Performance Overview and Key Industry Issues. Kuala Lumpur 18 October 2018

Transcription

1 Performance Overview and Key Industry Issues Kuala Lumpur 18 October

2 MEMBERS 21 Direct and 5 Reinsurers 2

3 PERFORMANCE OVERVIEW 3

4 INDUSTRY 2017 RESULTS Total Premium RM 17.7 Billion Growth (0.1%) 4

5 INDUSTRY PERFORMANCE HY2018 Gross Written Premiums General Insurance (GI) RM million Growth Overall 9, % Motor 4, % Fire 1,774 (0.9%) 5

6 INDUSTRY PERFORMANCE YEAR TREND LINES GI Industry Growth vs Motor Growth Rates 10.0% 9.3% GI Growth Motor Growth 8.0% 8.2% 7.8% 6.0% 6.4% 5.4% 5.9% 4.0% 2.0% 0.0% 2.2% 1.9% 1.1% 2.1% 0.8% -0.1% % 6

7 INDUSTRY PERFORMANCE YEAR TREND LINES GI Industry Growth vs Fire Growth Rates 10.0% 9.0% 8.6% GI Growth Fire Growth 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 8.2% 7.2% 6.4% 5.8% 5.9% 5.6% 2.2% 5.0% 4.2% 2.0% 1.1% 1.0% 0.0% -1.0% % 7

8 INDUSTRY PERFORMANCE HY2018 Gross Written Premiums General Insurance (GI) RM million Growth MAT 759 (7.4%) Medical & Health % Personal Accident % Miscellaneous* 1, % * Miscellaneous consists of Bonds, CAR/Engineering, Liabilities, WC/EL & Others 8

9 PHASED LIBERALISATION OF MOTOR AND FIRE TARIFFS 9

10 WHERE ARE WE NOW? 1 July New Products introduced 1 July Flexibility in Motor Premium 2019 onwards - Evaluation by BNM on Full Liberalisation 10

11 COMMUNICATIONS

12 COMMUNICATIONS

13 COMMUNICATIONS

14 COMMUNICATIONS

15 COMMUNICATIONS

16 COMMUNICATIONS 2018 Media Interviews/Forums 1 Oct 18 Bernama TV The Nation with PIAM Chairman Antony Lee 4 Oct 18 RTM Selamat Pagi Malaysia PIAM Management Committee Member Zainudin Ishak 16

17 KEY INDUSTRY ISSUES 17

18 AGENTS PROFESSIONALISM AND EXCELLENCE (APEX)

19 AGENTS PROFESSIONALISM AND EXCELLENCE (APEX) Upscaling Qualifications and Development Path of General Insurance Agents To better prepare agents to face the challenges when the market is fully liberalized, APEX (Agents Professionalism and Excellence) Task Force set up between PIAM and MII to work on upscaling the qualifications and development paths for new and existing agents 19

20 AGENTS PROFESSIONALISM AND EXCELLENCE (APEX) Latest Update Comments from BNM that certain modules should be enhanced on regulatory requirements and ethics Refresher courses for existing agents and more stringent requirements for new agents APEX review completed and submitted to BNM Awaiting approval from BNM to proceed Target Implementation date 1 Jan 19 20

21 E-PAYMENT FRAMEWORK

22 E-PAYMENT FRAMEWORK Background Migration to e-payment agenda part of Electronic Payments for Greater Economic Efficiency under the Financial Sector Blueprint Towards a payment system that facilitates efficient movement of funds for the financial development and growth of the economy 22

23 E-PAYMENT FRAMEWORK BNM e-payment Framework and Measures to Accelerate the Migration to E-Payments Introduced wef 2 Jan 18 to drive the displacement of cheques in the insurance sector Use of electronic methods for premium payments by customers Agents to report and submit complete data on mode of payments and collections 23

24 E-PAYMENT FRAMEWORK Use of Credit or Charge Cards by agents BNM want to ensure prudent handling of customers funds by agents Mitigate the risks of agents being overly dependent on the use of credit lines May lead to indebtedness if not managed prudently 24

25 E-PAYMENT FRAMEWORK Next steps by PIAM after meeting with BNM Conduct an industry-wide survey to assess the reasons and extent to which agents use credit/charge cards in making premium payments on behalf of customers Survey questions shared with BNM Seek full co-operation of all agents in the survey 25

26 E-PAYMENT FRAMEWORK Next steps by PIAM after meeting with BNM Study and analyse data on financial delinquencies and bankruptcies among agents in the industry Incorporate a module on prudent financial management in the APEX curriculum 26

27 E-PAYMENT FRAMEWORK Desired Outcome A secure and robust e-payment/collection framework that would deliver enhanced customer experience and achieve efficiencies for the benefit of agents, insurers and the public 27

28 SALES & SERVICE TAX (SST)

29 SALES & SERVICE TAX (SST) 29

30 SALES & SERVICE TAX (SST) Transitional Rules are particularly difficult to apply to insurance Result in significant amount of work and cost with minimal incremental collections for government Appealed to Minister of Finance to simplify the rules Seek waiver of service tax on personal lines policies issued during the tax break months (Jun to Aug) Awaiting approval Principals will update you 30

31 INSURANCE CUSTOMER SERVICE CHARTER & CUSTOMER SATISFACTION INDEX 31

32 INSURANCE CUSTOMER SERVICE CHARTER AND CUSTOMER SATISFACTION INDEX Customer Service Charter approved by BNM was circulated to member companies on 21 Dec 17 with instructions for this to be uploaded on their websites by 31 Dec 17 BNM requested all member companies to strictly adhere to the minimum levels of customer service Charter issued as an official guide 32

33 INSURANCE CUSTOMER SERVICE CHARTER AND CUSTOMER SATISFACTION INDEX BNM requested all insurance associations (PIAM, LIAM and MTA) to work on a common Industry Consumer Satisfaction Index as the next phase 33

34 INSURANCE CUSTOMER SERVICE CHARTER AND CUSTOMER SATISFACTION INDEX Pillars Insurance Made Accessible Know Your Customer Timely Transparent & Efficient Service Fair, Timely & Transparent Claim Settlement Process Key Outcomes Better engagement and improved services Build Trust Customer Satisfaction Provide Peace of Mind to Customers Source; Life Insurance Association Malaysia, Persatuan Insurans Am Malaysia and Malaysia Takaful Association 34

35 INSURANCE CUSTOMER SERVICE CHARTER AND CUSTOMER SATISFACTION INDEX Industry engaged Nielsen for the survey Field work completing in October Index scores for Life, General & Takaful Insurance Results expected end of the year 35

36 FRAUD INTELLIGENCE SYSTEM (FIS) 36

37 FRAUD INTELLIGENCE SYSTEM Often viewed as a Victimless Crime A serious problem to the insurance & takaful industry Ranges from 7% to 30% of claims pay-out 37

38 INDUSTRY PERFORMANCE HY2018 Note: General Insurance figures only Total Motor Net Claims Incurred (RM million) HY2014 HY2015 HY2016 HY2017 HY2018 Net Claims Incurred 2,598 2,685 2,416 2,680 2,705 % of change - 3% 10% 11% 1% 38

39 MOTOR CLAIMS TREND RM14.8 million daily paid by Insurers for motor claims on property damages, bodily injuries and theft 39

40 MOTOR CLAIMS TREND RM1.5 million daily is potentially fraudulent claims based on 10% 40

41 FRAUD INTELLIGENCE SYSTEM An Industry-wide initiative with the support of Bank Negara Malaysia To increase efficiency in detecting claims fraud and improve claims services for genuine claimants. Initial roll-out is for Motor Insurance. Future expansion to other classes of insurance Launched in Oct 2017 with participation from 4 companies Today FIS has been rolled out to all insurers & takaful operators 41

42 FRAUD INTELLIGENCE SYSTEM FIS A Data Science Approach to Detect Fraud Subject Matter Experts from industry provide input Industry Wide Data Claims across multiple insurers will be linked up Real Time Fraud Score Every claim registered by insurers will be assesed FIS Advance Analytics & Cutting Edge Technology is used 42

43 ACCIDENT ASSIST CALL CENTRE 43

44 ACCIDENT ASSIST CALL CENTRE 2 44

45 ACCIDENT ASSIST CALL CENTRE Public Service Hotline 24-hour operation Nationwide Coverage 2 Free Service 45

46 ACCIDENT ASSIST CALL CENTRE Services provided Accident towing for all Private Passenger Cars Claims enquiries on all motor accidents 2 46

47 MOTOR VEHICLE THEFT 47

48 VEHICLE THEFT REDUCTION COUNCIL OF MALAYSIA BERHAD

49 VEHICLE THEFT NEWSCLIPPINGS 49

50 INDUSTRY STATISTICS OF VEHICLE THEFT 1 ST HALF 2018 Class 1H2017 1H2018 Count Count Increase / Decrease Private Car 3,173 2,156-32% Motorcycle 4,921 3,475-29% Comm Vehicle % All Classes 8,560 5,913-31% Note: Claims data as at 30 June 2018 Motorcycle 4921 (57%) 50

51 THANK YOU 51