Making Waves - a Year of Change - PIAM · MAkiNg WAVES - A YEAR Of ChANgE REgiSTERED OffiCE Level...

ANNUAL REPORT 2016 | A

Making Waves - a Year of Change

A N N U A L R E P O R T 2 0 1 6

| ANNUAL REPORT 2016B

OUR CORE VALUES

Professionalism

Industry-focused

Accountability

Make a difference

ANNUAL REPORT 2016 | 01

• ArticulateOneUnifiedVoiceforandonbehalfoftheindustry

• CreateFavourableBusinessEnvironmentformembercompanies

• PromoteImageoftheindustryanditsRoleintheEconomy

• EducateConsumersonGeneralInsuranceProducts• FosterPublicconfidencebyprotectingtheinterestsof

Consumers• EstablishaSoundandEfficientInsuranceInfrastructure

withBestPractices• RaiseProfessionalismandensureStandardsin

Distribution• HarmonizeApproachesandSolutionstoIndustryIssues• Buildapipelineoftalentandprofilegeneralinsurance

asacareerofchoice• FacilitateInformationSharingwithinboundariesof

CompetitionAct

OUR CORPORATE OBjECTiVES

TobeaDynamicTradeAssociationservingtheinterestsofourmembersbycreatingafavourablebusinessenvironmentandworkingcloselywithallstakeholderstosupporttheinitiativesunderourNationalAgenda.

OUR MiSSiONSTATEMENT

aBoUT USThehistoryofPersatuanInsuransAmMalaysia(PIAM),i.e.theGeneralInsuranceAssociationof

Malaysia,originatedfromtheestablishmentofvariousinsuranceandtariffassociationssetupin

1885thatplayedaroleasacollectivevoiceoftheinsuranceindustryinMalayaandSingapore,

shortlyafter the independenceofMalaya in 1957. InJune1961, the InsuranceAssociationof

Malaya was formed to maintain tariff discipline, respond to new insurance legislations and

promotesoundinsurancepractices.Forthefirsttime,anAssociationwasestablishedinKuala

Lumpurtosafeguardthecountry’sgeneralinsuranceinterest.

Subsequently,PIAMwasincorporatedinMay1979asastatutorytradeassociationrecognised

by the Government of Malaysia for all registered insurers who transact general insurance

business.Currently,PIAMhas27membercompaniescomprisingdirectgeneralinsuranceand

reinsurancecompaniesoperatinginMalaysia.

| ANNUAL REPORT 201602

ConTenTs01

ABOUTUS

03CORPORATEINFORMATION

04PIAMMANAGEMENT

COMMITTEE2016/2017

35INDUSTRYISSUESANDACTIVITIES

93ACKNOWLEDGEMENT

102INSURANCEINDICATORS

105ROLLOFHONOUR

1984-2017

98LISTOF

MEMBERS

06REPRESENTATIVESIN

OTHERORGANISATIONS

07SUB-COMMITTEE

MEMBERS2016/2017

23REGIONALMEETINGSANDCONFERENCES

11ANNUALREPORT

2016/2017

13THEINDUSTRYLANDSCAPE

ANDPERFORMANCE

17KEYINDUSTRYDEVELOPMENTS


CorPoraTe INFORMATION

The2016annualreportcoverdesign

is all about change. Since 2014,

PIAMhastransformedintoavibrant

and dynamic trade association.

Along the way it has elevated the

profile and enhanced the image of

theindustry. Ridingonthewavesof

change in 2016 PIAM is committed

to forging strong partnerships with

all stakeholders for the benefit

of all its member companies.

Thereby, fostering the growth and

developmentofgeneralinsurancein

Malaysia.

MAkiNg WAVES -A YEAR Of ChANgE

REgiSTERED OffiCELevel3,WismaPIAM150,JalanTunSambanthan50470KUALALUMPUR

AUDiTORSSJGrantThorntonLevel11,SheratonImperialCourtJalanSultanIsmail50250KUALALUMPUR

ChAiRMANMr.AntonyLeeFookWeng

ChiEf EXECUTiVE OffiCERMr.MarkLimKianWei

BANkERSHongLeongBankBerhad150,JalanTunSambanthan50470KUALALUMPUR


PiaM ManageMenT CoMMiTTee 2016/2017

Mr. David Fike (Convenor, Accident, Health and Others)

Encik Zainudin Ishak(Convenor, Education/HRD)

Mr. Mark Lim Kian Wei (Chief Executive Officer)

Mr. Antony Lee(Chairman)

From left to right:


Encik Zaharudin Daud (Convenor, Claims Management/PARS)

Mr. David Tan See Dip (Convenor, Finance &

Corporate Governance/ERM)

Mr. Derek Roberts (Convenor, Motor) - up to 7 Dec 2016

Mr. Chua Seck Guan (Deputy Chairman and Convenor,

Distribution Management)

Mr. Randy Hong(Convenor, Regulatory &

Industry Development)

Mr. Looi Kong Meng

(Convenor, Fire, Marine

& Engineering)

Mr. Steve Crouch (Convenor, Public Relations/CSR)

Not in Photo:


rePresenTaTives in OThER ORGANISATIONS

ASEAN iNSURANCE COUNCiLMr. Antony Lee(AIG Malaysia Insurance Bhd)

Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)

ThE MALAYSiAN iNSURANCE iNSTiTUTE (Mii)Mr. Antony Lee(AIG Malaysia Insurance Bhd)

NATiONAL ROAD SAfETY COUNCiLMs. Joy Lim(Persatuan Insurans Am Malaysia)

MALAYSiAN RATiNg CORPORATiON BhD (MARC)Mr. Chua Seck Guan(MSIG Insurance (Malaysia) Bhd)

OMBUDSMAN fOR fiNANCiAL SERViCES (OfS)Mr. Antony Lee (AIG Malaysia Insurance Bhd)

MALAYSiAN MOTOR iNSURANCE POOL (MMiP)Mr. Steve Crouch (Chubb Insurance Malaysia Berhad)

NATiONAL TRANSiT TRANSPORT COORDiNATiNg COMMiTTEE (Protocol 5)Mr. Mark Lim Kian Wei(Persatuan Insurans Am Malaysia)

iSM iNSURANCE SERViCES MALAYSiA BhDMr. Derek Roberts(AmGeneral Insurance Berhad)

up to 7 Dec 2016

CENTRAL ADMiNiSTRATiON BUREAU (CAB) SUPERViSORY BOARDMr. Antony Lee(AIG Malaysia Insurance Bhd)

jOiNT iNSURANCE TAkAfUL COUNCiLMr. David Fike(Zurich Insurance Malaysia Bhd)

Mr. Chuang Chee Hing(Lonpac Insurance Bhd)

Mr. Michael Wong Teck Kat(Independent)

VEhiCLE ThEfT REDUCTiON COUNCiL (M) BhDMr. Antony Lee (AIG Malaysia Insurance Bhd)

Mr. Chua Seck Guan(MSIG Insurance (Malaysia) Bhd)

Encik Muhammad Azlan Noor Che Mat(Etiqa Insurance Berhad)


Mii CAPACiTY BUiLDiNg fUND (STEERiNg COMMiTTEE)En. Zainudin Ishak(Malaysian Reinsurance Bhd) Puan Nor Azima Binti Abdul(QBE Insurance (Malaysia) Berhad)


NATiONAL PAYMENTS ADViSORY COUNCiL (NPAC)Mr. Antony Lee(AIG Malaysia Insurance Bhd)

PORT kELANg AUThORiTY CONSULTATiVE COMMiTTEEMs. Lee Ying Ying (AIG Malaysia Insurance Bhd)

NATiONAL COMMiTTEE ON MANAgED CAREMs. Lum Sau Mei (Progressive Insurance Bhd)

Ms. Jenny Yeoh Yeok Len(MSIG Insurance (Malaysia) Bhd)


sUB-CoMMiTTee MeMBers2016/2017

DiSTRiBUTiON MANAgEMENT

CONVENORMr Chua Seck GuanMSIG Insurance (Malaysia) Bhd

DEPUTY CONVENORMr Ronnie Lee Seong KarEtiqa Insurance Bhd

MEMBERSMr Kevin RajaratnamAIG Malaysia Insurance Berhad

Mr Foo Chuen HouAllianz General Insurance Co.

(Malaysia) Bhd

Ms Grace Quah Seok ChenAmGeneral Insurance Bhd

up to 7 Dec 2016

Ms Sia Meu IngLonpac Insurance Bhd

Mr Teoh Guan HuatMSIG Insurance (Malaysia) Bhd

Ms Linda Ho Yen LaiOverseas Assurance Corp (M) Bhd

Mr William FooQBE Insurance (Malaysia) Bhd

Mr Choon Kim HoeRHB Insurance Berhad

Mr Liew Eng SeongTune Insurance Malaysia Berhad

CLAiMS

CONVENOREncik Zaharudin Bin DaudEtiqa Insurance Bhd

DEPUTY CONVENORMr Harminder Singh a/l Seva SinghMSIG Insurance (Malaysia) Bhd

MEMBERSMr Dilsher SinghAIG Malaysia Insurance Berhad

Mr Sivakumar a/l RamanlingamAllianz General Insurance Co.

(Malaysia) Bhd

Mr Darren Joseph RyanAmGeneral Insurance Bhd

up to 7 Dec 2016

Mr Leong See MengBerjaya Sompo Insurance Bhd

Ms Siew Yoke PengBerjaya Sompo Insurance Bhd

Encik Muhammad Azlan Noor Bin Che MatEtiqa Insurance Berhad

Mr Richard Tee Chion ChiekLiberty Insurance Berhad

Ms Chan Cheng SimPacific & Orient Insurance Co. Bhd

Mr Alan Sii How PingRHB Insurance Bhd

Ms Dorine ChangTokio Marine Insurans (M) Bhd

Ms Andrea LooiZurich Insurance Malaysia Berhad

ACCiDENT, hEALTh & OThERS

CONVENORMr David FikeZurich Insurance Malaysia Bhd

DEPUTY CONVENORMr Kevin Choong Wui TeckChubb Insurance Malaysia Bhd

MEMBERSMs Mira Florence DesaiAIG Malaysia Insurance Bhd

Ms Elaine Kok Yoke FoongAmGeneral Insurance Bhd

up to 7 Dec 2016

Mr Sim Siew FuangBerjaya Sompo Insurance Bhd

En Azmy Bin TaibEtiqa Insurance Bhd

Mr Matthews a/l GeorgeLiberty Insurance Bhd

Ms Jenny Yeoh Yeok LenMSIG Insurance (Malaysia) Bhd

Ms Christine TehOverseas Assurance Corp. (M) Bhd

Ms Lum Sau MeiProgressive Insurance Bhd

Ms Lily TehTune Insurance Malaysia Bhd


sUB-CoMMiTTee MeMBers 2016/2017

fiRE, MARiNE AND ENgiNEERiNg

CONVENORMr Looi Kong MengLonpac Insurance Bhd

DEPUTY CONVENORPuan Nur Basmin Md AminEtiqa Insurance Bhd

MEMBERSMs Lee Ying YingAIG Malaysia Insurance Berhad

Mr Christopher Robert TandyAmGeneral Insurance Bhd

up to 7 Dec 2016

Mr Yap Foo VeeBerjaya Sompo Insurance Bhd

Mr Jayaparagasam a/l MugunenLiberty Insurance Bhd

Encik Mohd Zamri Bin ZainudinLonpac Insurance Bhd

Encik Abd Halim Anuar SharifMalaysian Reinsurance Bhd

Ms Amy Tan Gow HouMSIG Insurance (M) Bhd

Ms Elaine Chan Choy FongOverseas Assurance Corp (M) Bhd

Mr Yong Moh PengProgressive Insurance Bhd

Ms Wendy TanSwiss Reinsurance Company Ltd

Encik Asri Bin SuratmanTokio Marine Insurans (M) Bhd

Ms Teresa WongZurich Insurance Malaysia Berhad

EDUCATiON/hRDSUB-COMMiTTEE

CONVENOREncik Zainudin IshakMalaysian Reinsurance Berhad

DEPUTY CONVENORPuan Nor Azima Binti AbdulQBE Insurance (Malaysia) Berhad

MEMBERSMs Vimala Bhoo PathyAIG Malaysia Insurance Berhad

Ms Wong Siew Yong, NicoleAmGeneral Insurance Bhd

up to 7 Dec 2016

Encik Mokhtar Abdul RazakEtiqa Insurance Berhad

Cik Farina Mohamad RamlanLiberty Insurance Berhad

Puan Iszatul Mashani (Jun) IshakMalaysian Reinsurance Berhad

Mr Bernard OngMSIG Insurance (Malaysia) Bhd

Ms Kathryn Kok Poh CheeTune Insurance Malaysia Berhad

Ms Hemalatha KrishnanZurich Insurance Malaysia Berhad

Mr Liew Yoke OnThe Malaysian Insurance Institute

fiNANCE ANDCORPORATE gOVERNANCE/ERM

CONVENORMr David Tan See DipLiberty Insurance Bhd

DEPUTY CONVENORMr Ng Seng KhinLonpac Insurance Bhd

MEMBERSMr David Oo Chih SuAIA Bhd

Puan Zawinah Bte IsmailAIG Malaysia Insurance Berhad

Ms Felicia Lee Chi KwanAllianz General Insurance Co.

(Malaysia) Bhd

Ms Dang Mei YinAmGeneral Insurance Bhd

up to 7 Dec 2016

Mr Vincent FongAsia Capital Reinsurance (M) Sdn Bhd

Mr Thomas LianLiberty Insurance Bhd

Encik Muhammad RidzuanBin IsmailMalaysian Reinsurance Bhd

Ms Khoo Sook HooiOverseas Assurance Corp. (M) Bhd

Ms Kan Poh YeeProgressive Insurance Bhd

Ms Seng Soo WyQBE Insurance (Malaysia) Berhad

Ms Maggie Chong Sook Yin RHB Insurance Bhd

Mr Prithpal RupraiZurich Insurance Malaysia Berhad



MOTOR

CONVENORMr Derek RobertsAmGeneral Insurance Bhd

up to 7 Dec 2016

DEPUTY CONVENORMr Jimmy Tan Ooi ChaiAllianz General Insurance Co.

(Malaysia) Bhd

MEMBERSMs Sarala PuvanesanAIA Bhd

Mr Patrick Wong Cheong YewAsia Capital Reinsurance (M) Sdn Bhd

Ms See Toh Lai CheeAmGeneral Insurance Bhd

up to 7 Dec 2016

En Azmi Abdul WahabHannover Re Malaysian Branch

Mr Peter Ong Wooi LoonLiberty Insurance Bhd

Puan Yahani HashimMalaysian Reinsurance Berhad

Ms Sophia Chan Soi FongMSIG Insurance (Malaysia) Bhd

Ms Chan Cheng SimPacific & Orient Insurance Co. Bhd

Mr Goh Eng Chun

RHB Insurance Berhad

Mr Tan Chew KuanZurich Insurance Malaysia Bhd

REgULATORY AND iNDUSTRY DEVELOPMENT

CONVENORMr Randy HongSwiss Reinsurance Company Ltd

DEPUTY CONVENOR Ms Fiona Yew Chubb Insurance Malaysia Bhd

MEMBERS Ms Sara Jayne RamalingamAIA Bhd

Ms Tee Rin Na

AIG Malaysia Insurance Bhd

Mr Patrick Lim Kok KeongAllianz General Insurance Co.

(Malaysia) Bhd

Ms Joy Tey Hong TengAmGeneral Insurance Bhd

up to 7 Dec 2016

Mr P. MaheshwarChubb Insurance Malaysia Bhd

Ms Asha a/p M. Thomas VergheseLiberty Insurance Bhd

Encik Muhammad TirmiziMuhammad YewMalaysian Reinsurance Berhad

Ms Gan Sye NiMSIG Insurance (Malaysia) Bhd

Mr Cheng Chuen CheeOverseas Assurance Corp. (M) Bhd

Mr Vincent Ong Hock LimRHB Insurance Berhad

Mr Alan HoZurich Insurance Malaysia Bhd

PUBLiC RELATiONS/CSR

CONVENORMr Steve CrouchChubb Insurance Malaysia Bhd

DEPUTY CONVENORMr. Yogendra ThavakumarAIG Malaysia Insurance Bhd

MEMBERSMs Darshini MahendranathanAIA Bhd

Mr Benedict Gerald RozarioAmGeneral Insurance Bhd

up to 7 Dec 2016

Puan Haliza HashimLiberty Insurance Berhad

Puan Noorazimah TahirMalaysian Reinsurance Bhd

Ms Jennifer Hsu Chin Fen

MSIG Insurance (Malaysia) Bhd

Ms Lakshimi K.A.

Tune Insurance Malaysia Berhad

Puan Roziana Mohd YatimZurich Insurance Malaysia Berhad



PARS

CHAIRMANEn Muhammad Azlan Noor Bin Che MatEtiqa Insurance Bhd

MEMBERS

Mr Yew Sin Nam

AIG Malaysia Insurance Bhd

Ms Penny Sivam Sedase Von Pillay

Allianz General Insurance Co.

(Malaysia) Bhd

Mr Ho Wai Hei

AmGeneral Insurance Bhd

up to 7 Dec 2016

Mr David Chok Voon Peng

Berjaya Sompo Insurance Berhad

Puan Haslenda Md Moktar Rudin

Etiqa Insurance Bhd

Mr Jaspal Singh

MSIG Insurance (Malaysia) Bhd

Mr Siow Chon Siong

MPI Generali Insurans Berhad

Mr Alan Sii How Ping

RHB Insurance Bhd

Mr Ronnie Chan Yoon Kong

Tune Insurance Malaysia Berhad

Encik Azico Bin Abdul Rahim

Overseas Assurance Corp. (M) Bhd

SABAhLiAiSONgROUP

CONVENORMr Simon Teng Lung HaiAmGeneral Insurance Bhd

up to 7 Dec 2016

MEMBERS

Ms Chin Vun Fong

Berjaya Sompo Insurance Berhad

Mr Michael Wong Ho On

Liberty Insurance Berhad

Mr Benedict Majin

Progressive Insurance Berhad

Ms Jocelyn Choo

Tune Insurance Malaysia Bhd

Mr Liew Chi FuiZurich Insurance Malaysia Berhad

SARAWAkLiAiSONgROUP

CONVENORMr Eric Tan Hui ChuingLiberty Insurance Berhad

MEMBERSMr Alex Ong Liang LiangBerjaya Sompo Insurance Bhd

Mr Tan Wee GieeProgressive Insurance Bhd

Mr Desmond Chan Chee SinTokio Marine Insurans (M) Bhd

Mr Hong Swee LeongZurich Insurance Malaysia Berhad


2016/ 2017

annUaL rePorT


“ “

TheAnnualReportofPIAM2016/2017providesanoverviewofthegeneralinsuranceindustryandhighlightsthemajoractivitiesandprojectsoftheAssociationfortheperiodunderreview.

ASSOCiATiON MEMBERShiP

As at 1 Apr 2017, the Association had 27 memberscomprisinglicensedgeneralinsuranceandreinsurancecompanies operating in Malaysia. There were 18general insurers,4composite insurersand5generalreinsurers.Outofthe27membercompanies,12weredomesticoperationswhilst15wereforeignowned.

Generalcomposite

Reinsurance5

184

OVERALL BUSiNESS REPORT

For the year 2016, the Malaysian economy grewat a commendable rate of 4.2% down from 5% in2015, despite the many global challenges. The keycontributorstothegrowthweretheconstructionsectorwhichgrewby7.4%followedbyservicessectorwhichgrewat5.6%.

Thefinanceandinsurancesub-sectorturnedaroundtoregisterpositivegrowth,drivenbyhighernet interestincome and better performance of the life insurancesegment. The general insurance and takaful sectormoderatedinlinewitheconomicconditions.Whilethedeclineinnewmotorvehiclessalesimpactedthemotorclassofbusiness,thefireclassachievedsteadygrowth.Insurancepremiumretention in thecountryhasbeenflat at about90%since2008and the2016 retentionratiowasat90.4%

Thetotalunemploymentrateroseto3.5%in2016(2015:3.1%)duetoaslowerjobmarketasemployersadoptedacautiousstanceand refrained fromexpanding theirworkforce too quickly. The younger labour forcewasthemostaffectedas ithasbecomemorechallengingforyouthtosecureemployment.

Inflationary pressures in the economy remained lowwith headline inflation averaging 2.1% in 2016 (2015:2.1%).

In linewith the development of the economy and itschanging structure, it is important for the industry tostrengthen its capacity to supportmore complexandnon-traditional risks, both at a technical as well asfinanciallevel.

2017

annUaL rePorT2016/2017


Thegeneralinsuranceindustrygrowthtaperedto1.1%in2016,withgrosswrittenpremium income reachingRM17.67billion.Thiswashalfthe2.2%growthrateandRM17.5billionachievedin2015.(2014:5.9%growthwithRM17.1billiongrosswrittenpremium).

Motor insurance the dominant line of business grewmarginallyby0.8%maintainingitsmarketshareof46.2%withgrosswrittenpremiumsincreasingtoRM8.17billionfromRM8.09billionin2015.TheFireclassrecordeda5%growthtoRM3.27billion,andremainsthesecondlargestbusinesssegmentwithamarketshareof18.5%(2015:RM3.1billion,17.8%).

MedicalandHealth Insurance (MHI)surged6.6%withgross written premiums reaching RM1.03 billion. Thiswasapositiveturnaroundcomparedtothe4.0%declinein 2015. The Miscellaneous Class comprising Bonds,Liabilities,EngineeringandWorkmen’sCompensationregistereda 1.7%growthwithgrosswrittenpremiumsreachingRM2.35billion.

MarineAviation andTransit (MAT) insurancedeclinedsignificantly by 7.8% with gross written premiums ofRM1.56billionduelargelytothereductioninMarineHullinsuranceandthecontractionintheOil&Gassector.ThePersonalAccidentclassregisteredareductionof0.2%withgrosswrittenpremiumsofRM1.30billion.

The inDUsTrY LanDsCaPe AND PERFORMANCE

On the financial performance of general insurancecompanies,theindustryachievedahigherunderwritingprofitofRM1.530billionin2016,comparedtoRM1.464billionin2015andRM1.488billionin2014.

Thecollaborativeeffortsbetweentheindustryandthelaw enforcement agencies continued to show goodresultswithadeclineof20%inmotortheftcount.Thetotalnumberofstolenvehicles forallclasses in2016amountedto19,307–areductionfrom24,154in2015and30,583in2014.Alltypesofvehiclesexperiencedreductionswiththemotorcyclesrecordingthehighestpercentageof24%.

BUSiNESS MARkET ShARE

Intermsofmarketshare,Motor Insurancemaintaineditspositionasthelargestclasswithashareof46.2%ofthetotalbusinessunderwritten(2015:46.3%).ThiswasfollowedbytheFireinsuranceclasswhichincreasedto18.5%(2015:17.8%).

MAT9.7%

MAT8.8%

CAR & Eng 3.8%

CAR & Eng 3.9%

Fire 17.8% Fire 18.5%

Liabilities 3.2% Liabilities 3.3%

MhI 5.5% MhI 5.8%

Others 4.5% Others 4.4%

PA 7.4% PA 7.3%

WC EL 1.3%

WC EL 1.2%

Bonds 0.3% Bonds 0.4%

Motor 46.3%

Motor 46.2%

2015 2016


CLAiMS RATiO BY SECTORS

Fire

50.0%

0

100.0%

150.0%

200.0%

250.0%

Motor MotorAct

27.7%

28.3% 6

6.9%

72.0%

126.0%

219.6%

70.5%

54.0%

28.8%

25.9%

40.3%

34.7%

47.5% 56.7%

24.2%

17.4%

9.9%

9.4%

44.2%

48.8%

2016 2015

PersonalAccident

MAT CAR&ENG

Liability WC&EL OthersMedical

NET CLAiMS iNCURRED RATiO (NCiR) BY SECTORS

TheoverallNetClaimsIncurredRatio(NCIR)reducedto54.5%in2016from56.5%in2015.TheoverallMotorNCIRdippedto66.9%(2015:72.0%),whilstMedicalincreasedfrom54%to70.5%(2014:57.4%).MATincreasedto34.7%in2015(2014:33.9%).

TheNCIRfor“MotorAct”cover(i.e.coverforcompulsorythirdpartybodilyinjuryanddeathliabilities),reducedsignificantlyto126.0%from219.6%in2015(2014:222.0%).ThiswasnotsolelyduetolesserclaimsbeingreceivedbyinsurersbutalsoduetothereleaseofreservesbytheMalaysianMotorInsurancePool(MMIP)inearly2016.

UNDERWRiTiNg MARgiN

The general insurance industry recorded an underwritingmargin of 12.0% amounting to RM1.6 billion with anoperatingresultofRM2.650billion(2015:11.7%amountingtoRM1.461billionwithanoperatingresultofRM2.265billion).Thecombinedmanagementexpensesandcommissionsratioofinsurancecompaniesincreasedto33.5%from31.8%in2015(2014:30.9%).

underwriting margin 11.7%

managementexpenses 21.9%

commission 9.9%

net claims 56.5%

2015

underwriting margin 12.00%

managementexpenses 23.6%

commission 9.9%

net claims 54.5%

2016


PhASED LiBERALiSATiON Of ThE MOTOR AND fiRE TARiffS

ThePolicyDocumentonPhasedLiberalisationofMotorandFireTariffswas issuedbyBankNegaraMalaysia(BNM)on30Jun2016.

ThispolicydocumentoutlinesthephasesandhighlightsthedetailedrequirementsinthegradualdisapplicationoftheMotorandFireTariffs. TheguidingprinciplesofthePhasedLiberalisationare:-

• Gradualmarket transition tomarket-basedpricingsupported by prudent risk management andpractices

• Access tobasicprotectionorcompulsory lines toremainaffordable.Anyadjustmenttothepricesofsuchproductsisimplementedgradually

• Consumers’ interests remain protected throughenhanced transparency and improved sales andmarketingpractices

• Stabilityinthegeneralinsuranceandtakafulmarketispreserved

Thispolicydocumentcameintoeffectfrom1Jul2016.Itallowsinsurerstheflexibilitytointroducenewproductsat premiums based on market rates determined by the insurers. BNM has set some parameters for thisflexibility and any products outside these thresholdsrequiretheapprovaloftheregulator.

PIAM’s role is to ensure that the introduction of newproducts are with common terms that are consistentandwillnotconfusetheconsumerorpolicyowner. Inthis regard, insurersare required tosubmit thepolicywordingsforallnewproductstobeintroduced,toPIAMforreview.Forthisprocesstobeundertakensmoothly,PIAM had set up an Industry Product Review Board(IPREB)effective1Aug2016.

OPERATiONALiSATiON Of fiNANCiAL OMBUDSMAN SChEME

The Financial Ombudsman Scheme (FOS) which isoperatedundertheOmbudsmanforFinancialServices(OFS) was formed by BNM in accordance with theFinancialServicesAct (FSA)and the IslamicFinancialServicesAct(IFSA),2013.

The OFS commenced its operations on 1 Oct 2016fromthepreviousorganizationknownastheFinancialMediation Bureau (FMB). OFS is an alternativecomplaint/dispute resolution body which assistsconsumers to resolve their complaints/disputes withfinancialinstitutions.AllfinancialserviceprovidersaremembersofOFS.

ThemandateoftheOFSisto:-

• Provide consumers an avenue for effective andprompt resolution of complaints/disputes arisingfrom products and services provided by financialinstitutionona“freeofcharge”basis

• Resolve complaints/disputes in an independent,impartial and fair manner

• Collaborate with the financial institutions inresolvingcomplaints/disputes

• Createawarenessonmattersofcommon interesttoconsumersandthefinancialindustry

OFS has set differentmonetary limits for complaints/disputes to be handled by it. For the insurance andtakaful industry, the coverage of complaints/disputesareformotor thirdpartypropertydamageclaimsatamonetarylimitofRM10,000andbelow.

keY inDUsTrY DEvELOPMENTS


The regulator has taken on the role to provide aregulatory environment that is conducive for thedeploymentoffintechthroughitsFinancialTechnologyRegulatory Sandbox Framework. This includesreviewing and adapting regulatory requirements orprocedures thatmayunintentionally inhibit innovationor render them non-viable. The Framework was alsointroduced to enable this innovation to be deployedand tested in a live environment, within specifiedparametersandtimeframes.Thisframeworkcameintoeffecton18Oct2016.

OPERATiONAL RiSk POLiCY DOCUMENT

TheOperationalRiskPolicyDocumentissuedbyBNMstrengthensthegovernanceframeworkandprocessesformanagingoperationriskwithinfinancialinstitutions.Under the policy document, emphasis is also oneffectivecoordinationinthemanagementofoperationalrisk with that of other risks to provide a holistic andintegrated approach to a financial institution’s overallriskmanagementstrategy.Therequirementsunderthispolicyfocusonboard’soversight,seniormanagement’srole, enterprise-wide operational risk managementfunction, internal audit review governance, a soundinternal control environment, identification andassessmentofoperationalrisksandreporting.

Thispolicydocumentwillbeeffectiveafteroneyearofitsissuanceon10May2016.

REViEW Of PiAM CONSTiTUTiON

AnextensivereviewofthePIAMConstitutionfocusingon the disciplinary measures and punitive actions/penalties applicable on breaches by members hasbeen undertaken by the Regulatory and IndustryDevelopment Sub-committee. This review is tostreamlineproceduresandprocessesontheformationoftheDisciplinaryCommitteetomakeitmoreefficient.The Sub-committee also included a review of theprovisions in the Constitution to meet the currentlegislativeandenvironmentalchanges.

TheproposedamendmentswillbetabledataSpecialGeneralMeetingforadoptionbymembercompanies.

LEgiSLATiVE DEVELOPMENTS

CODE Of PRACTiCE ON PERSONAL DATA PROTECTiON fOR ThE iNSURANCE AND TAkAfUL iNDUSTRY iN MALAYSiA

PIAM,LIAMandMTAhavedevelopedaCodeofPrivacyPracticeonthePersonalDataProtectionActwhichwasofficiallylaunchedon24Feb2017.

ThedevelopmentofthisCoderesultedfromanindustry-ledefforttoestablishstrictprocedurestosafeguardtheuseofpersonaldataintheinsuranceindustry.TheCodesetsout thebestpracticetoharmonisetheprinciplesto safeguard personal information that is collectedandprocessed.Thereisarulingforthisinformationtobedisclosedtoapprovedpartiesonly.TheCodealsoaddressestherightsofpolicyholdersordatasubjectsand the penalty that will be imposed in the event offailuretocomplywiththeAct.

TheindustryisalsodevelopingaComplianceFrameworkwhich will assist member companies to ensure theiroperatingprocedurescomplywiththesevenprinciplesoutlinedintheCode.Tofurtherenhanceourmembercompanies’andtheir intermediaries’understandingoftheCode,theAssociationsarealsodevelopingtrainingmaterials and a trainer’s guide for use by insurancecompanies.

COMPANiES ACT 2016

The Companies Act was revised by the CompaniesCommissionofMalaysiaandhasbeenenforcedonastaggeredbasiswitheffectfrom31Jan2017.Someofthechangesundertakenweretheintroductionofsinglemember/director and documentation requirements,abolitionoftheauthorizedcapitalconceptandshareswith nominal values, abolition of the requirement forannual general meetings of private companies anddecouplingoflodgementofannualreturnsandfinancialstatements.

fiNANCiAL TEChNOLOgY REgULATORY SANDBOX fRAMEWORk

With the Phased Liberalisation of theMotor and FireTariffs making significant changes in the generalinsuranceindustry,newbusinessmodelsandsolutionshave become the priority of insurance companies.Advanced financial technology (fintech) has beenaggressivelypromotedasitwillcontributetoefficiencyand better risk management solutions for insurancecompanies.


STAkEhOLDER ENgAgEMENT

CLOSED DOOR DiALOgUE WiTh gOVERNOR, BNM

TheAnnualClosedDoorDialoguebetweentheinsuranceindustryandtheGovernor,BNMwasheldon18Oct2016andattendedbytheCEOsofinsuranceandtakafulcompanies.

Industry issues discussed at thissession were on the migrationto e-payment in the insuranceindustry, efforts on advancingto digital technology, havingaccessible and affordable micro-insurance products for theunderserved, strategizing thetalentdevelopmentinitiativesintheinsurance industry for more impact andupgradingtheprofessionalismoftheintermediaries.


REgiONAL MEETiNgS AND CONfERENCES

PiAM LiAiSON MEETiNgS WiTh REgiONAL ASSOCiATiONS

The Management Committee ofPIAM maintains close liaison withgeneral insurance associations inSingapore,BruneiandThailand.

AliaisonmeetingwiththeGeneralInsuranceAssociationofSingapore(GIA)andtheBruneiInsuranceandTakafulAssociation(BITA)washeldon 26 Oct 2016 at the MandarinOrientalSingapore.

PIAMalsohostedaliaisonmeetingwith the Thai General InsuranceAssociation (TGIA) on 11Nov2016inKualaLumpur.

These meetings provide anexcellent platform for the variousassociationsinvolvedtosharetheirrespective industry’s experiencesand update each other onmarket developments, industryperformance and key projectsundertaken.

regionaLMeeTings ANDCONFERENCES


CEOS iNDUSTRY BRiEfiNgS AND NETWORkiNg SESSiONS

PIAM organised 2 CEOs’ industry briefings andnetworking sessions in 2016 on 2 Mar and 23 Augrespectively. The objectives of these get-togethersare to keep member companies updated on industry developments and projects undertaken by theAssociation. The half yearly and full year industryperformancestatisticsarealsosharedwithmembers.

The Association has found these sessions to behighly interactiveasfeedbackandviewsof theCEOsare obtained on critical areas affecting the generalinsurance industry.Membersarealsoupdatedon theworkdonebythevarioussub-committees.


ThE 28Th EAST ASiAN iNSURANCE CONgRESS

The 28th East Asian InsuranceCongress (EAIC) was held from11 to 15Oct 2016 at TheVenetianin Macau. The EAIC has been animportant platform in the regionwheremembercitiesandinsurancepractitioners meet and shareinformation whilst networking andforgingcloserties.

Themed“TheFutureof Insurance:Customer-Centricity”, the28thEAICclearly set the direction for thefuture of insurance in the region.The topics discussed not onlyhighlighted the importance ofcustomer-centricity, but also themanychallengesthatareexpectedinthenearfuture.

Participants at this congress werefrom insurance companies and other insurance organizationsin the East Asian region as wellas insurance practitioners from countriesaroundtheworld.


ALL ABOUT AUTOMOBiLES

VEhiCLE ThEfT REDUCTiON COUNCiL (VTREC)

The vehicle theft situation in Malaysia has improvedconsiderably over the last 5 years. In 2012, therewere a total of 33,394 vehicle theft claims lodgedagainstinsurancecompaniesandtakafuloperators,oranaverageof98vehicle theft claimsperday,withabreakdown of 31 PrivateCars, 62Motorcycles and 5CommercialVehicles.

By 2016, the number of claims on stolen vehiclesreducedtoanaverageof50claimsperday.Since2013,thetotalnumberoftheftclaimsmadeagainstinsurancecompaniesandtakafuloperatorsfor themainclassesof Private Car, Motorcycle and Commercial Vehiclehaddeclinedby65%,oratanaveragerateof22%peryear.Thissignificantdecline in thenumberofvehicletheft claims was the result of our collaboration withall relevant stakeholders in implementing the variousinitiatives following our Workshop held in May 2014,andtherelentlesseffortbytheenforcementagenciesinbustingtheftsyndicates.

During the year VTREC continued to monitor andcoordinate the following projects with the relevantstakeholders:

i. theconstructionofadditionalrapidscanneratWestPort,PortKelang;

ii. the enhancement of risk assessment processthroughCustomsVerificationInitiatives(CVI);

iii. the exchange of information between PersatuanInsuransAmMalaysia(PIAM)andThailandGeneralInsuranceAssociation (TGIA)onvehiclesenteringThailandthroughthenorthernborders;

iv. Online Inspection System of BER/ATL byPUSPAKOM-JPJ;

v. PublicawarenessandcampaignprogramswiththeJabatan Pencegahan Jenayah dan KeselamatanKomuniti(JPJKK)ofBukitAman.

On the recovery of stolen vehicles from abroad, atotal of 39 stolen Malaysian cars were repatriatedfrom Thailand through the close cooperation of theMalaysianPoliceforceandtheofficeoftheMalaysianEmbassy inBangkok.Wearealsomaking in-roads inoureffort to retrievevehicles fromSouthernThailandfollowing several meetings with theMalaysian PoliceandtheofficeoftheConsulateGeneralofMalaysiainSongkhla,Thailand.

Moving on from the existing initiatives, we will beengagingourASEANneighbours inworking togethertowards our common objective of continuous andsustainablevehicletheftreductionwithintheregion.

MALAYSiAN MOTOR iNSURANCE POOL (MMiP)

Malaysian Motor Insurance Pool (MMIP) was formedin1992byallgeneralinsurancecompanies.Themainobjectiveof thePool is toprovidemotor insurancetovehicle owners who are unable to obtain insuranceprotectionfortheirvehicles.ItwaspreviouslyknownastheHighRisksMotorInsurancePoolanditsformationwasbasedonapoolingconceptonequalsharingbasisthroughacollectiveagreementsignedbyallmembersofthePool.ThePoolisadministeredbyMMIPServicesSdnBhd(MSSB),asubsidiaryofMNRBHoldings,whichalsohandlestheThirdPartyBodilyInjuries(TPBI)claims.

Sinceitsinception,theMMIP’sissuanceofmotorcovernotesandpoliciesaswellashandlingofOwnDamage(OD)/ThirdPartyPropertyDamage(TPPD)claimswereundertakenbytwodirect insurancecompaniesactingasServicingInsurers.InJuly2009,thePoolappointedPOS Malaysia as its Servicing Agent, to make itsservices more accessible to the public at large. TheMMIP’sservicehadbeenfurtherexpandedinMay2011whenBNMissuedadirectivetoallInsurersandTakafulOperators to act as Servicing Agents for MMIP toguaranteeavailabilityofinsurancecover.Thiswasafterthe introduction of theNewMotor Cover Frameworkwhich allowed gradual increases in premium for Actcover. TheMMIPwas also required to provide coverfor“displaced”vehicles,mostlyPrivateCars,underthisrevampedscope.POSMalaysiahashowever,stoppedbeingaServicingAgentafter the introductionofGSTin2015.

inDUsTrY issUes AND ACTIvITIES


STATiSTiCS ON DAiLY/MONThLY USAgE Of AACC 2015/2016CALL PERfORMANCE 2016 VS 2015

ThePool’sbusinessincreasedfromamereRM5millionpremiumin2008toapeakofRM350millionin2013,where40%ofitsbusinesswasPrivateCars.ThePoolisexperiencingadownwardtrendfromtheyear2014to2016anditisdifficulttoforecastthePool’sperformanceafterdetarifficationsince94%ofthePool’sbusinessareThirdPartycover.Since2009thePool’sriskprofilehasundergonearadicaltransformationfromhighriskinsurertonumberoneThirdPartyCoverproviderinthemarket.ItisevidentnowthatmembercompaniesarewritingmoreThirdPartyCoverorofferThirdPartyFire&Theftcoverwiththegoalofincreasingmarketshareduringliberalisation.

Fortheyearending2016,thePoolrecordedapremiumincomeofRM129million,whichwasareductionof33%fromthepreviousyear.ThelargestreductioncamefromthePrivateCarsegmentat40%.ThepolicycountasatDec2016was363,243comparedto552,137in2015,areductionof34%.MMIP’sportfoliofor2016consistsmainlyofThirdPartyCover(94%)withthebalance(6%)beingcomprehensivepolicies.

ACCiDENT ASSiST CALL CENTRE (AACC)

CallshandledbyAACCdoubledinvolumefrom15,303in2015to29,913in2016.

CallsreceivedforDec2016increasedby49%comparedto2015forthesamemonth.CallsreceivedforDec2016increasedby4%comparedtoNov2016.

Jan

1500

500

1000

0

2000

2500

3000

3500

Feb Mar

923

1619

1039

1924

1129

1061 1162

2675

1291

2233

1429

1370

1372 1392 1495 16

40

2883

2651

2618

2933

2912 30

33

2116

2316

2015 2016

May Jun Jul Aug OctSep Nov DecApr

Source: Telekom Malaysia


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Jan

108

27135

677

116

793

68

97

165

499

58

01

01

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209

1,361

80%

20%

85%

15%

41%

59%

84%

16%

0%

100%

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Feb

137

33170

740

108

848

133

78211

447

51

00

33

07

295

1,585

81%

19%

87%

13%

63%

37%

86%

14%

0%

0%

100%

Mar

146

32178

893

158

1,051

118

104

222

57

966

11

02

02

293

1,814

82%

18%

85%

15%

53%

47%

86%

14%

50%

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Apr

181

34215

986

112

1,098

140

8022

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1152

01

12

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317

1,904

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16%

90%

10%

64%

36%

79%

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May

182

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11191

150

1,341

148

110

258

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56

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11

354

2,212

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9%

89%

11%

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Jun

145

22167

975

104

1,079

141

69

210

4316

59

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380

1,897

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Jul

262

3529

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173

1,251

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113

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7539

114

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2,525

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12%

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14%

66%

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66%

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Aug

170

1118

11066

107

1,173

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2,28

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9%

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Sep

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2122

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242

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55

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554

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6%

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Nov

211

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94

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67

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CASE CATEgORY 2015 & 2016

Source: Telekom Malaysia

Accident Towing Road Assist general Claim inquiry Specific Claim inquiry2015 2016 %inc 2015 2016 %inc 2015 2016 %inc 2015 2016 %inc

Jan 61 135 121% 368 793 115% 225 165 -27% 35 58 66%Feb 101 170 68% 404 848 110% 175 211 21% 39 51 31%Mar 102 178 75% 421 1051 150% 201 222 10% 47 66 40%Apr 88 215 144% 424 1098 159% 168 220 31% 46 52 13%May 91 201 121% 471 1341 185% 215 258 20% 43 56 30%Jun 111 167 50% 491 1079 120% 229 210 -8% 34 59 74%Jul 116 297 156% 495 1251 153% 227 335 48% 62 114 84%Aug 97 181 87% 588 1173 99% 182 317 74% 18 77 328%Sep 128 222 73% 477 1142 139% 171 267 56% 29 83 186%Oct 111 252 127% 604 1306 116% 168 227 35% 36 55 53%Nov 140 226 61% 737 1264 72% 170 258 52% 21 62 195%Dec 162 237 46% 787 1307 66% 188 240 28% 37 23 -38%

Emergency Complaint Others Unrelated Calls2015 2016 %inc 2015 2016 %inc 2015 2016 %inc 2015 2016 %inc

Jan 0 0 0% 0 1 100% 13 0 -100% 145 209 44%Feb 0 0 NA 0 3 300% 11 7 -36% 178 295 66%Mar 0 0 NA 0 2 200% 15 2 -87% 186 293 58%Apr 1 0 100% 0 2 200% 14 0 -100% 163 317 94%May 0 1 100% 1 0 -100% 11 1 -91% 176 354 101%Jun 1 1 0% 1 1 0% 9 0 -100% 239 380 59%Jul 0 0 NA 1 1 -100% 15 0 -100% 238 527 121%Aug 1 0 -100% 1 1 0% 17 0 -100% 217 531 145%Sep 0 0 NA 0 0 NA 19 0 -100% 180 501 178%Oct 1 0 -100% 0 1 100% 22 2 -91% 185 554 199%Nov 2 1 -50% 1 0 -100% 24 0 -100% 237 574 142%Dec 1 1 0% 3 0 -100% 29 0 -100% 243 674 177%


MOTOR

Re-constitution of the Motor Sub-committee and Formation of Motor Underwriting Task Force

The Motor Sub-committee has been restructuredby establishing a Motor Underwriting Task Forcefrom the existingmembers. The Task Forcewill dealwith technical underwriting issues and be involvedin developing, supporting and providing technicalunderwriting decisions and input to the Motor Sub-committee. It will also make recommendations andissuepractice guidelines regarding the improvement,replacement or cancellation of underwriting terms asapplicablesoastoalignwithcurrentandfuturemarkettrendsinmotorinsurance. Implementation of Private Car and Motorcycle Plain Language Policies

Effective 1 Nov 2016 (i.e. policy commencementdate), the insurance industryhas implementedbothPrivateCarandMotorcyclePlainLanguagePoliciesfollowing consultation between the Task Forcemembers, Malaysian Takaful Association, the legalcounselandBNM.

Initiatives to Promote the AACC

A project team was set up in Feb 2016 immediatelyafter an industry brainstorming session to review theAACC.The following initiatives arebeingpursuedbythisProjectTeam:-

• Call999–AdoptionofroadaccidentcallsbyMERS

• CollaborationwithHighwayAuthority

• Application for a short form telephone code andLEDadvertisingofthe15500hotlinenumber.

TM’steamacceleratedtheapplicationprocessandsecuredtheshortformcodeforAACCintherecordtime of 1month. Subsequently, TM also provideda2months freeLEDadvertisementof the 15500numberontheMenaraTMatFederalHighwayforJanandFeb2017.

• TowtruckAps

• TM’sScheduleofServicesforoffertoindustry


Compliance and Co-operation Index (CCI) for Motor

ThenewstructureandformatofMotorinspectionwhichmeasures companies’ compliance and co-operationlevelviaanindexhasbeenimplementedinApril2016.

CCI also coversmembers’ response to Underwriting,System, Compliance of Motor Anti-Fraud Register(MAFR)alertsandothernon-complianceareasoffrauddetectionandprevention.

CLAiMS MANAgEMENT

Voluntary Trust for Third Party Claimants under Disability in TPBI Claims

PIAM is involved in a project on voluntary trust fornursingcareandpersonsunderdisabilityinTPBIclaims.ATrustDeedhasbeendrawn-upbyPIAM’ssolicitorsandisundernegotiationwithAmanahRayaBhd(ARB)tofacilitatethesekindofsettlements.

Upon finalizing the Trust Deed, PIAM will arrange apresentation toBNMon the functionofARBand thestructureof this trustarrangement.Thismeeting is toseekBNM’sapprovalandalsotodiscusshowPIAMcanbestapproachtheJudiciaryonthematter.

Briefing by the Ombudsman for Financial Services (OFS)

PIAM organized a market briefing on 14 Oct 2016which was attended by 94 participants from Claims,Underwriting, Compliance, Legal, Administration andGeneral Management departments of insurance andtakaful companies. This was the Ombudsman’s firstliaisonwiththegeneralinsuranceandtakafulindustrysinceitsincorporationon1Oct2016.


The CEO of OFS spoke on the operations andproceduresandthiswasfollowedbyalivelyquestionandanswersession.Oneofthekeyareasofmembers’concernwasthenon-refundablecasefeeofRM1,500that would be charged upfront on per case referredbasis,evenifrepudiationhadbeencorrectlyenforced.

Collaboration with Jabatan Pengangkutan Jalan (JPJ)

Initiatives for the industry in collaboration withVTREC, ISM, Financial Link, PUSPAKOM and JPJ areinthefinalstagesof implementationtofacilitateJPJ’sadministrative procedures regarding ownership,roadworthiness and the prevention of the ‘rebirthingof vehicles’ using direct online transaction platformswhichwill improve administrative ease andquality oftransactions.Theareascoveredare:-

• ‘BeyondEconomicRepairs’(BER)Inspection

• OnlinedelistingofStolenVehiclesandTotalLossVehicles(ATL)

• TemporaryandFinalOwnershipTransferonSaleofBERandWrecks(STMS)

• OnlineVehicleOwnership(VOC)

TheBERProjectisinthefinalstageofconclusionandJPJ’sendapproval isrequiredbeforeimplementation.Forcountry-widepromotion,aSchedulewillbesetforroadshowsandtrainingthatwillbeheldatPUSPAKOMvenues across the country. This will involve insurers,workshops,adjusters,PUSPAKOMstaffandJPJstaff.

With regards to ATL and STMS, the procedures canbeindependentlylaunchedbyPIAMiftheBERprojectimplementation isdelayed. ISMis inthefinalstageofconcludingasecurityprocedureregardingsubmissionofATLdata,onlinetoJPJinviewthatJPJwillnotpermitawrongsubmissiontobereversed.

Meeting with Police (PDRM) on their request to review need for Lodgement of Police Reports

AmeetingwasheldwiththePoliceon19Oct2016todiscussthenecessityofpolicereportsindocumentinginsuranceclaims.ThePolicehavefavourablyacceptedthatthepracticeofpolicereportscancontinuealthoughapolicefileforinvestigationsneednotbeopened.

Review of Knock for Knock (KfK) Application in a Detariff Environment

Based on the industry survey conducted, memberspreferred to continue with the practice of the KfKAgreementinthefuturedetariffmarketuntilsuchtimethere isadramaticchangetothecoveragesofferred.It was felt that the cost of subrogation was a criticalinhibitivefactor. Under recommendation of the Task Force, anothersurvey was conducted with regards to enhancementof the KfK Agreement to allow a handling insurer tovolunteersettlementonbehalfofathirdpartyinsurer.The outcome was favourable and changes will bemadetoenablememberswhowereinterestedtousethefacility.

PIAM Approved Repairers Scheme (PARS)

ThePARSOnlinePortalwent liveon 1Aug2015withnewfeaturesofuploadingdocumentsande-paymentsthrough system gateway for ease of workshops insubmitting their applications and renewals online. Itavoids the need to dispatch originals and allows forinsurerstocheckdatainformationinasecuredonlineenvironment. Onsite inspections by adjusters arecaptured and translated into a point system to simplify theassessmentandrecordingofmemberworkshops.PARSCertificationsaretaggedandissuanceautomatedonline.Communicationsarealsoissuedandfiledonline. WorkshoploginthroughourproviderMerimen’ssystembychoosingthePARSOnlinePortalfromtheMainMenuscreentosubmittheapplication.


A full cycle of the PARS registration was completed on 31 Dec 2016 and achieved a total of 655 workshopregistrations.

AnupdatedlistingofapprovedworkshopsispostedonPIAM’swebsite.


TEChNiCAL AND DiSTRiBUTiON MANAgEMENT

DiSTRiBUTiON MANAgEMENT

Overview on Registered Agents

Thetotalnumberofregisteredagentsasat31Dec2016standsat38,794(2015:39,220).

Ananalysisofthebusinessgeneratedin2016byinsuranceagentsandotherdistributionchannelsisasappended:-

Year Agents Direct BusinessChannels

insurance Brokers Others Total

2016 RM11.2billion64%

RM3.0billion17%

RM2.8billion16%

RM0.6billion3% RM17.6billion100%

2015 RM10.8billion62%

RM3.2billion19%

RM2.9billion16%

RM0.5billion3%

RM17.4billion100%

Guidelines on Online Channels and E-Insurance Portals Appointed and/or Engaged by Agents

With the continuous development of internet andmobile applications, the general insurance industrywitnessed a growing trend in which intermediariesutilizeonline channelsnotbelonging toor appointedby insurers to seek more business opportunities as well astopromote,transactandservicetheircustomers.

To ensure the orderly functioning and use of onlinechannelsbyagentsand toprotect the interestof theinsuringpublicaswellasinsurers,proposedGuidelineson the Online Channels and E-Insurance PortalsAppointedand/orEngagedbyAgentshavebeendrawnup.TheGuidelineshavebeensubmittedtotherelevantauthoritiesforclearancepriortoitsimplementation.

Development Roadmap for General Insurance Agents

A task force named “Agents Professionalism andExcellence (APEX)” has been set up comprisingselected members of the Distribution ManagementandEducation/HRDSub-committees.ThefocusoftheAPEX task force is todevelopa roadmap forgeneralinsuranceagentstohelpthemconfrontthechallengesin a liberalised market. The roadmap will take intoaccount theeducationalaspectsaswellas tochartacontinuousprofessionaldevelopmentpathfornewandexistingagents.

The Exposure Draft is expected to be circulated tomembersonceitisreadybyQ32017.

Fromtheanalysis,theroleplayedbyinsuranceagentsintheMalaysianmarketisstillverysignificant.


General Insurance Agents Convention (GIAC) 2016 - Distribution in a Liberalised Environment

The theme for the GIAC 2016“Distribution in a LiberalisedEnvironment” was to impart andsharewith the agents the PhasedLiberalisationoftheMotorandFireTariffswhichwillhaveasignificantimpact on the insurance industryandthedistributionlandscape.

TheGIAC 2016was held in KualaLumpuron4Aug2016withatotalof852participantsattendingthemainconvention. Half-day Roadshowswere also held in Johor Bahru,Penang,KotaKinabaluandKuchingand a total of 683 participantsattendedatthese4locations.

The topics covered were MarketLiberalisation – “A Race to theBottom?”,IndustryPerformanceandUpdate on Phased Liberalisation,EmpowermentandTransformation,Impact of Social Media and BigDataonDistributionandThrivinginaCompetitiveMarket–AnAgent’sPerspective.


Agent’s E-Identification and E-GIARR

Effective 15Dec2016, theAgent’sE-Identification was rolled out toreplace the physical IdentificationCard which was issued to agentsin the past. Agents can now viewand retrieve their respectiveE-Identification and E-GIARR fromPIAM’swebsiteatwww.piam.org.my.


ACCiDENT, hEALTh AND OThERS

Ministry of Health’s Proposal to Revise/Increase the Benefits of the Foreign Workers Hospitalisation and Surgical Insurance Scheme (SKHPPA)

TheOverallAnnualLimit(OAL)perInsuredPersonwasincreasedfromRM10,000toRM20,000effective1Aug2016.

WiththeincreaseinOALtheAssociationhadengagedActuarialConsultantJPWALLtosubmitanAddendumonbehalfofmembercompanies.

Purchase of Mandatory Insurance for Foreign Workers

Bestinet commenced imposing the transaction feesofRM3perforeignworkerforthefacilitationofonlinepurchase of foreignworkers insurance via the onlineinsurancemoduleof theForeignWorkersCentralisedManagementSystem(FWCMS)effective1Jul2016.

A specimen copy of the “Agreement for Purchase ofMandatory Insurance for Foreign Workers betweenBestinetSdnBhdandParticipatingInsuranceProviders”inconnectionwiththetermsandconditionsforuseoftheFWCMSwascirculatedtomembercompanieson7Sep2016forexecutionbetweenBestinetandindividualinsurancecompanies.

Managing Medical Healthcare Cost - Proposal to BNM on Published Rate by Private Hospitals

With the increasing costs of healthcare nationwide,the Life Insurance Association of Malaysia (LIAM) iscurrently leading theabove initiativeonbehalfof theindustry.

One of the quick-win measures identified that couldbeintroducedimmediatelytocurbthevastdisparityofmedical charges by different private hospitalswas torequireallprivatehospitalstopublishtheirchargesoncommonsurgeriesandtreatmentsiftheywishtobeonthepanelofinsurers.

In this regard, LIAM had written on behalf of theindustry to BNM with the proposal to mandate theprivatehospitalstopublishtheirchargesfortreatmentofcommonconditions,asapre-requisiteforthemtobeappointedaspanelhospitalsofanyinsurancecompanythatmarketmedicalhealthcareproducts.InadditionitisrecommendedthatallprivatehospitalsshouldadopttheStandardisedBillingformat.

Joint Technical Committee (JTC) of LIAM, PIAM and MTA on Medical and Health Insurance

It was agreed by the JTC on 11 Jan 2005 that theposition of theChairman is to be rotated among theAssociationsevery2yearsandtheSecretariatwillbetheAssociationfromwhichtheChairmaniselected.

The JTCwashandedoverbyPIAM toMTAon 1 Jan2016.MTAhadappointedDrSharlizaMohdSallehfromPrudentialBSNTakafulBhdasthenewChairmanoftheJTCfor2016/2017.

Revised Hospital & Surgical Insurance (HSI) Underwriting Guide (now re-named as the Revised Hospital & Surgical Insurance/Takaful Guide [HSI Guide])

BNMrevertedwiththeircommentsontherevisedGuideon9May2016.FollowingtheJTC’smeetingwithBNMon30Jun2016,theJTCmadesomefurtherrevisionstotheHSIGuideanditwasresubmittedon12Oct2016.TheJTCisawaitingBNM’sapprovaloftheGuide.

fiRE, MARiNE AND ENgiNEERiNg

Building Cost Calculator

The services of a Quantity Surveying company wereengagedtodeveloptheBuildingCostCalculator(BCC).TheBCCaimstoprovideamoreaccurateestimateonthesuminsuredofresidentialproperties,simpleshophousesandshopoffices.

The Fire, Marine and Engineering Sub-committee iscurrently in itsfinalstageofverifying theaccuracyofthevaluesgeneratedbytheBCCbeforetheofficialrollouttotheindustry.

Marine Insurance Knowledge Seminar (MIKS)

The Association continues to hold its MIKS series toenhance the knowledge of industry practitioners andtouplift theprofileof themarineclassofbusiness inMalaysia.

During2016,twoMIKSserieswereheld:

• 16Mar2016withthetheme“ClaimsAdjustmentonCargowithCaseStudies”

• 10Nov2016withthetheme“MarineCargoLiabilityand Port Risks including Assessment of RisksAccumulation”


gOVERNANCE, fiNANCE AND RiSk MANAgEMENT

fiNANCE, CORPORATE gOVERNANCE AND ENTERPRiSE RiSk MANAgEMENT

Goods and Services Tax – Industry Appeal on Input Tax Credit on Repair Costs of Accident Vehicles

TheGoodsandServicesTax(GST)whichwasintroducedin April 2015 disallows insurance companies fromclaiming Input Tax Credit on repair costs of accidentvehicles. The Association has made several appealsand submissions to the Customs and the Ministry ofFinanceforareliefonthisprohibition.

CustomsstipulatesthatITCisnotclaimablebyvirtueofRegulation47(2A)(b)oftheGSTRegulations2014.Theindustry however is of the view that Customs’ standon themattermeans that there is double taxation ofGSTasGSThasalreadybeenpaidonthesparepartsusedforrepairsinthefirstinstancebytherepairerorworkshop.PIAMispursuingthematterfurtherwiththeauthoritiesonbehalfofinsurancecompanies.AsimilarreliefwasgrantedintheSingaporegeneralinsuranceindustry.


Compliance Officers Networking

TheComplianceOfficers’NetworkingsessionsareheldtoprovideComplianceOfficersofmembercompaniesa platform to exchange and share experiences oncomplianceissuesintheindustryandtheirrespectivecompanies.

The Compliance Working Group (WG) which reportsto the Finance and Corporate Governance/ERMSub-committee organized an engagement sessionwith BNM on the Compliance Policy Document. Thisnetworking session was held on 11 May 2016 andprovided an avenue for ComplianceOfficers to seekclarificationsonthePolicyDocumentfromBNMandtobetterappreciatethedemarcationbetweenoperationandcompliancerisks.PIAMalsoinvitedtheComplianceOfficers from the lifeand takafulsector toattend thissession.

Compliance Risk Assessment Template

TheComplianceWGhasalsoformulatedaComplianceRiskAssessmenttemplateforusebymembercompaniesas a guide for assessment of their compliance risks.Membercompaniesareatlibertytoamendorchangethistemplatetosuittheirowncompanies’requirements.


Enterprise Risk Management

TheEnterpriseRiskManagement(ERM)WorkingGroupwhichreportstotheFinanceandCorporateGovernance/ERM Sub-committee promotes and facilitates thedevelopment of enterprise risk management in theindustrybyprovidingaplatformforknowledgesharingon riskmanagement issues.ThisWGalso representsthe industry’s views onmatters concerning ERM andassists industry members to identify and respond to newemergingrisks.

TheWGorganizedaroundtabledialogueonKeyRiskIndicators (KRIs) on 20 Apr 2016 and the focus wasonchallengesandsolutionstoidentify,selectandsetthresholdsforKRIs.TheparticipantsalsodiscussedthetrackingandreportingofKRIsbymembercompanies.

A Knowledge Sharing Forum on Business ContinuityManagement (BCM) and Crisis Management washeld on 20 Sep 2016. The Session focused on BCMplanning methodology and case scenarios with roleplays.Positive feedbackwas received from themanyparticipantsacrossallmembercompanies.


Accounting Standards

AWorkingGrouponAccountingStandardshasbeenformedwhichwill be thecontactpointonallmattersrelating to accounting standards impacting membercompanies. This WG will provide a platform fordiscussion and response to MASB, BNM and otherGovernmentagenciesonaccountingmatters.WiththeimpendingintroductionofMFRS9,theWGorganizedabriefingbyPricewaterhouseCooperson23Sep2016formembercompaniestodiscusstheimpactofthesestandardsonmembercompanies’operations.

E-payment Migration

Themigrationtoe-paymentinthefinancialsectorundertheFinanceSectorBlueprint2011–2020isanationalagendaandBNMhassetseveraltargetsforinsurancecompaniestoachieveunderthismigrationinitiative.

Onanindustryaverage,generalinsurancecompaniesprocess 90%of their payments using electronic fundtransfer,whereastheircollectionsareat79%.ThefocusoftheWorkingGroupoverseeingthisprojectistoreducecheque usage for payments received (collections) byinsurers.TheWGisworkingwithelectronicpaymentsservice providers on promoting their services toconsumers via a contest. TheWG is also in constantcontactwithmembercompaniestoalertthemonareaswhichneedtobeimprovedandhowtheycansupporttheoverallinitiativesoftheindustry.


TALENT

EDUCATiON AND hUMAN RESOURCE DEVELOPMENT

Industry Forum on Human Capital and Talent - “Stepping Up for Tomorrow’s Workplace”

ThefourthIndustryForumonHumanCapitalandTalentwasheldon20Oct2016.

Since its inception, this forumhasbeenan importantnetworkingplatformforindustrypractitionerstoengageinbrainstormingoncriticalissuesfacinghumancapitalin the industry.Themed “SteppingUp forTomorrow’sWorkplace”, the fourth forum attracted more than40 Human Resource practitioners from membercompanies.

Inhisopeningspeech,EncikZainudinIshak,Convenorof PIAM Education/HRD Sub-committee emphasizedthat it was important to leverage on the talents thattheindustryhas,citingastudybytheAsianInstituteofFinance (AIF) in2015which showedanalarming skillgapsacrossallsectorsinthefinancialservicesindustryinMalaysia.Hefurtherstressedthatempowermentandretentionareessentialtoensurecompetencybuildingwiththerequiredskillset.Healsourgedthatsuccessionplanningbegivenprominenceonthecorporateagendaatthehighestlevel.Thiswillensurethesustainabilityofahighlyskilledworkforcetocatertogrowingbusinessneeds,continuityofacapableworkforce,theprogressofthebusinessaswellasfortheindustry.

External speakers shared key development tips onLeveraging Talent for Organisation and Industry,Developing HR Core Competencies in StrategicThinkingaswellasPlanningandRaisingEngagementforBusinessResults.

ThiswasfollowedbyapaneldiscussionwherevaluableinsightsonHRdevelopmentandindustrybestpracticesweredeliberatedupon.


The 6th Young Managers’ Forum - “Changes and Choices”

The6thYoungManagers’Forum(theForum)washeldon 26 Apr 2016 with an encouraging turn-out of 82youngleadersfrommembercompanies.

Themed “Changes and Choices”, this was the sixthyear theYoungManagersThinkTank (YMTT)ofPIAMorganizedtheForumsinceitsfirstforumin2010.TheForumhad since gained strong support amongst theyoungtalentsoftheindustry.

TheForum isaimedat synergizing thecapabilitiesofthese young talents whilst providing a networkingopportunitytofosteracohesivespiritamongthem.

PIAM CEO, Mr. Mark Lim started the first session byproviding an update on industry performance anddevelopment. Speakers from organizations such asTalent Corporation Malaysia Berhad (TalentCorp) andAsian Instituteof Finance (AIF) shared their expertiseontalentmanagementandchallenges.

WhilsttheForumhadpreviouslyinvitedspeakersfromotherindustriestosharetheircareerexperiences,thisyeartheYMTTdecidedthat theyoungtalentsshouldhavetheopportunitytohearfromandbemotivatedbyourindustryCEOs.

PIAMChairman,Mr.AntonyLeerecountedhiseventfuljourney from being an architect to IT Consultancybeforelandingintheworldofgeneralinsurance.Itwasindeedinterestingtohearhisstoryashedescribedthecircumstanceswhichbroughthimintotheindustry.Heurgedyoungleaderstobuildontheirpassion,strivetoenjoyandexcelintheirwork.

ConvenorEncikZainudinIshakencouragedparticipantstosettheirtargetshighandalwaysbewillingtoexplorenewlearningopportunitiestoacceleratetheirpersonalgrowth.

AnotherhighlightoftheForumwasthesharingbyfouryoung leadersof the industryontheircareer journey,their “secret recipe formula” forsuccess in theirworkassignments. The forum ended with a brainstormingworkshop for the participants to share their innerthoughts and ideas on how the industry can worktogether to leverageon the talentpool for long termbenefit.


YMTT 2nd Leadership Camp and CSR Project 2016

YMTT organized the 2nd Leadership Camp and CSRProjecton7and8Oct2016atPortDickson.Befittingthe theme “Changes and Choices”, the objective ofthecampwastoencourageyoungmanagerstostrivebeyondtheirexistingcapabilitiesandarmthemselveswithskillsets to tackle impending industrychanges inan increasingly dynamic working environment. Thecampalsoaimedtocreateaplatformofsharinggoodleadership behaviours, empowering, motivating andinspiringeachparticipant.

The learning experience for the 44 youngmanagerswhoattendedthisLeadershipCampwasconductedinbothindoorclassroomandoutdoorsettings.

TheCSRProjectonDay2allowedyoungmanagerstoappreciate thepowerandbeautyofuplifting the lessfortunatemembersofoursociety.Theyoungmanagershosted orphans from Pusat Jagaan PertubuhanKebajikan Kanak-Kanak Yatim Dan Miskin WawasanPort Dickson with interesting activities. As a token,PIAMcontributedRM5,000 incashand inkindto theorphanage.


YMTT 6th Breakfast Talk

On9Nov2016,YMTThadits6thBreakfastTalkwithatotalof45youngleadersfromPIAMmembercompaniesattending.ThespeakeratthissessionwasthefounderofBFM89.9businessradiostation,EncikMalekAli.

Inlinewiththisyear’sthemeof“ChangesandChoices”,Malek shared his journey of “Taking the Road LessTravelled”.Hesaidasanentrepreneur, it is importantto experiment and try new things, and be preparedforhuge“bumps”inlife.Headdedthatentrepreneursshouldbeconfidentintheirproductsandservices,asitisnoteasytodelivernewinnovativeproductsespeciallywhenideasandconceptsarenewandunfamiliartothemarket.

PIAM’s CEO, Mr Mark Lim shared his takeaway froma key note speech delivered by Dato’ MuhammadIbrahim, theGovernor of BankNegaraMalaysia. TheGovernor highlighted the importance of the 3Ts i.e.Technology,TrustandTalentforthegeneralinsuranceindustry.Markbelievesthattheyoungleadersoftodayshouldembracethe3Tsinordertostriveandgrowinaneverchangingbusinessenvironment.

TheBreakfastTalk isanannualeventwhichprovidesyoungmanagersintheindustrywithanopportunitytolistentorenownedandinspiringspeakersoutsidetheinsuranceindustrywhosharetheirwordsofwisdomaswellaspassioninworkandlife.Thistalkalsoactsasanetworkingandmotivationplatformfortheindustry’syoungtalents.


General Insurance Internship for Talent (GIIFT) Project

It hasbeenone-and-a-half years sincePIAMofficiallylauncheditsGIIFTProjectinJuly2015.AsofDec2016,a total of 117 interns had undergone their internshiptrainingatPIAMmembercompanies.

GIIFTispositionedasanawarenessbuildingprogramtoreachoutandshowcasetheindustrytothepoolofyoungtalentatouruniversities.Itisaimedatenhancingthe profile and uplifting the image of the industry byhighlightingtheglobalnatureofgeneralinsuranceandthespectrumofcareeropportunitiesavailable. In thiswayitwillattracttoptalentamongtheundergraduatepoolfromlocalandinternationaluniversitiesinMalaysiatobuildupapipelineoftalentfortheindustry.

The 12-week structured program equips studentswithhandsonworkexperience.Placing studentsasinterns in the insurance companies increases theiremployability upon graduation. As of end 2016, 17interns have been recruited as permanent staff inmembercompaniesofPIAM.

GIIFTisfundedbytheCapacityBuildingProjects(CBP)schemeadministeredbyAIFfromJul2015toDec2016.

PIAMwishes toexpress itsappreciation toBNM,AIF,MII, member companies and the various institutionsof higher learning for their steadfast support andcommitment to this project. PIAM look forward to asustained and dedicated effort by all stakeholdersconcernedtomakeGIIFTanongoingsuccessformanyyearstocome.


CORPORATE COMMUNiCATiONS

PUBLiC RELATiONS/CSR

Media Briefings

In 2016, the Association organised two high profilemediabriefingson3Marand24Augrespectively.Theprimaryobjectivesofthesebriefingsaretoupdatethemediaontheindustry’sperformanceandcommunicatekeymessagesoncritical issuesaffecting the industryto the general public. PIAM received overwhelmingresponse from the media with regards to theirattendanceatthesesessionsandgarneredwidespreadcoverageacrossallmainstreammedia in theEnglish,MalayandChineselanguages.

Through these media briefings, PIAM also took theopportunity to educate themedia representatives ongeneral insuranceand its contribution toournationaleconomy.

Media Engagements

TheAssociationcontinuouslyengagedwiththemediathroughvariousinterviewsonbothprintandbroadcastchannels.

These interviews covered awide range of insurancetopicsimpactingtheconsumers,economicenvironmentand legislativechangesaffecting the industry.Oneofthehighlightsfor2016wasthePhasedLiberalisationoftheMotorandFireTariffs.

Toeducatethegeneralpublicondetariffication,PIAMissuedamediastatementon‘Top10ThingsThatYouShould Know about Phased Liberalisation of MotorandFire Tariffs’.On topof that,media releaseswerealsoissuedonpracticalstepstobetakenintheeventof a road accident, as well as a flood advisory withrecommendations and precautionary measures in preparationforthemonsoonseason.


General Insurance Day (GID) 2016

The General Insurance Day (GID) 2016 wascommemorated with a Drive Safe Campaign at ashoppingcomplexinKualaLumpuron22Oct2016.

The campaign, which was themed “Every Road UserHasAFamily,DriveSafe”focusedonRoadSafety,asthe number of road accidents in Malaysia has beensteadilyincreasingoverthepastfewyearsresultinginlossofpreciouslivesandseverepropertydamages.Allthesearealsoconsideredtobealossofproductivitytocompaniesandthecountryingeneral.

The GID 2016 event also ran parallel with a socialmedia campaignbyPIAM that promoted thehashtag#DriveSafe4Family.Guests and visitorswhoattended

theeventhadfamilyportraitstakensuperimposedwithroad safety messages which were shared on socialmedia.

OtheractivitiesorganisedwereanedutainmentDriveSafe activity where visitors, especially the youngchildren, were invited to experience driving remotecontrolled carswith various road signs andobstaclesalongthewaytomakethemmoreconsciousoftrafficsafetyrulesanddefensivedriving.Carandmotorcyclestickerswith themeaningful tagline“EveryRoadUserHasAFamily,DriveSafe”weredistributedatthevenue.These stickerswere alsomade available formembercompaniestodistributetotheirpolicyholders.

Overall the campaign served as an education andcommunicationsplatform to thepublicon thePhasedLiberalisation of Motor Tariffs by spreading the roadsafetymessageandshapingthebehaviourofmotoriststodrivesafelyatalltimes.


PIAM 55th Anniversary Celebration

2016witnessedthecommemorationofPIAM’s55thyear ofexistencesince1961whentheInsuranceAssociationofMalayawasfirstsetupinKualaLumpur.Tomarktheauspicious occasion, a 55th year Emerald anniversarycelebrationwasorganized.Theoccasionwasgracedby the past Chairmen of PIAM and present at thismemorable event were Y. Bhg Datuk Abdul ShukurHassan,Mr.WongKimTeck,Y.BhgDato’AdrianLoh,MrCliffLeeandMr.TanKokGuan.

Members who had represented the ManagementCommittee in previous years joined in the fun-filled event together with invited guests from otherorganisationsandstafffrommembercompanies.

Stageperformancesandcrowdparticipationmadetheeventamemorableoneindeed.

ACkNOWLEDgEMENT

PIAM and theManagement Committee would like toexpressitsgratitudetoallmembercompaniesfortheirsupportandcommitment.InparticulartheAssociationwishestoputonrecorditsdeepestappreciationtoallmembersof thevariousSub-committees,TaskForcesandWorkingGroupswhohavegenerouslycontributedtheirprecioustimeforthebenefitoftheindustry.

PIAM would also like to thank the officers of BNM,Ministries of Finance and Transport, Royal MalaysianCustoms Department, Royal Malaysian Police, RoadSafety Department, JPJ, MIROS, OFS, MalaysianInsuranceInstitute,AsianInstituteofFinanceandmanyotherkeystakeholdersfortheirsteadfastsupportandinvaluableguidanceovertheyears.

aCknoWLeDgeMenT


LisT of MEMBERS

5. Berjaya Sompo insurance Berhad(62605-U)1-38-1&1-38-2,MenaraBangkokBankLamanSentralBerjayaNo.105JalanAmpangP.OBox1243350778KualaLumpur

Tel:603-21172118Fax:603-21447297Web:www.berjayasompo.com.my

6. Chubb insurance Malaysia Berhad(9827-A)18thFloor,WismaChubb38,JalanSultanIsmail50250KualaLumpur

Tel:603-20583000Fax:603-21458436Web:www.chubb.com.my

7. Liberty insurance Berhad(16688-K)9thFloor,MenaraLiberty1008,JalanSultanIsmail50250KualaLumpurP.O.Box6120(Pudu)55916KualaLumpur

Tel:603-26199000Fax:603-26930111Web:www.libertyinsurance.com.my

8. Lonpac insurance Bhd(307414-T)6thFloor,BangunanPublicBank6,JalanSultanSulaiman50000KualaLumpurP.O.Box1070850722KualaLumpur

Tel:603-22628688Fax:603-27151332Web:www.lonpac.com

gENERAL iNSURANCE BUSiNESS

1. Aig Malaysia insurance Berhad(795492-W)Level18,MenaraWorldwide198,JalanBukitBintang55100KualaLumpur

Tel:603-21180188Fax:603-21180288Web:www.aig.my

2. Allianz general insurance Company (Malaysia) Berhad (735426-V)Level29,MenaraAllianzSentral203,JalanTunSambanthanKualaLumpurSentral50470KualaLumpur

Tel:603-22641188Fax:603-22641199Web:www.allianz.com.my

3. Amgeneral insurance Berhad (44191-P)MenaraShellNo.211,JalanTunSambanthan50470KualaLumpurG.P.O.Box1122850740KualaLumpur

Tel:603-22683333Fax:603-22682222Web:www.amgeneralinsurance.com

4. AXA Affin general insurance Berhad(23820-W)GroundFloor,WismaBoustead71,JalanRajaChulan50200KualaLumpurP.O.Box1220050770KualaLumpur

Tel:603-21708282Fax:603-20317282Web:www.axa.com.my


9. MPi generali insurans Bhd(14730-X)8thFloor,MenaraMulti-PurposeCapitalSquareNo.8,JalanMunshiAbdullah50100KualaLumpurP.O.Box1012250704KualaLumpur

Tel:603-20349888Fax:603-26945758Web:www.mpigenerali.com

10. MSig insurance (Malaysia) Bhd (46983-W)Level15,MenaraHapSeng2PlazaHapSengNo.1,JalanP.Ramlee50250KualaLumpur

Tel:603-20508228Fax:603-20268086Web:www.msig.com.my

11. Overseas Assurance Corporation (Malaysia) Berhad (102249-P)Level18,MenaraGreatEastern303,JalanAmpang50450KualaLumpurG.P.O.LockedBagNo.1103650734KualaLumpur

Tel:603-42597888Fax:603-48132737Web:www.oac.com.my

12. Pacific & Orient insurance Co. Berhad(12557-W)11thFloor,WismaBumiRayaNo.10,JalanRajaLaut50350KualaLumpurP.O.Box1095350730KualaLumpur

Tel:603-26985033Fax:603-26938145Web:www.pacific-orient.com

13. Progressive insurance Bhd(19002-P)9th&10thFloors,MenaraBGI,PlazaBerjaya12,JalanImbi55100KualaLumpurP.O.Box1002850700KualaLumpur

Tel:603-21188000Fax:603-21188103Web:www.progressiveinsurance.com.my

14. QBE insurance (Malaysia) Berhad(161086-D)No.638,Level6,BlockB1PusatDagangSetiaJaya(LeisureCommerceSquare)No.9,JalanPJS8/946150PetalingJayaSelangorDarulEhsanP.O.Box1034550720KualaLumpur Tel:603-78618400Fax:603-78737430Web:www.qbe.com.my

15. RhB insurance Berhad(38000-U)Level12,WestWing,TheIconNo.1,Jalan1/68FJalanTunRazak55000KualaLumpur

Tel:603-21803000Fax:603-92812729Web:www.rhb.com.my/insurance/main

LisT ofMEMBERS


16. The Pacific insurance Berhad (91603-K)40-01,Q-Sentral2A,JalanStesenSentral2KualaLumpurSentral50470KualaLumpurP.O.Box1249050780KualaLumpur

Tel:603-26338999Fax:603-26638998Web:www.pacificinsurance.com.my

17. Tokio Marine insurans (Malaysia) Berhad(149520-U)29th&30thFloor,MenaraDion27,JalanSultanIsmail50250KualaLumpurP.O.Box1079450724KualaLumpur

Tel:603-27838383Fax:603-20269708Web:www.tokiomarine.com.my

18. Tune insurance Malaysia Berhad(30686-K)Level9,WismaTuneNo.19,LorongDungunDamansaraHeights50490KualaLumpur

Tel:603-20879000Fax:603-20941366Web:www.tuneprotect.com

COMPOSiTE BUSiNESS

1. AiA Bhd(790895-D)MenaraAIANo.99,JalanAmpang50450KualaLumpurP.O.Box1014050704KualaLumpur

Tel:603-20561111Fax:603-20562992Web:www.aia.com.my

2. Etiqa insurance Berhad (9557T)Level22,TowerCDataranMaybankNo.1,JalanMaarof59000KualaLumpur

Tel:603-22971888Fax:603-22971800Web:www.etiqa.com.my

3. Prudential Assurance Malaysia Berhad (107655-U)Level17,MenaraPrudentialNo.10,JalanSultanIsmail50250KualaLumpurP.O.Box1002550700KualaLumpur

Tel:603-20318228Fax:603-20323939Web:www.prudential.com.my

4. Zurich insurance Malaysia Berhad(8029-A)MenaraZurich,No.12,JalanDewanBahasa50460KualaLumpurP.O.Box1055350716KualaLumpur

Tel:603-21468000Fax:603-21425863Web:www.zurich.com.my

LisT ofMEMBERS


REiNSURANCE BUSiNESS

1. Asia Capital Reinsurance Malaysia Sdn Bhd(762294-T)UnitA-12A-8Level12AMenaraUOABangsar5JalanBangsarUtama159000KualaLumpur

Tel:603-22996800Fax:603-22996900Web:www.asiacapitalre.com.my

2. hannover Rueck SE Malaysian Branch (993601-H)Suite29-01,IntegraTowerTheIntermark348JalanTunRazak50450KualaLumpur

Tel:603-26873600Fax:603-26873760Web:www.hannover-re.com

3. Malaysian Reinsurance Berhad(664194-V)12thFloor,BangunanMalaysianReNo.17,LorongDungunDamansaraHeights50490KualaLumpurP.O.Box1106850990KualaLumpur

Tel:603-20968000Fax:603-20967000Web:www.malaysian-re.com.my

4. Swiss Reinsurance Company Ltd(993718-U)No.10,PersiaranKLCCLevel13A-2,NazaTower@PlatinumPark50088KualaLumpur

Tel:603-26335800Fax:603-26335803Web:www.swissre.com

5. The Toa Reinsurance Company, Limited (993924-T)KualaLumpurBranch,28thFloor,UBNTower10,JalanP.Ramlee50250KualaLumpur

Tel:603-27325911Fax:603-27325915Web:www.toare.co.jp

LisT ofMEMBERS


insUranCe INDICATORS

WRiTTEN PREMiUMS

WRiTTEN PREMiUMS

RMMILLION

RMMILLION

YEAR100.0

0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Fire

2015 20162014201320122011201020092008

YEAR1,000

0

2,0003,0004,0005,0006,0007,0008,0009,000

2015 20162014201320122011201020092008

Written Premiums (RM Million)

Written Premiums (RM Million)

Source: ISM

Source: ISM

YEAR FIRE MOTOR MAT MEDICAL P.A.2008 2,123.7 4,911.5 1,248.4 550.0 852.22009 2,237.3 5,288.2 1,231.5 587.3 965.72010 2,291.8 5,968.6 1,353.6 643.5 1,088.42011 2,398.9 6,382.4 1,489.4 822.2 1,151.22012 2,571.2 6,978.3 1,565.5 875.7 1,173.22013 2,793.4 7,524.2 1,519.3 920.0 1,236.22014 2,954.7 7,932.8 1,651.9 1,006.3 1,264.62015 3,118.6 8,097.5 1,695.1 963.3 1,301.32016 3,273.7 8,165.2 1,562.9 1,027.0 1,298.3

Motor

MATMedical

P.A.

BondsCar&Eng

LiabilityWC&EL

YEAR BONDS CAR & ENG LIABILITY WC & EL2008 49.6 454.8 376.5 149.72009 47.0 457.3 411.5 147.42010 38.6 423.5 415.6 159.62011 43.3 524.3 446.4 171.32012 52.0 610.5 496.3 205.52013 53.0 644.7 495.8 233.22014 51.1 672.8 547.9 240.62015 60.6 670.1 560.6 232.32016 74.2 695.7 577.1 220.2


YEAR

CLAiMS RATiO BY SECTOR

CLAiMS RATiO BY SECTOR

CLAIMSRATIO(%)

CLAIMSRATIO(%)

20092008 2010 2011 2012 2013 2014 2015 2016

20092008 2010 2011 2012 2013 2014 2015 2016

0%

20%

-20%

40%

60%

80%

Claims Ratio By Sector (RM Million)

Claims Ratio By Sector (RM Million)

Source: ISM

YEAR BONDS CAR & ENG LIABILITY WC & EL2008 2.3% 60.2% 13.5% 22.0%2009 7.6% 23.9% 33.3% 16.5%2010 -8.9% 48.9% 33.1% 19.2%2011 10.4% 45.8% 41.1% 16.0%2012 0.6% 55.0% 29.8% 14.4%2013 -1.3% 40.4% 26.9% 12.2%2014 9.7% 44.5% 20.1% 9.7%2015 9.4% 56.5% 17.4% 9.4%2016 7.1% 47.5% 24.2% 9.9%

YEAR FIRE MOTOR MAT MEDICAL P.A.2008 30.7% 82.7% 74.7% 50.0% 36.0%2009 26.4% 79.8% 73.6% 31.1% 35.7%2010 28.7% 79.5% 82.7% 34.5% 33.0%2011 30.8% 76.8% 64.4% 38.8% 31.5%2012 27.6% 72.3% 56.6% 29.8% 28.9%2013 29.4% 72.7% 50.6% 31.1% 26.5%2014 28.8% 71.5% 57.4% 33.9% 29.4%2015 28.3% 72.0% 54.0% 34.7% 26.0%2016 27.7% 66.9% 70.5% 40.3% 28.8%

Source: ISM

BondsCar&Eng

LiabilityWC&EL

FireMotor

MATMedical

P.A.

insUranCeINDICATORS

YEAR

20%

40%

0%

60%

80%

100%


UNDERWRiTiNg EXPERiENCERMMILLION

YEAR2,000.0

0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

2015 20162014201320122011201020092008

Underwriting Experience (RM Million)

Source: ISM

EarnedPremiums

NetClaims

Comissions

U/WritingMargin

ManagementExpenses

YEAR EARNED NET CLAIMS COMMISSIONS MANAGEMENT U/WRITING PREMIUMS EXPENSES MARGIN2008 7,696.9 5,041.4 757.1 1,735.4 163.02009 8,241.0 5,067.8 802.5 1,757.8 612.92010 8,741.1 5,495.7 818.9 1,787.5 639.02011 9,359.7 5,683.2 901.9 1,866.9 907.82012 10,120.8 5,743.9 1,000.4 2,079.1 1,297.42013 11,189.0 6,340.3 1,144.6 2,242.5 1,461.62014 11,979.0 6,790.0 1,241.6 2,460.5 1,486.92015 12,548.4 7,090.0 1,246.9 2,747.5 1,464.02016 12,822.9 6,991.9 1,270.9 3,030.5 1,529.6

insUranCeINDICATORS


roLL of honoUr 1984 TO 2017TERM ChAiRMAN DEPUTY ChAiRMAN

2016-2017 Mr Antony Lee Mr. Chua Seck guan (AIG Malaysia Insurance Bhd) (MSIG Insurance (Malaysia) Bhd)

2015-2016 Mr. Chua Seck guan Mr Antony Lee (MSIG Insurance (Malaysia) Bhd) (AIG Malaysia Insurance Bhd)

2012-2015 Mr. Chua Seck guan Mr. kong Shu Yin (MSIG Insurance (Malaysia) Bhd) (RHB Insurance Berhad) (from 31 October 2012) (from 31 October 2012) Mr. Wong kim Teck Mr. Chua Seck guan (Kurnia Insurans (Malaysia) Berhad) (MSIG Insurance (Malaysia) Bhd) (from 23 April to 30 October 2012) (from 23 April to 30 October 2012)

2011-2012 En. hashim harun Mr. Wong kim Teck (Malaysian Reinsurance Bhd) (Kurnia Insurans (Malaysia) Bhd)

2010-2011 En. hashim harun Mr. Tan kok guan (Malaysian Reinsurance Bhd) (Lonpac Insurance Bhd)

2009-2010 En. hashim harun Mr. jahanath Muthusamy (Malaysian Reinsurance Bhd) (AXA Affin General Insurance Bhd)

2008-2009 Mr. Cliff Lee koon Yew En. Mohd Yusof idris (Tahan Insurance Malaysia Berhad) (Oriental Capital Assurance Bhd) (from 13 March 2008 to 31 March 2009)

2007-2008 En. Zainal Abidin Mohd Noor Mr Cliff Lee koon Yew (Etiqa Insurance Berhad) (Tahan Insurance Malaysia Berhad) (from 20 April 2007 to 29 February 2008)

2006-2007 En. hashim harun En. Mohd Yusof idris (Uni.Asia General Insurance Bhd) (Oriental Capital Assurance Bhd)

2005-2006 En. hashim harun En. Anuar Mohd hassan (Uni.Asia General Insurance Bhd) (Malaysian National Reinsurance Bhd)

2002-2005 En. Anuar Mohd hassan En. hashim harun (Malaysian National Reinsurance Bhd) (Uni.Asia General Insurance Bhd)

2000-2002 En. kassim Zakaria En. Anuar Mohd hassan (Mayban General Assurance Bhd) (Malaysian National Reinsurance Bhd)

1999-2000 En. Anuar Mohd hassan - (Malaysian National Reinsurance Bhd)

1997-1999 En. Anuar Mohd hassan Mr. Adrian Loh heong Chow (Malaysian National Reinsurance Bhd) (Kurnia Insurans (M) Bhd)

1994-1997 Mr. Adrian Loh heong Chow En. Anuar Mohd hassan (Hong Leong Assurance Bhd) (Malaysian National Reinsurance Bhd)

1993-1994 En. Subri Abdullah En. Dzulkifli Mohd Salleh (Malaysian Co-operative Insurance Society Ltd) (Malaysian National Reinsurance Bhd)

1990-1993 En. Dzulkifli Mohd Salleh En. A. Subri Abdullah (Malaysian National Reinsurance Bhd) (Malaysian Co-operative Insurance Society Ltd)

1988-1990 YBhg Datuk Abdul Latiff hussain En. Dzulkifli Mohd Salleh (Malaysia British Assurance Bhd) (Malaysian National Reinsurance Bhd)

1985-1988 En. Dzulkifli Mohd Salleh Mr Lau khuan Siew (Malaysian National Reinsurance Bhd) (Malaysia British Assurance Bhd)

1984-1985 Tuan haji Mansor Masikon En. Abdullah Bin ishak (Progressive Insurance Sdn Bhd) (Arab Malaysian Insurance Sdn Bhd)

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Making Waves - a Year of Change - PIAM · MAkiNg WAVES - A YEAR Of ChANgE REgiSTERED OffiCE Level...

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