Docstoc

Cover A4

Document Sample
Cover A4 Powered By Docstoc
					             P ontents
2    President’s Message


     Members of the Management Committee
10   2009 – 2010



11   Management Committee 2009 – 2010



12   Committees and Working Committees 2009 – 2010



18   Report of the Management Committee



32   Performance of the Life Insurance Industry



38   Members of LIAM




      Life Insurance Association of Malaysia
      No. 4, Lorong Medan Tuanku Satu, Medan Tuanku, 50300 Kuala Lumpur
      Tel: 03-2691 6168, 2691 6628, 2691 8068 Fax: 03-2691 7978
      Website: www.liam.org.my E-mail: liaminfo@liam.org.my
                              P               resident’s Message




Taking over as President of the Life Insurance         These achievements would not have been
Association of Malaysia (LIAM) in March 2009, I        possible without the support and confidence
prepared myself for the expected challenging           from my fellow Chief Executive Officers. Their
tasks ahead. All my predecessors, as LIAM              strong team spirit and wise counsel have
Presidents, had set remarkably high standards          provided invaluable guidance in helping me
during their terms of office. Their numerous           to chart the strategic direction of LIAM.
contributions to the insurance industry were
indeed matchless.                                      It is now my privilege to report on the key
                                                       developments and activities of the life
The operating environment of the life insurance        insurance industry in 2009.
industry has been subject to significant changes
due to new regulations which are moving                Risk-Based Capital Framework
towards greater transparency and consumer
                                                       The Risk-Based Capital (RBC) framework came
protection. The Association has been kept busy
                                                       into effect on 1 January 2009 after two years of
with meetings and dialogues with regulators as
                                                       parallel run with the previous solvency regime.
well as consolidating the response from the
                                                       The new capital requirement provides greater
industry on possible impact to consumers,
                                                       flexibility for insurers to operate at different
intermediaries and stakeholders.
                                                       capital adequacy levels that commensurate
                                                       with their risk profiles. A new set of valuation rules
Despite these challenging conditions, I am
                                                       was also introduced to ensure that assets and
pleased to report that the Malaysian life
                                                       liabilities are valued in a realistic and market-
insurance industry has weathered through these
                                                       consistent manner.
difficult times, accomplishing many of the
objectives identified for the year.



     Life Insurance Association of Malaysia    ANNUAL REPORT 2009
2
In March 2009, Bank Negara Malaysia (BNM)               interests of consumers must be emphasized in
introduced temporary flexibility for life insurers      the development, marketing and sale of new
to base the discount rate used in RBC on                products. To ensure that all life insurers
weighted basis to moderate the impact of                subscribe to a minimum standard for the TCF
fluctuating interest rates.                             requirement, LIAM engaged an actuarial
                                                        consulting firm in December 2009 to develop
Guidelines on Bancassurance                             a best practice framework for the industry. The
                                                        framework would specify the necessary
The Guidelines on Bancassurance was further
                                                        information to be provided to the customers
revised in April 2009 in-line with the liberalization
                                                        during the sales process, after- sales and during
of the financial services sector. Insurers were
                                                        the policy exit process. This would include
allowed to enter into bancassurance
                                                        minimum standards of disclosures in the form
arrangements with any number of
                                                        of relevant, timely, reliable, consistent and
bancassurance partners. Previously, foreign
                                                        comparable information.
insurance companies were only allowed to tie
up with one local bank.
                                                        Budget 2010
To further enhance bancassurance as an                  a) Micro-Insurance
alternative distribution channel, the
                                                        In the Budget 2010, the Government unveiled
compensation package was revised to include
                                                        the plan to introduce a micro insurance scheme
an additional 5% production bonus and 10%
                                                        aimed at assisting low income small business
persistency bonus. Disclosure of commission,
                                                        owners in securing financial protection. It was
which was introduced for the bancassurance
                                                        announced that for a premium of RM20 per
channel in 2004, continued to be reinforced
                                                        month, coverage of between RM10,000 and
under the revised Guidelines.
                                                        RM20,000 could be granted. This was a positive
                                                        move as insurance protection could be
As at 31 December 2009, a total of 8,081
                                                        extended to a large majority of the population.
financial institution employees representing 17
financial institutions were registered with LIAM
                                                        LIAM had prepared a preliminary proposal for
as personnel who sell insurance under
                                                        the micro insurance scheme to be packaged
bancassurance arrangements.
                                                        with micro-financing offered by the banks. The
                                                        proposal would be discussed with various
Development of “Treat Customers Fairly                  stakeholders who include BNM, Persatuan
(TCF)” Framework                                        Insurans Am Malaysia (PIAM) and Malaysian
                                                        Takaful Association (MTA).
With effect from 1 July 2009, BNM liberalized the
rules on product approval and waived the
requirement of a 30-day filing in advance with          b) Tax Relief for Annuity Plans
BNM. Under the new Guidelines on Introduction           The Government had also increased the tax
of New Products for Insurance Companies and             relief for EPF contribution and life insurance
Takaful Products, insurers are now allowed to           premiums from RM6,000 to RM7,000. This
launch products without having to obtain                additional RM1,000 was granted for annuity
BNM’s prior approval. However, the board and            premiums of plans offered by insurance
senior management would now be entrusted                companies.
with greater responsibility to ensure that product
risks are well managed and customers’ rights            This incentive was most appropriate to support
are respected.                                          the development of retirement schemes by life
                                                        insurance companies. Demographically, by the
Insurers are expected to develop a “Treat Your          year 2020, Malaysia would have close to 10%
Customers Fairly (TCF)” policy where the                of its population aged above 60 years. It is



                                        ANNUAL REPORT 2009     Life Insurance Association of Malaysia
                                                                                                        3
crucial to encourage Malaysians to start their         Strategy Planning Meeting
financial planning early, to continue enjoying
                                                       As an association which has been empowered
a comfortable lifestyle in their golden years.
                                                       to chart the direction of the life insurance
                                                       industry, LIAM needs to constantly review its
LIAM would pursue with the on-going dialogues
                                                       strategic plans to remain vibrant and dynamic.
with regulators in promoting retirement planning
                                                       Towards this end, a series of brainstorming
to cater to the needs of the ageing population.
                                                       sessions were organized from December 2008
Future initiatives would include lobbying for the
                                                       to chart the growth and development of the
removal of income tax on the investment
                                                       life insurance industry.
income of the annuity funds and increasing the
amount of tax relief from RM1,000 to a higher
                                                       The key drivers that will map out the blueprint
level.
                                                       of the industry from 2010 to 2015 are:
                                                       • To increase the percentage of insured
Guidelines on Product Transparency                       population;
and Disclosure                                         • To further strengthen the influence of LIAM
Under a liberalized operating environment,               in the consultative process with regulators
there would be a greater need for transparency           with the view to establishing a conducive
and disclosure. After a series of consultations          business environment;
with BNM, the Guidelines on Product                    • To increase the level of transparency and
Transparency and Disclosure came into effect             disclosure to consumers by establishing a
on 1 January 2010.                                       best practice framework on treating
                                                         customers fairly;
The requirements were geared towards                   • To promote consumer awareness via media
promoting consumer awareness and                         publications, education programmes,
understanding of the various financial products          career opportunities and awareness talks;
and services. Information would now be                 • To raise the professionalism of life insurance
presented in a standard product disclosure               intermediaries by increasing the training
sheet to enable consumers to make                        requirements and production standards for
comparison with the different types of products          promotion and maintenance of agency
and minimize any form of mis-selling by                  contracts;
intermediaries.                                        • To foster a closer working relationship with
                                                         regulators and consumer bodies to improve
Full commission disclosure would be introduced           consumers’         understanding           and
for investment-linked insurance with effect from         appreciation of life insurance and its
April 2010 while commission disclosure for               benefits;
traditional products is planned to take effect in      • To strengthen the self-regulatory functions of
June 2011.                                               the Association through a review of internal
                                                         structure and processes.
In line with the new operating environment,
LIAM has also put forward a proposal to BNM            Over the next few years, LIAM will continue its
to liberalise the current limits on operating cost     efforts to raise the professionalism of the life
control. Under the current compensation                insurance industry and increase the
package, the commission for each of the policy         percentage of insured population.                A
years has been fixed across all companies. With        continuous engagement process would be
the move for commission disclosure, a more             initiated with the regulators to develop a
liberalized framework will further encourage           conducive business environment which would
competition and improvements in products               facilitate the life insurance industry to be a key
and services.                                          player in the financial services sector.




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
4
Joint Insurance-Takaful Council                        demonstrated a unified spirit in responding to
With the move to a principle-based regime, BNM         the A(H1N1) calamity that hit Malaysia in 2009.
will continue with its liberalization efforts of the   In August 2009, we issued a press statement to
insurance and takaful industry. In responding to       confirm that all life insurance companies would
a need for harmonization of regulations and            honour all medical and hospitalization claims
enhanced market discipline, LIAM, PIAM and             arising from A(H1N1). Even though a majority
MTA, in consultation with BNM are forming a Joint      of the medical plans contain exclusions on
Insurance and Takaful Council (JITC).                  communicable diseases requiring quarantine,
                                                       all our Members have agreed to waive this
The scope of JITC includes promoting                   condition in processing their claims.
consistency in rules, regulations and guidelines
of the three sectors and resolving inter sector        Acknowledgement
complaints or disputes amicably. The JITC would
                                                       Having just concluded another hectic year, we
comprise nine members, two from each
                                                       are certain more challenges are forthcoming
association and three independent members
                                                       as we embark on LIAM’s 2010 – 2015 Strategic
nominated by the respective associations.
                                                       Plan. The continuous support and cooperation
                                                       from our Members is highly appreciated.
To ensure that the JITC is accorded with the
highest level of independence, the Chairman
                                                       In this regard, I would like to take this opportunity
of the JITC would be appointed from amongst
                                                       to thank all LIAM members for the support and
the independent members.
                                                       trust in me to lead the Association. I would also
                                                       like to thank my fellow colleagues and
LIAM Disciplinary Procedures                           counterparts on the Management Committee
In an effort to improve our current self-regulatory    and the various Working Committees for the
efforts, the Association has undertaken a review       valuable contribution in terms of time,
of the disciplinary procedures outlined in the         knowledge, expertise and experience that
Constitution. Under this review, the Disciplinary      have helped LIAM to implement many of its
Committee (DC) would be empowered to                   activities and to fulfill its obligations successfully.
investigate, hold an inquiry and to decide on
the disciplinary action in the case of a breach        I also wish to place on record my appreciation
of the Association’s guidelines.                       to the offices of BNM, Ministry of Finance,
                                                       Treasury, Ministry of Health, Employees Provident
Prior to this review, a complaint lodged with          Fund and other government bodies for the
LIAM would have to go through many levels via          guidance, advice and cooperation given to
the Committee of Inquiry and Management                LIAM.
Committee before a final decision is made.
                                                       Last but not least, my appreciation to the
To maintain the impartiality of the DC, the            Secretariat staff for their hard work and
appointment of the Chairman would be based             dedication in carrying out their duties to ensure
on a rotation basis.                                   the smooth operations of the Secretariat.


LIAM Responds to Influenza A(H1N1)
                                                       Md Adnan Md Zain
I wish to express my gratitude to all the 18           President
member companies of LIAM who have




                                       ANNUAL REPORT 2009      Life Insurance Association of Malaysia
                                                                                                          5
                              P               erutusan Presiden
Selepas mengambil alih jawatan Presiden               kaedah kesolvenan terdahulu. Keperluan
Persatuan Insurans Hayat Malaysia (LIAM)              modal baru ini memberikan tahap fleksibiliti
pada bulan Mac 2009, saya telah                       lebih tinggi kepada penanggung insurans untuk
mempersiapkan diri untuk memikul tugas-               beroperasi pada tahap kecukupan modal
tugas yang mencabar. Presiden-presiden LIAM           berbeza, yang sesuai dengan profil risiko
terdahulu, telah menetapkan piawaian yang             mereka. Satu set peraturan penilaian baru juga
sangat tinggi sepanjang tempoh mereka                 diperkenalkan untuk memastikan bahawa aset
memegang jawatan. Sumbangan besar                     dan liabiliti dinilai secara realistik dan konsisten
mereka kepada industri insurans ternyata sukar        dengan pasaran.
ditandingi.
                                                      Pada Mac 2009, BNM memberikan
Operasi industri insurans hayat telah mengalami       kelonggaran sementara kepada syarikat
perubahan besar berikutan peraturan baru              insurans hayat untuk menetapkan kadar
yang diperkenalkan untuk memberikan tahap             faedah yang digunakan dalam RBC secara
ketelusan dan perlindungan yang lebih tinggi          wajaran untuk mengurangkan kesan kadar
kepada pengguna. LIAM telah mengadakan                faedah yang turun naik.
mesyuarat dan dialog dengan pihak berkuasa
dan memberikan pandangan industri tentang
kesan yang mungkin dihadapi oleh pengguna,            Garis Panduan Bankasurans
pengantara dan pihak berkepentingan.                  Garis Panduan mengenai Bankasurans
                                                      disemak semula pada April 2009, sejajar
Walaupun menghadapi keadaan yang                      dengan liberalisasi sektor kewangan.
mencabar, saya bangga melaporkan industri             Penanggung Insurans dibenarkan untuk
hayat tempatan berjaya mengharungi                    membuat pengaturan bankasurans dengan
kesukaran ini dan telah mencapai objektif             seberapa banyak rakan niaga bankasurans.
tahunan yang telah ditetapkan.                        Sebelum ini, syarikat insurans asing hanya
                                                      dibenarkan bekerjasama dengan satu bank
Kejayaan ini tidak mungkin dicapai tanpa              tempatan.
sokongan dan keyakinan daripada Ketua
Pegawai Eksekutif ahli-ahli LIAM. Semangat            Untuk menambah baik bankasurans sebagai
berpasukan yang kukuh dan nasihat berharga            saluran pengedaran alternatif, pakej
mereka telah saya jadikan panduan yang                pampasan telah disemak semula untuk
berguna dalam membantu saya menetapkan                menyediakan bonus prestasi 5% dan bonus
hala tuju strategik LIAM.                             ketegaran polisi 10%. Pendedahan komisen,
                                                      yang diperkenalkan bagi saluran bankasurans
Saya berbesar hati untuk melaporkan                   pada 2004, terus diperkukuh di bawah Garis
perkembangan dan kegiatan penting industri            Panduan yang disemak.
insurans hayat pada 2009.
                                                      Pada 31 Disember 2009, sejumlah 8,081
                                                      kakitangan institusi kewangan, yang mewakili
Rangka Kerja Modal Berasaskan Risiko                  17 institusi kewangan, telah berdaftar
Rangka Kerja Modal Berasaskan Risiko (RBC)            dengan LIAM sebagai kakitangan yang
berkuatkuasa pada 1 Januari 2009 selepas dua          menjual insurans di bawah pengaturan
tahun dilaksanakan secara selari dengan               bankasurans.




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
6
Pelaksanaan Rangka Kerja “Layan                    Langkah positif ini membolehkan perlindungan
Pelanggan Dengan Adil (TCF)”                       insurans dilanjutkan kepada sebahagian besar
                                                   masyarakat.
Berkuatkuasa 1 Julai 2009, BNM telah
meliberalisasikan peraturan mengenai
                                                   LIAM telah menyediakan cadangan awal bagi
kelulusan produk dan mengenepikan syarat
                                                   skim insurans mikro untuk digabungkan dengan
untuk memfailkan produk dengan BNM 30 hari
                                                   tawaran pembiayaan mikro oleh bank.
sebelum produk diperkenalkan. Di bawah
                                                   Cadangan tersebut akan dibincangkan oleh
Garis Panduan Pengenalan Produk Baru bagi
                                                   pelbagai pihak berkepentingan termasuk BNM,
Syarikat Insurans dan Produk Takaful yang
                                                   Persatuan Insurans Am Malaysia (PIAM) dan
terkini, syarikat insurans kini dibenarkan
                                                   Persatuan Takaful Malaysia (MTA).
melancarkan produk tanpa mendapatkan
kelulusan BNM terlebih dahulu. Bagaimanapun,
                                                   b) Pelepasan Cukai bagi Pelan Anuiti
lembaga pengarah dan pengurusan kanan kini
diamanahkan dengan tanggungjawab yang              Kerajaan juga telah meningkatkan pelepasan
lebih besar untuk memastikan risiko produk         cukai bagi caruman KWSP dan premium
diuruskan dengan baik dan hak pelanggan            insurans hayat daripada RM6,000 kepada
dihormati.                                         RM7,000. Tambahan RM1,000 ini diberikan untuk
                                                   premium pelan anuiti yang ditawarkan oleh
Penanggung insurans dikehendaki menggubal          syarikat insurans.
dasar ”Layan Pelanggan Anda Dengan Adil
(TCF)” di mana kepentingan pengguna mesti          Insentif ini amat sesuai untuk menyokong
diutamakan         dalam      pembangunan,         perkembangan skim persaraan oleh syarikat
pemasaran dan penjualan produk baru. Untuk         insurans hayat. Dari sudut demografi, hampir
memastikan bahawa semua penanggung                 10% daripada penduduk Malaysia akan berusia
insurans memenuhi piawaian TCF minimum,            60 tahun ke atas menjelang 2020. Rakyat
LIAM melantik sebuah firma perunding aktuari       Malaysia harus digalakkan untuk merancang
pada Disember 2009 untuk menyusun rangka           kewangan mereka sejak dari awal lagi, supaya
kerja amalan terbaik bagi industri. Rangka kerja   mereka dapat menikmati gaya hidup yang
ini akan mengkhususkan maklumat yang perlu         selesa pada usia emas kelak.
diberikan kepada pelanggan sepanjang
proses jualan, selepas jualan dan semasa polisi    LIAM akan terus berdialog dengan pihak
tamat. Ini termasuk tahap pendedahan               berkuasa untuk menggalakkan perancangan
minimum dalam bentuk maklumat yang                 persaraan bagi memenuhi keperluan
berkaitan, tepat pada masanya, boleh               penduduk yang semakin lanjut usia. Inisiatif
dipercayai, konsisten dan boleh dibandingkan.      masa depan yang bakal dilaksanakan
                                                   termasuk melobi bagi memansuhkan cukai
                                                   pendapatan ke atas pendapatan pelaburan
                                                   dana anuiti dan meningkatkan jumlah
Bajet 2010
                                                   pelepasan cukai daripada RM1,000 kepada
a) Insurans Mikro                                  kadar yang lebih tinggi.
Dalam Bajet 2010, kerajaan telah
mengumumkan        rancangan       untuk           Garis Panduan Ketelusan dan Pendedahan
memperkenalkan skim insurans mikro yang            Produk
bertujuan membantu pemilik perniagaan              Dalam persekitaran operasi yang lebih liberal,
berpendapatan rendah untuk mendapatkan             tahap ketelusan dan pendedahan yang lebih
perlindungan    kewangan.      Kerajaan            tinggi diperlukan. Selepas satu siri rundingan
mengumumkan bahawa dengan premium                  dengan BNM, Garis Panduan Ketelusan dan
hanya RM20 sebulan, perlindungan antara            Pendedahan Produk mula berkuatkuasa pada
RM10,000 hingga RM20,000 boleh diberikan.          1 Januari 2010.



                                    ANNUAL REPORT 2009    Life Insurance Association of Malaysia
                                                                                                   7
Garis panduan ini bertujuan meningkatkan              • Meningkatkan tahap ketelusan dan
kesedaran dan kefahaman pengguna                        pendedahan kepada pengguna dengan
terhadap pelbagai produk dan perkhidmatan               menyediakan rangka kerja amalan terbaik
kewangan. Maklumat kini akan dibentangkan               untuk melayan pelanggan dengan adil;
dalam lembaran standard pendedahan                    • Meningkatkan kesedaran pengguna
produk untuk membolehkan pengguna                       menerusi penerbitan media, program
membuat perbandingan terhadap jenis-jenis               pendidikan, peluang kerjaya dan ceramah
produk yang berbeza dan mengurangkan                    kesedaran;
sebarang jualan berasaskan maklumat yang              • Meningkatkan tahap profesionalisme
tidak tepat oleh pengantara.                            pengantara insurans hayat dengan
                                                        menaikkan tahap keperluan latihan dan
Pendedahan         komisen    penuh     akan            piawaian pengeluaran untuk kenaikan
diperkenalkan bagi insurans berkaitan                   pangkat dan penyenggaraan kontrak
pelaburan berkuatkuasa April 2010 manakala              agensi
pendedahan komisen bagi produk insurans               • Menjalin hubungan kerja yang lebih erat
tradisional dijadualkan berkuatkuasa Jun 2011.          dengan pihak berkuasa dan persatuan
                                                        pengguna untuk meningkatkan kefahaman
Sejajar dengan persekitaran operasi baru, LIAM          dan penghargaan pengguna terhadap
juga telah mengemukakan cadangan kepada                 insurans hayat dan manfaatnya;
BNM untuk melonggarkan had yang                       • Mengukuhkan fungsi kawal selia sendiri
ditetapkan di bawah kawalan kos operasi. Di             Persatuan dengan mengkaji semula struktur
bawah pakej pampasan semasa, komisen bagi               dan proses dalaman.
setiap tahun polisi ditetapkan untuk semua
syarikat. Dengan langkah pendedahan                   Dalam tempoh beberapa tahun akan datang,
komisen, rangka kerja yang lebih liberal akan         LIAM akan meneruskan usahanya untuk
menggalakkan lebih banyak persaingan sihat            menggalakkan profesionalisme industri insurans
dan meningkatkan mutu produk dan                      hayat dan meningkatkan peratus penduduk
perkhidmatan.                                         yang berinsurans. Proses perbincangan
                                                      berterusan akan dilaksanakan dengan pihak
                                                      berkuasa untuk mewujudkan suasana
Mesyuarat Perancangan Strategi
                                                      perniagaan yang sesuai yang akan
Selaku persatuan yang diperkasakan untuk              menjadikan industri insurans hayat sebagai
menentukan hala tuju industri insurans hayat,         penyumbang yang penting dalam sektor
LIAM perlu sentiasa mengkaji semula                   perkhidmatan kewangan.
rancangan strategik untuk memastikan industri
kekal pesat dan dinamik. Untuk tujuan ini, satu
siri mesyuarat telah diadakan bermula                 Majlis Bersama Insurans-Takaful
Disember 2008 untuk merangka pertumbuhan
                                                      Dengan langkah untuk beralih kepada rejim
dan perkembangan industri insurans hayat.
                                                      berasaskan prinsip, BNM akan meneruskan
                                                      usaha liberalisasi industri insurans dan takaful.
Pemacu utama yang akan menentukan
                                                      Untuk memenuhi keperluan menyelaraskan
rangka tindakan industri dari 2010 hingga 2015
                                                      peraturan dan meningkatkan disiplin pasaran,
ialah:
                                                      LIAM, PIAM dan MTA, dengan kerjasama BNM,
• Meningkatkan peratus penduduk yang                  akan menubuhkan sebuah Majlis Bersama
  berinsurans;                                        Insurans dan Takaful (JITC).
• Mengukuhkan lagi pengaruh LIAM dalam
  proses rundingan dengan pihak berkuasa              Skop JTIC termasuk menggalakkan keselarasan
  dengan matlamat untuk mewujudkan                    peraturan, undang-undang dan garis panduan
  suasana perniagaan yang sesuai;                     ketiga-tiga sektor dan menyelesaikan aduan



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
8
atau pertikaian antara sektor dengan cara            yang memerlukan kuarantin, semua ahli telah
terbaik. JITC akan terdiri daripada sembilan ahli,   bersetuju menepikan syarat ini dalam
dua daripada setiap persatuan dan tiga ahli          memproses tuntutan mereka.
berkecuali yang dicalonkan oleh persatuan
masing-masing.
                                                     Penghargaan
Untuk memastikan JITC diberikan tahap                Dengan berakhirnya satu lagi tahun yang sibuk
kebebasan tertinggi, Pengerusi JITC akan             dan padat, kami pasti bahawa cabaran yang
dilantik di kalangan anggota berkecuali.             lebih hebat bakal mendatang dalam usaha
                                                     melaksanakan pelan strategik LIAM bagi 2010
                                                     - 2015. Sokongan berterusan dan kerjasama
Prosedur Disiplin LIAM                               daripada semua ahli amat dihargai.
Dalam usaha meningkatkan kawal selia sendiri,
LIAM telah menyemak semula prosedur disiplin         Dalam pada itu, saya ingin mengucapkan
yang digariskan di bawah Perlembagaan. Di            ribuan terima kasih kepada semua ahli LIAM
bawah penilaian semula ini, Jawatankuasa             atas sokongan dan kepercayaan yang
Disiplin (JD) akan diberi kuasa untuk menyiasat,     diberikan kepada saya untuk memegang
mengadakan sesi soal jawab dan menentukan            tampuk pimpinan Persatuan. Saya juga ingin
tindakan disiplin sekiranya garis panduan            mengucapkan terima kasih kepada rakan
Persatuan tidak dipatuhi.                            sekerja dan ahli Jawatankuasa Pengurusan
                                                     dan pelbagai Jawatankuasa Kerja kerana
Sebelum ini, aduan yang dikemukakan kepada           sumbangan mereka dari segi masa, ilmu
LIAM perlu melalui pelbagai peringkat, iaitu         pengetahuan, kepakaran dan pengalaman
melalui Jawatankuasa Siasatan dan Jawatan            yang banyak membantu LIAM melaksanakan
Pengurusan sebelum keputusan akhir dibuat.           kegiatan dan memenuhi kewajipan dengan
                                                     jayanya.
Untuk memastikan keberkecualian JD,
perlantikan Pengerusi akan dibuat secara             Saya juga ingin merakamkan setinggi-tinggi
bergilir.                                            penghargaan kepada BNM, Kementerian
                                                     Kewangan, Perbendaharaan, Kementerian
                                                     Kesihatan, KWSP dan badan kerajaan lain atas
LIAM Menangani Isu Influenza A(H1N1)
                                                     panduan, nasihat dan kerjasama yang
Saya ingin merakamkan setinggi-tinggi                diberikan kepada LIAM.
penghargaan kepada kesemua 18 ahli LIAM
yang bersatu padu menangani isu wabak                Akhir sekali, saya juga ingin merakamkan
A(H1N1) yang melanda Malaysia pada 2009.             penghargaan kepada kakitangan sekretariat
Pada Ogos 2009, kami mengeluarkan                    kerana kerja keras dan dedikasi mereka dalam
kenyataan akhbar untuk mengesahkan                   menjalankan tugas mereka untuk memastikan
bahawa semua syarikat insurans hayat akan            urus setia beroperasi dengan lancar.
membayar semua tuntutan perubatan dan
kemasukan hospital akibat A(H1N1). Walaupun
majoriti pelan perubatan mengandungi                 Md Adnan Md Zain
pengecualian terhadap penyakit berjangkit            Presiden




                                      ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                    9
M               embers of the Management Committee 2009 - 2010




 Seated (from left)      :   Encik Md Adnan Md Zain, Mr Ooi Say Teng, Mr Koh Yaw Hui and
                             YBhg Dato’ Dr Nirmala Menon.

 Standing (from left) :      Ms Nancy Tan, Encik Muhamad Umar Swift, Mr Kevin Jones,
                             Mr Khor Hock Seng, Encik Mohd Din Merican and Mr Ng Lian Lu.




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
10
             M                anagement Committee 2009 - 2010

   President
                            Encik Md Adnan Md Zain
                            MCIS ZURICH Insurance Berhad



   Vice-President
                            Mr Ooi Say Teng
                            Uni.Asia Life Assurance Berhad


   Members
AmLife Insurance Berhad                             ING Insurance Berhad
Main Representative : Mr Ng Lian Lu                 5Main Representative : YBhg Dato’ Dr Nirmala
Alternate           : Mr Patrick Cheah Gim Guan     Menon
Alternate           : Mr Clement Heng               Alternate           : Ms Anusha Thavarajah



American International Assurance Bhd                Malaysian Assurance Alliance Berhad

Main Representative : Mr Khor Hock Seng             Main Representative : Encik Muhamad Umar Swift
Alternate           : Ms Veronica Selvanayagy       Alternate           : Mr John Leong Choon Wai
Alternate           : Mr J. J. Lee                  Alternate           : Ms Serena Thio Hui Ming



CIMB Aviva Assurance Berhad                         MCIS ZURICH Insurance Berhad

Main Representative : Mr Kevin Jones                Main Representative : Encik Md Adnan Md Zain
Alternate           : Ms Caroline Tee               Alternate           : Mr C. Kumaran
Alternate           : Mr Andy Buddell               Alternate           : Ms Kang Yu Fen



Etiqa Insurance Berhad                              Uni.Asia Life Assurance Berhad

Main Representative : Encik Mohd Din Merican        Main Representative : Mr Ooi Say Teng
Alternate           : Puan Nora Ishak               Alternate           : Mr Ho Teck Seng
                                                    Alternate           : Mr Raymond Lai You Kim


Great Eastern Life Assurance (Malaysia) Berhad
                                                    *As at 31 December 2009.
Main Representative : Mr Koh Yaw Hui
Alternate           : Mr Bruce Lee Yee Lam




                                       ANNUAL REPORT 2009    Life Insurance Association of Malaysia
                                                                                                      11
      C           ommittees & Working Committees 2009 - 2010
Administration & Finance Committee                    Ms Lam Rose Sei
                                                      American International Assurance Bhd
Chairman
Mr Ooi Say Teng                                       Ms Serrina Foo
Uni.Asia Life Assurance Berhad                        AXA AFFIN Life Insurance Berhad

Members                                               Ms Caroline Tee
Puan Aziah Abdul Aziz                                 CIMB Aviva Assurance Berhad
AmLife Insurance Berhad
                                                      Mr Chan Chee Wei
                                                      Great Eastern Life Assurance (Malaysia) Berhad
Ms Veronica Selvanayagy
American International Assurance Bhd
                                                      Ms Khoo Ai Lin
                                                      Hong Leong Assurance Berhad
Mr Bruce Lee
Great Eastern Life Assurance (Malaysia) Berhad        Mr Ng Ah Bah
                                                      ING Insurance Berhad
Mr Rohan Kananathan
Hannover Life Re, Malaysian Branch                    Mr Daniel Han
                                                      Malaysian Assurance Alliance Berhad
Ms Tan LiLing
Hong Leong Assurance Berhad                           Ms Yap Suat Yen
                                                      Manulife Insurance Berhad
Ms Anusha Thavarajah
ING Insurance Berhad                                  Puan Norlia Mat Yusof
                                                      Mayban Life Assurance Berhad
Mr Yang Chin Lee
Malaysian Assurance Alliance Bhd                      Mr Abishek Bhatia
                                                      Prudential Assurance Malaysia Berhad
Ms Shirl Chen Ooi Wai
TM Asia Life Malaysia Bhd                             Mr Gan Teong Kiat
                                                      TM Asia Life Malaysia Bhd

Bancassurance Committee                               Mr Raymond Lew Yung Chow
                                                      Uni.Asia Life Assurance Berhad
Chairman
Mr Kevin Jones
                                                      Distribution System Committee
CIMB Aviva Assurance Berhad
                                                      Chairman
Members                                               Mr Khor Hock Seng
Mr Ngu Kee Keong                                      American International Assurance Bhd
Allianz Life Insurance Malaysia Berhad
                                                      Members
Encik Firozdin Abdul Wahab                            Ms Hei Kim Yin
AmLife Insurance Berhad                               Allianz Life Insurance Malaysia Berhad



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
12
Encik Mohd Aszemi Ibrahim                        Ms Marilyn Loo Sin Kooi
AmLife Insurance Berhad                          American International Assurance Bhd

Mr Chuah Chin Seong                              Ms Kang Poh Lee
American International Assurance Bhd             AXA AFFIN Life Insurance Berhad

Ms Caroline Tee                                  Mr Andy Ng
CIMB Aviva Assurance Berhad                      Great Eastern Life Assurance (Malaysia) Berhad

Mr Song Hock Wan                                 Mr Ho Ming Kee
Great Eastern Life Assurance (Malaysia) Berhad   ING Insurance Berhad

Ms Loh Guat Lan                                  Mr Woo Man Loong
Hong Leong Assurance Berhad                      Malaysian Assurance Alliance Berhad

Ms Rosalind Yu Chwee Kum                         Mr Joseph Anthony Illingworth
ING Insurance Berhad                             Manulife Insurance Berhad

Encik Wan Mohd Kamil bin Wan Jaafar              Mr Tan Choon Hock
Etiqa Insurance Berhad                           Prudential Assurance Malaysia Berhad

Mr John Leong Choon Wai                          Mr Albert Khor
Malaysian Assurance Alliance Berhad              TM Asia Life Malaysia Bhd

Mr Jeffrie Teh Cheng Keat                        Mr Pakea Nathan a/l Chelliah
Manulife Insurance Berhad                        Uni.Asia Life Assurance Berhad

Mr C. Kumaran
MCIS ZURICH Insurance Berhad                     Industry Promotion Committee
                                                 Chairman
Mr William Oh Peng Wey
                                                 Encik Muhamad Umar Swift
TM Asia Life Malaysia Bhd
                                                 Malaysian Assurance Alliance Berhad
Mr Jacky Chan Pen Lon
Uni.Asia Life Assurance Berhad                   Members
                                                 Ms Mala Patmarajah
                                                 American International Assurance Bhd
Education & Examination Committee
Chairman                                         Ms Tricia Loh
                                                 CIMB Aviva Assurance Berhad
Mr Koh Yaw Hui
Great Eastern Life Assurance (Malaysia) Berhad   Ms Ivy Edmeates
                                                 CIMB Aviva Assurance Berhad
Members
Ms Ang Siew Gaik                                 Ms Vivienne Beh
Allianz Life Insurance Malaysia Berhad           Etiqa Insurance Berhad

Encik Azlanshah Mohamed Yusof                    Ms Yeo I-Peng
AmLife Insurance Berhad                          Etiqa Insurance Berhad



                                   ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                 13
Ms Jenny Leong (w.e.f. October 2009)                  Ms Lee Poh Cheong
Great Eastern Life Assurance (Malaysia) Berhad        American International Assurance Bhd

Ms Leong Pei Yee                                      Ms Ho Swee Ying
Great Eastern Life Assurance (Malaysia) Berhad        AXA Affin Life Insurance Berhad

Mr Ravinder Singh                                     Mr Steven Chow
Hannover Life Re, Malaysian Branch                    CIMB Aviva Assurance Berhad

Ms Geraldine Wong                                     Mr Richard Lin
ING Insurance Berhad                                  Great Eastern Life Assurance (Malaysia) Berhad

Puan Haslina Hamidan                                  Ms Joanne Marie Lopez
ING Insurance Berhad                                  Hong Leong Assurance Berhad

Mr Daniel Han                                         Mr Mark Wang
Malaysian Assurance Alliance Berhad                   ING Insurance Berhad

Puan Roziana Mohd Yatim                               Mr Danny Choong Yick Kheong
Malaysian Assurance Alliance Berhad                   Malaysian Assurance Alliance Berhad

Puan Norliza Alias                                    Mr Yeow Kok Kien
Malaysian Life Reinsurance Group Berhad               Manulife Insurance Berhad

Ms Susan Ong                                          Mr Yoon Mun Thim
Manulife Insurance Berhad                             Prudential Assurance Malaysia Berhad

Mr Wilson Tang                                        Mr Tan Sze Teck
Manulife Insurance Berhad                             TM Asia Life Malaysia Bhd

Encik Rizal Fadil (until September 2009)              Mr Geoff Aw
MCIS ZURICH Insurance Berhad                          Uni.Asia Life Assurance Berhad

Ms Tiffany Tan
TM Asia Life Malaysia Bhd                             Life Operations/IT Committee
                                                      Chairman

Investment Committee                                  Encik Mohd Din Merican
                                                      Etiqa Insurance Berhad
Chairman
Mr Ng Lian Lu                                         Members
AmLife Insurance Berhad
                                                      Ms Lim Li Meng
                                                      Allianz Life Insurance Malaysia Berhad
Members
Ms Esther Ong Chen Woon                               Puan Azllynah Bakar
Allianz Life Insurance Malaysia Berhad                AmLife Insurance Berhad

Ms Philomena Jan                                      Mr Henry Tham
AmLife Insurance Berhad                               American International Assurance Bhd



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
14
Ms Frances Gomes                                 Mr Alan Goon
AXA AFFIN Life Insurance Berhad                  ING Insurance Berhad

Mr Christopher Woon                              Mr Ooi Sze Chuan
Great Eastern Life Assurance (Malaysia) Berhad   Manulife Insurance Berhad

Mr Chris Cheong                                  Mr K’ng Tuan Kah
Hong Leong Assurance Berhad                      MCIS ZURICH Insurance Berhad


Mr Jimmy Wong                                    Ms Wong Kim Hoe
                                                 TM Asia Life Malaysia Bhd
ING Insurance Berhad

                                                 Mr Goh Kim Lai
Madam Lee Fooi Ming
                                                 Uni.Asia Life Assurance Berhad
Malaysian Assurance Alliance Berhad

Mr William Ng Cheng Chuan
                                                 Product Services & Technical Committee
Manulife Insurance Berhad
                                                 Chairman
Mr Daryl Ong                                     Mr Ng Lian Lu
Etiqa Insurance Berhad                           AmLife Insurance Berhad

Mr Lee Goon Hong                                 Members
TM Asia Life Malaysia Bhd
                                                 Mr Chin Tze How
                                                 Allianz Life Insurance Malaysia Berhad
Mr Lim Poh Yeow
Uni.Asia Life Assurance Berhad
                                                 Mr Patrick Cheah
                                                 AmLife Insurance Berhad

IT SECTION                                       Mr Adit Trivedi
Members                                          American International Assurance Bhd

Mr Dave Giam Hock Hai                            Mr Steven Visvalingam
Allianz Life Insurance Malaysia Berhad           AXA AFFIN Life Insurance Berhad

Mr Cheah Swee Chong                              Encik Yahya Adnan Ahmad
AmLife Insurance Berhad                          CIMB Aviva Assurance Berhad

Mr Dang Kok Heng                                 Mr Lok Hoe San
American International Assurance Bhd             Etiqa Insurance Berhad

Mr Chan Yuet Wah                                 Mr Yap Chee Keong
AXA AFFIN Life Insurance Berhad                  Great Eastern Life Assurance (Malaysia) Berhad

Ms Melissa Low Kim Boey                          Ms Sophia Ch’ng
Etiqa Insurance Berhad                           Great Eastern Life Assurance (Malaysia) Berhad

Mr Lee Pooi Hor                                  Mr Seow Fan Chong
Great Eastern Life Assurance (Malaysia) Berhad   Hong Leong Assurance Berhad



                                   ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                 15
Mr Pranil Sharma                                      Members
Hannover Life Re, Malaysian Branch
                                                      Ms Chin Yien Ping
                                                      Allianz Life Insurance Malaysia Berhad
Mr Loke Chang Yueh
ING Insurance Berhad
                                                      Ms Ng Cheng Man
                                                      American International Assurance Bhd
Ms Serena Thio
Malaysian Assurance Alliance Berhad
                                                      Mr Edward Kong
                                                      AXA AFFIN Life Insurance Berhad
Mr Leo Ng
Manulife Insurance Berhad
                                                      Ms Fiona Kuok / Ms Pauline Siew
Ms Kang Yu Fen                                        CIMB Aviva Assurance Berhad
MCIS ZURICH Insurance Berhad
                                                      Mr Mah Poon Keong
Mr Ong Kheng Heng                                     Great Eastern Life Assurance (Malaysia) Berhad
Prudential Assurance Malaysia Berhad
                                                      Ms Wong Sui Ying
Mr Khoo Poh Beng                                      Etiqa Insurance Berhad
TM Asia Life Malaysia Bhd
                                                      Mr Mooi Kin Seng
Mr Raymond Lai                                        ING Insurance Berhad
Uni.Asia Life Assurance Berhad
                                                      Mr Lee Kok Wah
                                                      Hong Leong Assurance Berhad
Regulation/Enforcement (Disciplinary)
Committee
                                                      Mr Tang Loon Koon
Chairman                                              Manulife Insurance Berhad
YBhg Dato’ Dr Nirmala Menon
ING Insurance Berhad                                  Ms Wong Fong Leng
                                                      Prudential Assurance Malaysia Berhad
Members
Mr Khor Hock Seng                                     Ms Shirl Chen Ooi Wai
American International Assurance Bhd                  TM Asia Life Malaysia Bhd


Mr Ng Lian Lu                                         Mr Ho Teck Seng
AmLife Insurance Berhad                               Uni.Asia Life Assurance Berhad

Encik Mohd Din Merican
Etiqa Insurance Berhad                                Takaful Committee
Encik Muhamad Umar Swift                              Chairman
Malaysian Assurance Alliance Berhad                   YBhg Dato’ Dr Nirmala Menon
                                                      ING Insurance Berhad
Taxation Committee
Chairman                                              Members
Mr Ng Lian Lu                                         Mr Laurent Haw Kok Foong
AmLife Insurance Berhad                               Allianz Life Insurance Malaysia Berhad



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
16
Mr Clement Heng Eak Yak                          Mr Ravinder Singh
AmLife Insurance Berhad                          Hannover Life Re, Malaysian Branch

Mr Lee Jiau Jiunn                                Mr Woo Man Loong
American International Assurance Bhd             Malaysian Assurance Alliance Berhad

Encik Muhammad Fikri Mohammad Rawi               Ms Susan Ong
CIMB Aviva Assurance Berhad                      Manulife Insurance Berhad

Puan Nora Ishak
Etiqa Insurance Berhad
                                                 *As at 31 December 2009.
Puan Norizan Yahya
Great Eastern Life Assurance (Malaysia) Berhad




                                   ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                 17
             R             eport of the Management Committee
Being the representative body of life insurance       taken into account, facilitating further fine
companies, LIAM has been entrusted with the           tuning of the model financial statements.
responsibility to position the industry as a strong
and influential self-regulatory body. During the
                                                      Common Wordings for Critical Illness (CI)
year under review, we have undertaken a wide
range of projects and assignments and this has        In response to the advancement in medical
been made possible through the commitment             science and new diagnostics methods, LIAM
and dedication of our committee and task              undertook a review of the definition for critical
force representatives. Listed below were              illnesses (CI) and completed the exercise in
highlights of the major activities and key issues     November 2009. The review was done by a Task
dealt with by LIAM:                                   Force comprising medical practitioners,
                                                      actuaries and claims personnel of member
                                                      companies. A comparative study was also
International Financial Reporting
                                                      initiated by the Task Force to evaluate the
Standards (IFRS)
                                                      developments of CI insurance in a number of
The Malaysian authorities are committed               developed markets. The revised definitions are
towards full convergence with International           expected to replace the current standard
Financial Reporting Standards by January 2010.        wordings used by all life insurance companies
LIAM has actively participated in the various         since 2002.
working groups set up by the Malaysian
Accounting Standards Board (MASB) in
                                                      Human Capital Development Initiatives
reviewing and drafting accounting standards
impacting the insurance industry. In 2009, LIAM       Formed in November 2008, the Asian Institute
contributed to the consultation process               of Finance (AIF) was a joint initiative by Bank
facilitated by MASB on the following accounting       Negara Malaysia (BNM) and the Securities
standards, exposure drafts and discussion             Commission Malaysia, aiming to enhance
papers:                                               human capital development initiatives for the
                                                      financial services sector. This would be
1. IASB ED/2009/3: Derecognition (proposed            achieved through strengthened institutional
   amendments to IAS 39 and IFRS 7);                  arrangements for collaboration between AIF
2. IASB DP/2009/2: Credit Risk in Liability           and the four training institutions, Institut Bank-
   Measurement;                                       Bank Malaysia (IBBM), Islamic Banking and
3. IASB ED/2009/12: Financial Instruments:            Finance Institute Malaysia (IBFIM), the Malaysian
   Amortised Cost and Impairment; and                 Insurance Institute (MII) and Securities Industry
4. MASB ED 69: Proposal to replace the                Development Corporation (SIDC).
   requirements on the classification and
   measurement of financial assets in FRS 139.        For the insurance industry, a budget of RM44.8
                                                      million had been approved for the up-scaling
LIAM was also invited into the Working                initiatives of the MII. The cost would be co-
Committee set up by the Malaysian Institute of        funded by the insurance companies i.e. based
Certified Public Accountants (MICPA) to               on 1% of staff salaries and a matching grant by
develop revised model financial statements for        BNM. For the first phase of this project, some
the insurance industry. Since then, an exposure       RM22.5 million had already been allocated. The
draft of the model financial statements had           up-scaling of MII initiatives encompassed
been issued. Relevant feedback obtained was           curriculum and programme enhancements,



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
18
web-based learning systems, IT infrastructure,        Association (MTA), the workshop was attended
knowledge and resource up-scaling, research           by some 64 participants comprising mainly
and publications and faculty enhancement              heads and senior personnel from the human
and expansion.                                        resource divisions.


Financial Sector Talent Enrichment                    Malaysian Financial Planning Council
Programme (FSTEP)                                     (MFPC)
The Financial Sector Talent Enrichment                The Registered Financial Planner (RFP) is one of
Programme (FSTEP), an initiative of BNM and the       the professional qualifications, recognized by
financial services sector had been in operations      BNM for the application of the Financial Adviser
since September 2007. As of to date, some 684         Licence and the Securities Commission for its
participants have undergone the FSTEP training.       Capital Markets Service Licence.

The objective of this programme is to build a         Introduced in 2002, the RFP is a Malaysian based
sustainable pool of young talents for the             financial qualification jointly developed by
financial services sector. Selected graduates will    LIAM, MII and the National Association of
have to undergo an intensive one-year training        Malaysian Life Insurance and Financial Advisors
programme covering conventional banking,              (NAMLIFA) in response to the need to provide
investment banking, Islamic banking, insurance        financial planning professionals with proper
and takaful. It encompasses classroom training,       qualifications. The Malaysian Financial Planning
which includes simulations, workshops and case        Council (MFPC) was subsequently established
studies, and internship programmes with               to promote the development of RFP.
financial institutions.
                                                      As one of the founding organizations of MFPC,
A half-day workshop on ‘The Way Forward:              LIAM has always maintained its presence at the
Batch 5 and Beyond’ was held on 21 October            MFPC National Council. Currently, five
2009 to promote the FSTEP Batch 5 pre-                representatives from LIAM member companies
selected scheme. Another objective was to             sit on the National Council for 2009 to 2011.
assess the future training needs of the
insurance industry.                                   MFPC has made significant progress over the
                                                      years. One major development was the
Jointly hosted by FSTEP, LIAM, Persatuan Insurans     introduction of the Shariah RFP programme in
Am Malaysia (PIAM) and Malaysian Takaful              August 2008, providing practitioners with Takaful
                                                                          and Islamic financial
                                                                          planning principles and
                                                                          knowledge. The MFPC
                                                                          National Council and the
                                                                          Advisory Board and Shariah
                                                                          Advisory Committee had
                                                                          established the Shariah RFP
                                                                          Scholarship Fund worth
                                                                          RM300,000.

                                                                            Malaysia Healthcare
                                                                            Travel Council (MHTC)
                                                                            LIAM was invited to be
 Workshop on ‘The Way Forward: Batch 5 and Beyond’,
 21 October 2009                                                            represented in the Advisory
                                                                            Committee of the Malaysia



                                         ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                       19
                                                                               The Advisory Committee is
                                                                               chaired by the Minister of
                                                                               Health and co-chaired by
                                                                               the Minister in the Prime
                                                                               Minister’s Department. Its
                                                                               Committee members were
                                                                               appointed               from
                                                                               representatives of the
                                                                               Government and private
                                                                               sector      involved       in
                                                                               healthcare travel. The
                                                                               purpose of this committee
                                                                               is to advise on policy issues
                                                                               and to map out the future
                                                                               direction for healthcare
   Official launch of the Malaysia Healthcare Travel Council, 21 December 2009
                                                                               travel. The first meeting of
                                                                               the Advisory Committee of
Healthcare Travel Council (MHTC) formed MHTC was held on 15 December 2009.
under the Malaysian Ministry of Health.
                                                        National Association of Malaysian Life
The MHTC was officially launched by the                 Insurance and Financial Advisors
Malaysian Prime Minister on 21 December 2009.           (NAMLIFA)
The main objective of MHTC is to promote and
develop the health tourism industry towards             LIAM enjoys a cordial working relationship with
establishing Malaysia as the healthcare                 NAMLIFA and our collaborative efforts have
destination of choice in this region.                   culminated into many successful ventures.




                                 NAMLIFA 31st Mega Convention, 11 August 2009




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
20
                                                                                  Conference/Seminar
                                                                                  PIS Insurance           Agency
                                                                                  Seminar
                                                                                  Mr Ng Lian Lu, LIAM
                                                                                  Immediate Past President,
                                                                                  was one of the speakers at
                                                                                  the Pertubuhan Insurans
                                                                                  Sarawak (PIS) inaugural
                                                                                  Insurance Agency Seminar
                                                                                  held in Kuching, Sarawak on
                                                                                  10 March 2009. He presented
                                                                                  the topic ‘Challenges and
                                                                                  Opportunities for Insurance
                                                                                  Agents’.
 NAMLIFA Central Region AKARD Awards Recognition Night, 17 August 2009


Apart from focusing our efforts to raise the               17 th Annual LIMRA-LOMA Strategic Issues
professionalism of intermediaries, LIAM and                Conference
NAMLIFA have maintained an open channel
                                                           The 17th Annual LIMRA-LOMA Strategic Issues
of discussion, particularly on matters concerning
                                                           Conference was held in Kuala Lumpur from 21
the agency force, including BNM regulations
                                                           to 23 June 2009. As the host, LIAM held a
and LIAM’s self regulatory rules, which have a
                                                           welcome reception for the participants and
direct impact on the agency force. LIAM
                                                           speakers on 21 June 2009. The conference
members also gave their support to NAMLIFA’s
                                                           attracted some 170 delegates comprising
Annual Convention and AKARD Awards Night.
                                                           CEOs, senior managers and regulators from 15
During the 31st Mega Convention held from
                                                           countries.
11 to 13 August 2009 at Genting Highlands,
Encik Md Adnan Md Zain participated in
                                                           With the theme ’The New Global Economy:
the CEO Forum on the discussion titled
                                                           Resilience in Challenging Times’, the two-day
‘Riding the Wave of Change in Pursuing
                                                           conference showcased a line-up of
Excellence in Times of Financial Turbulence’.
                                                           distinguished speakers and regulators from
Encik Md Adnan was also the Guest of Honour
                                                           various countries. Among the speakers were
at the 6 th AKARD Awards
Recognition Night for the
Perak region held in Ipoh on
11 July 2009 and Central
Region held in Subang Jaya
on 17 August 2009.

The cooperation between
LIAM and NAMLIFA had
extended beyond the
boardrooms to include
community service, namely
the NAMLIFA-LIAM Charity
Golf and the Nationwide
Blood Donation Campaign
in conjunction with Life
                                     17th Annual LIMRA-LOMA Strategic Issues Conference, 21 to 23 June 2009
Insurance Day 2009.



                                          ANNUAL REPORT 2009        Life Insurance Association of Malaysia
                                                                                                              21
Mr Marvin Feldman, President and CEO of Life           35th ASEAN Insurance Council Meeting
Foundation, who shared on: ‘How do We                  Representatives from life and non-life insurance
Survive in this Chaos?’. Another expert, Mr            associations     from      ASEAN      countries
Charlie Oropeza, (CEO of Prudential Malaysia),         congregated in Vientiane, Laos PDR, for the
delivered an interesting paper on the topic:           35th ASEAN Insurance Council (AIC) meeting
‘Find the Path to Profitable and Sustainable           from 7 to 9 October 2009.
Growth’. Mr Sidney T. Yuen, (Director of Global
Consulting Services, Asia Pacific, Convergys           LIAM was represented by Mr Ooi Say Teng
Corporation), spoke on ‘Addressing the                 (LIAM’s Vice President) and Encik Mohd Din
Customer Experience: What Investments Make             Merican (Management Committee Member).
Sense in the Current Financial Climate?’. Last         This meeting served as an effective
but not least, Mr Mark Saunders, (Principal and        communication platfor m, facilitating
Managing Director, Asia Tillinghast-Towers             exchange of information among participants
Perrin), enlightened the public about ‘Product         on the latest development of their respective
Alignment by the Numbers: Fundamentals and             markets. Among other benefits, they also
Lessons Learned in a Global Market’.                   discussed on the ASEAN Insurance Training and
                                                       Research Institute (AITRI) and the ASEAN
                                                       Natural Disasters and Research Works Sharing.
Bumiputera Agents Convention
LIAM jointly organized the 2009 Bumiputera             As in previous meetings, the Council also liaised
Agents Convention with MII on 1 August 2009.           closely with the ASEAN Insurance Regulators
The Convention drew a record attendance of             to discuss common issues concerning the
514 participants. The Bumiputera Agency                insurance industry in general. The AIC is a
Leaders Award was also held for the first time in      regional private sector grouping of insurance
conjunction with the Convention. The award was         associations in ASEAN, formed to promote
to acknowledge the agency leaders’                     regional ties and cooperation among ASEAN
contributions in building up individuals into          insurers. The Council meeting is held once a
successful life insurance professionals. It was also   year in a designated ASEAN country.
to recognize the agency leaders’ personal
excellence and outstanding achievements in life        The 7th ASEAN Insurance Congress was also
insurance selling.                                     staged in Vientiane from 7 to 8 October 2009.
                                                                           Themed ‘Best Practices to
                                                                           Boost the Bottom Line’, the
                                                                           Congress attracted some
                                                                           80 participants from
                                                                           ASEAN countries and
                                                                           Bahrain. The Congress was
                                                                           hosted by the Ministry of
                                                                           Finance of Laos PDR, with
                                                                           the support from AITRI and
                                                                           AIC.

                                                                            The    Young     ASEAN
                                                                            Managers Award (YAMA)
                                                                            was     organized     in
                                                                            conjunction with the
                                                                            Congress. Ms Sophia
                                                                            Ch’ng,    Senior   Vice
 2009 Bumiputera Agents Convention, 1 August 2009
                                                                            President and Deputy



     Life Insurance Association of Malaysia    ANNUAL REPORT 2009
22
                                                                           speakers. The speakers
                                                                           included Mr Robert Stein
                                                                           (Global Financial Services,
                                                                           Ernst & Young), Mr Stephan
                                                                           Binder (McKinsey & Company),
                                                                           Dr Thomas Kabisch (MEAG
                                                                           Munich), Mr Jim Morris (Pacific
                                                                           Life Insurance Company) and
                                                                           Mr Bill Toppeta (Metlife
                                                                           International).


                                                                           Insurance Awareness
                                                                           TV interviews
                                                                            As part of its continuous
             Ms Sphia Ch’ng, winner of YAMA, 7 October 2009                 efforts to raise insurance
                                                                            awareness, LIAM participated
Head of Finance and Corporate Affairs, Great             in several TV talk shows. Encik Md Adnan Md
Eastern Life Assurance (Malaysia) Berhad                 Zain had appeared on several TV programmes
emerged as the 2009 Award Winner. Ms Ch’ng,              to raise consumer awareness on life insurance.
being an inaugural double achiever, is the first         On 4 May 2009, Encik Md Adnan was on a
Malaysian to win this prestigious award.                 consumer programme on RTM1 to talk about
                                                         the Malaysian life insurance industry. This was
YAMA was introduced by AIC to encourage                  followed by appearances on another
young managers within the industry to actively           consumer focused programme on TV3 on 1
contribute and excel in their field of work. It          August 2009 and 8 August 2009, to provide
honoured outstanding young managers for                  information on the importance and benefits
their achievements, contributions and                    of life insurance. Encik Md Adnan also
dedication in the insurance industry in this             participated in a business programme on RTM1
region. The award had been organized by AITRI            on 24 August 2009 to share on how the life
since 2005.                                              insurance industry assisted the economy in
                                                         general during the economic crisis. The LIAM
                                                         President was also interviewed by TV9 on 10
24th Pacific Insurance Conference 2009
                                                         December 2009 about market liberalization.
Being the inaugural host of the 23rd Pacific             He also talked on the presence and interest of
Insurance Conference (PIC) 2007, LIAM was                foreign companies in the local life insurance
committed in ensuring the success of the next            industry.
PIC. Some 25 Malaysian participants attended
the 24th PIC in Bangkok, Thailand from 1 to 4
November 2009. Among the Malaysian                       LIAM’s Educational Articles
participants were LIAM President, Vice-                  In an effort to educate the public on the
President, CEOs and senior personnel from                benefits of life insurance, LIAM had contributed
member companies.                                        articles on various topics concerning life
                                                         insurance for publication in the newspapers.
With the theme ‘Building a World Class Business          These articles are available on the LIAM website
in the Asia Pacific Region – Success Strategies          at www.liam.org.my. The articles on
for Multinational and Domestic Companies’,               understanding cash bonuses and life insurance
the conference presented a lineup of                     claims had been compiled into informative
international distinguished and experienced              booklets.



                                        ANNUAL REPORT 2009      Life Insurance Association of Malaysia
                                                                                                         23
A series of six new articles were published in a           October 2009 to 1 November 2009 in
Mandarin newspaper between June and July                   conjunction with Life Insurance Day 2009. The
2009. The articles, covering subjects such as              theme of the donation drive was ‘Donate
insurance and consumers’ rights, managing                  Blood – Your Gift of Life’.
insurance policies during financial crisis,
endowment policies and critical illness policies,          All in, 16 blood donation sites were set up in
were also published in a relatively new English            major towns and cities around the country.
newspaper in its ‘Underwriter’ column. The                 Apart from Kuala Lumpur, to encourage
articles which had been published are                      public participation, numerous blood
available on the LIAM website.                             donation sites were also put up in Petaling
                                                           Jaya, Klang, Ipoh, Penang, Alor Setar,
                                                           Seremban, Melaka, Johor Bahru, Kuantan,
FOMCA Workshop
                                                           Kuala Terengganu, Kota Bharu, Sibu and Kota
LIAM, in collaboration with the Federation of              Kinabalu.
Malaysian Consumers’ Association (FOMCA),
organized a workshop with the theme ‘Change                Through the combined efforts of LIAM member
Begins with Me’ on 4 June 2009.                            companies and NAMLIFA members, the drive
                                                           managed to achieve a grand total of 1,017
The workshop aimed to raise the awareness of               donors.
consumers, while educating them on smart
spending in order to sustain a
modest living lifestyle during the
current economic situation. The
speakers were YBhg Datuk Paul
Selva Raj, (CEO, Consumer
Research and Resource Centre,
FOMCA) and Encik Muhammad
Sha’ani Abdullah, (CEO,
National Consumer Compliants
Centre cum Secretary General
of FOMCA). They shared
informative and handy tips on
smart spending.

The half-day workshop was                           FOMCA Workshop: Change Begins with Me, 4 June 2009

attended    by   some   40
representatives from LIAM
member companies.


Corporate                Social
Responsibility
Life Insurance Day – ‘Donate
Blood – Your Gift of Life’
Keeping up with the efforts to
nurture a caring society, LIAM
and NAMLIFA jointly organized
a week-long nationwide blood
                                              Life Insurance Day: Donate Blood – Your Gift of Life, 26 October 2009
donation campaign from 26



     Life Insurance Association of Malaysia    ANNUAL REPORT 2009
24
NAMLIFA - LIAM Charity Golf                            Malaysian Insurance Industry Annual Dinner
In addition to holding meetings, LIAM and              The Malaysian Insurance Industry Annual Dinner
NAMLIFA also collaborated on social events.            was held on 4 December 2009 at Crowne Plaza
The NAMLIFA - LIAM Charity Golf, held on 30            Mutiara Kuala Lumpur. It was graced by YB
October 2009 at the Mines Resort and Golf              Dato’ Zamani bin Abdul Ghani (Deputy
Club, Seri Kembangan, witnessed the                    Governor of BNM).
participation of some 87 players from the
industry. The Guest of Honour was YB Dato’             Some 850 guests attended the dinner. Most of
Wira Chor Chee Heung, (Deputy Minister of              them dressed in black and white in accordance
Finance). All proceeds from the tournament             with the theme of ‘Black and White Nite’. In
were donated to Rumah Hope, a home for                 conjunction with this year’s dinner, the
abused and abandoned children, located in              Organising Committee also held an Insurance
Paramount Garden, Petaling Jaya. LIAM was              Industry Idol singing contest with attractive cash
the main sponsor of this tournament.                   prizes up for grabs.




 NAMLIFA-LIAM Charity Golf, 30 October 2009


Social                                                 All the five finalists gave a rousing performance
Visit by Kenya Insurance Regulatory Authority          during the dinner. Like previous dinners, there
                                                       were also lucky draw prizes for the guests,
A high level delegation from the Kenya                 thanks to the generous contributions of the
Insurance Regulatory Authority led by its              member sponsors from the industry. The dinner
Chairman, Mr Steve Omenge Mainda, met up               was jointly organized by Association of
with senior representatives from LIAM, PIAM and        Malaysian Loss Adjusters (AMLA), LIAM, MII, the
MTA on 27 October 2009. The meeting was part           Malaysian Insurance and Takaful Brokers
of the Kenya Insurance Regulatory Authority            Association (MITBA), MTA and PIAM. AMLA and
study tour of the Malaysian insurance industry.        MITBA shared the chairing of this committee.
During the half-day meeting, LIAM, PIAM and
MTA exchanged notes on the growth and
development of the life and general insurance          Conclusion
industry and the takaful industry respectively.        The Management Committee wishes to thank
In turn, the Kenya Insurance Regulatory                all members for their support and cooperation
Authority also briefed on the various                  rendered to the Association. We look forward
developments within the Kenyan insurance               to our members’ continuous cooperation,
industry.                                              participation and commitment as we take on
                                                       new challenges in the year ahead.



                                          ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                        25
               L            aporan Jawatankuasa Pengurusan
Selaku persatuan yang mewakili syarikat-              industri insurans. Justeru, satu draf pendedahan
syarikat insurans hayat, LIAM telah diberi            penyata kewangan contoh telah dikeluarkan.
kepercayaan dan tanggungjawab untuk                   Maklum balas yang diperolehi telah diambil
mengukuhkan kedudukannya dalam industri               kira bagi memperkemaskan lagi penyata
sebagai badan kawal selia sendiri yang teguh          kewangan contoh.
dan berwibawa. Sepanjang tahun 2009, kami
telah melaksanakan pelbagai projek dan                Definisi Umum bagi Penyakit Kritikal
tugasan yang berjaya disempurnakan dengan             (CI)
penuh komitmen dan dedikasi oleh
jawatankuasa dan wakil pasukan petugas                Selaras dengan kemajuan yang dicapai dalam
kami. Sorotan aktiviti utama dan isu penting          sains perubatan dan kaedah diagnosis baru,
yang ditangani oleh LIAM disenaraikan di              LIAM telah menyemak semula definisi penyakit
bawah:                                                kritikal (CI). Tugasan tersebut telah selesai pada
                                                      bulan November 2009. Semakan semula telah
                                                      dilakukan oleh Pasukan Petugas yang terdiri
Piawaian   Laporan                  Kewangan          daripada para pengamal perubatan, pakar
Antarabangsa (IFRS)                                   aktuari dan pegawai tuntutan ahli-ahli LIAM.
Malaysia amat komited untuk mematuhi                  Satu kajian perbandingan juga telah dilakukan
sepenuhnya Piawaian Laporan Kewangan                  oleh Pasukan Petugas untuk menilai
Antarabangsa menjelang Januari 2010. LIAM             perkembangan dalam insurans penyakit kritikal
aktif menyertai pelbagai kumpulan kerja yang          di beberapa negara maju. Definisi yang
ditubuhkan oleh Lembaga Piawaian                      disemak semula dijangka akan menggantikan
Perakaunan Malaysia (MASB) untuk menyemak             definisi semasa yang digunakan oleh syarikat
dan merangka piawaian perakaunan yang                 insurans hayat sejak 2002.
membabitkan industri insurans. Sepanjang
tahun 2009 LIAM telah menyumbang kepada               Inisiatif Pembangunan Modal Insan
proses perundingan yang diselaraskan oleh
                                                      Institut Kewangan Asia (AIF) ditubuhkan pada
MASB mengenai piawaian perakaunan, draf
                                                      November 2008 sebagai inisiatif bersama oleh
pendedahan dan kertas perbincangan
                                                      Bank Negara Malaysia (BNM) dan Suruhanjaya
berikut:
                                                      Sekuriti Malaysia, untuk meningkatkan
1. IASB ED/2009/3: Derecognition (proposed            pembangunan modal insan bagi sektor
   amendments to IAS 39 and IFRS 7);                  perkhidmatan kewangan. Ini akan dicapai
2. IASB DP/2009/2: Credit Risk in Liability           menerusi penyusunan institusi secara lebih
   Measurement;                                       kukuh bagi kerjasama antara AIF dan empat
3. IASB ED/2009/12: Financial Instruments:            institusi latihan, iaitu Institut Bank-Bank Malaysia
   Amortised Cost and Impairment;                     (IBBM), Institut Perbankan dan Kewangan Islam
4. MASB ED 69: Proposal to replace the                Malaysia (IBFIM), Institut Insurans Malaysia (MII)
   requirements on the classification and             dan Perbadanan Pembangunan Industri
   measurement of financial assets in FRS 139.        Sekuriti (SIDC).

LIAM juga telah dijemput untuk menganggotai           Untuk industri insurans, peruntukan belanjawan
Jawatankuasa Kerja yang ditubuhkan oleh               RM44.8 juta telah diluluskan sebagai inisiatif
Institut Akauntan Awam Bertauliah Malaysia            peningkatan MII. Kos ini akan dibiayai bersama
(MICPA) untuk menyediakan penyata                     oleh syarikat insurans iaitu berasaskan 1% gaji
kewangan contoh yang disemak semula untuk             kakitangan dan dana yang sama banyak



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
26
daripada BNM. Untuk fasa pertama projek ini,       permohonan Lesen Penasihat Kewangan dan
kira-kira RM22.5 juta sudah diperuntukkan.         Suruhanjaya Sekuriti bagi Lesen Perkhidmatan
Inisiatif peningkatan MII merangkumi               Pasaran Modal.
peningkatan kurikulum dan program, sistem
pembelajaran berasaskan web, infrastruktur IT,     Diperkenalkan pada 2002, RFP adalah
peningkatan sumber dan pengetahuan,                kelayakan kewangan Malaysia yang
penyelidikan dan penerbitan, dan pemulihan         diusahakan bersama oleh LIAM, Institut
dan pembesaran fakulti.                            Insurans Malaysia (MII) dan Persatuan
                                                   Kebangsaan Ejen-Ejen Insurans Hayat dan
                                                   Perancang Kewangan Profesional Malaysia
Program Meningkatkan Tenaga Mahir
                                                   (NAMLIFA) bagi memenuhi keperluan untuk
dalam Sektor Kewangan (FSTEP)
                                                   mengiktiraf perancang kewangan profesional.
Program Meningkatkan Tenaga Mahir dalam            Majlis Perancangan Kewangan Malaysia
Sektor Kewangan (FSTEP) adalah satu inisiatif      (MFPC) seterusnya ditubuhkan untuk
BNM dan sektor perkhidmatan kewangan yang          menggalakkan pembangunan RFP.
dijayakan sejak September 2007. Setakat ini,
kira-kira 684 peserta telah menjalani latihan      Sebagai salah sebuah organisasi pengasas
FSTEP.                                             MFPC,    LIAM     sentiasa   mengekalkan
                                                   kehadirannya dalam Majlis Kebangsaan MFPC.
Objektif program ini ialah untuk melahirkan        Pada masa ini, lima orang wakil daripada ahli
sekumpulan bakat muda yang lestari untuk           LIAM menganggotai Majlis Kebangsaan bagi
sektor perkhidmatan kewangan. Siswazah             penggal 2009 hingga 2011.
yang terpilih perlu menjalani program latihan
intensif selama satu tahun, meliputi perbankan     MFPC telah mengorak langkah besar sejak
konvensional, perbankan pelaburan,                 ditubuhkan. Pencapaiannya termasuk
perbankan Islam, insurans dan takaful. Ia          memperkenalkan program RFP Syariah pada
melibatkan latihan dalam kelas, simulasi,          bulan Ogos 2008 untuk membekalkan
bengkel dan kajian kes, serta program latihan      pengetahuan dan prinsip perancangan
dengan institusi kewangan.                         kewangan Islam dan Takaful kepada para
                                                   perancang kewangan. Majlis Kebangsaan
Bengkel setengah hari mengenai ‘Langkah            MFPC dan Lembaga Penasihat dan
Menuju Ke Hadapan: Kumpulan 5 dan                  Jawatankuasa Penasihat Syariah telah
Selanjutnya’ telah diadakan pada 21 Oktober        menubuhkan Tabung Biasiswa RFP Syariah
2009 untuk mempromosikan skim pra-pilihan          bernilai RM300,000.
FSTEP Kumpulan 5. Satu lagi objektif ialah untuk
menilai keperluan latihan industri insurans pada
masa hadapan.                                      Majlis Pelancongan Penjagaan
                                                   Kesihatan Malaysia (MHTC)
Bengkel ini yang dianjurkan bersama oleh FSTEP,    LIAM telah dijemput untuk menganggotai
LIAM, Persatuan Insurans Am Malaysia (PIAM) dan    Jawatankuasa Penasihat Majlis Pelancongan
Persatuan Takaful Malaysia (MTA), telah dihadiri   Penjagaan Kesihatan Malaysia (MHTC) yang
oleh kira-kira 64 peserta yang kebanyakannya       ditubuhkan di bawah Kementerian Kesihatan
terdiri daripada ketua dan pegawai kanan           Malaysia.
daripada bahagian sumber manusia.
                                                   MHTC telah dilancarkan secara rasmi oleh
                                                   Perdana Menteri Malaysia pada 21 Disember
Majlis Perancangan               Kewangan
                                                   2009. Objektif utama MHTC ialah untuk
Malaysia (MFPC)
                                                   mempromosi dan membangunkan industri
Perancang Kewangan Berdaftar (RFP)                 pelancongan kesihatan dalam usaha
merupakan salah satu daripada kelayakan            menjadikan Malaysia destinasi penjagaan
profesional, yang diiktiraf oleh BNM bagi          kesihatan pilihan di rantau ini.



                                    ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                  27
Jawatankuasa Penasihat dipengerusikan oleh            NAMLIFA-LIAM dan Kempen Derma Darah
Menteri Kesihatan dengan Menteri di Jabatan           Seluruh Negara sempena Hari Insurans Hayat
Perdana Menteri sebagai pengerusi bersama.            2009.
Ahli Jawatankuasanya dilantik dari kalangan
wakil Kerajaan dan sektor swasta yang terlibat
                                                      Persidangan/Seminar
dalam pelancongan penjagaan kesihatan.
Tujuan jawatankuasa ini ialah untuk memberi           Seminar Agensi Insurans PIS
nasihat tentang isu dasar dan untuk                   Encik Ng Lian Lu, bekas Presiden LIAM, adalah
menetapkan hala tuju industri pelancongan             salah seorang penceramah di Seminar Agensi
kesihatan pada masa hadapan. Mesyuarat                Insurans pertama Pertubuhan Insurans Sarawak
pertama Jawatankuasa Penasihat MHTC telah             (PIS) yang dianjurkan di Kuching, Sarawak pada
diadakan pada 15 Disember 2009.                       10 Mac 2009. Kertas pembentangan beliau
                                                      bertajuk ‘Cabaran dan Peluang bagi Ejen
Persatuan Kebangsaan Ejen-Ejen                        Insurans’.
Insurans Hayat dan Perancang
Kewangan Profesional Malaysia                         Persidangan Isu Strategik LIMRA-LOMA Ke-17
(NAMLIFA)                                             Persidangan Tahunan Isu Strategik LIMRA-LOMA
LIAM menjalin hubungan kerja yang mesra               Ke-17 telah berlangsung di Kuala Lumpur dari
dengan NAMLIFA dan usaha sama ini telah               21 hingga 23 Jun 2009. Sebagai tuan rumah,
menghasilkan banyak projek yang berjaya.              LIAM meraikan peserta dan penceramah di
Selain menumpukan kepada usaha untuk                  jamuan alu-aluan pada 21 Jun 2009.
meningkatkan profesionalisme pengantara,              Persidangan ini telah menarik kira-kira 170
LIAM dan NAMLIFA telah mengekalkan saluran            peserta yang terdiri daripada Ketua Pegawai
perbincangan terbuka, khususnya mengenai              Eksekutif, pengurus kanan dan pengawal selia
isu-isu yang berkaitan dengan ejen termasuk           dari 15 negara.
peraturan BNM dan peraturan kawal selia
sendiri LIAM, yang memberi kesan secara               Persidangan selama dua hari ini yang
langsung ke atas tenaga agensi. Ahli-ahli LIAM        bertemakan ‘Ekonomi Global Baru: Daya Tahan
juga memberi sokongan kepada Konvensyen               pada Era Mencabar’ ( The New Global
Tahunan NAMLIFA dan Malam Anugerah                    Economy: Resilience in Challenging Times) telah
AKARD. Pada Konvensyen Mega Ke-31 yang                menampilkan barisan penceramah dan
berlangsung dari 11 hingga 13 Ogos 2009 di            pengawal selia berwibawa dari pelbagai
Genting Highlands, Encik Md Adnan Md Zain             negara. Antara para penceramah ialah Encik
telah menyertai Forum Ketua Pegawai Eksekutif         Marvin Feldman, Presiden dan Ketua Pegawai
bertajuk ‘Menongkah Arus Perubahan dalam              Eksekutif Life Foundation, yang menyampaikan
Mengejar Kecemerlangan pada Zaman                     topik: ‘Bagaimana untuk Terus Hidup dalam
Kegawatan Kewangan’ (Riding the Wave of               Kekalutan?’ (How do we Survive in this Chaos?).
Change in Pursuing Excellence in Times of             Seorang lagi pakar, Encik Charlie Oropeza,
Financial Turbulence). Encik Md Adnan juga            (CEO Prudential Malaysia), membentangkan
menjadi Tetamu Kehormat pada Malam                    kertas kerja menarik yang bertajuk: ‘Mencari
Pengiktirafan Anugerah AKARD Ke-6 bagi                Laluan untuk Mencapai Pertumbuhan
Kawasan Perak yang dianjurkan di Ipoh pada            Menguntungkan dan Lestari’ (Find the Path to
11 Julai 2009 dan Kawasan Tengah yang                 Profitable and Sustainable Growth ). Encik
berlangsung di Subang Jaya pada 17 Ogos               Sidney T. Yuen, (Pengarah Global Consulting
2009.                                                 Services, Asia Pacific, Convergys Corporation),
                                                      membincangkan topik tentang ‘Menangani
Kerjasama antara LIAM dan NAMLIFA bukan               Pengalaman Pelanggan: Apakah Pelaburan
setakat sesi mesyuarat sahaja, malah LIAM dan         Yang Munasabah dalam Iklim Kewangan
NAMLIFA telah berganding bahu menjalankan             Semasa?’ ( Addressing the Customer
projek khidmat masyarakat seperti Golf Amal           Experience: What Investments Make Sense in



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
28
the Current Financial Climate?). Akhir sekali      perhimpunan persatuan insurans swasta
Encik Mark Saunders, (Ketua dan Pengarah           serantau ASEAN, yang ditubuhkan untuk
Urusan, Asia Tillinghast-Towers Perrin), menarik   memupuk hubungan erat dan kerjasama
perhatian umum dengan pembentangan                 serantau antara syarikat insurans ASEAN.
tentang ‘Penjajaran Produk Mengikut Nombor:        Mesyuarat AIC diadakan setahun sekali di
Asas dan Pelajaran Yang Dipelajari dalam           sebuah negara yang ditetapkan.
Pasaran Global’ (Product Alignment by the
Numbers: Fundamentals and Lessons Learned          Kongres Insurans ASEAN Ke-7 juga dianjurkan
in a Global Market).                               di Vientiane dari 7 hingga 8 Oktober 2009.
                                                   Bertemakan ‘Amalan Terbaik untuk
                                                   Meningkatkan Keuntungan’ (Best Practices to
Konvensyen Ejen Bumiputera
                                                   Boost the Bottom Line), kongres ini telah menarik
LIAM menganjurkan Konvensyen Ejen                  kira-kira 80 peserta dari negara ASEAN dan
Bumiputera 2009 bersama MII pada 1 Ogos            Bahrain. Kongres dianjurkan oleh Kementerian
2009. Konvensyen ini telah mencatat rekod          Kewangan Laos PDR, dengan sokongan AITRI
penyertaan paling ramai, iaitu 514 peserta.        dan AIC.
Anugerah Pemimpin Agensi Bumiputera telah
diberikan buat pertama kali sempena                Anugerah Pengurus Muda ASEAN (YAMA) telah
Konvensyen ini. Anugerah ini mengiktiraf           disampaikan sempena kongres ini. Cik Sophia
sumbangan pemimpin agensi dalam usaha              Ch’ng, Naib Presiden Kanan dan Timbalan
mendidik individu menjadi profesional insurans     Ketua Bahagian Kewangan dan Hal Ehwal
hayat yang berjaya. Ia juga bertujuan untuk        Korporat, Great Eastern Life Assurance
mengiktiraf kecemerlangan peribadi pemimpin        (Malaysia) Berhad, muncul sebagai Pemenang
agensi dan pencapaian yang amat baik               Anugerah 2009.       Sebagai pemenang
dalam penjualan insurans hayat.                    berganda sulung, Cik Ch’ng adalah warga
                                                   Malaysia pertama yang memenangi anugerah
Mesyuarat Majlis Insurans ASEAN Ke-35              berprestij ini.

Wakil persatuan insurans hayat dan insurans am     YAMA diperkenalkan oleh AIC untuk
dari negara ASEAN telah berkumpul di               menggalakkan pengurus muda dalam industri
Vientiane, Laos PDR, untuk menghadiri              untuk menyumbang secara aktif dan mencapai
mesyuarat Majlis Insurans ASEAN (AIC) Ke-35        kecemerlangan dalam bidang kerja mereka. Ia
dari 7 hingga 9 Oktober 2009.                      mengiktiraf pengurus muda berdasarkan
                                                   pencapaian, sumbangan dan dedikasi mereka
LIAM diwakili oleh Encik Ooi Say Teng (Naib        dalam industri insurans di rantau ini. YAMA telah
Presiden LIAM) dan Encik Mohd Din Merican (Ahli    diperkenalkan oleh AITRI sejak 2005.
Jawatankuasa Pengurusan). Mesyuarat ini
merupakan platform komunikasi yang berkesan
untuk memudahkan pertukaran maklumat di            Persidangan Insurans Pasifik Ke-24 2009
kalangan peserta mengenai perkembangan             Sebagai tuan rumah sulung Persidangan
terkini dalam pasaran masing-masing. Antara        Insurans Pasifik Ke-23 (PIC) 2007, LIAM memberi
lain mereka juga membincangkan tentang             komitmen sepenuhnya untuk memastikan
Institut Latihan dan Penyelidikan Insurans ASEAN   kejayaan PIC seterusnya. Kira-kira 25 peserta
(AITRI) dan Perkongsian Kerja Penyelidikan dan     Malaysia menghadiri PIC Ke-24 di Bangkok,
Bencana Alam ASEAN.                                Thailand dari 1 hingga 4 November 2009.
                                                   Peserta Malaysia termasuk Presiden dan Naib
Seperti mesyuarat pada tahun-tahun                 Presiden LIAM, CEO dan pegawai kanan ahli-
terdahulu, AIC juga bekerjasama rapat              ahli LIAM.
dengan Pengawal Selia Insurans ASEAN untuk
membincangkan isu bersama membabitkan              Persidangan yang bertema ‘Membina
industri insurans, amnya.     AIC adalah           Perniagaan Bertaraf Dunia di Rantau Asia



                                    ANNUAL REPORT 2009    Life Insurance Association of Malaysia
                                                                                                   29
Pasifik – Strategi Kejayaan bagi Syarikat             Rencana mengenai bonus tunai dan tuntutan
Multinasional dan Domestik’ (Building a World         insurans hayat telah diterbitkan dalam buku
Class Business in the Asia Pacific Region –           kecil.
Success Strategies for Multinational and
Domestic       Companies )       membariskan          Enam rencana baru telah disiarkan dalam
penceramah antarabangsa yang terkenal dan             akhbar Bahasa Mandarin antara Jun dan Julai
berpengalaman. Para penceramah termasuk               2009. Rencana yang meliputi pelbagai subjek
Encik Robert Stein (Global Financial Services,        seperti insurans dan hak pengguna,
Ernst & Young), Encik Stephan Binder (McKinsey        pengurusan polisi insurans semasa krisis
& Company), Dr Thomas Kabisch (MEAG                   kewangan, polisi endowmen dan polisi
Munich), Encik Jim Morris (Pacific Life Insurance     penyakit kritikal, telah juga disiarkan dalam
Company) dan Encik Bill Toppeta (Metlife              ruangan ‘Underwriter’ sebuah akhbar Inggeris
International).                                       yang boleh dianggap baru. Rencana yang
                                                      telah tersiar ini boleh didapati di laman web
                                                      LIAM.
Kesedaran Insurans
Temu ramah TV                                         Bengkel FOMCA
Sebagai sebahagian daripada usaha                     LIAM, dengan kerjasama Gabungan
berterusan untuk meningkatkan kesedaran               Persatuan-Persatuan Pengguna-Pengguna
insurans, LIAM menyertai beberapa rancangan           Malaysia (FOMCA), menganjurkan bengkel
bual bicara TV. Encik Md Adnan Md Zain telah          bertema ‘Perubahan Bermula dengan Saya’
muncul dalam beberapa program TV untuk                (Change Begins with Me) pada 4 Jun 2009.
meningkatkan kesedaran pengguna terhadap
insurans hayat. Pada 4 Mei 2009, Encik Md             Bengkel ini bertujuan untuk meningkatkan
Adnan muncul dalam program pengguna                   kesedaran pengguna, sambil mendidik mereka
RTM1 untuk memperkatakan tentang industri             tentang cara berbelanja dengan bijak untuk
insurans hayat Malaysia.             Ini diikuti      membolehkan mereka mengamalkan gaya
kemunculannya dalam satu lagi program                 hidup sederhana dalam kegawatan ekonomi
pengguna TV3 pada 1 Ogos 2009 dan 8 Ogos              semasa. Para penceramah terdiri daripada
2009,     untuk    menerangkan          tentang       YBhg Datuk Paul Selva Raj, (Ketua Pegawai
kepentingan dan kelebihan insurans hayat.             Eksekutif, Penyelidikan Pengguna dan Pusat
Encik Md Adnan juga menyertai program                 Sumber, FOMCA) dan Encik Muhammad
perniagaan RTM1 pada 24 Ogos 2009 untuk               Sha’ani Abdullah, (Ketua Pegawai Eksekutif,
berkongsi pandangan beliau tentang                    Pusat Aduan Pengguna Kebangsaan
bagaimana industri insurans hayat membantu            merangkap Setiausaha Agung FOMCA).
pertumbuhan ekonomi secara umumnya                    Mereka berkongsi maklumat dan petua yang
semasa krisis ekonomi. Presiden LIAM juga telah       berguna mengenai cara berbelanja dengan
ditemu ramah oleh TV9 pada 10 Disember 2009           bijak.
tentang liberalisasi pasaran. Beliau juga
memperkatakan tentang kehadiran dan minat             Bengkel setengah hari ini dihadiri oleh kira-kira
syarikat asing terhadap industri insurans hayat       40 wakil ahli-ahli LIAM.
tempatan.

Rencana Pendidikan LIAM                               Tanggungjawab Sosial Korporat
Dalam usaha untuk mendidik orang ramai                Hari Insurans Hayat – ‘Derma Darah – Anugerah
tentang manfaat insurans hayat, LIAM telah            Anda untuk Kehidupan’
menyumbang rencana mengenai pelbagai                  Selaras dengan usaha untuk memupuk
topik berkaitan insurans hayat untuk disiarkan        masyarakat penyayang, LIAM dan NAMLIFA
dalam akhbar. Rencana ini boleh didapati di           bersama-sama menganjurkan kempen derma
laman web LIAM di www.liam.org.my.                    darah di seluruh negara selama seminggu dari



     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
30
26 Oktober 2009 hingga 1 November 2009             mengenai pertumbuhan dan pembangunan
sempena Hari Insurans Hayat 2009. Tema             industri insurans hayat dan am, dan juga industri
kempen derma darah ialah ‘Derma Darah –            takaful. Lembaga Kawal Selia Insurans Kenya
Anugerah Anda untuk Kehidupan’.                    pula menjelaskan secara ringkas pelbagai
                                                   perkembangan dalam industri insurans Kenya.
Secara keseluruhan, 16 pusat derma darah
telah disediakan di bandar-bandar besar di
                                                   Makan Malam Tahunan Industri Insurans
seluruh negara. Selain di Kuala Lumpur, untuk
                                                   Malaysia
menggalakkan orang ramai menderma darah,
pusat-pusat derma darah telah disediakan di        Makan Malam Tahunan Industri Insurans
Petaling Jaya, Klang, Ipoh, Pulau Pinang, Alor     Malaysia dianjurkan pada 4 Disember 2009 di
Setar, Seremban, Melaka, Johor Bahru,              Crowne Plaza Mutiara Kuala Lumpur. Majlis itu
Kuantan, Kuala Terengganu, Kota Bharu, Sibu        telah diserikan oleh kehadiran YB Dato’ Zamani
dan Kota Kinabalu.                                 Abdul Ghani (Timbalan Gabenor BNM).

Menerusi gandingan usaha ahli-ahli LIAM dan        Seramai 850 tetamu menghadiri jamuan
ahli-ahli NAMLIFA, kempen derma darah ini          makan malam ini. Kebanyakan mereka
berjaya menarik seramai 1,017 penderma.            menggayakan pakaian hitam dan putih
                                                   menurut tema ‘Malam Hitam dan Putih’.
Golf Amal NAMLIFA - LIAM                           Sempena makan malam tahun ini,
                                                   Jawatankuasa Penganjur juga menganjurkan
Selain menganjurkan mesyuarat, LIAM dan            peraduan menyanyi Idola Industri Insurans yang
NAMLIFA juga bekerjasama dalam aktiviti sosial.    menawarkan hadiah wang tunai yang
Golf Amal NAMLIFA - LIAM, yang diadakan            menarik.
pada 30 Oktober 2009 di Mines Resort and Golf
Club, Seri Kembangan, menarik kira-kira 87         Kesemua lima finalis memberikan persembahan
pemain daripada industri. Tetamu Kehormat          yang mendapat tepukan gemuruh pada
ialah YB Dato’ Wira Chor Chee Heung,               malam itu. Seperti makan malam pada tahun-
(Timbalan Menteri Kewangan). Semua hasil           tahun sebelumnya, pelbagai hadiah cabutan
kutipan daripada kejohanan ini didermakan          bertuah telah disumbangkan oleh ahli-ahli
kepada Rumah Hope, rumah untuk kanak-              industri ini. Makan malam tahunan ini
kanak teraniaya dan terabai di Paramount           dianjurkan bersama oleh Persatuan Penyelaras
Garden, Petaling Jaya. LIAM adalah penaja          Kerugian Malaysia (AMLA), LIAM, MII, Persatuan
utama kejohanan ini.                               Broker Insurans dan Takaful Malaysia (MITBA),
                                                   MTA dan PIAM. AMLA dan MITBA bertindak
Sosial                                             bersama sebagai pengerusi jawatankuasa.

Lawatan Lembaga Kawal Selia Insurans Kenya
Perwakilan peringkat tinggi daripada Lembaga
                                                   Kesimpulan
Kawal Selia Insurans Kenya diketuai oleh           Jawatankuasa Pengurusan ingin mengucapkan
Pengerusinya, Encik Steve Omenge Mainda,           ribuan terima kasih kepada semua ahli atas
telah mengadakan pertemuan dengan wakil            sokongan dan kerjasama yang diberikan
LIAM, PIAM dan MTA pada 27 Oktober 2009.           kepada Persatuan. Kami mengharapkan
Pertemuan itu adalah sebahagian daripada           kerjasama, penyertaan dan komitmen
lawatan sambil belajar Lembaga Kawal Selia         berterusan daripada ahli kami untuk
Insurans Kenya untuk mendalami industri            membolehkan kami menyahut cabaran baru
insurans Malaysia. Dalam pertemuan setengah        pada tahun yang akan datang.
hari itu, LIAM, PIAM dan MTA bertukar-tukar nota




                                    ANNUAL REPORT 2009    Life Insurance Association of Malaysia
                                                                                                   31
        P           erformance of the Life Insurance Industry
Malaysian Economy                                     The overnight policy rate (OPR) remained
                                                      unchanged at 2.00% during the third quarter
The Malaysian economy declined by 6.2%, 3.9%
                                                      of 2009 to support economic activity amid
and 1.2% respectively in the first three quarters
                                                      abating inflation. The ringgit appreciated 1.4%
of 2009, as measured by the GDP. The decline
                                                      to RM3.4745 against the US dollar during the
in GDP in the third quarter was lower than in
                                                      third quarter of 2009, as the greenback lost
the first two quarters as the global economy
                                                      attractiveness as a safe haven currency
recovered from the financial crisis. The
                                                      following stronger signs of economic
corresponding quarterly growth rates in 2008
                                                      stabilization.
were 7.4%, 6.6% and 4.8%. The services sector
per for med strongly amidst the difficult
                                                      Major economies are expected to register
economic environment and grew 3.4% in Q3
                                                      positive growth in the fourth quarter, supported
2009 (Q1 2009: -0.2%, Q2 2009: 1.6%). The growth
                                                      by fiscal and monetary measures. The
in the sector was driven mainly by
                                                      Malaysian economy is also expected to turn
communication, real estate and business
                                                      around in Q4 2009. Growth is expected to be
services as well as finance and insurance sub-
                                                      supported mainly by increased external
sectors. The finance and insurance sub-sector
                                                      demand, positive effect of stimulus packages
posted a growth rate of 3.5% in Q3 (Q1: 1.2%,
                                                      as well as accommodative monetary policy.
Q2: 3.3%). The construction sector also
                                                      With these developments, the life insurance
expanded strongly by 7.9% (Q2: 4.5%),
                                                      industry is expected to achieve a double-digit
supported by the faster pace of implementation
                                                      growth in 2010.
of the stimulus packages.

                                                      (Source: Quarterly Update of the Malaysian
Domestic demand turned around to register
                                                      Economy – 3rd Quarter 2008, Ministry of Finance)
positive growth of 0.4% in Q3 (Q2: -2.2%), largely
underpinned by expansion in consumption
activities. Private consumption expanded at a
faster pace of 1.5% in Q3 2009, compared with         Life Insurance Business
0.5% in Q2 2009. The growth was attributed to         New Business January – December 2009
firm household disposable income, arising from
                                                      Based on the data as at 5 March 2010, the life
better commodity prices, improved labour
                                                      insurance industry in Malaysia enjoyed a
market conditions and strong stock market
                                                      positive growth of 5.7% in 2009, as measured
performance.
                                                      by new business total premiums. The total new
                                                      business premiums in 2009 was RM7.53 billion,
The inflation rate as measured by changes in
                                                      as compared to RM7.13 billion in 2008.
the Consumer Price Index (CPI) declined 2.3%
in Q3 2009 (Q2 2009: 1.3%). This was mainly due
                                                       Total Premiums        January to December
to the high base effect arising from higher
                                                       RM billion            2008   2009 Growth
global food and energy prices in 2008 as well
as slower increase in food prices in 2009.             Individual
Meanwhile the Producer Price Index (PPI) fell          - Traditional         2.50    3.39     35.7%
further by 10.8% in Q3 (Q2 2009: -11.0%),              - Investment-linked   2.48    2.07    -16.5%
attributed to the price declines in local and          Group                 2.14    2.07     -3.7%
imported components at 14.4% and 2.9%
respectively.                                          TOTAL                 7.13    7.53      5.7%




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
32
The growth was mainly attributed to traditional       with annualised premiums of RM2.0 billion is
individual policies which chalked up a 35.7%          much larger than the size of investment-linked
growth.      The unfavourable investment              business with annualised premiums of RM1.2
environment and uncertain economic                    billion. Traditional to investment-linked
conditions in the first quarter of 2009 dampened      business mix as at 31 December 2009 was
the consumer confidence and resulted in the           62.5%:37.5% as compared with 61.7%:38.3% a
slowdown in the sales of single premium               year earlier.
investment-linked policies. Single premium


  Annualised Premiums                   January to December               Mix (January to December)
  RM million                    2008          2009             Growth         2008             2009

  Individual
  - Traditional                 1,539         2,004            30.1%           61.7%            62.5%
  - Investment-linked             954         1,201            25.9%           38.3%            37.5%

  TOTAL                         2,493         3,204            28.5%          100.0%          100.0%


traditional policies although enjoyed a strong        In-Force Policies
growth, the growth was not sufficient to make
                                                      In line with the growth in new business, the total
up for the decline in the sales of single premium
                                                      premiums for in-force policies also grew strongly at
investment-linked business.
                                                      10.1% for individual and group policies combined.
                                                      For individual policies, the growth came from
Individual traditional business enjoyed a strong
                                                      annual premium policies while the single premium
growth due to the sales of traditional products
                                                      business saw a decline in in-force premiums due
in lieu of investment-linked products in times of
                                                      to unfavourable investment environment.
uncertainties. Meanwhile group insurance
business suffered a small decline of 3.7% in a
                                                      Annual premium investment-linked business with
tough business environment with the economy
                                                      a smaller base enjoyed a stronger growth of 14.7%
only starting to recover in the second half of
                                                      against the traditional annual premium business
the year.
                                                      which grew at 10.4%. In absolute terms, traditional
                                                      annual premium business added more than RM1
For individual annual premium business,
                                                      billion in-force premiums during the year. The
annualised premiums for traditional policies
                                                      corresponding addition in investment-linked
continued to outpace investment-linked
                                                      annual premium business was RM682 million.
policies by growing at a strong 30.1% as
compared to a growth of 25.9% for investment-
                                                      Meanwhile, group insurance had a strong growth
linked. Investment-linked policies continued to
                                                      in year 2009 mainly due to the contribution from
lose popularity as observed since 2007. In
                                                      single premium business especially the yearly
absolute terms, the size of traditional business
                                                      renewable term (YRT) business.




                                     ANNUAL REPORT 2009      Life Insurance Association of Malaysia
                                                                                                      33
In-Force

        RM million                                                                                2008                                               2009             Growth

        Individual - Traditional
        - Annualised Premiums                                                                     10,757                                        11,874                  10.4%
        - Single Premiums                                                                          1,147                                         1,115                  -2.9%

        - TOTAL                                                                                   11,905                                        12,989                   9.1%

        Individual - Investment-linked
        - Annualised Premiums                                                                       4,632                                            5,314              14.7%
        - Single Premiums                                                                             814                                              776              -4.6%

        - TOTAL                                                                                     5,446                                            6,090              11.8%

        Group
        - Annualised Premiums                                                                                  63                                      71               13.1%
        - Single Premiums (YRT)                                                                                36                                      58               62.1%
        - Single Premiums (Others)                                                                            695                                     776               11.6%

        - TOTAL                                                                                               795                                     906               14.0%

        TOTAL (Individual + Group)                                                                18,146                                        19,984                  10.1%

(Source: Life Insurance Association of Malaysia [LIAM])


Life Insurance Business (2004 - 2008)
        Number of Policies

                 0
        12,000,000
                                                                                                                                        11,286,371
                                                                                                               10,909,842




                 0
        10,000,000
                                                                                     10,534,525
                                                            10,144,771
                                    9,723,010




                 0
         8,000,000
Units




                 0
         6,000,000


                 0
         4,000,000
                                                1,365,037
                        1,402,207




                                                                         1,303,727




                                                                                                  1,337,514




                                                                                                                            1,345,437




                 0
         2,000,000
                                                                                                                                                             N
                                                                                                                                                             New Business

                                                                                                                                                             T
                                                                                                                                                             Total Business in Force
                  0
                            2004                   2005                      2006                      2007                        2008
                                                                             Year

Source: Bank Negara Malaysia (Annual Insurance Statistics 2008)



          Life Insurance Association of Malaysia                         ANNUAL REPORT 2009
34
                                     Sums Insured

                                                      0
                                                800,000




                                                                                                                                                                                                                                                        772,877.3
                                                      0
                                                700,000




                                                                                                                                                                                                                           722,679.4
                                                                                                                                                                      672,901.7
                                                      0
                                                600,000




                                                                                                                                   644,295.5
                                                                                           593,922.7
                    Sums Insured (RM Million)




                                                      0
                                                500,000


                                                      0
                                                400,000




                                                                                                                                                                                                                                       218,053.3
                                                                                                                                                          186,919.9




                                                                                                                                                                                                             185,066.0
                                                                                                                  181,156.5




                                                      0
                                                300,000
                                                                     171,599.1




                                                      0
                                                200,000


                                                      0
                                                100,000
                                                                                                                                                                                                                                                                                        New Business

                                                                                                                                                                                                                                                                                        T
                                                                                                                                                                                                                                                                                        Total Business in Force
                                                     0
                                                                       2004                                          2005                                    2006                                                2007                      2008

                                                                                                                                                             Year



                                                New Business : Total Premiums                                                                                                      Total business In Force : Annual Premiums

                                        0
                                    8,000                                                                                                                                                                             0
                                                                                                                                                                                                                 16,000
                                                                                                                                                                                                                                                                                                        15,447.2
                                                                                                                                                7,233.2
                                                                                                                              7,587.0




                                        0
                                    7,000                                                                                                                                                                             0
                                                                                                                                                                                                                 14,000
                                                                                                                                                                                                                                                                                             14,538.8
                                                                                                        7,161.7




                                                                                                                                                                                                                                                                                 13,325.8
                                                                                 6,701.4




                                                                                                                                                                                  Annual Premiums (RM Million)
                                                           6,661.2
Total Premiums (RM Million)




                                        0
                                    6,000                                                                                                                                                                             0
                                                                                                                                                                                                                 12,000
                                                                                                                                                                                                                                                                     12,308.1
                                                                                                                                                                                                                                             11,251.1




                                        0
                                    5,000                                                                                                                                                                             0
                                                                                                                                                                                                                 10,000

                                        0
                                    4,000                                                                                                                                                                                    0
                                                                                                                                                                                                                         8,000

                                        0
                                    3,000                                                                                                                                                                                    0
                                                                                                                                                                                                                         4,000

                                        0
                                    2,000                                                                                                                                                                                    0
                                                                                                                                                                                                                         2,000

                                        0
                                    1,000                                                                                                                                                                                    0
                                                                                                                                                                                                                         2,000

                                                 0                                                                                                                                                                               0
                                                          2004         2005                            2006              2007                  2008                                                                                    2004                         2005        2006        2007        2008
                                                                                                       Year                                                                                                                                                                     Year


Source: Bank Negara Malaysia (Annual Insurance Statistics 2008)



                                                                                                                                               ANNUAL REPORT 2009                                                                Life Insurance Association of Malaysia
                                                                                                                                                                                                                                                                                                                   35
     Benefit Payments


                            2007 (RM Million)                                                           2008 (RM Million)
                   Others                       Death and Disability                        Others
                                                                                                                            Death a d Disab
                                                                                                                            Deat and Disability
              5
             951.8 (9.9%)                       816.9 (8.5%)                             .3
                                                                                      813.3 (8.1%)
                                                                                                                            951.4 (9.5%)
              a
         Medical                                                                Medical
1,057.6 (10.9%))                                                       1,276.3 (12.8%)


                                                              Maaturity / Vesting
                                                              2,164.1 (22.4%)                                                              Maturity / Vesting
                                                                                                                                           2,747.1 (27.4%)

              s
    Cash Bonuses
 1,045.7 (10.8%)
              %                                                                      e
                                                                           Cash Bonuses
                                                                                     %
                                                                        1,431.1 (14.3%)




                                                                                                              Surrender
                                  Surrender
                                  S     d
                                                                                                          2,793.6 (27.9%)
                              3,617.6 (37.5%)

                     Total: RM9,653.6 million                                                        Total: RM10,012.8 million




     Income


                            2007 (RM Million)                                                               2008 (RM Million)

                                 Profit on sale of assets and                                                   Profit on sale of assets and
                                 miscellaneous income                                                           miscellaneous income
                                 4,949.7 (17.4%)                                                                3,099.6 (11.6%)
                                                                                             et
                                                                                           Net
                                                                                    investment
        Net                                                                                 m
                                                                                        income
 investment                                                                                   .
                                                                                        4,905.7
     income                                                                                 %
                                                                                       (18.3%)
    4,567.5
    (16.1%)




                                                     Premium income                                                                          ncome
                                                                                                                                    Premium in
                                                              66.5%)
                                                    18,893.0 (6                                                                              70.1%)
                                                                                                                                   18,736.2 (7
                      Total: RM28,410.2 million                                                         Total: RM26,741.5 million



Source: Bank Negara Malaysia (Annual Insurance Statistics 2008)




       Life Insurance Association of Malaysia                   ANNUAL REPORT 2009
36
   Outgo (Expenditure)


                          2007 (RM Million)                                                                   2008 (RM Million)

                                      Loss on disposal of                                                           Loss on disposal of
     Management                                                                                                     assets and other outgo
                                      assets and other outgo
          expenses                                                                                                  4,925.0 (25.6%)
                                      983.8 (6.7%)
                                              (    )
   1,385.0 (9.5%)                                                                 Managemen
                                                                                       expense
                                                                                1,559.4 (8.1%



    Agency
remuneration
           9
     2,565.9
                                                                                       Agen
    (17.6%))
                                                                                   remunerat
                                                                 cy
                                                         Net polic benefits                                                                         cy benefits
                                                                                        2,713
                                                         9,653.6 (66.2%)                                                                            8 (52.1%)
                                                                                       (14.1
                             RM14,588.4 m ll on
                      Total: RM14 588 4 million                                                          Total: RM19,210.7 m ll on




   Assets of Life Insurance Funds

                          2007 (RM Million)                                                                2008 (RM Million)
             Foreign assets 1,666.5     Property, plant and equipment 483.3                Foreign assets 1,526.4     Property, plant and equipment 496.8
           Other assets 1,997.0            Mortgages 4,212.3                              Other assets 2,506.9           Mortgages 4,282.6
         Cash and deposits                      Policy 6,680.5                      Cash and deposits                           Policy 7,171.2
                 11,770.7
                 11 770 7                             Others 577.4
                                                                 4                          13,051.4
                                                                                            13 051 4
                                                                                                                                     Others 553.2
       Investment                                                                            m
                                                                                       Investment
              t
        properties                                                                           6
                                                                                properties 3.613.6                                              sia
                                                                                                                                          Malays Government
              8
           2,986.5                                            Malayysia                                                                   pp
                                                                                                                                          papers / guaranteed
                                                              Government                                                                  loans 18,301.5
                                                                                                                                          l     1
                                                              paper /
                                                              p p rs                    7
                                                                             Others 1,917.6
                                                                  anteed
                                                              guara
Others 1,625.1                                                loans 17,362.8




                                         Corporate / debt securities 53,140.8                                                                   urities 56,050.2
                                                                                                                            Corporate / debt secu

                     Total: RM102,502.9 million                                                         Total: RM109,471.6 million
  INVESTMENTS (RM72,128.7 million)          LOANS (RM11,470.2 million)             INVESTMENTS (RM76,269.3 million)         LOANS (RM12,007.0 million)
        Malaysia Government                                                              Malaysia Government
                                                    Mortgages                                                                       Mortgages
        papers / guaranteed loans                                                        papers / guaranteed loans
                                                    Policy                                                                          Policy
          Corporate / debt securities                                                      Corporate / debt securities
                                                    Others                                                                          Others
          Others                                                                           Others



Source: Bank Negara Malaysia (Annual Insurance Statistics 2008)



                                                         ANNUAL REPORT 2009                    Life Insurance Association of Malaysia
                                                                                                                                                            37
                               M                embers of LIAM

  Allianz Life Insurance Malaysia Berhad                CIMB Aviva Assurance Berhad
Level 23 & 23A, Wisma UOA II                          Level 11
No. 21, Jalan Pinang                                  No. 338, Jalan Tuanku Abdul Rahman
50450 Kuala Lumpur                                    50100 Kuala Lumpur
Telephone No: 03-2162 3388                            Telephone No: 03-2612 3600
Fax No: 03-2162 6720                                  Fax No: 03 - 2698 7035
E-mail: partner@allianz.com.my                        Customer Careline: 1300-88-5055
http://www.allianz.com.my                             Email: wecare@cimbaviva.com
                                                      http://www.cimbaviva.com


                                                        Etiqa Insurance Berhad
  AmLife Insurance Berhad
                                                      Level 19, Tower C
Level 9, Bangunan AmAssurance
                                                      Dataran Maybank
No. 1 Jalan Lumut
                                                      No. 1, Jalan Maarof
50400 Kuala Lumpur
                                                      59000 Kuala Lumpur
Telephone No: 1300 88 8800
                                                      Telephone No: 03-2297 1888
Fax No: 03-2171 3000
                                                      Fax No: 03-2297 1800
E-mail: amassurance-life@ambankgroup.com
                                                      Oneline Contact Centre: 1-300-13-8888
http://www.amassurance.com.my
                                                      Email: info@etiqa.com.my
                                                      http://www.etiqa.com.my


  American International Assurance Bhd                  Great Eastern Life Assurance (Malaysia)
Menara AIA                                              Berhad
99 Jalan Ampang                                       Menara Great Eastern
50450 Kuala Lumpur                                    303, Jalan Ampang
Telephone No: 03-2056 1111                            50450 Kuala Lumpur
Fax No: 03-2056 2992                                  Telephone No: 03-4259 8888
E-mail: corporate-ops.my@aia.com                      Fax No: 03-4259 8000
http://www.aia.com.my                                 Email: wecare@lifeisgreat.com.my
                                                      http://www.lifeisgreat.com.my


  AXA AFFIN Life Insurance Berhad                       Hannover Life Re, Malaysian Branch
8th Floor Chulan Tower                                Suite 31-1, 31st Floor
3 Jalan Conlay                                        Wisma UOA II
50450 Kuala Lumpur                                    No. 21, Jalan Pinang
Telephone No: 03-2117 6688                            50450 Kuala Lumpur
Fax No: 03-2117 3698                                  Telephone No: 03-2164 5122
Email: customer.care@axa-life.com.my                  Fax No: 03-2164 5129/03-2164 6029
http://www.axa.com.my                                 http://www.hannoverlifere.com




     Life Insurance Association of Malaysia   ANNUAL REPORT 2009
38
  Hong Leong Assurance Berhad                    Mayban Life Assurance Berhad
Level 3, Tower B, PJ City Development          Level 19, Tower C
No. 15A Jalan 219, Seksyen 51A                 Dataran Maybank
46100 Petaling Jaya, Selangor                  No. 1, Jalan Maarof
Telephone No: 03-7650 1818                     59000 Kuala Lumpur
Fax No: 03-7650 1991                           Telephone No: 03-2297 1888
Customer Service Hotline: 03-7650 1288         Fax No: 03-2297 1800
Customer Service Hotfax: 03-7650 1299          Oneline Contact Centre: 1-300-13-8888
http://www.hla.com.my                          E-mail: info@etiqa.com.my
                                               http://www.etiqa.com.my

  ING Insurance Berhad
Menara ING                                       MCIS ZURICH Insurance Berhad
84 Jalan Raja Chulan                           Wisma MCIS ZURICH, Jalan Barat
P.O. Box 10846                                 46200 Petaling Jaya, Selangor
50927 Kuala Lumpur                             Telephone No: 03-7955 2577
Telephone No: 03-2058 4838                     Fax No: 03-7957 5964
Fax No: 03-2161 0549                           E-mail: info@mciszurich.com.my
Toll Free: 1 800 88 0303                       http://www.mciszurich.com.my
http://www.ing.com.my

                                                 Prudential Assurance Malaysia Berhad
  Malaysian Assurance Alliance Berhad          Level 17, Menara Prudential
11th Floor, Menara MAA                         10, Jalan Sultan Ismail
No. 12, Jalan Dewan Bahasa                     50250 Kuala Lumpur
50460 Kuala Lumpur                             Telephone No: 03-2031 8228
Telephone No: 03-2146 8000                     Customer Service Tel: 03-2116 0228
Fax No: 03-2142 5863                           Fax No: 03-2032 3939
http://www.maa.com.my                          E-mail: customer.mys@prudential.com.my
                                               http://www.prudential.com.my

  Malaysian Life Reinsurance Group Berhad
3B/21-3 Block 3B                                 TM Asia Life Malaysia Bhd.
Level 21, Plaza Sentral                        Ground Floor
Jalan Stesen Sentral 5                         Menara TM Asia Life
Kuala Lumpur Sentral                           189, Jalan Tun Razak
50470 Kuala Lumpur                             50400 Kuala Lumpur
Telephone No: 03-2780 6611                     Telephone No: 03-2059 6188
Fax No: 03-2780 6622                           Fax No: 03-2162 8068
Email: info@mlre.rgare.com                     E-mail: customercare@tmasialife.com.my
                                               http://www.tmasialife.com.my

  Manulife Insurance Berhad
12th Floor, Menara Manulife                      Uni.Asia Life Assurance Berhad
6, Jalan Gelenggang                            8th Floor, Bangunan Uni.Asia
Damansara Heights                              16 Jalan Tun Tan Siew Sin
50490 Kuala Lumpur                             50050 Kuala Lumpur
Telephone No: 03-2719 9228                     Telephone No: 03-2687 2000
Fax No: 03-2094 0573                           Fax No: 03-2031 4689
http://www.manulife.com.my                     http://www.uniasialife.com.my



                                  ANNUAL REPORT 2009   Life Insurance Association of Malaysia
                                                                                                39
                                      Designed and Printed by: SP-Muda Printing Sdn. Bhd.
                                 No. 41, Jalan Ipoh Kechil, Off Jalan Ipoh, 2009
     Life Insurance Association of Malaysia ANNUAL REPORT50350 Kuala Lumpur.
40                          Tel : 03-4041 4829, 4041 0649, 4041 4734 Fax : 03-4041 6045, 4043 4908

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:1284
posted:3/28/2011
language:English
pages:42