MAYBANK AGEAS APPOINTS CEO
Source: Bernama Online, 4 December 2013 Maybank Ageas Holdings Bhd has appointed Kamaludin Ahmad as CEO. Kamaludin, 46, will oversee the entire insurance and Takaful businesses of the Maybank Group that includes Etiqa Insurance Bhd and Etiqa Takaful Bhd. Kamaludin, who has served as acting CEO of both Etiqa entities since March 2013, now helms 2,200 employees and is set to lead the growth and expansion of Etiqa, locally and internationally. The 20-year veteran in the financial industry joined the Maybank Group in June 2012 as CEO of Etiqa Insurance and Head of General Business.
PIDM REPS APPOINTED TO KEY POSITIONS
Source: Perbadanan Insurans Deposit Malaysia Press Release, 17 December 2013 Perbadanan Insurans Deposit Malaysia (PIDM) has appointed senior officials to key positions in the International Association of Deposit Insurers (IADI) and the International Forum of Insurance Guarantee Schemes (IFIGS). Encik Rafiz Azuan Abdullah, GM of Insurance, Risk Assessment and Monitoring, was appointed as chairman of the Islamic Deposit Insurance Group (IDIG) of IADI. IDIG conducts research on Islamic deposit insurance and issues guidance and core principles to help policy makers develop effective Islamic deposit insurance systems. Ms. Lee Yee Ming, GM of Policy and International, was appointed as chair of the IADI Data and Survey Standing Committee for a three-year term. She has also been an elected member of IADI’s executive council, the governing body of IADI, since 2011. IADI, which was founded in 2002, is a forum for deposit insurers from around the globe to gather and share knowledge and expertise. Ms Lee has also been appointed as executive committee member of the International Forum of Insurance Guarantee Schemes (IFIGS). The Executive Committee directs the activities of IFIGS. PIDM administers the national Deposit Insurance System (DIS) and the Takaful and Insurance Benefits Protection System (TIPS) in Malaysia.
REP ADVISES YOUTHS TO TAKE UP INSURANCE
Source: The Borneo Post, 12 December 2013 Sarawak National Youth Organisation (Saberkas) Deputy Secretary-general Dennis Ngau Jok said that it would be a loss if people did not take up insurance policies when they are still young. “Having an insurance policy will bring great benefits to every level of society, especially youths,” he said during the opening ceremony of an insurance seminar for Saberkas members conducted by Takaful Ikhlas Sdn Bhd in December. He lamented that many young people perceived insurance schemes as only for elderly people, which should be changed since current statistics show deteriorating health among young people. “I’m worried, as there are cases of chronic disease at young age, as early as the 20s, before they even reach their 30s,” he added. He said having an insurance policy would greatly relieve the policyholder during times of emergency. “Insurance would at least cover the medical cost,” he said. Also present at the event was Takaful Ikhlas (East Malaysia) Vice President Shamsul Bahrin Sugimin.
TWO NEW STANDARDS ADOPTED FOR ISLAMIC FINANCIAL SERVICES INDUSTRY
Source: Islamic Financial Services Board Press Release,
11 December 2013 The Council of the Islamic Financial Services Board (IFSB) resolved to approve the adoption of two new Standards in its 23rd Meeting in Doha, Qatar. The two documents are: • IFSB-14 aims to provide guidance to the industry in understanding the types of risks that the Takāful industry is exposed to. The current global market conditions necessitate the relevant regulatory and supervisory authorities to continue strengthening the industry. With the best practices set forth by this standard, it provides a Sharī`ah-compliant mechanism in the development of a risk management framework for Takāful undertakings. • IFSB-15 is a revised and enhanced version of two previous IFSB Standards on capital adequacy, namely IFSB-2: Capital Adequacy Standard for IIFS (published in 2005) and IFSB-7: Capital Adequacy Requirements for Sukūk, Securitisations and Real Estate Investments (published in 2009). IFSB-15 also adopts key Basel III proposals on capital components and macro prudential tools for the IIFS. This Standard aims to assist the implementation of a capital adequacy framework that will ensure effective coverage of risk exposures of the IIFS and allocation of appropriate capital to cover these risks, based predominantly on the Standardised Approach. Both IFSB-14 and IFSB-15 are available on the IFSB website, www.ifsb.org.
STABLE INSURANCE SECTOR IN MALAYSIA
Source: The Star, 11 December 2013 Fitch Ratings, while expecting further consolidation in the local insurance market, says the sector and rating outlooks for Malaysia’s life insurance, general insurance and Takaful sectors remain stable for next year. In its latest report, the rating agency said market growth, sound operating margins and adequate capital buffers would continue to reinforce the credit profile of insurers or Takaful operators, and that further consolidation was likely due to the enactment of new insurance regulations and a Takaful capital regime. Demand for insurance products is likely to continue to grow in the near term because of steadily rising disposal income and private consumption, the report added. Fitch said the growth in the family Takaful sector would remain strong, as Takaful operators further expanded their product reach and offerings. Less volatile equity markets and a low interest rate environment would sustain the demand for investmentlinked policies, it noted. The ratings agency said the introduction of a risk-based capital regime for the Takaful sector and the requirement for composite insurers to segregate their operations into separately licensed life and general insurance units could initiate another round of market consolidation, especially in the Takaful sector.