About MII - MII Knowledge Centre in 1968 as a non-profit organisation, MII is the leading insurance...

1Knowledge Pack Vol 4

About MII

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THE MALAYSIAN INSURANCE INSTITUTE2

EDUCATION AND TRAINING BODY

Founded in 1968 as a non-profit organisation, MII is the leading insurance education and training institution, providing internationally recognized qualifications in insurance, risk management and financial planning. It is highly respected as a regional centre that offers an extensive range of quality education and training programmes for professionals in the insurance and financial services industries. As the premier professional insurance education provider in Malaysia, MII works closely with the insurance industry with the full support from the Regulator, Bank Negara Malaysia to ensure that the training and education programmes conducted are relevant and in full alignment to the ever-changing needs of the industry.

Annually, MII conducts an average of 300 technical training programmes for insurers (life and general), brokers, adjusters, reinsurers, regulators with about 10,000 participants from Malaysia and other countries. The excellent track record has earned MII a seat on the Education Board of the Federation of Afro Asian Insurers and Reinsurers (FAIR) based in Egypt with members across Africa and Asia.On an ongoing basis, MII also conducts training for life and general insurance agents to equip them with the necessary skills to better provide value added services to their clients. MII in collaboration with LIMRA (USA) conduct the Agency Management Training Course (AMTC) to further enhance the professionalism of the life insurance agency leaders.

MII has two flagship professional programmes i.e The Diploma of The Malaysian Insurance Institute (DMII) and The Associateship of The Malaysian Insurance Institute (AMII). They are highly sought after and are the benchmark standards for the industry both locally as well as in the emerging markets.

PROFESSIONAL SERVICE PROVIDEROF THE YEAR 2007

EDUCATIONAL SERVICE PROVIDER OF THE YEAR 2012



EXAMINATION CENTRE

MII is the custodian of education standards for the industry and is endorsed as the official examination centre for the insurance industry. There are about 13 major examinations for the local industry that cover over 60,000 candidates annually. Due to the excellent track record and established credibility as an examination centre, MII is also entrusted as the regional hub to facilitate various external examinations offered by other established examining bodies such as Chartered Insurance Institute (CII, UK), Society of Actuaries (SOA, USA), Casualty Actuarial Society (CAS, USA), The Institute of Risk Management (IRM, UK), Chartered Institute of Loss Adjusters (CILA, UK) and others.

INSURANCE INFORMATION CENTRE

MII prides itself as having a specialized library in insurance and insurance related areas. It has an extensive collection of books, journals and magazines related to insurance. Through its elibrary portal, there is extensive links to companies in the industry, Insurance Associations, the Regulators, University libraries, newspapers, publishing houses and other related bodies. MII also has an archive collection for reference.

CONFERENCE ORGANISER

Annually, MII conducts about eight conferences which are specially designed to meet the specific needs of the industry. These conferences receive tremendous support from various organizations both locally as well as internationally. Apart from gaining and sharing of knowledge and experiences, our conferences provide the value added platform for networking.

AFFILIATION WITH INTERNATIONAL BODIES

MII has a firm belief in collaborating its efforts and resources together with other reputable insurance education bodies throughout the world so as to maximize and leverage on each other’s strengths. MII’s commitment to deliver the best quality standards in education is reflected in its international links with major insurance institutions, universities and relevant organisations. Among the collaborations that MII has established are with The Chartered Insurance Institute (UK), Australasian Institute of Chartered Loss adjusters (AICLA), Chartered Institute of Loss Adjusters (CILA), Australian New Zealand Institute of Insurance and Finance (ANZIIF), LOMA (USA), Institute of Risk Management (UK), LIMRA (USA) and others.



INTERNATIONAL PRESENCE

While addressing the domestic needs will always remain as a main focus and priority, MII has also spread its wings into the international scene, particularly in fulfilling the needs of the emerging markets. This is in line with its vision to be the preferred Institute for training solutions, education and information in insurance in Malaysia and the emerging markets. The increasing numbers and wide range of international training participants and conference delegates is a testimony of the recognition and regard for the relevant and high quality programmes being offered by MII. MII’s presence in the emerging market, particularly within the ASEAN region is quite significant. When the 10 ASEAN insurance regulatory authorities formed the ASEAN Insurance Training & Research Institute (AITRI), MII was given the honour to lead as the secretariat for AITRI. AITRI is a non-profit organisation to provide regional research, insurance education and training support for the regulators as well as the industry of the ASEAN member countries. Its activities are featured in international publications and have gained great recognition and international support such as the World Bank (USA), International Association for Insurance Supervisors (Switzerland), Office of the Superintendent of Financial Institutions (Canada) and others.

INTERNATIONAL AWARD

In 2007, MII won the Professional Service Provider of the Year 2007 Award by The Review Worldwide Reinsurance in London. MII emerged as the first ever winner from Asia since the award started 14 years ago. Among the reasons for the recognition of the award was MII’s on going effort and commitment in providing training and development to the emerging markets.

For further details, please contact :THE MALAYSIAN INSURANCE INSTITUTE5, Jalan Sri Semantan Satu, Damansara Heights, 50490 Kuala LumpurTel: +603-2087 8882 / 8883 (Customer Service) Fax : +603-2093 7885Email : [email protected] Web : www.insurance.com.my



MALAYSIAN INSURANCE INDICATORBank Negara Malaysia Insurance Statistics 2011



MALAYSIAN INSURANCE INDICATORS

Page

Table 1.1 Insurance Key Indicators 7Table 1.2 Number of Licensees 12Table 1.3 Number of Branches 12Table 1.4 Distribution of Paid-up Capital of Malaysian-incorporated Insurers 13Table 1.5 Distribution of Paid-up Capital of Insurance Brokers 13Table 1.6 Distribution of Paid-up Capital of Adjusters 13Table 1.7 Distribution of Paid-up Capital of Financial Advisers 14Table 1.8 Shareholders’ Equity of Malaysian-incorporated Insurers 14Table 1.9 Capital Adequacy Ratio 15Table 1.10 Compounding of Offences, 2011 14Table 1.11 Insurance Guarantee Scheme Fund : Compensation and Expenses 16Table 2.1 Life Insurance : New Business of Direct Insurers 17Table 2.2 Life Insurance : Business in Force of Direct Insurers 17Table 2.3 Life Insurance : Distribution of New Business Premiums of Direct Insurers 18Table 2.4 Life Insurance : Distribution of Annual Premiums in Force of Direct Insurers 19Table 2.5 Life Insurance : Distribution of New Sums Insured of Direct Insurers 20Table 2.6 Life Insurance : Distribution of Sum Insured in Force of Direct Insurers 21Table 2.7 Life Insurance : Average Size and Cost of Ordinary Individual Life New Policies of Direct Insurers 22Table 2.8 Life Insurance : Average Size and Cost of Ordinary Individual Life Policies of Direct Insurers 22Table 2.9 Life Insurance : Terminations of Annual Premiums of Direct Insurers 23Table 2.10 Life Insurance : Terminations of Sums Insured of Direct Insurers 24Table 2.11 Life Insurance : Forfeiture and Surrender Rates of Direct insurers 25Table 2.12 Life Insurance : Forfeiture Rate by Policy Years of Direct Insurers 25Table 2.13 Life Insurance : Income and Outgo 26Table 2.14 Life Insurance : Expense Rate and Rate of Interest Earned 27Table 2.15 Life Insurance : Assest of Life Insurance Funds 28Table 2.16 Life Insurance : Valuation result and Surplus Distribution 29Table 2.17 Life Insurance : Life Insurance Growth and Socio-economic Indicators 30Table 2.18 Life Insurance : The Rates of Mortality for Duration of Two or More Years 31Table 3.1 General Insurance : Premium Income 32Table 3.2 General Insurance : Distribution of Gross Direct Premiums 33Table 3.3 General Insurance : Distribution of Net Premiums 34Table 3.4 General Insurance : Net Retention Ratio 35Table 3.5 General Insurance : Net Reinsurance Position ,2011 36Table 3.6 General Insurance : Claims Ratio 37Table 3.7 General Insurance : Underwriting Experience 38Table 3.8 General Insurance : Underwriting and Operating Results 39Table 3.9 General Insurance : Assets of General Insurance Funds 40Table 3.10 General Insurance : Classification by Size of General Insurance Funds 41Table 3.11 General Insurance : Technical Reserves 42Table 3.12 General Insurance : Average Link Ratio for Cumulative Paid Claims and Emergence of Claims 43Table 3.13 General Insurance : Ultimate Claims Ratio 44Table 3.14 General Insurance : Estimated Average Frequency of Loss and Average Cost per Claim 44Table 3.15 General Insurance : Performance of Professional General Reinsurers 45Table 4.1 Insurance Broking : Total Premium Transacted 46Table 4.2 Insurance Broking : Outstanding Premiums Due to Insurers 47Table 4.3 Insurance Broking : Operating Results of Brokers 47Table 5.1 Loss Adjusting : Cases handled by Adjusters 48Table 5.2 Loss Adjusting : Operating Results of Adjusters 48



Source : Bank Negara Malaysia Insurance Statistics 2011

Market Structure 19902 2008 2009 2010 2011

No. of licensees 147 128 128 132 130

Direct insurers 57 42 40 39 37

Life 3 9 9 9 9

General6 39 26 24 24 22

Life and General 15 7 7 6 6

Professional reinsurers 1 7 7 7 7

Life - 1 1 1 1

General 1 5 5 5 5

Life and General - 1 1 1 1

Insurance brokers 46 34 33 33 33

Adjusters 43 37 36 36 36

Financial Advisers n.a. 8 12 17 17

No. of registered agents

Life 37,373 74,887 80,078 87,163 83,174

General 14,456 38,766 35,930 35,236 35,609

No. of offices

Insurers 448 729 715 696 675

Insurance brokers n.a. 26 28 26 31

Adjusters n.a. 174 163 175 176


No. of resources employed

Insurers 10,173 20,825 20,073 20,736 21,983

Insurance brokers 787 1,294 1,289 1,278 1,327

Adjusters 694 1,924 1,885 1,941 1,875


No. of qualifications held by insurance personnel3

2,091 12,896 13,465 14,251 15,275

Table 1.1: Insurance Key Indicators1




19902 2008 2009 2010 2011

Premium Income Total (RMm)

3,170.1 27,720.2 29,208.2 31,932.6 33,653.0

Premium (% of GNI) 2.9 3.9 4.4 4.3 4.1

Life (% of GNI) 1.5 2.6 3.0 2.9 2.7

General (% of GNI) 1.4 1.3 1.4 1.4 1.3

Per capita insurance premium expenditure (RM) on:

Life insurance4 92 676 711 770 797

General insurance5 111 393 413 445 475

Benefit Payments Total (RMm)

1,170.6 15,087.0 17,398.7 18,829.5 19,870.7

Life 522.6 10,014.1 11,838.5 13,023.4 13,978.9

General 648.0 5,072.9 5,560.2 5,806.1 5,891.8

Insurance Fund Assets Total (RMm)

9,498.1 130,940.9 148,638.2 166,191.2 178,306.2

Life 7,097.2 109,372.7 125,824.8 141,458.3 151,970.9

General 2,400.9 21,568.2 22,813.4 24,732.9 26,335.3

% of GNI 8.6 18.3 22.4 22.5 21.5

% of total assets of the financial system

2.9 5.1 5.4 5.5 5.1

LIFE INSURANCE

New Business

No. of policies 498,338 1,585,846 1,387,724 1,426,280 1,502,110

Sums insured (RMm) 24,805.0 219,066.9 239,605.9 274,776.8 287,097.5

Total premiums (RMm) 573.1 7,234.7 7,544.4 8,397.0 7,913.7

Business in Force

No. of policies 2,388,585 11,522,202 11,809,112 12,145,520 12,452,946

Sums insured (RMm) 86,678.0 771,274.8 791,360.8 881,935.9 948,666.3

(% of GNI) 78.3 107.9 119.0 119.3 114.2

Annual premiums (RMm)

1,576.7 15,446.4 17,347.4 19,295.7 21,130.4

Table 1.1: Insurance Key Indicators1 (contd.)





LIFE INSURANCE (contd.)

19902 2008 2009 2010 2011

Distribution of Sums Insured in Force (%)

Whole Life 35.8 23.1 23.2 21.4 20.2

Endowment 13.5 8.5 8.3 7.8 7.4

Temporary 46.6 42.2 41.0 43.2 43.3

Investment-linked - 19.1 20.6 21.1 22.6

Annuity … … … … …

Others 4.1 7.0 6.9 6.5 6.4

Premium Income (RMm)

1,643.1 18,736.9 19,831.3 21,804.7 22,794.1

Net Policy Benefits Total (RMm)

522.6 10,014.1 11,838.5 13,023.4 13,978.9

Death and disability 160.2 951.0 977.2 1,027.9 1,092.3

Maturity/Vesting 178.3 2,747.2 4,368.4 4,224.1 4,359.6

Surrender 127.6 2,794.2 2,706.0 3,812.5 3,889.9

Cash bonuses 56.5 1,431.1 1,357.6 1,462.5 1,871.1

Medical n.a. 1,277.5 1,458.2 1,596.1 1,788.4

Others n.a. 813.3 971.2 900.2 977.7

Net Investment Income (RMm)

431.8 4,911.7 4,926.5 5,448.6 6,034.3

3 Policy Years Forfeiture Rate (%)

24.5 23.6 19.2 17.0 17.4

Surrender Rate (%) 1.5 2.8 2.7 2.5 2.4

Expense Rate (%) 45.9 28.0 28.1 28.1 27.5

Rate of Interest Earned (%) (excluding capital gains)

7.2 4.6 4.9 4.7 5.0




GENERAL INSURANCE

19902 2008 2009 2010 2011

Premium (RMm)

Gross Direct Premiums5 1,979.1 10,894.0 11,531.2 12,584.7 13,596.1

Net Premiums 1,527.0 8,983.3 9,376.9 10,127.9 10,858.9

Earned Premiums 1,405.8 8,585.5 9,264.1 9,912.6 10,498.2

Reinsurance Premiums placed outside Malaysia

452.1 713.5 807.1 853.2 870.2

Retention Ratio (%) 77.2 92.6 92.1 92.2 92.6

Oversea Reinsurance Business (RMm)

44.9 449.3 610.8 698.9 814.3

Net Premiums Total (RMm)

1,527.0 8,983.3 9,376.9 10,127.9 10,858.9

Marine, aviation and transit

92.3 440.2 393.0 410.2 475.81,327.0

Fire 298.4 1,410.7 1,429.1 1,496.5 1,563.1

Motor

- Total- ‘Act’ cover- Others

782.0175.2606.8

4,835.0581.8

4,253.2

5,195.5579.2

4,616.3

5,659.1600.9

5,058.3

5,968.1620.0

5,348.1

Contractors' all risks and engineering

n.a. 228.1 227.4 225.8 248.1

Medical expenses and personal accident

n.a. 1,289.3 1,373.0 1,550.8 1,769.5

Liability n.a. 182.3 195.1 201.4 223.6

Workmen's compensation and employers' liability

n.a. 142.6 141.8 153.7 166.4

Miscellaneous 354.3 455.2 422.0 430.3 444.3

Claims (RMm)

Gross less local recoveries

898.6 5,326.3 5,808.4 6,095.0 6,152.9

Net claims paid 648.0 5,072.9 5,560.2 5,806.1 5,891.8






GENERAL INSURANCE (contd.)

19902 2008 2009 2010 2011

Claims RatioTotal (%)

69.2 65.9 60.7 62.6 60.3


64.9 46.0 28.5 36.8 42.3

Fire 29.2 35.2 34.7 30.1 38.0

Motor

- Total- ‘Act’ cover- Others

91.1198.658.9

85.5271.361.0

79.9265.358.7

81.0290.560.0

76.2296.053.1

Contractors' all risks and engineering

n.a. 54.4 31.1 63.5 28.7

Medical expenses and personal accident

n.a. 52.5 49.9 50.7 43.7

Liability n.a. 24.0 25.4 39.8 34.2

Workmen's compensation and employers' liability

n.a. 21.4 15.6 18.5 15.1

Miscellaneous 56.5 48.7 50.3 40.1 56.7

Underwriting Result (%)

Claims ratio 69.2 65.9 60.7 62.6 60.3

Management expenses ratio

20.8 21.2 19.4 18.6 18.4

Commissions ratio 19.3 11.7 11.4 11.0 11.1

Underwriting margin -9.3 1.2 8.5 7.7 10.2

Operating Results (RMm)

Underwriting gain/loss -130.3 101.4 791.5 767.1 1,074.9

Investment income 94.7 782.3 740.1 780.8 883.1

Operating profit/loss -147.5 571.2 1,866.6 1,869.8 2,085.8

1 As at calendar year end, unless indicated otherwise 2 As at financial year end, covering the period from 1 May - 30 April 3 Academic and professional qualifications of employees of insurers only 4 As per revenue account 5 Premiums on original gross rate charged to clients in respect of direct insurance business without any deduction for

commission or brokerage 6 Number for 2009 and 2010 including license issued to Danajamin Nasional Berhad (Danajamin)n.a. Not available… Negligible Numbers may not necessarily add up due to rounding




As at end of December 2010 2011

Direct insurers

Malaysian-incorporated 1 39 37

Foreign-incorporated - -

Sub-total 39 37

Professional reinsurers

Malaysian-incorporated 3 3

Foreign-incorporated 4 4

Sub-total 7 7

Total insurers 46 44

Insurance Brokers 33 33

Adjusters 36 36

Financial Advisers 17 17

Insurers Insurance Brokers

Adjusters Financial Advisers

Approved in 2011 19 3 1 -

Operating as at 31 December 2011

675 31 176 6

Table 1.2: Number of Licensees

Table 1.3: Number of Branches

1 Number for 2010 and 2011 including license issued to Danajamin Nasional Berhad (Danajamin)




As at end of December

2010 2011

RMm % RMm %

Held by Malaysians 3,107.5 44.8 2,694.4 37.2

Bumiputera 1,618.4 23.3 1,446.6 20.0

Non-Bumiputera 1,489.1 21.5 1,247.8 17.2

Held by non-Malaysians 3,827.5 55.2 4,551.4 62.8

Total 6,935.0 100.0 7,245.8 100.0


2010 2011

RMm % RMm %

Held by Malaysians 47.9 92.9 51.0 94.4

Bumiputera 41.1 79.9 44.2 81.7

Non-Bumiputera 6.7 13.0 6.8 12.7

Held by non-Malaysians 3.6 7.1 3.0 5.6

Total 51.5 100.0 54.0 100.0


2010 2011

RMm % RMm %


Bumiputera 6.0 43.3 6.1 44.1



Total 13.9 100 13.9 100

Table 1.4: Distribution of Paid-up Capital of Malaysian-incorporated Insurers

Table 1.5: Distribution of Paid-up Capitalof Insurance Brokers

Table 1.6: Distribution of Paid-up Capital of Adjusters





2010 2011

RMm % RMm %


Bumiputera 0.4 5.8 0.3 3.7



Total 6.5 100 7.7 100


2010 2011

RM million

Paid-up capital 6,935.0 7,245.8

Retained profit 7,106.0 7,319.2

Other reserves 1,881.8 1,842.2

Total 15,922.8 16,407.2

Nature of Offence Number of Licensees Fined

Contravention of :-

Section 67(1) 1

Section 74(1) 1

Section 150 (4) (a) 1

Table 1.7: Distribution of Paid-up Capital of Financial Advisers

Table 1.8: Shareholders’ Equity of Malaysian-incorporated Insurers

Table 1.10: Compounding of Offences, 2011




As

at

31

Dece

mb

er

2010

Life

In

sura

nce

Co

mp

an

ies

Gen

era

l In

sura

nce

Co

mp

an

ies

Co

mp

osi

te2 I

nsu

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om

pan

ies

Co

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lid

ate

d I

nd

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ry

2010

2011

2010

2011

2010

2011

2010

2011

RM

mill

ion

Tota

l Cap

ital

Ava

ilabl

e8,

460.

08,

341.

68,

639.

99,

610.

616

,563

.818

,549

.033

,663

.736

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.1

Tota

l Cap

ital

Requ

ired

3,49

5.8

3,66

5.8

4,16

2.1

4,32

7.3

7,26

9.1

8,41

4.6

14,9

27.0

16,4

07.7

Cap

ital A

dequ

acy

Ratio

(%)

242.

022

7.6

207.

622

2.1

227.

922

0.4

225.

522

2.5

Tab

le 1

.9: C

ap

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Ad

eq

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Rati

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1

Base

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con

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ated

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a as

at

31 D

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2

Life

and

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s




Am

ou

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sett

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to

date

FGI

SEG

MIS

BTo

tal

2010

2011

2010

2011

2010

2011

2010

2011

RM

’ 000

Judg

emen

t aw

ards

4,85

64,

856

11,3

5811

,588

70,6

0270

,727

86,8

1687

,171

Out

-of-

cour

t se

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men

ts1,

295

1,29

551

751

711

9,59

311

9,82

112

1,40

512

1,63

3

Expe

nses

: MIB

(Adm

inis

trat

ive

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t)26

926

9-

--

-26

926

9

Prof

essi

onal

cha

rges

763

763

--

--

763

763

Prem

ium

ref

unds

--

--

1,97

91,

979

1,97

91,

979

Dep

osit

refu

nd (b

ond)

--

--

520

520

520

520

Oth

ers

18

8-

-12

,311

12,3

1112

,319

12,3

19

Tota

l7,

191

7,19

111

,875

12,1

0520

5,00

520

5,35

822

4,07

122

4,65

4

% c

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02.

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20.

20.

3

No.

of

case

s se

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No.

of

case

s se

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d to

dat

e88

388

31,

231

1,26

447

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47,0

8749

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49,2

34

Tab

le 1

.11: In

sura

nce

Gu

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nte

e S

chem

e F

un

d : C

om

pen

sati

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an

d E

xp

en

ses

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I Fi

rst

Gen

eral

Insu

ranc

e (M

) Sdn

. Bhd

.

SEG

SE

G In

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Sdn.

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.

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B

Mer

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ile In

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’ fee

s




YearNo. of

PoliciesSums

InsuredPremiums

Annual Single Total

Units RM million

2007 1,337,514 185,066.0 2,370.3 5,216.7 7,587.0

2008 1,585,846 219,066.9 2,539.6 4,695.1 7,234.7

2009 1,387,724 239,605.9 3,217.5 4,326.9 7,544.4

2010 1,426,280 274,776.8 3,745.9 4,651.1 8,397.0

2011 1,502,110 287,097.5 4,071.5 3,842.2 7,913.7

% change

2007 2.6 -1.0 9.7 4.3 5.9

2008 18.6 18.4 7.1 -10.0 -4.6

2009 -12.5 9.4 26.7 -7.8 4.3

2010 2.8 14.7 16.4 7.5 11.3

2011 5.3 4.5 8.7 -17.4 -5.8

YearNo. of Policies Sums Insured Premiums Annual

Units RM million

2007 10,909,842 722,679.4 14,538.8

2008 11,522,202 771,274.8 15,446.4

2009 11,809,112 791,360.8 17,347.4

2010 12,145,520 881,935.9 19,295.7

2011 12,452,946 948,666.3 21,130.4

% change

2007 3.6 7.4 9.1

2008 5.6 6.7 6.2

2009 2.5 2.6 12.3

2010 2.8 11.4 11.2

2011 2.5 7.6 9.5

Table 2.1: Life Insurance : New Business of Direct Insurers

Table 2.2: Life Insurance : Business in Force of Direct Insurers




Year

Ord

inary

Lif

eIn

vest

men

t-Li

nked

An

nu

ity

Tota

lW

ho

le L

ife

En

do

wm

en

tTe

mp

ora

ryO

thers

RM

mil

lio

n

2007

603.

4 1,

312.

41,

122.

081

5.6

3,73

3.5

-7,

587.

0

2008

661.

21,

641.

71,

300.

396

5.7

2,66

5.7

0.1

7,23

4.7

2009

789.

02,

248.

01,

319.

71,

040.

72,

146.

90.

17,

544.

4

2010

748.

72,

330.

11,

504.

41,

118.

82,

695.

10.

18,

397.

1

2011

633.

3 1,

567.

41,

320.

62,

755.

5-

7,91

3.7

% c

han

ge

2007

15.2

-1

5.4

-8.2

18.3

17.6

-100

.05.

9

2008

9.6

25.1

15.9

18.4

-28.

6-

-4.6

2009

19.3

36

.91.

57.

8-1

9.5

-4.

3

2010

-5.1

3.

714

.07.

525

.5-

11.3

2011

-15.

4 -2

9.7

4.2

18.0

2.2

--5

.8

% s

har

e

2007

8.0

17.3

14

.810

.849

.2…

100.

0

2008

9.1

22.7

18.0

13.3

36.8

…

100.

0

2009

10.5

29

.817

.513

.828

.5…

100.

0

2010

8.9

27.7

17.9

13.3

32.1

…

100.

0

2011

8.0

20.7

19.8

16.7

34.8

…10

0.0

Tab

le 2

.3: Li

fe I

nsu

ran

ce : D

istr

ibu

tio

n o

f N

ew

Bu

sin

ess

Pre

miu

ms

of

Dir

ect

In

sure

rs

...

N

eglig

ible

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

Ord

inary

Lif

eIn

vest

men

t-Li

nked

Tota

lW

ho

le L

ife

En

do

wm

en

tTe

mp

ora

ryO

thers

RM

mil

lio

n

2007

4,90

4.3

2,68

8.1

457.

31,

994.

04,

495.

114

,538

.8

2008

5,24

6.5

2,89

8.7

467.

42,

200.

74,

633.

115

,446

.4

2009

5,66

1.5

3,31

3.0

477.

82,

585.

55,

309.

617

,347

.4

2010

5,99

9.7

3,77

6.2

487.

72,

849.

36,

182.

719

,295

.7

2011

6,16

7.3

4,46

7.8

481.

43,

063.

56,

950.

521

,130

.4

% c

han

ge

2007

6.5

3.6

1.2

10.3

16.3

9.1

2008

7.0

7.8

2.2

10.4

3.1

6.2

2009

7.9

14.3

2.2

17.5

14.6

12.3

2010

6.0

14.0

2.1

10.2

16.4

11.2

2011

2.8

18.3

-1.3

7.5

12.4

9.5

% s

har

e

2007

33.7

18.5

3.1

13.7

30.9

100.

0

2008

34.0

18.8

3.0

14.2

30.0

100.

0

2009

32.6

19.1

2.8

14.9

30.6

100.

0

2010

31.1

19.6

2.5

14.8

32.0

100.

0

2011

29.2

21.1

2.3

14.5

32.9

100.

0

Tab

le 2

.4: Li

fe I

nsu

ran

ce : D

istr

ibu

tio

n o

f A

nn

ual

Pre

miu

ms

in F

orc

e o

f D

irect

In

sure

rs

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Year

Ord

inary

Lif

eIn

vest

men

t-Li

nked

An

nu

ity

Tota

lW

ho

le L

ife

En

do

wm

en

tTe

mp

ora

ryO

thers

RM

mil

lio

n

2007

12,2

59.2

14

,985

.212

0,03

5.8

10,5

39.1

27,2

46.7

-18

5,06

6.0

2008

13,1

12.0

15

,983

.614

5,72

1.0

12,5

54.9

31,6

95.5

-21

9,06

6.9

2009

13,6

90.4

16

,840

.916

0,89

3.3

13,6

31.7

34,5

49.6

-23

9,60

5.9

2010

12,0

56.6

16

,743

.118

9,41

3.6

14,4

70.0

42,0

93.4

-27

4,77

6.8

2011

10,9

14.8

15

,399

.619

4,33

7.3

17,4

65.2

48,9

80.7

-28

7,09

7.5

% c

han

ge

2007

21.8

4.

1-3

.839

.1-9

.7-

-1.0

2008

7.0

6.7

21.4

19.1

16.3

-18

.4

2009

4.4

5.4

10.4

8.6

9.0

-9.

4

2010

-11.

9 -0

.617

.76.

121

.8-

14.7

2011

-9.5

-8

.02.

620

.716

.4-

4.5

% s

har

e

2007

6.6

8.1

64.9

5.7

14.7

-10

0.0

2008

6.0

7.3

66.5

5.7

14.5

-10

0.0

2009

5.7

7.0

67.2

5.7

14.4

-10

0.0

2010

4.4

6.1

68.9

5.3

15.3

-10

0.0

2011

3.8

5.4

67.7

6.1

17.1

-10

0.0

Tab

le 2

.5: Li

fe I

nsu

ran

ce : D

istr

ibu

tio

n o

f N

ew

Su

ms

Insu

red

of

Dir

ect

In

sure

rs

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Year

Ord

inary

Lif

eIn

vest

men

t-Li

nked

An

nu

ity

Tota

lW

ho

le L

ife

En

do

wm

en

tTe

mp

ora

ryO

thers

RM

mil

lio

n

2007

171,

903.

664

,175

.030

3,54

4.4

51,9

72.7

130,

786.

329

7.3

722,

679.

4

2008

178,

243.

465

,796

.132

5,76

7.9

53,6

81.9

147,

507.

727

7.9

771,

274.

8

2009

183,

771.

165

,315

.332

4,58

2.3

54,2

76.8

163,

150.

526

4.7

791,

360.

8

2010

188,

689.

169

,075

.738

1,26

1.5

56,9

72.2

185,

709.

522

7.8

881,

935.

9

2011

191,

649.

069

,920

.741

0,98

6.9

61,1

23.8

214,

780.

820

5.2

948,

666.

3

% c

han

ge

2007

3.4

2.2

9.5

3.5

13.5

-78.

07.

4

2008

3.7

2.5

7.3

3.3

12.8

-6.5

6.7

2009

3.1

-0.7

-0.4

1.

110

.6-4

.82.

6

2010

2.7

5.8

17.5

5.0

13.8

-13.

911

.4

2011

1.6

1.2

7.8

7.3

15.7

-9.9

7.6

% s

har

e

2007

23.8

8.

942

.07.

218

.1…

100.

0

2008

23.1

8.

542

.27.

019

.1…

100.

0

2009

23.2

8.

341

.06.

920

.6…

100.

0

2010

21.4

7.

843

.26.

521

.1…

10

0.0

2011

20.2

7.

443

.36.

422

.6…

100.

0

Tab

le 2

.6: Li

fe I

nsu

ran

ce : D

istr

ibu

tio

n o

f Su

ms

Insu

red

in

Fo

rce o

f D

irect

In

sure

rs

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Year

Avera

ge A

nn

ual

Pre

miu

ms

Avera

ge S

um

s In

sure

dA

vera

ge C

ost

2

Wh

ole

Lif

eEn

do

wm

en

tW

ho

le L

ife

En

do

wm

en

tW

ho

le L

ife

En

do

wm

en

t

RM

2007

2,32

61,

923

48,9

7129

,647

4765

2008

2,51

42,

439

50,8

6630

,155

4981

2009

2,92

53,

072

51,2

7927

,342

5711

2

2010

3,47

83,

837

56,5

4030

,183

6212

7

2011

3,00

04,

419

53,7

2128

,508

5615

5

Year

Avera

ge A

nn

ual

Pre

miu

ms

Avera

ge S

um

s In

sure

dA

vera

ge C

ost

2

Wh

ole

Lif

eEn

do

wm

en

tW

ho

le L

ife

En

do

wm

en

tW

ho

le L

ife

En

do

wm

en

t

RM

2007

1,38

81,

228

48,4

6022

,606

2954

2008

1,46

51,

328

49,5

4023

,567

3056

2009

1,56

11,

527

50,4

3924

,167

3163

2010

1,65

01,

751

51,6

6225

,073

3270

2011

1,69

82,

064

52,5

4925

,827

3280

Tab

le 2

.7: Li

fe I

nsu

ran

ce : A

vera

ge S

ize a

nd

Co

st o

f O

rdin

ary

In

div

idu

al

Life

N

ew

Po

lici

es

of

Dir

ect

In

sure

rs1

Tab

le 2

.8: Li

fe I

nsu

ran

ce : A

vera

ge S

ize a

nd

Co

st o

f O

rdin

ary

Ind

ivid

ual

Life

Po

lici

es

in F

orc

e o

f D

irect

In

sure

rs1

1

For

annu

al p

rem

ium

pol

icie

s on

ly

2 N

ew a

nnua

l pre

miu

m p

er R

M1,

000

of n

ew s

ums

insu

red

1

For

annu

al p

rem

ium

pol

icie

s on

ly

2 A

nnua

l pre

miu

ms

in f

orce

per

RM

1,00

0 of

sum

s in

sure

d in

for

ce




Year

Death

Matu

rity

Su

rren

der

Forf

eit

ure

less

Reviv

als

Oth

ers

Tota

l

RM

mil

lio

n

2007

19.6

46.5

360.

937

0.2

360.

11,

157.

3

2008

20.7

53.9

401.

536

8.3

779.

91,

624.

3

2009

23.1

69.7

434.

539

8.8

487.

61,

413.

7

2010

24.1

83.4

473.

249

7.5

816.

71,

894.

9

2011

26.3

79.1

571.

445

3.2

1,02

2.7

2,15

2.7

% c

han

ge

2007

5.9

12.2

7.8

-2.0

-2.9

1.2

2008

5.5

16.0

11.3

-0.5

116.

640

.4

2009

11.9

29

.28.

28.

3-3

7.5

-13.

0

2010

4.3

19.7

8.9

24.7

67.5

34.0

2011

9.1

-5.2

20.8

-8.9

25.2

13.6

% s

hare

2007

1.7

4.0

31.2

32.0

31.1

100.

0

2008

1.3

3.3

24.7

22.7

48.0

100.

0

2009

1.6

4.9

30.7

28.2

34.5

100.

0

2010

1.3

4.4

25.0

26.3

43.1

100.

0

2011

1.2

3.7

26.5

21.1

47.5

100.

0

Tab

le 2

.9: Li

fe I

nsu

ran

ce : T

erm

inati

on

s o

f A

nn

ual

Pre

miu

ms

of

Dir

ect

In

sure

rs

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

Death

Matu

rity

Su

rren

der

Forf

eit

ure

less

Reviv

als

Oth

ers

Tota

l

RM

mil

lio

n

2007

963.

82,

211.

518

,743

.49,

771.

210

3,59

8.4

135,

288.

3

2008

772.

92,

270.

719

,139

.210

,777

.313

7,19

4.9

170,

155.

0

2009

880.

24,

126.

220

,804

.212

,853

.215

2,42

0.4

191,

084.

2

2010

889.

93,

701.

419

,761

.212

,719

.217

8,09

6.0

215,

167.

7

2011

984.

94,

503.

120

,949

.211

,898

.518

4,59

1.9

222,

927.

6

% c

han

ge

2007

18.8

40

.813

.5-3

.3-1

9.8

-14.

4

2008

-19.

82.

72.

110

.332

.425

.8

2009

13.9

81.7

8.7

19.3

11.1

12.3

2010

1.1

-10.

3-5

.0

-1.0

16.8

12.6

2011

10.7

21

.76.

0-6

.53.

63.

6

% s

hare

2007

0.7

1.6

13.9

7.2

76.6

100.

0

2008

0.5

1.3

11.3

6.3

80.6

100.

0

2009

0.5

2.2

10.9

6.7

79.8

100.

0

2010

0.4

1.7

9.2

5.9

82.8

100.

0

2011

0.4

2.0

9.4

5.3

82.8

100.

0

Tab

le 2

.10: Li

fe I

nsu

ran

ce : T

erm

inati

on

s o

f Su

ms

Insu

red

of

Dir

ect

In

sure

rs

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year 3 Policy YearsForfeiture Rate 1 (%)

Surrender Rate (%)

2007 22.5 2 .7

2008 23.6 2.8

2009 19.2 2 .7

2010 17.0 2 .5

2011 17.4 2 .4

Year Year of TotalIssue

1st PolicyYear

2nd PolicyYear

3rd PolicyYear Total

2007 2011 4.4 - - 4.4

2010 6.2 3.5 - 9.7

2009 7.5 5.8 2.1 15.4

2008 8.0 6.7 2.8 17.4

2010 2010 4.2 - - 4.2

2009 6.8 3.4 - 10.2

2008 7.8 6.3 1.9 16.0

2007 7.6 6.4 3.0 17.0

Table 2.11: Life Insurance : Forfeiture and Surrender Rates of Direct insurers

Table 2.12: Life Insurance : Forfeiture Rate by Policy Years of Direct Insurers1

1 Combination of whole life, endowment and ‘others’ policies

1 Combination of whole life, endowment and ‘others’ policies




Item

2009

2010

2011

RM

m%

RM

m%

RM

m%

Inco

me

Prem

ium

inco

me

19,8

31.3

66.8

21,8

04.7

67.3

22,7

94.1

68.8

Net

inve

stm

ent

inco

me

4,92

6.5

16.6

5,44

8.6

16.8

6,03

4.3

18.2

Prof

it on

sal

e of

ass

ets

and

mis

cella

neou

s in

com

e4,

910.

216

.65,

165.

015

.94,

288.

312

.9

Tota

l29,6

67.9

100.0

32,4

18.4

100.0

33,1

16.8

100.0

Ou

tgo

Net

pol

icy

bene

fits

11,8

38.5

39.9

13,0

23.4

40.2

13,9

78.9

42.2

Age

ncy

rem

uner

atio

n2,

933.

69.

93,

229.

310

.03,

360.

410

.1

Man

agem

ent

expe

nses

1,64

5.6

5.5

1,84

9.2

5.7

2,08

5.4

6.3

Loss

on

disp

osal

of

asse

ts a

ndot

her

outg

o1,

914.

16.

51,

133.

33.

52,

154.

96.

5

Tota

l18,3

31.7

61.8

19,2

35.1

59.3

21,5

79.7

65.2

Exce

ss o

f in

com

e ov

er o

utgo

11,3

36.2

38.2

13,1

83.2

40.7

11,5

37.1

34.8

Tab

le 2

.13:

Life

In

sura

nce

: I

nco

me a

nd

Ou

tgo

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

% o

f A

dju

sted

Pre

miu

m I

nco

me 1

Net

Rate

of

Inte

rest

Earn

ed

Ag

en

cy

Rem

un

era

tio

n (

a)

Sta

ff

Rem

un

era

tio

n (

b)

Oth

er

Exp

en

ses

(c)

Tota

l(a

) +

(b)

+ (c

)(1

)(2

)

2007

17.6

3.8

5.7

27.1

5.5

9.6

2008

17.8

4.1

6.1

28.0

4.6

6.0

2009

18.0

4.0

6.0

28.1

4.9

5.6

2010

17.9

4.1

6.1

28.1

4.7

6.1

2011

17.0

4.5

6.1

27.5

5.0

6.5

Tab

le 2

.14: Li

fe I

nsu

ran

ce : E

xp

en

se R

ate

an

d R

ate

of

Inte

rest

Earn

ed

1

The

sum

of

first

yea

r pr

emiu

ms,

rene

wal

pre

miu

ms

and

10%

of

sing

le p

rem

ium

s

(1)

Rate

of

retu

rn o

n in

vest

men

ts e

xclu

ding

cap

ital g

ains

(2

) Ra

te o

f re

turn

on

inve

stm

ents

incl

udin

g ca

pita

l gai

ns

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Typ

e o

fIn

vest

men

t2007

2008

2009

2010

2011

RM

m%

RM

m%

RM

m%

RM

m%

RM

m%

Pro

per

ty, p

lan

t an

d

equ

ipm

ent

483.

30.

549

6.9

0.5

1,63

0.3

1.3

1,66

0.5

1.2

1,64

5.4

1.1

Loan

s11

,470

.211

.212

,007

.911

.011

,588

.19.

210

,870

.27.

710

,900

.17.

2

Mor

tgag

es4,

212.

34.

14,

282.

63.

93,

737.

63.

02,

888.

42.

02,

833.

31.

9

Polic

y6,

680.

56.

57,

172.

16.

67,

516.

86.

07,

711.

25.

57,

890.

55.

2

Oth

ers

577.

40.

655

3.2

0.5

333.

70.

327

0.6

0.2

176.

30.

1

Inve

stm

ents

72,1

28.7

70.4

76,2

61.0

69.7

93,0

39.5

73.9

109,

944.

577

.711

4,34

5.0

75.2

Mal

aysi

a G

over

nmen

t pa

pers

/gua

rant

eed

loan

s

17,3

62.8

16.9

18,3

01.5

16.7

18,4

16.1

14.6

20,9

70.1

14.8

24,7

65.1

16.3

Cor

pora

te/d

ebt

secu

ritie

s53

,140

.851

.856

,044

.451

.272

,205

.057

.486

,050

.560

.886

,810

.257

.1

Oth

ers

1,62

5.1

1.6

1,91

5.0

1.8

2,39

6.0

1.9

2,87

7.2

2.0

2,73

3.8

1.8

Inve

stm

ent

pro

per

ties

2,98

6.5

2.9

3,61

4.2

3.3

2,55

5.5

2.0

2,47

9.9

1.8

2,28

9.7

1.5

Cas

h an

d de

posi

ts11

,770

.711

.512

,970

.211

.911

,528

.09.

29,

167.

86.

515

,343

.810

.1

Oth

er a

sset

s1,

997.

01.

92,

500.

92.

32,

097.

31.

72,

593.

71.

82,

678.

71.

8

Fore

ign

asse

ts1,

666.

51.

61,

521.

61.

43,

386.

22.

74,

741.

63.

44,

768.

33.

1

Tota

l102,5

02.9

100.0

109,3

72.7

100.0

125,8

24.8

100.0

141,4

58.3

100.0

151,9

70

.9100.0

Tab

le 2

.15: A

ssets

of

Life

In

sura

nce

Fu

nd

s

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Item

2009

2010

2011

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

Val

uat

ion

res

ult

Polic

y ow

ners

’ fun

d95

,249

.7

-3.4

103,

205.

08.

411

1,91

2.8

8.4

Valu

atio

n lia

bilit

ies

275

,497

.4

-9.7

83,2

46.0

10.3

91,4

20.1

9.8

Surp

lus

19,7

52.3

31.9

19,9

59.0

1.0

20,4

92.7

2.7

Allo

catio

n to

pol

icyo

wne

rs2,

544.

46.

43,

084.

821

.23,

755.

021

.7

Surp

lus

dis

trib

uti

on

Allo

catio

n to

sha

reho

lder

s1,

966.

147

.82,

239.

913

.92,

492.

311

.3

Surp

lus

carr

ied

forw

ard

17,7

86.2

30.3

17,7

19.1

-0.4

18,0

00.4

1.6

Tab

le 2

.16: Li

fe I

nsu

ran

ce: V

alu

ati

on

Resu

lt a

nd

Su

rplu

s D

istr

ibu

tio

n 1

1. F

igur

es a

re b

ased

on

Risk

Bas

ed C

apita

l (RB

C) V

alua

tion.

2. V

alua

tion

Liab

ilitie

s in

clus

ive

of A

lloca

tion

to p

olic

yow

ners

.




Year

Tota

l Su

ms

Insu

red

in

Fo

rce

Pre

miu

m I

nco

me

1G

NI

at

Mark

et

Pri

cePo

pu

lati

on

Em

plo

ym

en

tPer

cap

ita

Inco

me

RM

m% of

GN

I

Per

cap

ita

RM

m% of

GN

I

Per

cap

ita

Per

mem

ber

of

Em

plo

ym

en

tR

Mm

Mil

lio

nR

M

2007

722,

679.

411

5.1

26,5

6918

,893

.03.

069

51,

657

628,

106

27.2

11.4

23,1

15

2008

771,

274.

810

7.9

27,8

4418

,736

.92.

667

61,

615

714,

970

27.7

11.6

25,7

84

2009

791,

360.

811

9.0

28,3

6419

,831

.33.

071

11,

710

665,

047

27.9

11.6

23,8

41

2010

881,

935.

911

9.3

31,1

6421

,804

.72.

977

01,

824

739,

451

28.3

12.0

26,1

75

2011

948,

666.

311

4.2

33,1

7022

,794

.12.

779

71,

861

830,

702P

28.6

P12

.2P

29,0

94P

Tab

le 2

.17: Li

fe I

nsu

ran

ce : L

ife I

nsu

ran

ce G

row

th a

nd

So

cio

-eco

no

mic

In

dic

ato

rs

1 A

s pe

r re

venu

e ac

coun

tsP

Prel

imin

ary

(S

ourc

e: D

epar

tmen

t of

Sta

tistic

s, M

alay

sia

and

Econ

omic

Pla

nnin

g U

nit)




Ag

eA

ttain

ed

Gro

up

Ord

inary

(2006-2

010)

Male

sFe

male

s

Wit

h M

ed

ical

Wit

ho

ut

Med

ical

Wit

h M

ed

ical

Wit

ho

ut

Med

ical

Ex

qx

Ex

qx

Ex

qx

Ex

qx

11-1

547

.74

0.13

702.

160.

2637

.65

0.05

604.

970.

14

16-2

063

.44

0.5

577.

980.

6146

.59

0.26

463.

540.

24

21-2

540

.89

0.83

474.

100.

8128

.12

0.28

345.

010.

25

26-3

043

.02

0.77

642.

240.

930

.07

0.27

603.

540.

28

31-3

546

.75

1.33

811.

850.

8937

.23

0.56

853.

660.

42

36-4

062

.70

1.77

920.

541.

3649

.51

0.95

910.

930.

64

41-4

510

0.04

1.66

950.

801.

7263

.92

1.00

832.

360.

99

46-5

014

1.20

2.36

871.

522.

8575

.56

1.56

672.

091.

49

51-5

516

5.21

3.31

644.

644.

4672

.24

2.19

459.

032.

51

56-6

014

3.24

4.94

314.

316.

7663

.20

2.99

235.

223.

75

61-6

593

.53

8.10

140.

7811

.06

50.1

65.

5810

4.61

6.97

66-7

058

.45

15.1

162

.62

21.4

539

.51

8.35

52.1

715

.01

71-7

527

.20

26.4

024

.66

36.3

421

.91

16.4

325

.32

26.7

8

Tota

l10

80.7

678

92.4

865

4.68

6834

.12

Tab

le 2

.18: Th

e R

ate

s o

f M

ort

ali

ty f

or

Du

rati

on

of

Two

or

Mo

re Y

ears

1

1 Ex

clud

ing

polic

ies

with

acc

eler

ated

dre

ad d

isea

se b

enef

itsE x -

Num

ber

of li

ves

expo

sed

to r

isks

in t

hous

ands

q x - M

orta

lity

rate

mul

tiplie

d by

1,0

00

(Sou

rce:

Life

Insu

ranc

e A

ssoc

iatio

n of

Mal

aysi

a, d

ata

for

2006

to

2010

)




YearGross

Premiums1Gross DirectPremiums

NetPremiums Retention

Ratio (%)RM Million

2007 9,066.7 10,046.4 8,186.7 90.3

2008 9,696.8 10,894.0 8,983.3 92.6

2009 10,184.1 11,531.2 9,376.9 92.1

2010 10,981.1 12,584.7 10,127.9 92.2

2011 11,729.1 13,596.1 10,858.9 92.6

% change

2007 4.0 4.2 5.4 n.a

2008 6.9 8.4 9.7 n.a

2009 5.0 5.9 4.4 n.a

2010 7.8 9.1 8.0 n.a

2011 6.8 8.0 7.2 n.a

Table 3.1: General Insurance : Premium Income

1 Gross direct and reinsurance accepted premiums less reinsurances within Malaysian.a Not applicable




Year

Mari

ne,

Avia

tio

n

an

d

Tran

sit

Co

ntr

ac-

tors

’ A

ll

Ris

ks

an

d

En

gin

eer-

ing

Fire

Med

ical

Exp

en

ses

an

d

Pers

on

al

Acc

iden

t

Mo

tor

Liab

ilit

y

Wo

rkm

en

’s

Co

mp

en

sa-

tio

n a

nd

Em

plo

yers

’ Li

ab

ilit

y

Mis

cell

a-

neo

us

Tota

l‘A

ct’

Co

ver

Oth

ers

Tota

l

RM

mil

lio

n

2007

1,18

6.2

385.

61,

786.

91,

210.

153

6.1

3,91

1.5

4,44

7.7

294.

514

3.3

592.

010

,046

.4

2008

1,17

9.5

407.

51,

910.

01,

381.

659

1.1

4,30

2.7

4,89

3.9

338.

614

7.9

635.

010

,894

.0

2009

1,16

8.6

410.

72,

029.

51,

523.

258

4.1

4,67

0.1

5,25

4.2

374.

914

6.2

623.

911

,531

.2

2010

1,28

3.6

391.

72,

100.

31,

699.

363

0.1

5,29

2.1

5,92

2.2

381.

015

8.5

648.

112

,584

.7

2011

1,41

0.7

487.

92,

239.

41,

929.

763

5.1

5,67

7.6

6,31

2.7

413.

917

0.3

631.

513

,596

.1

% c

han

ge

2007

3.6

3.1

2.5

11.2

6.8

1.5

2.1

6.2

9.6

12.5

4.2

2008

-0

.65.

76.

914

.210

.310

.010

.015

.03.

27.

38.

4

2009

-0

.90.

86.

310

.2-1

.28.

57.

410

.7-1

.1-1

.75.

8

2010

9.

8-4

.63.

511

.67.

913

.312

.71.

68.

43.

99.

1

2011

9.

924

.66.

613

.60.

87.

36.

68.

67.

4-2

.68.

0

% s

hare

2007

11.8

3.8

17.8

12.0

5.3

38.9

44.3

2.9

1.4

5.9

100.

0

2008

10.8

3.7

17.5

12.7

5.4

39.5

44.9

3.1

1.4

5.8

100.

0

2009

10.1

3.6

17.6

13.2

5.1

40.5

45.6

3.3

1.3

5.4

100.

0

2010

10.2

3.1

16.7

13.5

5.0

42.1

47.1

3.0

1.3

5.1

100.

0

2011

10.4

3.6

16.5

14.2

4.7

41.8

46.4

3.0

1.3

4.6

100.

0

Tab

le 3

.2: G

en

era

l In

sura

nce

: D

istr

ibu

tio

n o

f G

ross

Dir

ect

Pre

miu

ms

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

Mari

ne,

Avia

tio

n

an

d

Tran

sit

Co

ntr

ac-

tors

’ A

ll

Ris

ks

an

d

En

gin

eer-

ing

Fire

Med

ical

Exp

en

ses

an

d

Pers

on

al

Acc

iden

t

Mo

tor

Liab

ilit

y

Wo

rkm

en

’s

Co

mp

en

sa-

tio

n a

nd

Em

plo

yers

’ Li

ab

ilit

y

Mis

cell

a-

neo

us

Tota

l‘A

ct’

Co

ver

Oth

ers

Tota

l

RM

mil

lio

n

2007

402.

821

5.6

1,31

9.4

1,11

0.4

526.

83,

865.

54,

392.

317

5.5

138.

543

2.3

8,18

6.7

2008

440.

222

8.1

1,41

0.7

1,28

9.3

581.

84,

253.

24,

835.

018

2.3

142.

645

5.2

8,98

3.3

2009

393.

022

7.4

1,42

9.1

1,37

3.0

579.

24,

616.

35,

195.

519

5.1

141.

842

2.0

9,37

6.9

2010

410.

222

5.8

1,49

6.5

1,55

0.8

600.

95,

058.

35,

659.

120

1.4

153.

743

0.3

10,1

27.9

2011

475.

824

8.1

1,56

3.1

1,76

9.5

620.

05,

348.

15,

968.

122

3.6

166.

444

4.3

10,8

58.9

% c

han

ge

2007

11.5

11.9

5.1

9.5

8.9

1.2

2.1

15.2

9.4

19.6

5.4

2008

9.

35.

86.

916

.110

.410

.010

.13.

93.

05.

39.

7

2009

-1

0.7

-0

.31.

36.

5-0

.48.

57.

57.

1-0

.6-7

.34.

4

2010

4.

4 -0

.74.

712

.93.

79.

68.

93.

28.

4 2

.08.

0

2011

16

.09.

94.

514

.13.

25.

75.

511

.08.

33.

37.

2

% s

hare

2007

4.9

2.6

16.1

13.6

6.4

47.2

53.7

2.1

1.7

5.3

100.

0

2008

4.9

2.5

15.7

14.4

6.5

47.3

53.8

2.0

1.6

5.1

100.

0

2009

4.2

2.4

15.2

14.6

6.2

49.2

55.4

2.1

1.5

4.5

100.

0

2010

4.1

2.2

14.8

15.3

5.9

49.9

55.9

2.0

1.5

4.2

100.

0

2011

4.4

2.3

14.4

16.3

5.7

49.3

55.0

2.1

1.5

4.1

100.

0

Tab

le 3

.3: G

en

era

l In

sura

nce

: D

istr

ibu

tio

n o

f N

et

Pre

miu

ms

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

Mari

ne,

Avia

tio

n

an

d

Tran

sit

Co

ntr

ac-

tors

’ A

ll

Ris

ks

an

d

En

gin

eer-

ing

Fire

Med

ical

Exp

en

ses

an

d

Pers

on

al

Acc

iden

t

Mo

tor

Liab

ilit

y

Wo

rkm

en

’s

Co

mp

en

sa-

tio

n a

nd

Em

plo

yers

’ Li

ab

ilit

y

Mis

cell

a-

neo

us

Tota

l‘A

ct’

Co

ver

Oth

ers

Tota

l

Co

mb

ined

1

2007

48.1

84.5

86.5

96.0

99.9

99.8

99.8

66.7

99.6

88.3

90.3

2008

64.2

77.7

86.3

97.7

99.9

99.9

99.9

67.6

99.1

89.5

92.6

2009

59.8

79.2

84.9

95.7

99.9

99.8

99.8

67.4

99.0

87.0

92.1

2010

59.2

81.4

84.7

96.2

99.5

99.7

99.7

66.2

99.1

87.0

92.2

2011

66.1

76.0

84.7

96.4

99.5

99.6

99.6

68.9

99.6

85.8

92.6

Dir

ect

In

sure

rs1

2007

42.1

75.7

84.1

95.8

99.9

99.8

99.8

62.1

99.6

87.2

89.6

2008

61

.369

.783

.997

.699

.999

.999

.964

.699

.088

.492

.6

2009

56

.273

.984

.395

.599

.999

.999

.965

.598

.985

.892

.4

2010

55

.977

.184

.496

.199

.999

.899

.864

.899

.085

.592

.6

2011

63

.768

.985

.296

.399

.999

.899

.867

.699

.684

.193

.2

Pro

fess

ion

al

Rein

sure

rs2

2007

67.4

94.8

89.8

97.9

100.

098

.898

.998

.699

.790

.790

.1

2008

57.7

85.5

88.9

97.3

100.

098

.298

.484

.799

.588

.886

.8

2009

53.4

83.9

83.4

96.5

100.

097

.597

.879

.699

.487

.883

.2

2010

55.3

83.9

82.2

96.8

96.0

96.9

96.8

69.7

99.7

91.0

84.3

2011

49.4

84.4

79.5

96.5

95.9

96.0

96.0

70.1

99.7

92.4

81.0

Tab

le 3

.4: G

en

era

l In

sura

nce

: N

et

Rete

nti

on

Rati

o

1 N

et p

rem

ium

s to

gro

ss d

irect

and

rein

sura

nce

acce

pted

pre

miu

ms

less

rein

sura

nces

with

in M

alay

sia

2 N

et p

rem

ium

s to

rein

sura

nce

acce

pted

pre

miu

ms

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Cla

ss

Pre

miu

ms

Ced

ed

an

dR

etr

oce

ded

Overs

eas

Rein

sura

nce

an

dR

etr

oce

ssio

nC

laim

s R

eco

veri

es

fro

m

Overs

eas

Rein

sura

nce

an

dPro

fit

Co

mm

issi

on

sR

ece

ived

fro

mO

vers

eas

Net

Infl

ow

(+)

/ Ou

tflo

w (

–)

Net

Infl

ow

/O

utf

low

as

a %

of

Pre

miu

ms

Ced

ed

an

d

Retr

oce

ded

Overs

eas

RM

mil

lio

n

Mar

ine

and

avia

tion

hull

189.

5

61.3

27.0

-101

.3-5

3.4

Mar

ine,

avi

atio

n an

d tr

ansi

t ca

rgo

54.0

14.8

8.6

-30.

6 -5

6.7

Con

trac

tors

’ all

risks

& e

ngin

eerin

g78

.515

.413

.3-4

9.9

-63.

5

Fire

282.

9

106.

051

.5-1

25.4

-44.

3

Med

ical

exp

ense

s an

d pe

rson

al a

ccid

ent

65.7

18.7

7.1

-39.

9-6

0.7

Mo

tor

23.9

10

.11.

6-1

2.3

-51.

4

‘Act

’ cov

er3.

3

9.5

-6.

319

0.3

Oth

ers

20.6

0.

61.

6-1

8.5

-89.

8

Liab

ility

101.

0

11.6

16.8

-72.

6-7

1.9

Wor

kmen

’s co

mpe

nsat

ion

and

empl

oyer

s’ li

abili

ty0.

70.

80.

10.

234

.5

Mis

cella

neou

s73

.822

.512

.3-3

9.0

-52.

9

Tota

l87

0.2

261.

213

8.3

-470

.7-5

4.1

Tab

le 3

.5: G

en

era

l In

sura

nce

: N

et

Rein

sura

nce

Po

siti

on

, 2011

N

umbe

rs m

ay n

ot n

eces

saril

y ad

d up

due

to

roun

ding




Year

Mari

ne,

Avia

tio

n

an

d

Tran

sit

Co

ntr

ac-

tors

’ A

ll

Ris

ks

an

d

En

gin

eer-

ing

Fire

Med

ical

Exp

en

ses

an

d

Pers

on

al

Acc

iden

t

Mo

tor

Liab

ilit

y

Wo

rkm

en

’s

Co

mp

en

sa-

tio

n a

nd

Em

plo

yers

’ Li

ab

ilit

y

Mis

cell

a-

neo

us

Tota

l‘A

ct’

Co

ver

Oth

ers

Tota

l

2007

55.6

84.7

43.3

50.1

242.

059

.280

.727

.222

.050

.365

.9

2008

46.0

54.4

35.2

52.5

271.

361

.085

.524

.021

.448

.765

.9

2009

28.5

31.1

34.7

49.9

265.

358

.779

.925

.415

.650

.360

.7

2010

36.8

63.5

30.1

50.7

290.

560

.081

.039

.818

.540

.162

.6

2011

42.3

28.7

38.0

43.7

296.

053

.176

.234

.215

.156

.760

.3

Tab

le 3

.6:

Gen

era

l In

sura

nce

: C

laim

s R

ati

o1

1 N

et c

laim

s in

curr

ed a

s a

ratio

of

earn

ed p

rem

ium

inco

me




Year

Earned Premium Income

Net Claims Incurred

Net Commissions

Management Expenses1

Under writing Margin

RM million

2007 7,920.8 5,222.2 916.3 1,764.3 17.9

2008 8,585.5 5,655.9 1,004.9 1,823.4 101.4

2009 9,264.1 5,626.7 1,052.5 1,793.4 791.5

2010 9,912.6 6,206.7 1,093.8 1,845.0 767.1

2011 10,498.2 6,328.4 1,165.8 1,929.1 1,074.9

% of earned premium income

2007 100.0 65.9 11.6 22.3 0.2

2008 100.0 65.9 11.7 21.2 1.2

2009 100.0 60.7 11.4 19.4 8.5

2010 100.0 62.6 11.0 18.6 7.7

2011 100.0 60.3 11.1 18.4 10.2

% change

2007 2.1 11.1 6.8 3.6 -96.4

2008 8.4 8.3 9.7 3.4 466.3

2009 7.9 -0.5 4.7 -1.6 680.8

2010 7.0 10.3 3.9 2.9 -3.1

2011 5.9 2.0 6.6 4.6 40.1

Table 3.7: General Insurance : Underwriting Experience

1 Management expenses is inclusive of net bad and doubtful debts




Item

2007

2008

2009

2010

2011

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

Und

erw

ritin

g pr

ofit

17.9

-9

6.4

101.

446

6.3

791.

568

0.8

767.

1-3

.11,

074.

940

.1

Inve

stm

ent

inco

me

759.

3 8.

878

2.3

3.0

740.

1-5

.478

0.8

5.5

883.

113

.1

Cap

ital g

ains

579.

9 21

7.1

116.

5-7

9.9

174.

649

.824

2.5

38.9

100.

6-5

8.5

Oth

er in

com

e10

3.3

-60.

913

4.9

30.6

377.

317

9.8

211.

4-4

4.0

145.

6-3

1.1

Cap

ital l

osse

s16

.1

-81.

415

5.1

862.

388

.7-4

2.8

10.9

-87.

719

.276

.1

Oth

er o

utgo

134.

8 19

.540

8.7

203.

312

8.1

-68.

712

1.2

-5.4

99.2

-18.

2

Ope

ratin

g pr

ofit

1,30

9.5

-8.9

571.

2-5

6.4

1,86

6.6

226.

81,

869.

80.

22,

085.

811

.6

Tab

le 3

.8: G

en

era

l In

sura

nce

: U

nd

erw

riti

ng

an

d O

pera

tin

g R

esu

lts




Typ

e o

f In

vest

men

t2007

2008

2009

2010

20

11

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

Prop

erty

, pla

nt a

nd

equi

pmen

t78

3.0

3.9

750.

13.

579

2.1

3.5

719.

52.

971

7.7

2.7

Loan

s23

8.0

1.2

183.

30.

817

9.2

0.8

115.

60.

590

.40.

3

Inve

stm

ents

10,4

04.4

52.3

10,6

51.9

49.4

12,3

46.2

54.1

13,4

74.8

54.5

14,8

28.5

56.3

Mal

aysi

an G

over

nmen

t pa

pers

/gua

rant

eed

loan

s

3,53

1.2

17.7

3,90

2.6

18.1

4,39

3.6

19.3

4,48

1.6

18.1

5,17

4.8

19.7

Cor

pora

te/d

ebt

secu

ritie

s6,

415.

232

.26,

372.

929

.56,

921.

230

.36,

881.

127

.86,

855.

826

.0

Oth

ers

458.

02.

337

6.3

1.7

1,03

1.5

4.5

2,11

2.0

8.5

2,79

7.9

10.6

Inve

stm

ent

prop

ertie

s24

2.0

1.2

240.

81.

123

3.9

1.0

222.

10.

917

5.1

0.7

Cas

h an

d de

posi

ts6,

165.

531

.07,

616.

135

.37,

158.

131

.47,

713.

331

.27,

510.

528

.5

Am

ount

due

fro

m

clie

nts/

inte

rmed

iarie

s/re

insu

rers

1,36

8.3

6.9

1,33

2.9

6.2

1,35

9.6

6.0

1,57

4.5

6.4

1,87

8.8

7.1

Oth

er a

sset

s65

9.9

3.3

732.

83.

466

5.2

2.9

833.

03.

41,

079.

34.

1

Fore

ign

asse

ts50

.30.

360

.20.

379

.20.

480

.10.

355

.20.

2

Tota

l19

,911

.410

0.0

21,5

68.2

100.

022

,813

.410

0.0

24,7

32.9

100.

026

,335

.310

0.0

Tab

le 3

.9: A

ssets

of

Gen

era

l In

sura

nce

Fu

nd

s

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




RM millionNumber of Funds

2007 2008 2009 2010 2011

Less than 201 1 1 1 0 0

20 to less than 30 0 0 0 0 0

30 to less than 50 0 0 0 0 0

50 to less than 100 1 1 1 1 1

100 to less than 150 1 1 0 0 0

150 to less than 300 11 9 8 4 2

300 & above 26 28 27 30 30

Total 40 40 37 35 33

Table 3.10: Classification by Size of General Insurance Funds

1 Inclusive of insurers which were running off their general insurance business




Year

UnearnedPremiumReserves /PremiumLiabilities

Provision forOutstanding

Claims / ClaimsLiabilities

TechnicalReserves

RM million

2007 3,751.8 7,821.0 11,572.8

2008 4,364.1 8,836.4 13,200.6

2009 4,463.7 8,501.8 12,965.4

2010 4,678.4 8,902.4 13,580.8

2011 5,029.7 9,292.6 14,322.4

% change

2007 7.6 8.5 8.2

2008 16.3 13.0 14.1

2009 4.3 5.0 4.8

2010 4.8 4.7 4.7

2011 7.5 4.4 5.5

% of net premiums

2007 45.8 95.5 141.4

2008 48.6 98.4 147.0

2009 47.6 90.7 138.3

2010 46.2 87.9 134.1

2011 46.3 85.6 131.9

Table 3.11: Technical Reserves

1 Management expenses is inclusive of net bad and doubtful debts




Cla

ssD

evelo

pm

en

t Y

ear

% o

f U

ltim

ate

In

curr

ed

Cla

ims

Co

st a

t En

d o

fD

evelo

pm

en

t Y

ear

1

02

12

34

5U

ltim

ate

2009

2010

Mar

ine,

avi

atio

n an

d tr

ansi

t 2.

29

1.13

1.

05

1.01

1.

01

1.00

1.

04

88.0

89

.4

Fire

2.

05

1.07

1.

03

1.03

1.01

1.

00

1.04

94

.2

90.5

Mo

tor

'Act

' cov

er

8.37

2.

51

1.61

1.

31

1.20

1.

15

1.07

27

.9

32.3

Oth

ers

1.75

1.

04

1.01

1.

01

1.00

1.

00

1.01

96

.5

96.2

Mis

cella

neou

s3 1.

62

1.07

1.

03

1.01

1.

02

1.00

1.

03

91.4

90

.6

Tab

le 3

.12

: G

en

era

l In

sura

nce

: A

vera

ge L

ink R

ati

o f

or

Cu

mu

lati

ve P

aid

Cla

ims

an

d E

merg

en

ce o

f C

laim

s 1

1

Base

d on

fin

anci

al y

ear,

cons

olid

ated

fro

m f

inan

cial

yea

r en

d 1

July

to

30 J

une

2

Dev

elop

men

t ye

ar 0

refe

rs t

o th

e ye

ar o

f oc

curr

ence

of

loss

3

ncl

udes

all

clas

ses

othe

r th

an M

AT, f

ire a

nd m

otor




Class

Year of Occurrence of Loss

2004 2005 2006 2007 2008 2009 2010

%


45.4 48.5 47.3 54.2 44.1 44.9 48.2

Fire 36.1 35.8 41.2 36.8 29.9 29.6 34.0

Motor

'Act' cover 193.7 190.6 193.3 204.9 205.2 283.7 225.2

Others 58.1 53.4 57.2 59.3 62.8 66.6 56.4

Miscellaneous2 50.6 48.9 50.4 49.8 49.5 50.5 55.4

ClassAverage Frequency of Loss 3 Average Cost per Claim

% RM

Marine, aviation and transit 5.9 5,296

Fire 1.7 9,877

Motor

‘Act’ cover 0.6 16,399

Others 6.1 3,821

Miscellaneous2 5.7 2,450

Table 3.13: General Insurance : Ultimate Claims Ratio1

Table 3.14: General Insurance : Estimated Average Frequency of Loss and Average Cost per Claim1

1 Ratios are based on unadjusted aggregated financial year data on movement of claims by duration submitted by the industry, consolidated from financial year end 1 July to 30 June

2 Includes all classes other than MAT, fire and motor

1 Based on financial year, consolidated from financial year end 1 July to 30 June 2 Includes all classes other than MAT, fire and motor 3 Ratio and data represent estimations only based on available industry data. Actual experience may differ according to the actual

claims experience of individual insurer




Year

Mari

ne,

Avia

tio

n

an

d

Tran

sit

Co

ntr

ac-

tors

’ A

ll

Ris

ks

an

d

En

gin

eer-

ing

Fire

Med

ical

Exp

en

ses

an

d

Pers

on

al

Acc

iden

t

Mo

tor

Liab

ilit

y

Wo

rkm

en

’s

Co

mp

en

sa-

tio

n a

nd

Em

plo

yers

’ Li

ab

ilit

y

Mis

cell

a-

neo

us

Tota

l‘A

ct’

Co

ver

Oth

ers

Tota

l

Rein

sura

nce

Acc

ep

ted

Pre

miu

ms

(RM

mil

lio

n)

2007

14

0.3

106.

040

5.7

59.8

20

.6

198.

5 21

9.1

32.5

7.

4 59

.9

1,03

0.6

2008

15

2.8

130.

144

2.6

75.2

23

.2

213.

8 23

7.0

40.2

7.

8 68

.4

1,15

4.1

2009

17

5.1

131.

9 43

0.4

81.6

24

.3

223.

7 24

8.0

40.0

8.

6 68

.7

1,18

4.4

2010

16

3.4

134.

1 44

7.1

89.2

61

.2

318.

1 37

9.3

48.7

8.

1 69

.8

1,33

9.7

2011

22

7.0

138.

5 45

4.6

75.1

60

.9

321.

1 38

2.0

50.2

9.

0 73

.4

1,40

9.7

Net

Pre

miu

ms

(RM

mil

lio

n)

2007

94

.5

100.

4 36

4.4

58.5

20

.6

196.

1 21

6.7

32.1

7.

3 54

.3

928.

3

2008

88

.1

111.

2 39

3.3

73.2

23

.2

209.

9 23

3.1

34.0

7.

8 60

.8

1,00

1.5

2009

93

.5

110.

7 35

9.2

78.8

24

.3

218.

2 24

2.4

31.8

8.

5 60

.3

985.

3

2010

90

.3

112.

5 36

7.6

86.4

58

.7

308.

3 36

7.0

33.9

8.

1 63

.5

1,12

9.3

2011

11

2.1

116.

9 36

1.2

72.5

58

.4

308.

4 36

6.7

35.2

8.

9 67

.8

1,14

1.2

Cla

ims

Rati

o1 (

%)

2007

41

.0

81.0

51

.3

30.7

28

3.6

79.5

97

.5

81.2

26

.0

16.6

62

.3

2008

49

.7

52.7

47

.2

42.1

28

1.3

85.8

10

5.1

57.9

16

.9

31.7

60

.4

2009

36

.0

30.6

64

.6

40.9

31

6.7

50.6

76

.5

29.6

20

.5

82.9

58

.5

2010

46

.0

87.6

35

.2

48.6

30

6.4

71.4

99

.0

75.9

16

.8

22.0

61

.6

2011

55

.3

11.3

60

.2

27.8

40

4.6

25.9

68

.0

1.9

0.7

120.

1 56

.7

Tab

le 3

.15: Perf

orm

an

ce o

f Pro

fess

ion

al

Gen

era

l R

ein

sure

rs

1 N

et c

laim

s in

curr

ed a

s a

ratio

of

earn

ed p

rem

ium

inco

me

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Year

Gen

era

lLi

feTo

tal

Mari

ne, A

via

tio

n a

nd

Tr

an

sit

Fire

Mo

tor

Mis

cell

an

eo

us1

Dir

ect

Pre

miu

ms

(RM

mil

lio

n)

2009

87

7.8

494.

4 76

.5

984.

4 94

.4

2,52

7.5

2010

77

3.0

539.

0 84

.6

991.

3 10

6.9

2,49

5.0

2011

1,

187.

956

9.2

89.4

1,

142.

611

9.0

3,10

8.0

Rei

nsu

ran

ce P

rem

ium

s (R

M m

illio

n)

2009

86

5.7

116.

5 41

.4

380.

2-

1,40

3.7

2010

73

7.6

78.0

22

.0

315.

4-

1,15

3.1

2011

1,

217.

198

.9

7.2

240.

9-

1,56

4.0

Co

mb

ined

(R

M m

illio

n)

2009

1,74

3.4

610.

911

7.9

1,36

4.6

94.4

3,93

1.2

2010

1,51

0.7

617.

010

6.7

1,30

6.8

107.

03,

648.

1

2011

2,40

5.0

668.

096

.51,

383.

411

9.0

4,67

2.0

Tab

le 4

.1: In

sura

nce

Bro

kin

g : T

ota

l Pre

miu

ms

Tran

sact

ed

1 In

clud

es a

ll cl

asse

s ot

her

than

MAT

, fire

and

mot

or

Num

bers

may

not

nec

essa

rily

add

up d

ue t

o ro

undi

ng




Months2009 2010 2011

Amount (RMm)

% of Total

Amount (RMm)

% of Total

Amount (RMm)

% of Total

0 - 2 341.0 67.1 301.1 68.0 498.6 75.7

>2 - 6 128.7 25.3 92.6 20.9 125.1 19.0

>6 - 12 18.4 3.6 21.5 4.9 21.7 3.3

over 12 19.8 3.9 27.9 6.3 13.6 2.1

Total 507.9 100.0 443.1 100.0 658.9 100.0

Item2009 2010 2011

RMm % change RMm %

change RMm % change

Brokerage earned 279.5 15.1 300.8 7.6 322.6 7.2

Other income 31.6 1.9 35.0 10.8 36.2 3.4

Total expenses 191.5 5.2 206.8 8.0 217.5 5.2

Operating profit 119.6 30.3 129.0 7.9 141.3 9.5

Table 4.2: Insurance Broking : Outstanding Premiums Due to Insurers

Table 4.3: Operating Results of Brokers

Numbers may not necessarily add up due to rounding




Year

Mo

tor

No

n-m

oto

rTo

tal

No

.%

ch

an

ge

% s

hare

No

.%

ch

an

ge

% s

hare

No

.%

ch

an

ge

2009

26

4,97

2 2.

1 86

.8

40,2

85

-9.5

13

.2

305,

257

0.4

2010

29

2,57

0 10

.4

86.4

46

,264

14

.8

13.7

33

8,83

4 11

.0

2011

31

6,00

2 8.

0 85

.0

55,9

93

21.0

15

.1

371,

995

9.8

Tab

le 5

.1: C

ase

s H

an

dle

d b

y A

dju

sters

Item

2009

2010

2011

RM

m%

ch

an

ge

RM

m%

ch

an

ge

RM

m%

ch

an

ge

Fees

ear

ned

173.

6-0

.717

9.0

3.1

202.

613

.2

Oth

er in

com

e5.

7-1

8.8

12.2

114.

49.

2-2

4.8

Tota

l out

go15

7.4

-0.8

165.

35.

017

9.2

8.4

Ope

ratin

g pr

ofit/

(loss

)21

.9-6

.025

.918

.332

.625

.9

Tab

le 5

.2: O

pera

tin

g R

esu

lts

of

Ad

just

ers



Developments inGeneral Insurance Industry 2011-2012



Source : Persatuan Insuran Am Malaysia (PIAM) 2011

DEVELOPMENTS IN THE GENERAL INSURANCE INDUSTRY

Financial Sector Blueprint 2011-2020

The Financial Sector Blueprint marks a new phase in the development of the financial system in Malaysia and was officially launched by Bank Negara Malaysia (BNM) on 21st December 2011. The blueprint with the theme Strengthening Our Futurebuilds on and reinforces the solid foundations that have been achieved in the previous decade.

The success of the first Financial Sector Masterplan produced a financial system that is well-positioned to respond to the new imperatives in the economic environment. The financial institutions in Malaysia are well-capitalized and have improved risk management and governance practices in place. This is largely derived from the cumulative effects of building strong institutions, developing an efficient financial infrastructure and enhancing the regulatory and supervisory framework. In total, the Blueprint sets out 69 recommendations to achieve the vision of the financial sector by 2020.

Some of the broad roles and areas to be addressed by insurers and takaful operators are identified in the Blueprint as follows:-

• tosupporthighervalueaddedbusinessactivitiesandinfrastructureinvestments;• tomeettheneedsofthechangingdemography;• to intensify the internationalization of Islamic finance through regional and global

takaful/retakafuloutreach;• to enhance financial inclusion by providing adequate levels of protection across all

segmentsofthepopulation;• topromoteextensiveuseofthee-paymentsystems;• tofurtherexpandconsumereducationandprotection;• toenhancetalentdevelopment:and• inrelationtotheRegulatoryandSupervisoryregime,tointeraliaexamineandmonitor

the impact of uplifting of price restrictions.




AGENCY AND OTHER DISTRIBUTION CHANNELS

Agency Registration System

The table below shows the number of agency units registered under the General Insurance Agents Registration Regulations (GIARR) as at 31st December 2011 and 2010.

Year (as at 31st Dec)

No. of Agency Units Registered With

Total No. of Agency Units

Registered

Percentage of Agency Units Registered With

One Principal Two Principals One Principal Two Principals

2010 16,373 17,949 34,322 48% 52%

2011 16,684 18,927 35,611 47% 53%

As at 31st December 2011, the number of registered general insurance agents was 35,611 which is an increase of 3.8% compared to 34,322 in 2010.




Analysis of Business by Distribution Channels

Year AgentsDirect Business

ChannelsInsurance Brokers

Others Total

20107,955.1 m 2,450.0 m 1,884.7 m 615.1 m 12,904.9m

61% 19% 15% 5% 100%

20097,079.8 m 2,365.1 m 1,810.2 m 649.9 m 11,905.0m

60% 20% 15% 5% 100%

In 2010, agents garnered 61% or RM7,955.1 million of the total business in comparison to other distribution channels. Of the business acquired by the agency force in 2010, about 10% of total business is acquired via motor vehicle franchise holders. This analysis indicates that insurance agents continue to play a significant role in the acquisition channels in this market.




The percentage of agents earning less than RM5,000 decreased from 19.3 % in 2009 to 14.5% in 2010 whilst the percentage of agents earning above RM100,000 increased from 29.2% in 2009 to 34.2% in 2010.

In terms of quantum, the total remuneration earned by agents increased by 10% to RM937 million in 2010.

Trend in PCEIA Passes

The trend in the percentage of passes of the Pre-Contract Examination for General Insurance Agents (PCEIA) as at 31st December 2011 are as below:-




There were 3,271 candidates who sat for the PCEIA examination - General Insurance Route from January to December 2011 and the overall passing rate was 73%. Degree holders account for the highest percentage of passes at 88%.

ANALYSIS ON PROFILE OF AGENTS

Location

The geographical distribution of registered general insurance agents is as below:-

State

No. of Agents

2010 2011

Johore 4,934 5,118

Kedah 1,558 1,622

Kelantan 616 672

Melaka 1,395 1,404

N. Sembilan 1,275 1,339

Pahang 1,441 1,523

Penang 3,405 3,490

Perak 2,764 2,869

Perlis 123 122

Sabah 1,881 1,956

Sarawak 2,263 2,365

Selangor 6,912 7,184

Terengganu 501 573

WP Kuala Lumpur 5,192 5,316

WP Labuan 44 54

Singapore 18 4

The state of Selangor has the largest number of agents comprising 20% of the total agency population followed by Kuala Lumpur at 15%. The state with the lowest number of agents (in Peninsular Malaysia) is Perlis at 122 (0.3%).




Age Distribution of Agents

More than 85% of registered agents are above the age of 31 years. Agents within the age bracket of 31-40 formed the largest group at 30.2% followed by agents in the age bracket of 41-50 at 29.4%. Those below 21 years old comprised less than 1% of the agency force. The minimum age to be an agent is 18 years old.

Duration as General Insurance Agent

Agents who have been in the industry for more than 9 years formed 52% of the agency force. In contrast, about 19% of the agency force had been in the industry for less than 2 years. Those with 3 to 4 years of experience in the industry formed the smallest group at 0.8%.

Minimum Maintenance Contract (MMC) Requirement For General Insurance Agents

Since the implementation of the MMC Requirement in July 2003, the number of agents that have been terminated due to non-compliance showed a marked improvement i.e from 15.9% (7,656 agents) in 2005 to 5.4% (1,917 agents) in 2011.

Under the MMC Requirement, agents are required to maintain a minimum of RM20,000 production to be retained as an agent.




INSURANCE INDICATORS

Source:-ISM










BUSINESS REPORT

Despite the challenging economic environment, the Malaysian economy recorded a steady growth of 5.1% in 2011 (2010: 7.2%). This growth was achieved in an increasingly challenging and volatile global environment. There were several natural disasters in the region that had severe impact on the economies of these countries and which also disrupted the global manufacturing supply chain. There continues to be uncertainty over the international reforms that are taking place in several major advanced economies and the implications on overall global economic growth.

Domestically, the services sector was the largest contributor of growth and it sustained expansion at 6.8% in 2011 (2010: 6.8%) to contribute to 3.9% of the overall Gross Domestic Product (GDP) growth. The finance and insurance sub-sectors expanded firmly following strong performance in bank lending and increased insurance premium income.

Domestic demand registered a steady growth of 8.2% in 2011 (2010: 6.3%) driven by both household and business spending. Headline inflation as measured by the annual percentage change in Consumer Price Index (CPI), averaged 3.2% in 2011 (2010: 1.7%).

The general insurance industry looks forward to a sustainable growth rate amidst what is generally expected to be a highly challenging global economic environment.

Key Figures of the General Insurance Industry, 2010/2011

Association Membership




As at 1st April 2012, the Association had 32 members comprising licensed general insurance and reinsurance companies operating in Malaysia. There were 18 general insurers, 8 composite insurers and 6 general reinsurers. Out of the 32 member companies, 17 were domestic operations whilst 15 were foreign owned.

General Insurance Business Performance

The general insurance industry registered positive growth in 2011 amidst global economic uncertainty and huge catastrophic losses experienced in the region. Gross written premium showed a growth of 7.85% to reach RM14.029 billion, compared with an increase of 8.56% (RM13.009 billion) in 2010. Net premiums grew at a rate of 8.20% to reach RM9.718 billion.

The Motor and Fire classes of business recorded increases in gross written premiums with Motor recording written premiums of RM6.382 billion which was an increase of 6.93% over the previous year (2010: 5.2%, RM5.969 billion). The Fire class recorded a 4.67% increase to reach RM2.399 billion (2010: 2.4%, RM2.292 billion). Medical insurance received a 27.8% boost to reach RM0.822 billion compared to RM0.643 billion in 2010.




General Insurance Business Market Share

In terms of market share, the previous year’s trend in sectorial distribution of the total market share was generally maintained. The Motor sector dominated the market at 46.4%, which was a decrease of 0.7% from the previous year. The Fire sector’s share was reduced from 16.7% in 2010 to 16.5% in 2011. All the other sectors maintained their respective market shares.


NEW ARRIVALS 2012




Source : MII Knowledge Centre

1. Title: Insurance: A Big Decision For Small Business Author: Mitchel Smith Publisher: lulu.com ISBN: 9781257823727

This book is designed to help the small-business owner navigate the confusing world of property and casualty insurance. Large companies often have a whole department devoted to insurance and risk management. However, as with so many aspects of any small business, insurance is often one more hat that only an owner or manager can wear. This book also will help anyone in charge of insurance for a small business understand the basics of insurance and the various types of policies available.

2. Title: Career Guidebook For IT in Insurance: A Definitive guide to

a career in insurance IT Author: Essvale Corporation Ltd ISBN: 9780470599075

This is another title in the Career Guidebook Series that are definitive guides for a career in IT across industry sectors. This book will provide a guide for IT professionals working in insurance IT and those that aspire to work in IT in this sector of the financial services industry. The eight chapters in this guidebook contain information about the different roles that exist in insurance IT, from business analysts and project managers to test analysts and helpdesk analysts. Also included are an overview of the business of insurance and tips on how to write a winning CV for the different roles in insurance IT – contract or permanent.

3. Title: A Guide to Forensic Accounting Investigation Authors: Thomas W. Golden, Steven L. Skalak, Mona M. Clayton Publisher: Sweet & Maxwell Ltd ISBN: 9780470599075

The Auditor’s Guide to Forensic Accounting Investigation explores exactly what assurances auditors should provide and suggests alternatives to giving the capital markets more of what they are requiring-greater assurances that the financial statements they rely upon for investment decisions are free of material error, including fraud. It reveals the surprising complexity of fraud deterrence, detection, and investigation, and offers a step-by-step approach to understanding that complexity.




4. Title: How to become an independent insurance adjuster: a 3-step action plan to entering the profession

Authors: insuranceadjusterbook.com Publisher: Insurance Adjuster Resources, LLC ISBN: 9780578059846

This practical, hands-on guide shows you the fastest and best way to break into the adjusting profession. From training and licensing to finding an independent firm, this resource has everything you need to begin your new career. The good folks from Adjuster Resources, LLC have combined decades of adjusting experience and condensed it into one easy-to-read and easy-to-follow manual.

5. Title: Rainmaking Conversations: Influence, Persuade, and Sell in

Any Situation Author: Mike Schultz ISBN: 9780470922231

Conversations make or break everything in sales. Every conversation you have is an opportunity to find new prospects, win new customers, and increase sales. Rainmaking Conversations provides a proven system for leading masterful conversations that fill the pipeline, secure new deals, and maximize the potential of your account. Rainmaking Conversations offers a research-based, field-tested, and practical selling approach that will help you master the art of the sales conversation. This proven system revolves around the acronym RAIN, which stands for Rapport, Aspirations and Afflictions, Impact, and New Reality. You’ll learn how to ask your prospects and clients the right questions, and help them set the agenda for success.

6. Title: Essential Mathematics for Market Risk Management Author: Simon Hubbert Publisher: John Wiley & Sons ISBN: 9781119979524

With risk management top of the agenda for many organizations, this book is essential reading for getting to grips with the mathematical story behind the subject of financial risk management. It will take you on a journey - from the early ideas of risk quantification up to today’s sophisticated models and approaches to business risk management.To help you investigate the most up-to-date, pioneering developments in modern risk management, the book presents statistical theories and shows you how to put statistical tools into action to investigate areas such as the design of mathematical models for financial volatility or calculating the value at risk for an investment portfolio.




7. Title: The Financial Services Marketing Handbook Authors: Evelyn Ehrlich PhD, Duke Fanelli Publisher: Bloomberg Financial ISBN: 9781118065716

The Financial Marketing Services Handbook, Second Edition gives sales and marketing practitioners the practical tools and best practices they need both to improve their job performance and their retail and institutional marketing strategies. The FSM Handbook guides marketing and sales professionals working in an industry characterized by cut-throat competition, client mistrust, transformative technologies, and ever-changing regulation, to understand the practical steps they must take to turn these threats into opportunities.

8. Title: Healthcare Fraud: Auditing and Detection Guide Author: Rebecca Saltiel Busch Publisher: John Wiley & Sons ISBN: 9781118179802

An invaluable tool equipping healthcare professionals, auditors, and investigators to detect every kind of healthcare fraud. According to private and public estimates, billions of dollars are lost per hour to healthcare waste, fraud, and abuse.

9. Title: The Fraud Audit : Responding to the Risk of Fraud in Core Business Systems

Author: Leonard W. Vona Publisher: John Wiley & Sons ISBN: 9780470647264

Essential guidance for creation of an effective fraud audit program in core business systems The Association of Certified Fraud Examiners has reported that U.S. businesses lose up to $4 billion annually due to fraud and abuse. Discover fraud within your business before yours becomes another business fraud statistic.

10. Title: Health Care in Malaysia Authors: Hematram Yadav, Sirajoon Noor Ghani Publisher: University of Malaya Press ISBN: 9789831004449

This book is written mainly to provide information about the development of health care services available in Malaysia. The focus is on the public sector as it provides the -bulk of the services though the private sector plays an important role in the delivery of health care.




Latest News from Knowledge Centre

MII Knowledge Centre is introducing a new search engine system that have replaced our previous “MII elibrary”. The new system bring together almost all of our online and physical collections and resources: books, e-books, journals, journal articles, news articles, audio video materials etc., and allow them to be searched from a single point within a single system called MII Visualizer. All Visualizer’s search result will direct you to:

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All the physical books, journals and magazines catalogue records and thumbnail image owned by MII Knowledge Centre will be resided here. You can also check the review of the books from Amazon.com or Barnes & Noble as well as the table of contents of the book. Search by browsing, subject searching and keyword searching with much more convenience and at faster speed.

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Browse or search our digital contents of exam papers, newspapers clippings, ebooks, e journals and etc from here. Simply login and click the image to download our digital contents. Only MII and KC members are entitled for login account so sign up our membership now to enjoy more benefits.

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Full name: NRIC no: Passport no (for international members only): Email address (preferably personal email): Contact no: Do let us know what you think of our new library system by e-mail your feedback to us at [email protected].

Check out MII Visualizer at www.miielibrary.com





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Please contact the Knowledge Centre Team for further assistance :

Ily Aliah Ismail | [email protected] Nursafiyyah Mazlan | [email protected] Mahalil | [email protected] Hilmi Ramlee | [email protected]

Knowledge CentreThe Malaysian Insurance Institute (MII) Knowledge Centre,S17-S28, 2nd Floor,Maju Junction Mall,1001 Jalan Sultan Ismail50250 Kuala Lumpur

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