsaan anjuran Majlis Perancangan Kewangan Malaysia (MFPC) yang telah diadakan pada 1 hingga 2 Julai 2013 di Universiti Utara Malaysia (UUM). Kejohanan ini menarik penyertaan 15 buah universiti. Pada kejohanan ini, Universiti Tunku Abdul Rahman (UTAR) muncul sebagai Juara dengan memenangi Piala Kejohanan dan hadiah wang tunai RM6,000. Kejohanan kuiz ini bertujuan untuk mempromosikan kepentingan perancangan kewangan di kalangan siswazah dan ia disokong oleh Kementerian Kewangan, Kementerian Pendidikan dan Suruhanjaya Sekuriti Malaysia.

KUNJUNGAN HORMAT ANTARABANGSA • Kunjungan daripada Pusat Insurans Iran dan Pusat Penyelidikan Insurans Iran LIAM menerima kunjungan daripada pengawal selia dari Iran, iaitu Pusat Insurans Iran dan Pusat Penyelidikan Insurans Iran (IRC) 32 Laporan Jawatankuasa Pengurusan

pada 10 Januari 2013. Kunjungan ini diketuai oleh Dr Ghadir Mahdavi, Ketua Pusat Penyelidikan Insurans Iran, dan rombongan ini berada di Kuala Lumpur untuk lawatan sambil belajar ke MII dan BNM. Delegasi antarabangsa ini diberi taklimat mengenai peranan LIAM, peraturan industri pada masa ini serta pembangunan pasaran insurans di Malaysia.

• Kunjungan daripada Perbadanan Insurans Zanzibar LIAM menerima kunjungan daripada delegasi Perbadanan Insurans Zanzibar pada 25 April 2013. Di samping mengkaji peranan dan fungsi LIAM dalam industri insurans hayat, delegasi ini berminat mempelajari isu-isu semasa insurans hayat di Malaysia. Delegasi ini diketuai oleh Dr Hamed Rashid Hikman, Pengerusi Lembaga Pengarah, termasuk Ahli Lembaga Pengarah dan Pasukan Pengurusan Perbadanan Insurans Zanzibar. Semasa kunjungan ini, mereka juga melakukan kunjungan hormat ke BNM, Institut Perbankan dan Kewangan Islam Malaysia (IBFIM), PIAM, Akademi Penyelidikan Syariah Antarabangsa bagi Kewangan Islam (ISRA), Universiti Islam Antarabangsa Malaysia (IIUM) serta beberapa syarikat insurans dan takaful.

• Kunjungan daripada MMI Holdings Pada 29 April 2013, LIAM menerima kunjungan delegasi dari MMI Holdings, kumpulan perkhidmatan kewangan Afrika Selatan yang ketiga terbesar dan tersenarai di bursa saham JSE. Kunjungan ini diaturkan oleh The Beijing Axis yang kini menyokong MMI Holdings dalam usaha perisikan pasaran Asia Tenggara/Asia mereka. Teras perniagaan MMI ialah insurans pendek, jangka panjang dan jangka pengurusan aset, simpanan, pelaburan, pentadbiran penjagaan kesihatan dan manfaat pekerja. MMI telah menyatakan hasrat perjumpaan mereka dengan pihak berkepentingan dalam industri insurans untuk mendapatkan pandangan yang jelas tentang pasaran tempatan dan mengenal pasti peluang perniagaan yang berpotensi. Kajian pasaran mereka juga termasuk pengetahuan tentang hal-hal kawal selia, jualan dan pengedaran, pelanggan dan sebagainya. Delegasi yang diketuai oleh Encik Johann le Roux, Ketua Pegawai Eksekutif MMI, juga menghadiri sesi taklimat dengan BNM, PIAM, MII dan institusi kewangan lain.

Annual Report 2013 Life Insurance Association of Malaysia

• Kunjungan oleh Lembaga Penyeliaan Perniagaan Insurans Myanmar Pada 9 Mei 2013, LIAM telah mengadakan sesi taklimat kepada Lembaga Penyeliaan Perniagaan Insurans Myanmar (IBSB) yang terdiri daripada Encik Aye Min Thein, Pengerusi, Cik Kyin Htay, Timbalan Pengurus Besar, Cik Hla Hla Mon, Timbalan Pengurus dan Encik Than Tun Oo, Penolong Pengurus. Taklimat ini adalah usaha bersama antara Majlis Perniagaan Malaysian-Myanmar (MMBC) dan Aetins Sdn Bhd untuk mendedahkan IBSB kepada model industri insurans Malaysia di bawah bimbingan BNM. Aetins adalah Syarikat IT MSC yang berpangkalan di Malaysia yang terlibat dalam perniagaan perisian insurans yang juga menaja kunjungan ini. MMBC diwakili oleh Presidennya, Encik Gilbert Lee dan AETINS diwakili oleh Encik Vijalapuram Ravindra Mohan, Encik Sandal Sughosh, Cik Florence Yeung dan Encik Imran bin Abdul Shukor. Kunjungan ini bertujuan untuk mendapatkan pengetahuan tentang pengalaman Malaysia, terutamanya dalam pembangunan, peraturan dan penyeliaan industri insurans. Usaha ini adalah selaras dengan liberalisasi sektor insurans Myanmar baru-baru ini. LIAM diwakili oleh Encik Kamaludin Ahmad, Naib Presiden LIAM dan Encik Jens Reisch, Pengerusi Jawatankuasa Promosi Industri LIAM. Mereka berkongsi pendapat tentang operasi LIAM, peraturan, rangka kerja industri serta pembangunan semasa industri ini.

• Kunjungan oleh Dai-ichi Life International Hong Kong LIAM mengalu-alukan delegasi dari Dai-ichi Life International Hong Kong yang berada di Kuala Lumpur dari 21 hingga 23 Ogos 2013. Semasa kunjungan ini, Encik Vincent Kwo, Presiden LIAM menyampaikan pembentangan tentang LIAM dan peranannya, struktur pasaran semasa serta prestasi industri insurans hayat. Rombongan ini yang terdiri daripada Encik Daisuke Kamata, Pengurus Besar, Encik Takao Sabato, Pengurus dan Encik Ryoji Nitta, Pengurus, juga mengunjungi Great Eastern Life Assurance (Malaysia) Berhad dan Etiqa Insurance Berhad.

KUNJUNGAN MEDIA LIAM telah mengadakan lawatan media ke pejabat akhbar The Sun pada 2 Julai 2013 dan menerima sokongan yang amat menggalakkan daripada syarikat ahli. Rombongan ini diketuai oleh Encik C. Kumaran, Pengurus Besar MCIS Zurich Insurance Berhad, ahli Jawatankuasa Promosi Industri LIAM serta beberapa orang wakil dari syarikat ahli LIAM .

Rombongan LIAM disambut oleh kakitangan utama dari Jabatan Penyuntingan, Jabatan Pengiklanan dan Pemasaran, iaitu Encik Freddie Ng, Pengarah Urusan, Encik Balan Moses, Editor Eksekutif, Cik Kang Siew Li, Editor Perniagaan, Encik Prashun Dutt, Ketua Pegawai Pemasaran dan Cik Lee Siew Siew, Pengurus Kanan (Agensi). LIAM dan pegawai-pegawai kanan dari akhbar The Sun telah mengadakan perbincangan terbuka mengenai insurans, penjenamaan, publisiti dan berita.

TANGGUNGJAWAB SOSIAL KORPORAT • Hari Insurans dan Takaful 2013/ Dana CSR EAIC Pengendali insurans dan takaful Malaysia, menerusi jawatankuasa penganjur Kongres Insurans Asia Timur Ke-26 (EAIC), telah bekerjasama untuk meraikan Hari Insurans dan Takaful 2013 pada 9 September 2013. Jawatankuasa penganjur yang terdiri daripada LIAM, PIAM, MTA dan Persatuan Insurans Antarabangsa Labuan (LIIA) telah memberikan sumbangan sebanyak RM100,000 kepada empat pertubuhan amal. Empat penerima sumbangan ini ialah Pusat Khidmat Masyarakat untuk Golongan Pekak (projek Silent Teddies Café), Kuala Lumpur; Pertubuhan Kebajikan Dan Penjagaan Nur Hidayah, Kuala Lumpur; Pusat Khidmat Masyarakat Orang Asli, Jerantut, Pahang; dan Yayasan Inisiatif Kajian Kanser (CARIF), Kuala Lumpur, dengan setiap satunya menerima sumbangan sebanyak RM25,000. Ketua-ketua daripada empat Persatuan penganjur, iaitu Presiden LIAM, Encik Vincent Kwo; Pengerusi PIAM, Encik Chua Seck Guan; Pengerusi MTA, Encik Zainudin Ishak dan Pengerusi LIIA, Yang Berbahagia Dato’ Ahmad Farouk Faizi turut hadir sama untuk menyampaikan cek kepada empat penerima sumbangan itu. Hari Insurans dan Takaful 2013 juga turut disaksikan oleh pihak Pengurusan persatuan dan ahli-ahli Majlis. Objektif Hari Insurans dan Takaful adalah untuk menyebarkan nilai perkongsian, keprihatinan, muhibah dan harmoni dengan membantu pelbagai pertubuhan amal. Pertubuhan amal ini dipilih kerana sumbangan mereka kepada masyrakat dan adalah diharapkan bantuan kewangan ini dapat mendorong mereka meneruskan usaha mulia mereka. Acara ini merupakan satu inisiatif yang menunjukkan sokongan industri insurans dan takaful kepada pelbagai pertubuhan amal sebagai sebahagian daripada program tanggungjawab sosial tahunannya. Laporan Jawatankuasa Pengurusan 33

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• Kempen Derma Darah LIAM Sekali lagi pada tahun ini, LIAM telah menganjurkan Kempen Derma Darahnya pada 9 Oktober 2013 di lobi Maju Junction Mall, Jalan Sultan Ismail dari jam 10.00 pagi hingga 5.00 petang. Ini merupakan salah satu program khidmat masyarakat tahunan LIAM yang bertujuan untuk menyelamatkan nyawa melalui kempen menderma darah. Kempen menderma darah mendapat sokongan yang menggalakkan daripada 16 syarikat ahli LIAM serta orang ramai daripada semua lapisan masyarakat. Kempen selama satu hari ini berjaya mengutip sehingga 97 pek darah untuk Pusat Darah Negara (PDN). Beg cenderahati serta juadah ringan juga disediakan untuk semua penderma darah sebagai tanda penghargaan daripada LIAM dan Pusat Darah Negara.

LAIN-LAIN AKTIVITI • Pertukaran Pemegang Jawatan Pada tahun 2013, LIAM telah menganjurkan majlis makan malam penghargaan untuk bekas ahli Jawatankuasa Pengurusannya iaitu Presiden LIAM (2011), Encik Din Merican dan ahli-ahli Jawatankuasa Pengurusan, Encik Khor Hock Seng, Yang Berbahagia Dato’ Nirmala Menon dan Encik Muhamad Umar Swift. Majlis makan malam ini telah diadakan di Hotel Shangri-La Kuala Lumpur pada 23 Januari 2013 sebagai tanda terima kasih kepada bekas Ahli Jawatankuasa Pengurusan di atas sumbangan dan dedikasi mereka yang cemerlang dalam membangunkan industri ini. Antara tetamunya ialah bekas Presiden dan bekas Naib Presiden LIAM, Ketua-Ketua Pegawai Eksekutif sekarang ini dan kakitangan kanan dari syarikat ahli. LIAM juga telah menerima berita sedih tentang pemergian Encik Cheong Chee Meng, atau panggilan mesranya Chee Cheong, bekas Ketua Pegawai Eksekutif Zurich Insurance Malaysia Berhad. LIAM ingin merakamkan ucapan takziah kepada keluarga mendiang Chee Cheong yang telah meninggal dunia pada 17 September 2013.

• Majlis Makan Malam Tahunan Industri Insurans dan Takaful 2013 Penganjuran perjumpaan tahunan untuk industri pada tahun ini diketuai oleh Persatuan Broker-Broker Insurans dan Takaful Malaysia (MITBA) dan Persatuan Penyelaras Kerugian Malaysia (AMLA) dengan sokongan daripada LIAM, PIAM dan MII. Ia telah diadakan pada 15 November 2013 di Hotel Shangri-La Kuala Lumpur. 34 Laporan Jawatankuasa Pengurusan

Majlis ini telah diserikan dengan kehadiran Yang Berbahagia Dato’ Muhammad Ibrahim, Timbalan Gabenor BNM. Dalam ucapannya pada majlis makan malam ini, Yang Berbahagia Dato’ Muhammad menyebut tentang Kertas Konsep Rangka Kerja Insurans Hayat dan Takaful Keluarga dan Akta Perkhidmatan Kewangan 2013.

KESIMPULAN Jawatankuasa Pengurusan ingin merakamkan rasa penghargaan dan terima kasih kepada semua syarikat ahli di atas sokongan dan penyertaan mereka dalam aktiviti dan projek LIAM. Dalam menjalankan lebih banyak inisiatif yang mencabar pada bulan-bulan akan datang, kami mengharapkan komitmen yang tidak berbelah bahagi daripada syarikat ahli demi memastikan kejayaan daya usaha ini yang akhirnya akan memberi manfaat kepada pengguna dan menggalakkan lagi pertumbuhan industri ini.

Annual Report 2013 Life Insurance Association of Malaysia

Performance of the Life Insurance Industry MALAYSIAN ECONOMY Malaysian economy grew 4.7% in the year of 2013 amid an environment of modest global growth. The quarterly GDP growth rates were 4.1%, 4.4%, 5.0% and 5.1%. The corresponding quarterly growth rates in 2012 were 5.1%, 5.6%, 5.3% and 6.5%. Growth in the services sector in the 4th quarter improved to 6.4% (3Q 2013: 5.9%), slightly outperforming the overall economy. The growth was supported by the improving performance of trade and manufacturing activities. Growth in finance and insurance remained weak at 0.6% in the 4th quarter (3Q 2013: 1.0%), as the improvement in net interest income for the banking sector was partly offset by the weak performance in the insurance segment. Domestic demand remained the anchor for growth, expanding by 6.4% in 4Q (3Q 2013: 8.3%). Private sector activity grew further, as reflected by robust private investment growth and continued expansion in private consumption. Public sector spending, however, moderated due to slower public consumption and declining investment growth. The headline inflation rate, as measured by annual change in the Consumer Price Index (CPI), increased to 3.0% in the fourth quarter of 2013 (3Q 2013: 2.2%), reflecting the upward adjustment of prices of petroleum products and sugar, and the increase in excise duty on tobacco. Supply disruptions following adverse weather conditions also led to the higher food prices. The Producer Price Index (PPI) turned around to increase to 2.2% on an annual basis in the fourth quarter (3Q 2013: -2.3%). Prices of the local components of the PPI rose by 3.4% (3Q 2013: -2.9%) while prices of the imported components declined by 0.5%. The overnight policy rate (OPR) remained unchanged at 3.00% during the fourth quarter of 2013, which is at a level that is highly supportive of economic activity. The ringgit and most other regional currencies depreciated against the US dollar as the anticipation and eventual announcement of a scale-back of monetary injections by the Fed resulted in outflows of funds from regional financial markets. The performance of ringgit against regional currencies was mixed. The International Monetary Fund has moderately adjusted upward its projection on world GDP growth for 2014 to 3.7% in anticipation of recovery in the advanced economies. Stronger external demand from advanced economies is expected to lift growth in the developing economies although domestic weaknesses remain a concern. The economies in Developing Asia are expected to continue to outgrow the world economy and are projected by IMF to grow at 6.8% on average in 2014. The Malaysian economy is expected to grow at 5 to 5.5% in 2014 supported by firmer external demand and offset by a moderating but resilient domestic demand. With inflation edging upward in recent months and the fiscal structural adjustment and consolidation process to lower overall balance of Federal Government finance, consumer and business sentiments however remain low and consumers are increasingly cautious in their spending. Amid an environment of moderate growth and weakened consumer sentiments, the life insurance industry is forecast to achieve a moderate growth of 4 to 7% in 2014. References: 1. 2. 3. 4.

Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2013, BNM. Malaysian Economic Outlook – Malaysian Institute of Economic Research Analysts’ Forecast of Malaysia’s 2014 GDP - Bernama World Economic Outlook Update (January 2014), International Monetary Fund

Performance of the Life Insurance Industry 35

Annual Report 2013 Life Insurance Association of Malaysia

LIFE INSURANCE BUSINESS Insurance Protection The life insurance industry in 2013 in aggregate provided a higher insurance protection to the public with 3.7% higher claims amount, 14.2% higher payout in maturity and cash surrender values and 6.7% higher insurance coverage. Claims paid in 2013 amounted to RM6.9 billion in various types of claims including death, disability, medical and cash bonuses, 3.7% higher than the corresponding amount of RM6.7 billion a year earlier. (Table1) 2013

Difference

Growth

Benefit

2012

Death

962,654,835

974,455,695

11,800,860

1.2%

Disability

135,082,854

140,118,897

5,036,043

3.7%

Medical

1,969,951,261

1,991,509,614

21,558,353

1.1%

Bonuses

2,476,970,475

2,973,936,097

496,965,622

20.1%

Others

1,152,509,466

862,168,593

(290,340,873)

-25.2%

TOTAL

6,697,168,891

6,942,188,896

245,020,005

3.7%

(Table1)

In addition, RM8.6 billion was paid in maturity amount and cash surrender values in 2013, 14.2% higher than the corresponding figure of RM7.5 billion in 2012. The increase was mainly due to fluctuation in maturity payment which was dependent on the term of the policies. (Table 2) 2012

Benefit

2013

Difference

Growth

Maturity / Vesting

3,323,048,272 4,375,094,837

1,052,046,565

31.7%

Surrenders / Cancellation of units

4,225,482,767 4,243,571,193

18,088,426

0.4%

TOTAL

7,548,531,039 8,618,666,030

1,070,134,991

14.2%

(Table 2)

In aggregate, the life insurance industry provided cover amounting to RM1.09 trillion in sum assured for all policies combined in 2013. The amount was 6.7% higher than the corresponding figure of RM1.02 trillion in 2012. (Table 3) The sum assured per capita in 2013 increased slightly to RM36,387 from RM34,609 in 2012. 2012

Type

2013

Difference

(Table 4)

Growth

Traditional

369,580,838,848

361,371,434,382

(8,209,404,466)

-2.2%

Investment-Linked

248,305,252,495

284,679,163,295

36,373,910,800

14.6%

Group

403,691,907,905

443,646,890,848

39,954,982,943

9.9%

1,021,577,999,248 1,089,697,488,525

68,119,489,277

6.7%

TOTAL

(Table 3)

36 Performance of the Life Insurance Industry

Annual Report 2013 Life Insurance Association of Malaysia

Total Sum Insured Population

2012

2013

1,021,577,999,248

1,089,697,488,525

29,517,700

29,947,600

34,609

36,387

Sum Insured per Capita (Table 4)

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

In-Force Policies January – December 2013 The total premium for in-force policies continued to grow strongly at 12.8% in 2013 for individual and group policies combined. For individual annualised premium policies, the growth came mainly from investment-linked business which grew at 14.8% while for individual single premium policies, traditional business enjoyed a relatively stronger growth than investment-linked (26.5% vs 8.8%). In absolute terms, the individual in-force block continues to be dominated by traditional business with RM16.4 billion as compared with RM9.5 billion of investment-linked business. The gap between traditional and investment-linked in-force block has however narrowed to RM6.9 billion in 2013 from RM7.3 billion in 2012. Group insurance recorded a strong growth in in-force premiums in year 2013 especially in Single Premiums (both YRT and Others) category. (Table 5)

2012

2013

14,896

15,441

3.7%

777

983

26.5%

15,674

16,424

4.8%

7,973

9,150

14.8%

348

378

8.8%

8,321

9,529

14.5%

6

43

675.3%

- Single Premiums

84

81

-3.2%

TOTAL

89

124

39.0%

- Annualised Premiums

75

80

7.2%

- Single Premiums (YRT)

46

99

115.4%

921

2,087

126.7%

1,041

2,266

117.7%

25,125

28,343

12.8%

RM Million

Growth

Individual-Traditional - Annualised Premiums - Single Premiums TOTAL Individual-Investment-linked - Annualised Premiums - Single Premiums TOTAL Individual-Annuity - Annualised Premiums

Group

- Single Premiums (Others) -TOTAL TOTAL (Individual + Group)

(Table 5)

(Source: Life Insurance Association of Malaysia [LIAM]) Performance of the Life Insurance Industry 37

Annual Report 2013 Life Insurance Association of Malaysia

New Business January – December 2013 The life insurance industry in Malaysia remained stable with a small negative growth of 0.2% in 2013, as measured by new business total premium (single premium plus annualised premium). The new business total premium in 2013 was RM8.19 billion, as compared to RM8.20 billion in 2012. (Table 6) Total Premium

January to December

RM Billion

2012

2013

Growth

-Traditional

2.48

2.23

-9.8%

-Investment-Linked

3.24

3.26

0.6%

Group

2.49

2.70

8.5%

TOTAL

8.20

8.19

-0.2%

Individual

(Table 6)

Group insurance business grew strongly at 8.5%. In terms of individual business, investment-linked policies continued to outpace traditional policies with the former growing at 0.6% while the latter declined 9.8%. (Table 6)

Annualised Premium RM Million

January to December

Mix (January to December)

2012

2013

Growth

2012

2013

-Traditional

2,133

1,800

-15.6%

51.6%

44.8%

-Investment-Linked

1,998

2,218

11.0%

48.4%

55.2%

TOTAL

4,130

4,019

-2.7%

100.0%

100.0%

Individual

(Table 7)

If we ignore single premium business, investment-linked business has also overtaken traditional business to be the customers’ preferred choice. Investment-linked annualised premium clocked in RM2.2 billion in 2013 while traditional annualised premium was at a lower amount of RM1.8 billion. Traditional to investment-linked business mix as at 31 December 2013 was 44.8%:55.2% as compared with 51.6%:48.4% a year earlier. (Table 7) (Source: Life Insurance Association of Malaysia [LIAM])

38 Performance of the Life Insurance Industry

Annual Report 2013 Life Insurance Association of Malaysia

LIFE INSURANCE BUSINESS (2008 - 2012) Number of Policies

2012

12,076,909

1,488,512

2011

12,203,108

1,502,110

Year

2010

12,145,520

1,426,280

2009

11,809,112

1,387,724

2008

11,522,202

1,585,846 0

2

4

6

8

10

12

14 Millions

Units Total Business In Force

New Business

Sums Insured

2012

1,021,907.0

290,420.2

2011

917,121.0

287,073.9

Year

2010

881,935.9

274,776.8

2009

791,360.8

239,605.9

2008

771,274.8

219,066.9 0

1

2

3

4

5

6

7

8

9

10 11 x 100000

Sums Insured (RM million) Total Business In Force

New Business

New Business : Total Premiums

8,200.9

2012 7,913.7

Year

2011 2010 2009

8,397.0 7,544.4 7,234.7

2008 6,600

6,800

7,000

7,200

7,400

7,600

7,800

8,000

8,200

8,400

8,600

Total Premiums (RM million) New Business

(Source: Bank Negara Malaysia (Annual Insurance Statistics 2012) Performance of the Life Insurance Industry 39

Annual Report 2013 Life Insurance Association of Malaysia

Total Business In Force: Annual Premiums

2012

23,076.4

2011 Year

20,664.7 19,295.7

2010 2009 2008

17,347.4 15,446.4 0.0

5.0

10.0

15.0

20.0

25.0 Thousands

Annual Premiums (RM million) Total Business In Force

Income

2011 (RM million) Profit on sale of assets and miscellaneous income

2012 (RM million) Premium Income 22,815.8 (69.0%)

4,204.9 (12.7%)

Net investment income 6,037.5 (18.3%)

Total : RM 33,058.2 million

(Source: Bank Negara Malaysia (Annual Insurance Statistics 2012)

40 Performance of the Life Insurance Industry

Profit on sale of assets and miscellaneous income

Premium Income 24,902.5 (66.4%)

5,875.7 (15.7%)

Net investment income 6,701.6 (17.9%)

Total : RM 37,479.8 million

Annual Report 2013 Life Insurance Association of Malaysia

Outgo (Expenditure)

2011 (RM million)

Management Expenses 2,088.9 (9.7%)

Agency Remuneration 3,360.3 (15.6%)

2012 (RM million) Loss on disposal of assets and other outgo 2,068.0 (9.6%)

Net policy benefits 13,994.3 (65.1%)

Management Expenses 2,283.7 (10.6%)

Loss on disposal of assets and other outgo 1,429.8 (6.6%)

Agency Remuneration 3,528.4 (16.4%)

Total : RM 21,511.5 million

Net policy benefits 14,303.1 (66.4%)

Total : RM 21,545.1 million

Assets of Life Insurance Funds

2011 (RM million) Foreign assets Other assets 4,768.3 2,639.5 Cash and deposits 15,344.3

2012 (RM million) Property, plant and equipment 1,640.2 Loans 10,900.2

Foreign assets Other assets 4,789.3 3,026.4 Cash and deposits 12,232.3

Property, plant and equipment 1,608.5 Loans 11,586.8

Investment properties 2,317.9

Investment properties 2,291.3

Investments 131,769.2

Investments 114,346.0

Total : 151,929.8 million

Total : 167,330.3 million

LOANS (RM 10,900.2 million) comprised: - Mortgages - Policy - Others

LOANS (RM 11,586.8 million) comprised: - Mortgages - Policy - Others

INVESTMENTS (RM 114,346 million) comprised: - Malaysia Government papers/ guaranteed loans - Corporate/ debt securities - Others

INVESTMENTS (RM 131,769.2 million) comprised: - Malaysia Government papers/ guaranteed loans - Corporate/ debt securities - Others

(Source: Bank Negara Malaysia (Annual Insurance Statistics 2012) Performance of the Life Insurance Industry 41

Annual Report 2013 Life Insurance Association of Malaysia

Members of LIAM

Allianz Life Insurance Malaysia Berhad

AXA AFFIN Life Insurance Berhad

AIA Bhd.

Etiqa Insurance Berhad

Menara AIA 99 Jalan Ampang 50450 Kuala Lumpur Telephone No : 03-2056 1111 Fax No : 03-2056 3791 Care Line : 1300 88 1899 E-mail : [email protected] http://www.aia.com.my

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 Email: [email protected] http://www.etiqa.com.my

AmLife Insurance Berhad

Great Eastern Life Assurance (Malaysia) Berhad

Suite 3A-15, Level 15 Block 3A, Plaza Sentral Jalan Stesen Sentral 5 Kuala Lumpur Sentral 50470 Kuala Lumpur Telephone No : 03-2264 1188/ 2264 0688 Fax No : 03-2264 1199 E-mail : [email protected] http://www.allianz.com.my www.facebook.com/AllianzMalaysia

Level 19, 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

42 Members of LIAM

8th Floor Chulan Tower 3 Jalan Conlay 50450 Kuala Lumpur Telephone No : 03-2117 6688/ 1300 88 1616 Fax No : 03-2117 6768 Email: [email protected] http://www.axa-affin.com

Menara Great Eastern 303 Jalan Ampang 50450 Kuala Lumpur Telephone No : 03-4259 8888 Fax No : 03-4259 8000 Email : [email protected] http://www.greateasternlife.com

Annual Report 2013 Life Insurance Association of Malaysia

Members of LIAM

Hannover Rueck SE, Malaysian Branch

Manulife Insurance Berhad

Hong Leong Assurance Berhad

MCIS ZURICH Insurance Berhad

Malaysian Life Reinsurance Group Berhad

Prudential Assurance Malaysia Berhad

Suite 31-1, 31st Floor Wisma UOA II No. 21, Jalan Pinang 50450 Kuala Lumpur Telephone No : 03-2687 3600 Fax No : 03-2687 3760/ 2687 3762 http://www.hannover-re.com

Level 3, Tower B, PJ City Development No. 15A Jalan 219, Seksyen 51A 46100 Petaling Jaya, Selangor Darul Ehsan Telephone No : 03-7650 1818 Fax No : 03-7650 1991 Customer Service Hotline : 03-7650 1288 Customer Service Hotfax : 03-7650 1299 http://www.hla.com.my

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 Email: [email protected]

16th Floor, Menara Manulife 6, Jalan Gelenggang Damansara Heights 50490 Kuala Lumpur Telephone No : 03-2719 9228 Fax No : 03-2096 2121/ 03-2095 3804 Customer Care : 1300 13 2323 http://www.manulife.com.my

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

Level 17, Menara Prudential 10, Jalan Sultan Ismail 50250 Kuala Lumpur Telephone No : 03-2031 8228 Fax No : 03-2032 3939 Customer Service : 03-2116 0228 E-mail : [email protected] http://www.prudential.com.my

Members of LIAM 43

Annual Report 2013 Life Insurance Association of Malaysia

Members of LIAM

Sun Life Malaysia Assurance Berhad

Uni.Asia Life Assurance Berhad

Tokio Marine Life Insurance Malaysia Bhd.

Zurich Insurance Malaysia Berhad

(formerly known as CIMB Aviva Assurance Berhad) 338, Jalan Tuanku Abdul Rahman 50100 Kuala Lumpur Telephone No : 03-2612 3600 Fax No : 03-2698 7035 Customer Careline: 1300 88 5055 Email: [email protected] http://www.sunlifemalaysia.com

Ground Floor, Menara Tokio Marine Life 189, Jalan Tun Razak 50400 Kuala Lumpur Telephone No : 03-2059 6188 Fax No : 03-2162 8068 E-mail : [email protected] http://www.tokiomarinelife.com.my

44 Members of LIAM

8th Floor, Bangunan Uni.Asia 16 Jalan Tun Tan Siew Sin 50050 Kuala Lumpur Telephone No : 03-2687 2000 Fax No : 03-2031 4689 Customer Service Hotline : 03-2687 2020 Customer Service Fax : 03-2026 6097 E-mail : [email protected] http://www.uniasialife.com.my

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 888 622/ 03-2146 9999 Email : [email protected] http://www.zurich.com.my

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