2013

A Land­mark Year?

Insurance - - EDITORIAL - Khadi­jah Ab­dul­lah Ed­i­tor

As this is the first is­sue of the year, it is ap­pro­pri­ate that we look ahead to what is in store for 2013. Our fo­cus sec­tion looks at both the quan­ti­ta­tive mea­sures, which are up­beat for the coming year, and also the in­flu­ence of leg­isla­tive mea­sures that were ini­ti­ated dur­ing 2012 or in some cases even ear­lier such as the Com­pe­ti­tion Act and the Per­sonal Data Pro­tec­tion Act. Look­ing be­yond the hard num­bers, how­ever, 2013 could well prove to be a land­mark year. There are two rea­sons for this. Firstly, the M&A ac­tiv­ity of 2012 changed the cor­po­rate face of in­surance in Malaysia for­ever, but it is only in 2013 that we will see the im­pact of the changed strate­gies of the newly struc­tured in­sur­ers that have emerged as a re­sult of the M&A ac­tiv­ity. Se­condly, a num­ber of the knowl­edge and tal­ent devel­op­ment ini­tia­tives of ear­lier years will start bear­ing fruits at a fun­da­men­tal level. Th­ese in­clude the com­pe­tency frame­work and the work of the knowl­edge man­age­ment task­force. In this is­sue, I am par­tic­u­larly pleased to share with you the in­ter­view with Bank Ne­gara Malaysia Gov­er­nor YBhg Tan Sri Dato’ Sri Dr Zeti Akhtar Aziz. The Gov­er­nor shares her per­spec­tives on the progress of the Fi­nan­cial Sec­tor Blue­print 2011 – 2020 since its im­ple­men­ta­tion. Much of the Blue­print has al­ready been im­ple­mented and is show­ing pos­i­tive re­sults. For in­stance, as the Gov­er­nor points out in the area of for­eign par­tic­i­pa­tion, “One of the main ben­e­fits has been the fur­ther ra­tio­nal­i­sa­tion and con­sol­i­da­tion of the in­dus­try, in par­tic­u­lar, in the gen­eral in­surance in­dus­try. This has re­sulted in stronger play­ers that are less vul­ner­a­ble in a more chal­leng­ing en­vi­ron­ment. The greater for­eign par­tic­i­pa­tion has al­lowed in­sur­ers to have stronger cap­i­tal sup­port, reap syn­er­gies and economies of scale…” Pos­i­tive re­sults are not only seen in the gen­eral in­surance sec­tor but in the other in­surance sec­tors as well, namely life in­surance and broking among oth­ers. In this is­sue, we will hear the re­sponses from the as­so­ci­a­tions par­tic­u­larly, Gen­eral In­surance As­so­ci­a­tion of Malaysia, Life In­surance As­so­ci­a­tion of Malaysia and The Malaysian In­surance and Taka­ful Bro­kers As­so­ci­a­tion on the de­vel­op­ments, chal­lenges and op­por­tu­ni­ties fac­ing the Malaysian in­surance in­dus­try. Look­ing ahead to emerg­ing risks in 2013 and be­yond, cy­ber risks are here to stay. Jil­lian Raw’s ar­ti­cle, Cy­ber Risks – An In­surance Per­spec­tive, pro­vides a par­tic­u­larly use­ful anal­y­sis of the com­plex­i­ties of pro­vid­ing cover for cy­ber re­lated risks. No doubt we will see the emer­gence of prod­ucts tai­lored to the de­mand for cov­er­age of cy­ber risks, how­ever, at present in­sur­ers will need to fur­ther en­hance their types of cover to re­spond to the spe­cific needs of in­sured be­cause cy­ber risks of­ten in­volve non-phys­i­cal events mak­ing cov­er­age prob­lem­atic. In our agency ar­ti­cle, Sarah J. Kael­berer con­tends that the ques­tions one is asked in life have a sig­nif­i­cant bear­ing on the de­ci­sions we make. In the in­surance con­text, there­fore she ar­gues that it is our re­spon­si­bil­ity to ask the right ques­tions in our ef­forts to show clients the pos­si­bil­i­ties. She ends very chal­leng­ingly, “And it is our obli­ga­tion as lead­ers — in our in­dus­try, in our com­mu­ni­ties, in our fam­i­lies, with our clients and our prospects — to put their in­ter­ests first, ask the right ques­tion and work to­gether with them to find the so­lu­tions.” Let me take that ad­vice from Sarah and end by ask­ing a ques­tion as well, de­signed to im­prove the ex­pe­ri­ence of our read­ers,“What can we pro­vide in IN­SURANCE in 2013 that will make the mag­a­zine more valu­able to you as a reader?” Af­ter months of de­lib­er­a­tion and seek­ing opin­ions from some of the read­ers, we are very ex­cited to in­tro­duce you to our new look and con­tent start­ing from the March-April 2013 is­sue. New in­surance re­lated sec­tions will be in­tro­duced and more mind stim­u­lat­ing ar­ti­cles will be fea­tured to bet­ter ful­fill your read­ing plea­sure. Now, let us look for­ward to see the things in 2013 that await us. Have a great year ahead!

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