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Extracts from the address of the Chairman, Mr Koh Heng Kong, at the 37th Annual General Meeting on 30th March 2010
Dear Members, Annual report on the activities of National Insurance Association of Malaysia (“NIAM”) for the year ended 31 December 2009. The year was a satisfactory with much activity being attained on a broad front, which I am proud to say, was achieved, under difficult market conditions. The activities that our Association has carried out and issues deliberated upon by the EXCO during this term.
Committee For the year, the Association operated under the following Committee structure: • Executive Committee • Education Sub-Committee • Finance Sub-Committee • Sihat Malaysia Standing Committee • Teras Malaysia Extra Standing Committee • Bijak Malaysia Standing committee • Tani Malaysia Standing Committee • Satu Malaysia Standing Committee The Executive Committee held 5 meetings during the year and a total of 45 meetings were conducted by Sub-Committees and Standing Committees. This level of activity is reflective of the commitment of the committee members towards the goals of the Association.
Finance For the financial year ended 31 December 2009, the Association recorded a Net Surplus of RM20,094 (2008: RM14,861) from its operations, bringing the Net Funds of the Association to RM186,247 (2008: RM166,153). The Association’s Cash at Bank amounts to RM69,682 as at 31 December 2009 (2008: RM162,643). Whereas, Fixed Deposit at Bank is RM214,164 as at 31 December 2009 (2008: RM108,909). Membership As at 31 December 2009, the Association’s membership is thirty five (35) companies, analysis of which is as follows:
For year 2009, our membership has decreased by four (4) companies. The companies are Manulife Insurance (M) Bhd, MSIG Insurance Malaysia Bhd, PanGlobal Insurance Bhd and The Pacific Insurance Bhd. These Insurers ceased to be Member because of their inability to comply with Malaysian shareholding requirements as set by our Constitution. However, the Association welcomes, Etiqa Takaful Bhd, Syarikat Takaful Malaysia Bhd and MNRB Retakaful Bhd who have joined as members in view of our new Takaful initiative. Our effort to constantly project the "Buy Malaysian" campaign logo has reflected the unique strength and nationalistic spirit of our member companies, and has given a significant competitive edge in terms of identity and recognition amongst the consumers of Malaysia. Our motto, "Owned By Malaysians, For Malaysians", is key to our growth today and tomorrow.
Seminars Over the years, NIAM has been focusing its attention on the improvement in professionalism, leadership and marketing skills of our Managers. In the year 2009, we have successfully conducted a total of ten (10) seminars for middle management. In view of favorable support and feedback from our member companies, we shall be continuing with our seminars and will be carrying out eleven (11) programmes for year 2010. To encourage our Members to send more staff for training, NIAM will continue giving 10% discount to Member companies who register 3 or more participants per course. Further, as a show of appreciation, I am pleased to inform that the Association has re-distributed 80% of the nett surplus earned from 2009 seminars back to Members, in the form of Credit Notes, on a pro-rata basis based on the amounts spent by Members. These Credit Notes can be utilised for any seminars conducted during the year 2010. I take this opportunity to thank Malaysian Reinsurance Bhd, and specially the President/CEO, En Hashim Harun and the Executive Vice President & COO, En Mustaffa Ahmad, for continuing to support the Association, by sponsoring the course fees of the Facilitators. Teras Malaysia Extra Project The Standing Committee is chaired by Mr C. Kumaran (MCIS ZURICH Insurance Bhd). Since the launch of Teras Malaysia Extra in February 2009, it has achieved cumulative sales of over 3,556 policies, with an annualised premium income of RM5.5 million. The Teras Malaysia Extra Standing Committee has also organised its first Extra Bonanza Competition with effect from 01 February 2009 till 31 December 2009 for Agents and Top 10 Personal Producers of Teras Malaysia Extra with a budget of RM150,000.00. The Prize draw is scheduled to be held today, during the Cocktail Reception. We look forward to a continued growth of the Teras Malaysia Extra product ahead. Sihat Malaysia Project The Standing Committee is chaired by En Muhamad Umar Swift (Malaysian Assurance Alliance Bhd) “Sihat Malaysia” is a hospital and surgical product for both life and general insurers. The product was launched by the Association in September 1999. The total cumulative number of Sihat Malaysia cardholders since its inception ten (10) years ago has reached over 1,330,244 with total cumulative annual premium income of RM388 million. The sales of the Sihat Malaysia plan during 2009 decreased by 18% to RM18,737,139 million (2008: RM22,870,429). The Standing Committee realizes the growth of Sihat Malaysia is decreasing although it has created a brand name recognized by consumers. Sihat Malaysia was started with a basic health cover but now Members have their very own health product with various additional features. The Standing Committee is working on an enhanced product features by settling a life time limit as a guaranteed renewal. We hope that the guaranteed renewal will spur a positive growth. The Association will continue to take advantage of its economies of scale, of having eight (8) Member companies to promote Sihat Malaysia. Bijak Malaysia Project The Standing Committee is chaired by Mr Patrick Cheah ( AmLife Insurance Bhd). Bijak Malaysia is a first of its kind whole life Insurance plan that provides superior protection coverage. The five (5) companies have achieved cumulative sales of over 47,329 policies, with an annualised premium income of RM84 million, since its launch in July 2007. In recognition of this achievement, NIAM organized its first Bijak Malaysia Convention from 26 to 29 September 2009 in Bangkok, Thailand attended by 180 participants. The objective of the convention was to provide a platform for the distributors to share best practices and success stories in elevating Bijak Malaysia’s performance to a higher level. Recipients of the achievers awards were required to produce a minimum of 1 (one) million production of AFYP:
Bijak Malaysia proudly initiated their 2nd Convention to Hong Kong which will be held in September 2010. Top 3 contributing Banks and for every one (1) million production of AFYP from the period of 01 November 2009 till 31 May 2010 will be entitled to 4 free Convention Seats. There will also be Performance Award comprising Top Bank Category and Individual Category for Cases and Premium. Based on the success of Bijak Malaysia, NIAM is now developing a Standalone Critical Illness which will be launched when time to come. Tani Malaysia Project The Standing Committee is chaired by Mr Lai Poong Shen (Oriental Capital Assurance Bhd). Tani Malaysia Scheme was formed on 24 July 2008 with nine (9) NIAM Members participating in the scheme. As you are aware the Standing Committee has been arranging Reinsurance on behalf of the Pool Members and has embarked on a series of training programmes to prepare Consortium Members in the promotion, sales, underwriting and claims management of the product. However Tani faces some challenges in implementing the Livestock Insurance scheme. The wordings were not well received by the test market or treaty reinsurer. The Sub-committee went back to the drawing board and after further research has decided to adopt simplified Livestock wordings which is used by other markets. The sub-committee is of the view the improved wordings will be well received by the consumers/regulators and shall submit the final draft to Standing Committee for their endorsement in the near future. Apart from the above, Tani Management has also been giving inputs to Ministry of Agriculture (MOA) on agriculture insurance programme. We hope to play a role should the government decide to introduce a national agriculture insurance scheme. The Directors of Tani Mangement have also taken necessary steps to ensure that Tani Management does not incur any further expense after the initial seed money has been exhausted. Tani Management will be reactivated once the participating companies start to sell Livestock policies or participate the government sponsored schemes. Takaful Product The Standing Committee is chaired by En Salim Majid Zain ( MAA Takaful Bhd). This product is a term plan which is focused to provide protection for death and TPD with a nominal maturity amount at the end of the term. It utilizes the full commission structure allowed by Bank Negara Malaysia. This plan will be distributed by the agency forces of the participating Takaful Operators. The participating Operators are namely:
We believe that this Takaful Product, Satu Malaysia will be another great initiative by NIAM. We are eagerly looking forward to the successful launch of this product in near future. Social Activities The Association has been organising cocktail receptions, with the objective of bringing together CEO’s and Senior Management of local companies to develop trust and co-operation amongst our Members. By knowing each other, we should be better able to grow together. We have also combined these gatherings with launch or award activities for our four (4) products thereby keeping our Member companies’ management aware of our activities. As we will be holding another cocktail later this evening, I invite all of you to please stay on after this meeting. National Insurance Claims Society (NICS) The National Insurance Claims Society, was sponsored and launched by NIAM on 15 December 1998. The Society is presently chaired by Pn Rosliza Yusoff with support from fifteen (15) Executive Committee members. For the year 2009, NICS had successfully organised a full day workshop on “Insurance Fraud” attended by 100 participants in June. Further, the Society organized 7 more workshops on The Challenges in Managing Disease related to Claims, Disability Assessment, Professional Indemnity and Maritime. The most recent workshops were held in December 2009 attended by 74 participants on “Nomination, Assignment & Payment of Death Claims Proceeds under Insurance Act 1996” and “Road Survival”. I hope that NICS will continue to have the full support from our member companies. The development of professional and highly competent claims management is paramount for the long-term success of our industry.
Summary I would like to place on record my sincerest appreciation for the support and confidence of our Member companies. It is rare for companies who are in fact competitors, come together to develop goodwill and mutual support for the common good of all Malaysians. This is the best advantage that NIAM has and in its own right, NIAM has achieved the “1 Malaysia” concept that the leaders of the country are promoting. I would also like to take this opportunity to thank the Officers at Bank Negara Malaysia, especially Madam Yap Lai Kuen, Director Insurance Regulation for their attention, positive responses and invaluable guidance to our various proposals. No industry can progress without any caring Regulation and we are certainly progressing and being well taken care of. Lastly, I would like to express my appreciation to our Secretariat, under the leadership of Dato N K Jasani, as well as to my fellow EXCO Members and all members of various Standing and Sub-Committees for all their valued support and assistance. They have contributed immensely to NIAM and let me assure you, without all the work they have put in, our success last year would not have been possible. Please join me in expressing a round of applause to them. With that, let me wish you all a great 2010, and may all of us grow together in the insurance industry as friends and as competitors alike. Thank you.
KOH HENG KONG |
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