The Malaysian In­surance In­sti­tute Trans­for­ma­tion Blue­print 2013-2020

Insurance - - COVER STORY - by Puan Khadi­jah Ab­dul­lah by Pro­fes­sor Datuk Razali Mah­far

The Malaysian In­surance In­sti­tute (MII) had re­cently or­gan­ised a three-day ex­clu­sive brief­ing on its Trans­for­ma­tion Blue­print to the in­surance in­dus­try lead­ers, hu­man re­source man­agers, in­surance pro­fes­sion­als and rep­re­sen­ta­tives from the in­surance in­dus­try statu­tory as­so­ci­a­tions, namely the Gen­eral In­surance As­so­ci­a­tion of Malaysia (PIAM), Life In­surance As­so­ci­a­tion of Malaysia (LIAM), Malaysia In­surance and Taka­ful Broking As­so­ci­a­tion (MITBA) and As­so­ci­a­tion of Malaysian Loss Ad­justers (AMLA). The brief­ings were held on 14, 15 and 16 Au­gust 2012 be­tween 2.30 pm to 5.00 pm at the Is­tana Ho­tel, Kuala Lumpur.

In this is­sue, IN­SURANCE in­ter­views MII Chief Ex­ec­u­tive Of­fi­cer (CEO), Puan Khadi­jah Ab­dul­lah, and MII Con­sul­tant, Pro­fes­sor Datuk Razali Mah­far, to get a clearer pic­ture of the MII Trans­for­ma­tion Blue­print.

Leg­is­la­tions to Reg­u­late Higher Ed­u­ca­tion and Qual­i­fi­ca­tions in Malaysia

The Malaysian par­lia­ment passed two leg­is­la­tions, namely the Pri­vate Higher In­sti­tu­tion Act (PHEI Act) 1996, re­pealed 2009, and Malaysian Qual­i­fi­ca­tions Agency Act (MQA Act) 2007 to reg­u­late higher ed­u­ca­tion and qual­i­fi­ca­tions re­spec­tively. MII, as an in­sti­tu­tion of­fer­ing pro­fes­sional ed­u­ca­tion pro­grammes has to com­ply with the re­quire­ments of the two laws.

The PHEI Act re­quires that in­sti­tu­tions, other than pub­lic univer­si­ties, of­fer­ing pro­grammes higher than school cer­tifi­cate and other than cer­tifi­cate of at­ten­dance be reg­is­tered with, and li­censed, by the Min­istry of Higher Ed­u­ca­tion. There are three types of higher learn­ing in­sti­tu­tions, namely (i) univer­si­ties, (ii) univer­sity col­leges and (iii) col­leges. While univer­si­ties and univer­sity col­leges can of­fer home-grown pro­grammes up to doc­toral level, col­leges can only of­fer up to di­ploma level. In­sti­tu­tions, par­tic­u­larly the new ones, have to start with a col­lege sta­tus be­fore they can be up­graded to univer­sity col­lege.

The MQA Act re­quires higher ed­u­ca­tion and pro­fes­sional pro­grammes be ac­cred­ited by, and reg­is­tered with MQA. The MQA Act broadly cat­e­gorises in­sti­tu­tions into three, namely (i) self-ac­cred­it­ing in­sti­tu­tions, (ii) other higher learn­ing in­sti­tu­tions, and (iii) pro­fes­sional bod­ies. There are only five self­ac­cred­it­ing in­sti­tu­tions in Malaysia, namely Univer­siti

Malaya, Univer­siti Ke­bangsaan Malaysia, Univer­siti Pu­tra Malaysia, Univer­siti Sains Malaysia and Univer­siti Te­knologi Malaysia. As the cat­e­gory sug­gests; th­ese in­sti­tu­tions, based on their long his­tory and vast ex­pe­ri­ence, are given the man­date to ac­credit their own pro­grammes in ac­cor­dance with the guide­lines set by MQA.

As for the ac­cred­i­ta­tion and au­dit of other higher learn­ing in­sti­tu­tions, MQA will set up Ac­cred­i­ta­tion Com­mit­tees, whose mem­bers will com­prise MQA rep­re­sen­ta­tives and aca­demics from in­sti­tu­tions other than the ap­pli­cant in­sti­tu­tion.

For pro­fes­sional bod­ies, Joint Tech­ni­cal Com­mit­tees will be set up with mem­bers com­pris­ing rep­re­sen­ta­tives from the pro­fes­sional bod­ies and MQA to ac­credit and au­dit pro­fes­sional pro­grammes. The MQA Act de­fines a pro­fes­sional body as 'any body es­tab­lished un­der any writ­ten law for the pur­pose of reg­u­lat­ing a pro­fes­sion and its qual­i­fi­ca­tions or any other body recog­nised by the government’.

A government body is de­fined as ‘the Fed­eral Government, any State Government, lo­cal author­ity, author­ity or body whether cor­po­rate or un­in­cor­po­rate, es­tab­lished, ap­pointed or con­sti­tuted un­der any writ­ten law’ (The In­surance Act 2009, Reg­u­la­tions 2001).

Although MII does not en­joy the sta­tus sim­i­lar to statu­tory pro­fes­sional bod­ies such as the Malaysian In­sti­tute of Ac­coun­tants (MIA) and Board of Engi­neers Malaysia (BEM), it is none­the­less a pro­fes­sional body set up by a government agency, BNM. Fur­ther, MII qual­i­fi­ca­tions are recog­nised by the Malaysian

government via In­surance Reg­u­la­tions 1996 of the In­surance Act 1996 is­sued by the Min­is­ter of Fi­nance of Malaysia.

In this re­spect, MII sat­is­fies the def­i­ni­tion of a 'pro­fes­sional body' as per the MQA Act 2007 un­der 'any other body recog­nised by the government’. Strength­en­ing MII Gov­er­nance Struc­tures

In or­der to strengthen MII roles as a pro­fes­sional body and an ed­u­ca­tion cen­tre, sep­a­rate gov­er­nance struc­tures have been de­signed to en­sure clear bound­aries be­tween the two roles. In ad­di­tion, the ed­u­ca­tion cen­tre gov­er­nance struc­ture which is to com­ply with the PHEI Act 2009 has also been dif­fer­en­ti­ated and sep­a­rated from the cor­po­rate gov­er­nance struc­ture which is to com­ply with the Com­pany Act 1965, as de­picted in the chart be­low.

The Malaysian In­surance Pro­fes­sional Stan­dards Board (MIPSB) shall set the nec­es­sary pre­scribed ex­am­i­na­tions stan­dards, re­quire­ments and cur­ric­ula, from which the Malaysian In­surance Ed­u­ca­tion Board shall de­velop ed­u­ca­tion pro­grammes to be of­fered to stu­dents, the ma­jor­ity of whom are the in­surance in­dus­try em­ploy­ees.

The new MII gov­er­nance struc­tures will also re­sult in the re­design­ing of MII or­gan­i­sa­tional struc­ture to en­sure clear sep­a­ra­tion of roles in the day to day op­er­a­tions of the In­sti­tute.

Strength­en­ing the Malaysian In­surance Qual­i­fi­ca­tions Frame­work

MII has been syn­di­cat­ing in­ten­sively and ex­ten­sively with it stake­hold­ers namely its Board of Direc­tors, pro­fes­sional mem­bers, in­dus­try chief ex­ec­u­tive of­fi­cers and hu­man re­source man­agers, and rep­re­sen­ta­tives from the in­surance in­dus­try statu­tory as­so­ci­a­tions; PIAM, LIAM, MITBA and AMLA. The con­tent of the new frame­work has been bench­marked with those of pro­fes­sional and aca­demic in­sti­tu­tions in the USA, Europe, Aus­tralia, New Zealand and South East Asia. The new qual­i­fi­ca­tions frame­work will be adopted at a gen­eral

meet­ing of MII pro­fes­sional and in­sti­tu­tional mem­bers to be con­vened in the near fu­ture.

MII Multi-stake­holder Feed­back

To date more than two hun­dred in­di­vid­u­als been syn­di­cated with, in­volv­ing more than seven hun­dred and fifty man-hours or one hun­dred man-days. Af­ter var­i­ous en­gage­ments and it­er­a­tions, the MII Trans­for­ma­tion Blue­print fi­nal draft was pre­sented to the ninety Malaysian in­surance in­dus­try lead­ers and rep­re­sen­ta­tives on the 14, 15 and 16 Au­gust 2012. At the end of the brief­ing ses­sions, at­ten­dees were re­quested to pro­vide doc­u­men­tary feed­back via ques­tion­naire com­pris­ing twen­ty­nine ques­tions for Fel­lows and As­so­ci­ates of MII and twenty-six ques­tions for in­dus­try lead­ers and rep­re­sen­ta­tives. Th­ese ques­tions were care­fully de­signed and tri­an­gu­lated to en­sure the feed­backs are re­li­able and valid.

Of the ninety at­ten­dees, sixty stayed on to com­plete the ques­tion­naires. The twenty nine ques­tions were asked to get feed­back on six ar­eas. Each ques­tion was pre­sented with a state­ment re­lat­ing to the Blue­print con­tent and rec­om­men­da­tions with five Lik­ert scale rat­ings for the re­spon­dents to choose, namely; Strongly Dis­agree (-2); Dis­agree (1); Neu­tral (0); Agree(+1); Strongly Agree (+2).

As we can see from the sur­vey report sum­mary ap­pended be­low, the in­dus­try is fully back­ing MII and its Blue­print. Once the key rec­om­men­da­tions have been ac­cepted and passed at the next MII gen­eral meet­ing, the Blue­print will be of­fi­cially launched no later than the sec­ond quar­ter of 2013.

What is worth high­light­ing herein is that the re­spon­dents have strongly agreed that MII grad­u­ates are in­dus­try-ready as they are equipped with com­pre­hen­sive knowl­edge to per­form. Cur­rently less than fif­teen per­cent of the twenty two thou­sand in­dus­try em­ploy­ees hold MII pro­fes­sional qual­i­fi­ca­tions. On this mat­ter, the re­spon­dents are of the strong view that the more in­dus­try

em­ploy­ees hold MII pro­fes­sional qual­i­fi­ca­tions, the higher will be the in­dus­try growth rate.

With the height­ened aware­ness and ac­cep­tance of this ef­fort, we could well ex­pect that the num­ber of pro­fes­sional stu­dents en­rol­ment with MII will in­crease by many folds.

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