AFR ASIA PACIFIC LIMITED, MALAYSIA’S FIRST HOME GROWN REINSURANCE BROKERS GAINS APPROVAL FROM LLOYD’S
Source: Labuan IBFC Press Release, 14
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
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
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
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
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
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