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AFR ASIA PA­CIFIC LIMITED, MALAYSIA’S FIRST HOME GROWN REIN­SUR­ANCE BRO­KERS GAINS AP­PROVAL FROM LLOYD’S

Source: Labuan IBFC Press Re­lease, 14

De­cem­ber 2015

Labuan IBFC is home to Malaysia’s first Lloyd’s reg­is­tered rein­sur­ance bro­ker, AFR Asia Pa­cific Limited who re­ceived ap­proval from Lloyd’s in Novem­ber 2015 to deal di­rectly with the Lloyd’s syn­di­cates in Lon­don, mak­ing it one of only 219 Lloyd’s reg­is­tered bro­kers across the world. AFR is a Labuan li­censed rein­sur­ance bro­ker, with a track record of over 16 years.

This list­ing is a mile­stone for AFR as it al­lows the rein­sur­ance bro­ker ac­cess to Lloyd’s, the world’s largest spe­cial­ist in­surance and rein­sur­ance mar­ket that of­fers a unique con­cen­tra­tion of un­der­writ­ing ex­per­tise, backed by strong fi­nan­cial rat­ings and in­ter­na­tional li­cences cov­er­ing more than 200 coun­tries. Lloyd’s is of­ten the first to in­sure emerg­ing, un­usual and com­plex risks.

AFR has been in the busi­ness of rein­sur­ance broking since 1999 and sees its en­try to Lloyd’s as a val­i­da­tion of its com­mit­ment to­wards rais­ing ser­vice stan­dards in the in­dus­try. AFR cur­rently of­fers fac­ul­ta­tive and treaty rein­sur­ance as well as re­taka­ful for both life and gen­eral busi­nesses, serv­ing the Malaysian and re­gional in­surance in­dus­tries. In the space of gen­eral in­surance, it spe­cialises in avi­a­tion, li­a­bil­ity, specie and ma­rine risks.

Lloyd’s Head of Asia Pa­cific, Kent Chap­lin said, “I am very pleased to wel­come AFR Asia Pa­cific as our first Lloyd’s Reg­is­tered Bro­ker in Malaysia. We have had a long

stand­ing re­la­tion­ship with AFR and this is val­i­da­tion that they meet the stan­dards re­quired of a Lloyd’s reg­is­tered bro­ker. AFR cus­tomers will ben­e­fit from Lloyd’s spe­cial­ist un­der­writ­ing ex­per­tise for their lo­cal and global risks. I look for­ward to wel­com­ing more Malaysian bro­kers who are seek­ing to in­crease their in­ter­na­tional com­pet­i­tive ca­pa­bil­i­ties via the Lloyd’s plat­form.”

The Chief Ex­ec­u­tive Of­fi­cer of AFR Asia Pa­cific Ltd, Y Bhg Dato’ Ah­mad Farouk com­mented on this list­ing say­ing, “AFR’s ap­point­ment as a Lloyd’s reg­is­tered bro­ker will cer­tainly spur the com­pany to greater heights in its pro­vi­sion of in­surance ser­vices and ser­vice de­liv­ery. Hav­ing the Lloyd’s sta­tus will en­able AFR to de­velop its risk of­fer­ing to the rapidly grow­ing ASEAN Eco­nomic Com­mu­nity.”

En Da­nial Mah Ab­dul­lah, Chief Ex­ec­u­tive Of­fi­cer, Labuan IBFC in com­ment­ing on AFR’s achieve­ment said, “AFR’s ap­proval to be­come a Lloyd’s Reg­is­tered Bro­ker is an ex­cel­lent ex­am­ple of the level of suc­cess a born-and-bred Malaysian com­pany can achieve. We are

ex­cep­tion­ally proud that Labuan IBFC has been a key en­abler in AFR’s suc­cess to date and is an ideal plat­form from which AFR can lever­age their Lloyd’s reg­is­tered bro­ker sta­tus.”

GI­BRAL­TAR BSN AND POS MALAYSIA EX­PAND PART­NER­SHIP TO OF­FER FI­NAN­CIAL PLAN­NING RE­SOURCES

Source: New Sarawak Tri­bune, 12 Fe­bru­ary

2016

Gi­bral­tar BSN Life Ber­had and POS Malaysia Ber­had fur­ther strength­ened their busi­ness part­ner­ship in a sign­ing cer­e­mony to mark their new dis­tri­bu­tion agree­ment for in­surance prod­ucts sold at POS Malaysia branches na­tion­wide.

The new agree­ment will see ded­i­cated Fi­nan­cial Ser­vices Of­fi­cer (FSO) in­tro­duced at se­lected POS Malaysia out­lets across Malaysia, in­clud­ing Shah Alam, Kuantan and Jo­hor Bahru among oth­ers. Jointly ac­cred­ited and trained by Gi­bral­tar BSN and POS Malaysia via cus­tomised train­ing pro­grammes, the FSOs will be able

to pro­vide pro­fes­sional ad­vice on rel­e­vant in­surance prod­ucts avail­able at POS Malaysia.

Through this col­lab­o­ra­tion with POS Malaysia, Gi­bral­tar BSN aims to cre­ate a broader un­der­stand­ing of the ben­e­fits of life in­surance and ed­u­cate cus­tomers on the ad­van­tages of fi­nan­cial pro­tec­tion. Cus­tomers will have ac­cess to ex­pert ad­vice, the abil­ity to pur­chase on the spot us­ing a sim­ple process, and a range of af­ford­able prod­ucts that fit in­di­vid­ual needs.

Vin­cent Kwo, Chief Ex­ec­u­tive Of­fi­cer of Gi­bral­tar BSN said, “We have been work­ing closely with POS Malaysia over the past sev­eral years, and are de­lighted to fur­ther strengthen this part­ner­ship with our new FSO ini­tia­tive. With prod­ucts avail­able from as low as RM3.33 per day, we aim to pro­vide all Malaysians with af­ford­able yet qual­ity fi­nan­cial pro­tec­tion tailored to their spe­cific needs, as we work to bring ‘a re­fresh­ing ap­proach to life in­surance' to our cus­tomers. This truly lives up to Gi­bral­tar BSN’s brand prom­ise of ‘We Pro­tect Dreams’, in en­sur­ing Malaysians have the fi­nan­cial pro­tec­tion they need for their peace-of-mind.”

Dato’ Mohd Shukrie bin Mohd Salleh, Group CEO of POS Malaysia com­mented, “This col­lab­o­ra­tion brings a unique and dif­fer­en­ti­ated model to our out­lets, with FSOs util­is­ing iPads and spe­cialised work­sta­tions to serve cus­tomers, en­sur­ing a seam­less and com­fort­able ex­pe­ri­ence for all. Our FSOs will also be eas­ily recog­nis­able with their brand new uni­forms. We are con­fi­dent that this new model will de­liver pos­i­tive re­sults and look for­ward to ex­pand­ing our team of FSOs to more POS Malaysia branches in the months to come.” Gi­bral­tar BSN and POS Malaysia cur­rently of­fer the “Pos Hayat” and “Pos Bes­tari” life in­surance plans at POS Malaysia out­lets. Pos Hayat is a ba­sic life in­surance cover that comes with Dengue pro­tec­tion ben­e­fits, while Pos Bes­tari is a com­pre­hen­sive life pro­tec­tion plan with sav­ings, com­plete with guar­an­teed cash pay­outs and ma­tu­rity ben­e­fits for cov­er­age up to age 88.

ZURICH IN­SURANCE LAUNCHES LAT­EST EN­DOW­MENT PLAN – ZURICH FAVOUR8

Source: Zurich In­surance Press Re­lease, 18

Fe­bru­ary 2016

In line with its com­mit­ment to con­tin­u­ously pro­vide so­lu­tions that en­able cus­tomers to pro­tect and strengthen their fi­nan­cial well­be­ing, Zurich In­surance Malaysia Ber­had (ZIMB) in­tro­duces Zurich Favour8, a unique en­dow­ment plan for Malaysians who are look­ing for short-term in­vest­ment com­mit­ment with long-term, steady and con­sis­tent gains.

Speak­ing at the launch, Philip Smith, Chief Ex­ec­u­tive Of­fi­cer of ZIMB ex­plained, “At Zurich, we take note of the var­i­ous chal­lenges that Malaysians face in their quest to build a se­cure fi­nan­cial safety net for their loved ones. We are com­mit­ted to pro­vide holis­tic and in­tel­li­gent pro­tec­tion to Malaysians so that they can live life with con­fi­dence, even in the midst of a tough eco­nomic cli­mate. Through Zurich Favour8, we aim to pro­mote fi­nan­cial well­ness to our cus­tomers so that they are fi­nan­cially se­cure

and will have ad­e­quate sav­ings to ful­fil their fi­nan­cial needs and as­pi­ra­tions for to­day, to­mor­row and the fu­ture.”

Zurich Favour8 is a limited pay, non­par­tic­i­pat­ing en­dow­ment plan that of­fers guar­an­teed cash back plus po­ten­tial in­vest­ment gains through its in­vest­ment fea­ture which is avail­able to any­one be­tween 30 days at­tained age and 65 years old. Zurich Favour8 re­quires cus­tomers to pay pre­mi­ums for eight years only. For a rel­a­tively short-term com­mit­ment, cus­tomers get to en­joy long-term cash sav­ings and pro­tec­tion over 20 years.

Zurich Favour8 re­wards cus­tomers with guar­an­teed an­nual cash back equiv­a­lent to 4% of the pol­icy’s ba­sic sum as­sured from the end of the first pol­icy year up till the end of the 10th pol­icy year, and 8% of the pol­icy’s ba­sic sum as­sured from the end of the 11th pol­icy year up till the end of the 20th pol­icy year. Th­ese an­nual pay­outs add up to 120% of the pol­icy’s ba­sic sum as­sured, and do not af­fect the sum of the pol­icy’s ma­tu­rity ben­e­fits.

Mukesh Dhawan, Gen­eral Man­ager of Life In­surance of ZIMB ex­pressed that Zurich Favour8 is a unique prod­uct that de­liv­ers what it prom­ises and more. “On top of the guar­an­teed an­nual cash back that is the hall­mark of con­ven­tional en­dow­ment plans, our cus­tomers will also stand to en­joy po­ten­tial in­vest­ment gains from the per­for­mance of our in­vest­ment-linked funds. We will in­vest part of the to­tal pre­mi­ums paid for Zurich Favour8 into two top-per­form­ing in­vest­ment-linked funds; Zurich Vul­ture Fund and Zurich Global Edge Fund. I am also pleased to note that our Zurich for­eign Edge funds have col­lec­tively crossed the RM100 mil­lion mark on 28 De­cem­ber 2015, hit­ting RM102.4 mil­lion since the in­cep­tion of the funds in April 2015.”

Upon ma­tu­rity of the Zurich Favour8 pol­icy, cus­tomers are able to re­ceive a guar­an­teed ma­tu­rity ben­e­fit

com­pris­ing 128% of the ba­sic sum as­sured as well as any po­ten­tial in­vest­ment gains. Apart from fi­nan­cial re­turns, Zurich Favour8 also cov­ers cus­tomers against Death or To­tal and Per­ma­nent Dis­abil­ity (TPD).

PIDM EYES RM604 MIL­LION REV­ENUE FOR FY2016

Source: The Star On­line, 29 Fe­bru­ary 2016

Per­badanan In­surans De­posit Malaysia (PIDM) is aim­ing for rev­enue of RM604 mil­lion and has bud­geted op­er­at­ing ex­penses of RM121 mil­lion, with a pro­jected net sur­plus of RM483 mil­lion for its fi­nan­cial year (FY) 2016.

It said by the end of 2016, the sur­pluses in its De­posit In­surance Funds (DIFs) and the Taka­ful and In­surance Ben­e­fits Pro­tec­tion Funds (TIPFs) would to­tal RM1.7 bil­lion and RM1.4 bil­lion, re­spec­tively.

“The DIFs and TIPFs are re­serves ac­cu­mu­lated to cover fu­ture losses that may arise from pro­vid­ing pro­tec­tion to de­pos­i­tors and pol­icy own­ers re­spec­tively,” it said in a state­ment, re­leased in con­junc­tion with its Cor­po­rate Plan 2016 – 2018 An­nounce­ment, in Kuala Lumpur.

The Sum­mary of PIDMs Cor­po­rate Plan 2016 – 2018 out­lines its key ini­tia­tives for the next three years. For the plan­ning pe­riod, the cor­po­ra­tions

ef­forts are fo­cused on en­hanc­ing its in­ter­nal pro­cesses, sup­port­ing the growth and de­vel­op­ment of its em­ploy­ees, and con­tin­ued en­gage­ment with its stake­hold­ers.

Chief Ex­ec­u­tive Of­fi­cer, Jean Pierre Sobourin said its key ini­tia­tive in 2016 was “the re­search and de­vel­op­ment of a res­o­lu­tion plan frame­work so that (a predica­ment in­volv­ing) a mem­ber in­sti­tu­tion could be re­solved in an or­derly man­ner, with­out se­vere sys­temic dis­rup­tion and with­out ex­pos­ing tax­pay­ers to loss, while pro­tect­ing vi­tal eco­nomic func­tions.”

He said the three-year rolling plan was to en­sure long-term sus­tain­abil­ity in achiev­ing PIDM’s vi­sion of be­com­ing a best prac­tice fi­nan­cial consumer pro­tec­tion and res­o­lu­tion au­thor­ity.

“As the fi­nan­cial ser­vices land­scape con­tin­ues to evolve, we must re­main in a con­stant state of readi­ness to carry out our man­date ef­fi­ciently and ef­fec­tively. We must al­ways be ready for any even­tu­al­ity, which means hav­ing all the crit­i­cal el­e­ments in place to deal with all key risks,” he said.

The Cor­po­rate Plan 2016 – 2018 is posted on the PIDM web­site (www. pidm.gov.my) in four lan­guages – Ba­hasa Malaysia, English, Chi­nese and Tamil.

BERK­SHIRE HATH­AWAY SPE­CIALTY IN­SURANCE COM­PANY LAUNCHES PRO­FES­SIONAL FIRST AS­SET MAN­AGE­MENT LI­A­BIL­ITY POL­ICY IN ASIA

Source: BH Spe­cialty Press Re­lease, 2 March

2016

Berk­shire Hath­away Spe­cialty In­surance Com­pany (BHSI) in­tro­duced Pro­fes­sional FirstTM As­set Man­age­ment Li­a­bil­ity In­surance, which pro­vides com­pre­hen­sive and clearly worded pro­fes­sional li­a­bil­ity, di­rec­tors & of­fi­cers li­a­bil­ity, em­ploy­ment prac­tices li­a­bil­ity and

crime cov­er­age for mu­tual funds, al­ter­na­tive funds and as­set man­agers in Asia.

“Volatile in­vest­ment mar­kets cou­pled with in­creased reg­u­la­tory over­sight and op­er­a­tional ex­po­sures have left as­set man­agers through­out Asia more vul­ner­a­ble to claims than ever,” said Mar­cus Port­bury, Se­nior Vice Pres­i­dent, Re­gional Head of Third Party Lines for BHSI in Asia. “Our Pro­fes­sional First As­set Man­age­ment Li­a­bil­ity In­surance pro­vides the com­pre­hen­sive cov­er­age th­ese pro­fes­sion­als need in a highly cus­tomis­able form, backed by the bal­ance sheet and claims han­dling ex­per­tise of BHSI.”

As­set man­agers can pick and choose cov­er­age com­bi­na­tions and lim­its to suit their needs. Cov­er­age en­com­passes a va­ri­ety of pro­fes­sional ser­vices pro­vided by as­set man­agers and can be tailored for in­vest­ment struc­tures and ve­hi­cles across all in­vest­ment classes and ge­o­graphic lo­ca­tions. Cov­er­age for costs in­curred to proac­tively mit­i­gate claims or po­ten­tial claims is built into the pol­icy. In ad­di­tion, the As­set Man­age­ment Li­a­bil­ity pol­icy au­to­mat­i­cally ex­tends cov­er­age to new funds the in­sured cre­ates or ac­quires dur­ing the pol­icy pe­riod (with no re­stric­tion on as­set or fund size) and to new sub­sidiaries the

in­sured cre­ates or ac­quires dur­ing the pol­icy pe­riod (within a gen­er­ous as­set thresh­old).

As­set Man­age­ment Li­a­bil­ity In­surance is the new­est ad­di­tion to BHSI’s Pro­fes­sional First suite of pro­fes­sional li­a­bil­ity prod­ucts, all of which are de­signed to pro­vide clear, cur­rent and cus­tomis­able cov­er­age in con­nec­tion with pro­fes­sional ser­vices ren­dered by fi­nan­cial and com­mer­cial firms.

IN­DIA: HEALTH PRO­TEC­TION GAPS BIG­GEST IN ASIA

Source: Asian In­surance Re­view, 7 March

2016

In­dia has one of the big­gest health pro­tec­tion gaps in Asia, which is ex­pected to in­crease by 12.3% an­nu­ally to US$214 bil­lion by 2020, ac­cord­ing to a Swiss Re re­port.

The country is likely to face a short­fall in health­care fi­nanc­ing of close to $43 bil­lion in 2020, which will re­quire ad­di­tional fis­cal spend­ing or higher out-of-pocket fund­ing by in­di­vid­u­als, it said.

Only 288 mil­lion (22.2%) of In­dia’s pop­u­la­tion are cov­ered by health in­surance, of which 214 mil­lion are in­sured by govern­ment schemes, 48 mil­lion are cov­ered by group

in­surance, while 25 mil­lion use in­di­vid­ual or fam­ily floater plans, it added.

The govern­ment and so­ci­ety will have to spend more in the fu­ture to meet the grow­ing de­mand for health­care ser­vices due to higher in­come growth and a large pop­u­la­tion.

With the emerg­ing mid­dle class es­ti­mated to grow al­most 10-fold from 50 mil­lion peo­ple at present to 475 mil­lion by 2030, the de­mand for qual­ity health­care and speed to ac­cess ser­vices will be greater.

SIN­GA­PORE SET TO CON­TINUE AS LEAD­ING IN­SURANCE HUB IN ASIA DE­SPITE COM­PE­TI­TION FROM EMERG­ING RI­VALS

Source: Axco In­surance Press Re­lease, 2

March 2016

Axco In­surance In­for­ma­tion Ser­vices (Axco) has re­leased its lat­est country re­port on Sin­ga­pore, un­der­lin­ing the city-state’s con­tin­ued strength when it comes to the (re)in­surance in­dus­try, and that it is likely to main­tain its po­si­tion as the pre­em­i­nent (re) in­surance hub in Asia de­spite the emer­gence of ri­val cen­tres in the re­gion.

There are two dis­tinct forces driv­ing the Sin­ga­pore mar­ket which are di­a­met­ri­cally op­posed to each other. The Com­pe­ti­tion Com­mis­sion is ac­tive in try­ing to en­sure per­sonal lines busi­ness re­mains as af­ford­able as pos­si­ble. At the same time, the reg­u­la­tor is un­der pres­sure from in­ter­na­tional fi­nan­cial in­sti­tu­tions to en­sure the en­hanced sol­u­bil­ity of the mar­ket by in­tro­duc­ing stricter sol­vency rules and en­ter­prise risk man­age­ment regimes.

Ca­pac­ity is in­creas­ing all the time in re­spect of the num­ber of com­pa­nies op­er­at­ing, both for do­mes­tic and re­gional busi­ness, and also in terms

of in­di­vid­ual com­pany un­der­writ­ing ca­pac­ity and the scope and breadth of classes of­fered.

Off­shore busi­ness in­creased in vol­ume from $1.5 bil­lion to $6.1 bil­lion in the seven years to 2013 and much of this has been driven by rein­sur­ance in the re­gion. Sin­ga­pore is the largest rein­sur­ance hub in Asia, not just amongst its ASEAN part­ners. Whilst

the larger rein­sur­ers main­tain of­fices in other parts of Asia – Hong Kong, Shang­hai, Kuala Lumpur and Labuan – Sin­ga­pore re­mains the lo­ca­tion of choice for a sin­gle Far East re­gional op­er­a­tion.

Tim Yeates, Man­ag­ing Di­rec­tor at Axco com­mented: “Sin­ga­pore has long been the des­ti­na­tion of choice for (re)in­sur­ers look­ing to es­tab­lish

a foothold in Asia and this sta­tus is un­likely to change in the near fu­ture thanks to a stable govern­ment, a favourable tax regime, ex­cel­lent com­mu­ni­ca­tions and well trained staff. The im­ple­men­ta­tion of free­dom of ser­vices across the 10 ASEAN mem­ber states which is pre­dicted to ap­ply to (re)in­surance in the next few years will fur­ther boost an al­ready strong mar­ket.”

PIDM's Sum­mary of The Cor­po­rate Plan 2016 – 2018

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