The Health Ministry, through its circular dated 20 July 2011, has directed all insurance companies providing the Foreign Workers Health Insurance (FWHI) Scheme to stop offering PA Policies together with the FWHI.
The Ministry warned that if the Insurance Companies continue with the sale of the PA, then they will not hesitate to cancel the status of Insurance Companies as the FWHI panelist.
First thing first, the Health Insurance scheme was not designed to incorporate PA coverage or compensation for injuries or disability or death. Instead it focuses on providing medical insurance for foreign workers due to sickness, disease or accidental injury at government hospitals.
The FWHI Scheme is available to foreign workers at RM136 a year (RM105 for premium, RM15 for administration fees, RM10 for stamp duty and RM6 for service charge)
As for the accident coverage, it is already being provided under the Foreign Workmen Compensation Scheme for any occupational related accident or disease hence the need to avoid the duplication of the PA coverage in the FWHI Scheme which may cause confusion amongst employers and employees as well as cause enforcement problem for agency involved in the implementation of the scheme.
Monday, November 14, 2011
Sunday, September 18, 2011
Malaysia: 26% increase in number of non-life agents expected
The number of general insurance agents in Malaysia is expected to grow by 26% this year, from more than 35,000 in the industry in 2010 (Source: Asia Insurance Review 15/9/2011).
How many of those Agents who will remain active in the insurance market place? From my personal experience and observation, at least 80% of newly registered Agents will disappear from the scene in less than 2 years. Majority who remained, are likely to be less active in the market either these people have vested business elsewhere (where insurance commission is just a side income) or they are just contented with the little commission earned from the insurance agency.
Applying the 20:80% rule, the fact remained that 20% of active agents are likely to be the main contributors to the Insurers' coffers in terms of insurance premium generated.
How many of those Agents who will remain active in the insurance market place? From my personal experience and observation, at least 80% of newly registered Agents will disappear from the scene in less than 2 years. Majority who remained, are likely to be less active in the market either these people have vested business elsewhere (where insurance commission is just a side income) or they are just contented with the little commission earned from the insurance agency.
Applying the 20:80% rule, the fact remained that 20% of active agents are likely to be the main contributors to the Insurers' coffers in terms of insurance premium generated.
Monday, September 5, 2011
Two in five Indians are considered unhealthy
A study by a prominent health insurance company in India claims that 40% in the country are unhealthy, while one out of every 10 is obese (Asia Insurance Review 25/8/11)
Malaysia? Could be worst with the many fast foods, oily foods, junk foods, high cholestrol foods etc available for consumption 24 hours a day and yet everyone blamed no time for any form of exercises.
Even at the walkalator seen at airports, people just stand and let the walkalator takes them to the end of the line. Some people at fitness centre must take the lift to the 1st floor to exercise when one can easily walk up there to burn some calories. Just Plain lazy.
Saturday, September 3, 2011
1.Australia: US$1.89 bln paid out for CATs
Insurance payouts after the Queensland floods and Cyclone Yasi have reached A$1.86 billion (US$1.89 billion), says the Insurance Council of Australia (ICA) in a report in the Herald Sun.
2.Australia: Insurance market heats up with new entrant
Supermarket giant Woolworths has teamed up with Swiss Re, the second largest reinsurer in the world, and The Hollard Group, a leading international insurance provider, to offer first life and pet insurance policies, with home and car policies to follow later. The products will be sold through call centres and online only, not in-store.
3. Australia: IAG warns of premium hikes;
Suncorp sees little room for higher premiumsInsurance Australia Group, the largest car and home insurer Down Under, warns that pressure remains for a further hike in premiums following billions ofdollars in payouts in the wake of a string of major natural disasters over the past year.
Source: Asia Insurance Review Aug 2011
Insurance payouts after the Queensland floods and Cyclone Yasi have reached A$1.86 billion (US$1.89 billion), says the Insurance Council of Australia (ICA) in a report in the Herald Sun.
2.Australia: Insurance market heats up with new entrant
Supermarket giant Woolworths has teamed up with Swiss Re, the second largest reinsurer in the world, and The Hollard Group, a leading international insurance provider, to offer first life and pet insurance policies, with home and car policies to follow later. The products will be sold through call centres and online only, not in-store.
3. Australia: IAG warns of premium hikes;
Suncorp sees little room for higher premiumsInsurance Australia Group, the largest car and home insurer Down Under, warns that pressure remains for a further hike in premiums following billions ofdollars in payouts in the wake of a string of major natural disasters over the past year.
Source: Asia Insurance Review Aug 2011
Saturday, August 6, 2011
Malaysia: Car owners must be advised of appropriate vehicle value
Local News
Insurers have to advise consumers on the appropriate market value of motor vehicles when the latter purchase comprehensive motor insurance cover for private cars with effect from this month, says Bank Negara Malaysia.
The Market Valuation of a motor vehicle is a rather subjective matter as much depends on the condition of vehicle, sole ownership, the month/year the vehicle is registered (those registered in December would be taken as 1 year old vehicle in January the following month/year), the mileage clocked in, the vehicle licence plate number (which can carry cursed numbers like 444, 4141 etc or auspicious numbers like 1168, 8888, 1688, 1188 etc or even unlucky number like 9248)
How can this valuation exercise be effectively implemented by the Insurers? Let us wait and see.
Regional News
Singapore: 100% surge in bancassurance premium drives life sector's 1H growth
Singapore's life insurance industry registered a total of S$941.5 million (US$777.6 million) in weighted new business premiums for the first half of 2011, a 38% growth over the same period last year. New business weighted premium from bancassurance surged an impressive 100% from $161 million in the first half of 2010 to record $322 million, according to the Life Insurance Association (LIA) of Singapore.
Thailand: Toyota Vios the most insured vehicle
Among 50 car models, the Toyota Vios was the most insured automobile in Thailand at 762,297 units, drawing more than THB10 billion (US$336 million) in premium income for the industry between 2005 and 2009, according to data from the Insurance Premium Rating Bureau (IPRB).
Insurers have to advise consumers on the appropriate market value of motor vehicles when the latter purchase comprehensive motor insurance cover for private cars with effect from this month, says Bank Negara Malaysia.
The Market Valuation of a motor vehicle is a rather subjective matter as much depends on the condition of vehicle, sole ownership, the month/year the vehicle is registered (those registered in December would be taken as 1 year old vehicle in January the following month/year), the mileage clocked in, the vehicle licence plate number (which can carry cursed numbers like 444, 4141 etc or auspicious numbers like 1168, 8888, 1688, 1188 etc or even unlucky number like 9248)
How can this valuation exercise be effectively implemented by the Insurers? Let us wait and see.
Regional News
Singapore: 100% surge in bancassurance premium drives life sector's 1H growth
Singapore's life insurance industry registered a total of S$941.5 million (US$777.6 million) in weighted new business premiums for the first half of 2011, a 38% growth over the same period last year. New business weighted premium from bancassurance surged an impressive 100% from $161 million in the first half of 2010 to record $322 million, according to the Life Insurance Association (LIA) of Singapore.
Thailand: Toyota Vios the most insured vehicle
Among 50 car models, the Toyota Vios was the most insured automobile in Thailand at 762,297 units, drawing more than THB10 billion (US$336 million) in premium income for the industry between 2005 and 2009, according to data from the Insurance Premium Rating Bureau (IPRB).
Wednesday, August 3, 2011
Australia: Most insurers yet to capitalise on mobile phone technology
Surprised surprised.
Most Australian insurers are yet to offer any mobile applications for their employees,
customers, agents or brokers despite the fact that the country is one of the world's
most mature mobile markets, with 17% of Australians using their mobile-connected
devices to search for and make decisions about insurance.
Source: Asia Insurance Review 1.8.2011
Most Australian insurers are yet to offer any mobile applications for their employees,
customers, agents or brokers despite the fact that the country is one of the world's
most mature mobile markets, with 17% of Australians using their mobile-connected
devices to search for and make decisions about insurance.
Source: Asia Insurance Review 1.8.2011
Thursday, July 28, 2011
Insurance News Across Asia 28/7/2011
1. Thailand: Rising costs of employer-provided health insurance becoming a concern
The rapid rise of employer-provided health insurance has quickly become one of the biggest financial challenges facing companies throughout the world, and Thailand will share the same fate if the current trend continues for another five to 10 years.
2. Australia: Older people seek more financial advice
Wealthy older men are the biggest consumers of financial advice and are far more likely to use a planner than those under age 34, or women, a recent study by Roy Morgan Research shows.
The rapid rise of employer-provided health insurance has quickly become one of the biggest financial challenges facing companies throughout the world, and Thailand will share the same fate if the current trend continues for another five to 10 years.
2. Australia: Older people seek more financial advice
Wealthy older men are the biggest consumers of financial advice and are far more likely to use a planner than those under age 34, or women, a recent study by Roy Morgan Research shows.
Tuesday, July 26, 2011
Insurance News Across Asia 27/7/2011
1. Asia: Motor insurance can be profitable if priced properly
The growing demand for motor vehicles around Asia has created big opportunities for insurers, which will have to look at ways of providing cover at affordable prices while trying to maintain underwriting surplus. To be effective in this market, companies need to look seriously into their approach to pricing, said speakers yesterday at the 2nd Asian Motor Insurance and Claims Management Conference being held in Colombo, Sri Lanka.
2. Global: Opportunities for insurance innovation
Younger consumers and those from emerging markets are much more interested in innovations such as mobile services and much more likely to shop around, according to a survey of 7,000 people from 13 countries by the global consulting firm, Accenture.
3. Australia: Apartment owners face premium hike "crisis"
Apartment owners in north Queensland face premium rises of up to 400% in what has been called an "insurance crisis" by an umbrella body which represents the strata title sector. The rate hikes have led strata title owners to complain to a government panel that they are being unfairly targeted with "explosive" increases in insurance costs.
Asia Insurance Review 27/7/2011
The growing demand for motor vehicles around Asia has created big opportunities for insurers, which will have to look at ways of providing cover at affordable prices while trying to maintain underwriting surplus. To be effective in this market, companies need to look seriously into their approach to pricing, said speakers yesterday at the 2nd Asian Motor Insurance and Claims Management Conference being held in Colombo, Sri Lanka.
2. Global: Opportunities for insurance innovation
Younger consumers and those from emerging markets are much more interested in innovations such as mobile services and much more likely to shop around, according to a survey of 7,000 people from 13 countries by the global consulting firm, Accenture.
3. Australia: Apartment owners face premium hike "crisis"
Apartment owners in north Queensland face premium rises of up to 400% in what has been called an "insurance crisis" by an umbrella body which represents the strata title sector. The rate hikes have led strata title owners to complain to a government panel that they are being unfairly targeted with "explosive" increases in insurance costs.
Asia Insurance Review 27/7/2011
Saturday, July 23, 2011
Insurance News across Asia
1) Nine in 10 Singaporeans are underinsured
Only one in 10 Singaporeans is currently adequately insured, based on the industry recommendation of having total coverage of approximately 10 times one's annual income. This is according to the 2011 AIA
Singapore Nationwide Protection Survey research findings.
2) Tokio Marine to offer Japan's 1st one-day car insurance
Tokio Marine & Nichido Fire Insurance will begin offering auto insurance by theday in October - an industry first, according to an announcement by the non-life insurance giant.
3) Japan: Quake insurance sales soar
Earthquake insurance sales to homeowners in Japan grew more than five times in April from a year earlier, according to a report by the Non-Life Insurance Rating Organization of Japan (NLIRO).
Source: Asia Insurance Review July 2011
Only one in 10 Singaporeans is currently adequately insured, based on the industry recommendation of having total coverage of approximately 10 times one's annual income. This is according to the 2011 AIA
Singapore Nationwide Protection Survey research findings.
2) Tokio Marine to offer Japan's 1st one-day car insurance
Tokio Marine & Nichido Fire Insurance will begin offering auto insurance by theday in October - an industry first, according to an announcement by the non-life insurance giant.
3) Japan: Quake insurance sales soar
Earthquake insurance sales to homeowners in Japan grew more than five times in April from a year earlier, according to a report by the Non-Life Insurance Rating Organization of Japan (NLIRO).
Source: Asia Insurance Review July 2011
Thursday, June 23, 2011
Malaysia: Indonesian maids in country to enjoy insurance
Asia Insurance Review 22 June 2011
Quote:
"Indonesian maids working in Malaysia will soon be covered by insurance for accidents at work, with benefits of up to RM40,000 (US$13,200) for a premium of as low as RM70 a year"
First, the Foreign Workmen Compensation Insurance, then comes
Foreign Workmen Medical Insurance...Now
Insurance for Indonesia maids (why only Indo maids) ....Next
Your Guess?
Big business opportunities for Agents.
Quote:
"Indonesian maids working in Malaysia will soon be covered by insurance for accidents at work, with benefits of up to RM40,000 (US$13,200) for a premium of as low as RM70 a year"
First, the Foreign Workmen Compensation Insurance, then comes
Foreign Workmen Medical Insurance...Now
Insurance for Indonesia maids (why only Indo maids) ....Next
Your Guess?
Big business opportunities for Agents.
Wednesday, June 22, 2011
Fire Protection at Construction Sites
Followings are preferred fire and security arrangements at construction sites to minimize the risk of fire occurring:
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1 Proper fence protection of sites and stores
2. Doors & locks to be installed for storage buildings
3.Proper storage of goods and flammable liquids with adequate spacing
4. Elimination of dry grass, shrubs and used packing materials
5. No smoking rules in exposed areas and strict control/ enforcement
6. Strict control of hot works, application of welding permit
7. Provision of hydrants or easy accessibility to public hydrants
8. Setting up of own fire team with responsible head / Regular drills
9 Setting up of emergency plans and procedures
10. Clear accessibility to all site areas and stores
11. Watchmen on duty
2. Doors & locks to be installed for storage buildings
3.Proper storage of goods and flammable liquids with adequate spacing
4. Elimination of dry grass, shrubs and used packing materials
5. No smoking rules in exposed areas and strict control/ enforcement
6. Strict control of hot works, application of welding permit
7. Provision of hydrants or easy accessibility to public hydrants
8. Setting up of own fire team with responsible head / Regular drills
9 Setting up of emergency plans and procedures
10. Clear accessibility to all site areas and stores
11. Watchmen on duty
Monday, June 20, 2011
Definitions of Contractor's All Risks Policy Wordings
Followings are the definitions of some of the wordings appearing in the CAR policy:
Insured Parties
Can be The Owner/ The Principal/The Developer and The Main Contractor and Sub-Contractors
Insured Properties
The Works, Temporary Works, Temporary Buildings, Camp Sites, Electrical and Mechanical Plant including Contractor’s Plant and Machinery, Office Equipments, Materials on site etc
Contract Site
Means the lands and other places provided or approved by the principal/owner/developer, through which the project is to be executed
Contract Period
May be for few months (for small project) to years (for mega project). Initial period of Insurance given with further period subject to additional premium. Includes Defects Liability period of Insurance (after plant put into commercial operation)
Contract Value
Estimated at the outset for the whole contract period subject to adjustment
Third Party
Any Other Person (s) other than those related to or working for the above
Please refer to the CAR Policy wordings for more detailed information
Insured Parties
Can be The Owner/ The Principal/The Developer and The Main Contractor and Sub-Contractors
Insured Properties
The Works, Temporary Works, Temporary Buildings, Camp Sites, Electrical and Mechanical Plant including Contractor’s Plant and Machinery, Office Equipments, Materials on site etc
Contract Site
Means the lands and other places provided or approved by the principal/owner/developer, through which the project is to be executed
Contract Period
May be for few months (for small project) to years (for mega project). Initial period of Insurance given with further period subject to additional premium. Includes Defects Liability period of Insurance (after plant put into commercial operation)
Contract Value
Estimated at the outset for the whole contract period subject to adjustment
Third Party
Any Other Person (s) other than those related to or working for the above
Please refer to the CAR Policy wordings for more detailed information
Wednesday, June 15, 2011
Designer's Risk under the Contractor's All Risks Insurance
Many thanks to the 200 odd Agents who attended the CPD Training on Contractor's All Risk Insurance held at Concorde Hotel, Kuala Lumpur today, 15th June 2011.
The Q&A time was most beneficial with some very good questions posted by Agents to the Trainer. One of the question that needs further clarification is related to "Designers Risk".
I have enquired with 2 experienced Underwriters and made further reading on the CAR Policy wordings on the same subject, I can conclude as follows:
1) The Policy does not contained words like "Designer's Risks" nor "Defective Design"
2) The Policy does mentioned the words "Faulty Design"
3) There are no such combination of words like "Defective design, defective workmanship or defective materials" but only defective Workmanship and defective materials
3) The words "Designer's Risk" are used in the endorsement to provide part cover (DE3) or full cover (DE5)due to faulty design
Meaning, loss or damage due to Faulty Design is a total exclusion (expressly stated under Section c of Special Exclusions to Section 1) but can be extended by payment of additional premium to include resultant damage only (exclude the part caused by faulty design) or full cover (include the damage caused by faulty design). Please note that Underwriter does not usually grant the full cover.
On the defective materials and/or workmanship, it excludes the items immediately affected by the defective materials and/or workmanship but resultant damage to the correctly executed items is covered.
They are two stand alone exclusions.
Any comments are welcome.
The Q&A time was most beneficial with some very good questions posted by Agents to the Trainer. One of the question that needs further clarification is related to "Designers Risk".
I have enquired with 2 experienced Underwriters and made further reading on the CAR Policy wordings on the same subject, I can conclude as follows:
1) The Policy does not contained words like "Designer's Risks" nor "Defective Design"
2) The Policy does mentioned the words "Faulty Design"
3) There are no such combination of words like "Defective design, defective workmanship or defective materials" but only defective Workmanship and defective materials
3) The words "Designer's Risk" are used in the endorsement to provide part cover (DE3) or full cover (DE5)due to faulty design
Meaning, loss or damage due to Faulty Design is a total exclusion (expressly stated under Section c of Special Exclusions to Section 1) but can be extended by payment of additional premium to include resultant damage only (exclude the part caused by faulty design) or full cover (include the damage caused by faulty design). Please note that Underwriter does not usually grant the full cover.
On the defective materials and/or workmanship, it excludes the items immediately affected by the defective materials and/or workmanship but resultant damage to the correctly executed items is covered.
They are two stand alone exclusions.
Any comments are welcome.
Monday, June 6, 2011
General Insurance Claims Handling Seminar
Topics delivered:
An overview of claim sequence
Onus of Proof of Loss
Case studies on fire/PA/theft/motor losses
Rights of Insurers
Role of Loss Adjusters
Claims Adjustment
Average and Contribution
Reinstatement of Loss
Surogation and Discharge Voucher
Post Loss Improvement
Tuesday, May 10, 2011
Fire & Fatalities Losses in Malaysia
According to the Fire & Rescue Department in its press statement on Sunday Star, 8th May, 2011, they had received 55,529 emergency reports this year compared to 56,643 reported the year before.
Of the 55,529 reports, 29,333 were categorised as fire cases, which saw a decrease of 0.25% compared to 2009. Rescue cases also saw a decrease of 4.63% from 24,669 to 29,341.
The department also saved RM 16.32 billion worth of property in fire cases last year, an increase of 61% compared to 2009 where RM10.36 billion were saved.
There were 17% increase in deaths (with 89 fatalities) due to fires in households and much can be attributed to the lack of basic awareness of fire safety.
The use of unsuitable electrical appliances, excessive use of flexible cords and overloaded socket points, children playing with fire, oil lamp (for altars) placed at precarious position, lighted mosquitos coil, use of paraffin lamp, carelessly discarded lighted cigarette butts, fire from gas stove etc are common hazards found in households.
Perhaps every household should be equipped with fire extinguishers and smoke detectors so that the occupants would be prepared to deal with any fire related incident.
Every household should also purchase a Houseowner/Householders Insurance which will compensate them for (i) loss or damage to the building/contents caused by fire and lightning as well as other special perils in the form of flood, storm, impact, explosion, aircraft damage etc (ii) theft of household goods (iii) death of Insured caused by fire or theft (iv) legal liability for injury or damage to property belonging to third party arising from the occupancy of the property (iv) loss of rental (v) property temporary removed etc
Minimum premium for such insurance is RM60.00 excluding stamp duty
Of the 55,529 reports, 29,333 were categorised as fire cases, which saw a decrease of 0.25% compared to 2009. Rescue cases also saw a decrease of 4.63% from 24,669 to 29,341.
The department also saved RM 16.32 billion worth of property in fire cases last year, an increase of 61% compared to 2009 where RM10.36 billion were saved.
There were 17% increase in deaths (with 89 fatalities) due to fires in households and much can be attributed to the lack of basic awareness of fire safety.
The use of unsuitable electrical appliances, excessive use of flexible cords and overloaded socket points, children playing with fire, oil lamp (for altars) placed at precarious position, lighted mosquitos coil, use of paraffin lamp, carelessly discarded lighted cigarette butts, fire from gas stove etc are common hazards found in households.
Perhaps every household should be equipped with fire extinguishers and smoke detectors so that the occupants would be prepared to deal with any fire related incident.
Every household should also purchase a Houseowner/Householders Insurance which will compensate them for (i) loss or damage to the building/contents caused by fire and lightning as well as other special perils in the form of flood, storm, impact, explosion, aircraft damage etc (ii) theft of household goods (iii) death of Insured caused by fire or theft (iv) legal liability for injury or damage to property belonging to third party arising from the occupancy of the property (iv) loss of rental (v) property temporary removed etc
Minimum premium for such insurance is RM60.00 excluding stamp duty
Friday, April 22, 2011
Problems with Fire Protection Appliances installed in many industrial risks
From the general perspective of Insurers, backyard operators are amongst the many industrial risks who are the least concerned about fire protection and fire prevention at their premises. To them, there is insurance to claim, for any loss or damage to their properties, so why bother with fire prevention measures. They do not realize the long term damage caused by interruption to their business which can result in loss of goodwill, loss of customers, reduced market share or worst, goes into liquidation etc.
Below are amongst the evidence of "neglects" in majority of risks:
Portable fire extinguishers (PFE) are often misplaced from their original position, or past their service date or damaged due to vandalism. Theft of PFE is not uncommon.
Hydraulic Hose Reels (HR) are sometimes used for the wrong purpose (for washing car) when they are supposed to be used only for fire fighting. Pumps, at times, were found malfunctioned when tested. External Flexi hose, due to prolong exposure to heat under the scorching sun became brittle and caused leak Those installed internally are damaged by the impact of moving vehicle like forklift.
Pillar Hydrants in the compound, especially those fed from the public mains often suffered from low water pressure making fire fighting ineffective. Those installed with own pump sets were found to malfunction at times when tested. Effective capacity of the water storage tank failed to meet the minimum requirement of the hydrant system. . Canvas hose and nozzle kept next to each hydrant point were found missing. Often the view of hydrant is obstructed by overgrown lalangs or bushes.
Break Glass Fire Alarm and Smoke/Hear Detectors are meant to detect fire and summon help to the affected area. Often they are poorly maintained with weak battery, faulty bulb and wrong positioning. Sometimes, the Control Panel is not even manned.
Automatic sprinkler system suffered from faulty pump sets, ineffective capacity of the water storage tank and obstructed sprinkler heads etc
Below are amongst the evidence of "neglects" in majority of risks:
Portable fire extinguishers (PFE) are often misplaced from their original position, or past their service date or damaged due to vandalism. Theft of PFE is not uncommon.
Hydraulic Hose Reels (HR) are sometimes used for the wrong purpose (for washing car) when they are supposed to be used only for fire fighting. Pumps, at times, were found malfunctioned when tested. External Flexi hose, due to prolong exposure to heat under the scorching sun became brittle and caused leak Those installed internally are damaged by the impact of moving vehicle like forklift.
Pillar Hydrants in the compound, especially those fed from the public mains often suffered from low water pressure making fire fighting ineffective. Those installed with own pump sets were found to malfunction at times when tested. Effective capacity of the water storage tank failed to meet the minimum requirement of the hydrant system. . Canvas hose and nozzle kept next to each hydrant point were found missing. Often the view of hydrant is obstructed by overgrown lalangs or bushes.
Break Glass Fire Alarm and Smoke/Hear Detectors are meant to detect fire and summon help to the affected area. Often they are poorly maintained with weak battery, faulty bulb and wrong positioning. Sometimes, the Control Panel is not even manned.
Automatic sprinkler system suffered from faulty pump sets, ineffective capacity of the water storage tank and obstructed sprinkler heads etc
Saturday, April 16, 2011
Thank You, Agents
Dear Agents
Thank you so much for your positive comments and for following my blog. Am glad that you all find the class interesting but more importantly you have acquired the necessary knowledge that can helped improve your sales.
Hope to see you all again soon.
Hello Mr Steven, I'm not a computer expert, don't know where to click to become a follower. Anyway I enjoy the seminir on 12/4/2011. Thanks for share with us.
Hi, Mr. Steven I am also one of the participants of your event but not at Concorde Hotel KL but I just attended your class yesterday at Seri Mutiara Hotel at JB. Your presentation was wonderful (I ticked Execellent). All the technical knowledge and clauses you had highlighted are very useful (some of the clauses were the first time I had ever heard) to we agents to up our stake and beat the competition in this industry. Hope to see you in JB again soon for your next talk.
/I'm 29 follower today.. Generation now put yr blog explore at Facebook now. I'm Wayne.. MSIG agent and come to support.. Nice to meet u and feel yr seminar very interesting.. Thanks. ;-)
/Hi Steven , i am one for of the participant of your event in Concorde yesterday. Allow me express my thanks and gratitude for giving us a lively and interesting presentation . I reckon that the points highlighted are very relevant to our industry today .
Thank you so much for your positive comments and for following my blog. Am glad that you all find the class interesting but more importantly you have acquired the necessary knowledge that can helped improve your sales.
Hope to see you all again soon.
Hello Mr Steven, I'm not a computer expert, don't know where to click to become a follower. Anyway I enjoy the seminir on 12/4/2011. Thanks for share with us.
Hi, Mr. Steven I am also one of the participants of your event but not at Concorde Hotel KL but I just attended your class yesterday at Seri Mutiara Hotel at JB. Your presentation was wonderful (I ticked Execellent). All the technical knowledge and clauses you had highlighted are very useful (some of the clauses were the first time I had ever heard) to we agents to up our stake and beat the competition in this industry. Hope to see you in JB again soon for your next talk.
/I'm 29 follower today.. Generation now put yr blog explore at Facebook now. I'm Wayne.. MSIG agent and come to support.. Nice to meet u and feel yr seminar very interesting.. Thanks. ;-)
/Hi Steven , i am one for of the participant of your event in Concorde yesterday. Allow me express my thanks and gratitude for giving us a lively and interesting presentation . I reckon that the points highlighted are very relevant to our industry today .
Thursday, April 14, 2011
PROGRAM LATIHAN 1MALAYSIA
TITLE OF TRAINING PROGRAMME
OPERATIONAL/ HAZARD ASSESSMENT &
IMPROVEMENT NEEDS FOR THE SMALL TO MEDIUM SIZED INDUSTRIES (IN-HOUSE PROGRAMME)
PROGRAMME OVERVIEW
Designed to enhance the technical knowledge and skills of its people who are involved in the day to day operations of the plant or facilities through the use of a proper and systematic risk management tools to identify, analyze, control or eliminate the inherent or potential hazards present in the plant or facilities.
If left unchecked, accident can caused wide spread damage to properties, injuries or death to its people, liability suits for negligence from the public at large and loss of business earnings through the physical disruption of the plant/facilities caused by the accident through one’s own negligence.
TARGET GROUP
Technicians, Plant Manager, Site Supervisors, Security & Safety Officers, Production Crews
CONTENTS
Session 1
Concept of Risk Management and its application at the workplace
The Risk Management Process:
• Identification,
• Analysis,
• Prioritize,
• Control
The various Risk Management Tools:
• Process Flow Chart,
• Risk Questionnaires,
• Check List,
• Annual Financial Report,
• Fault Trees,
• Site inspection etc
Session 2
Understanding the hazards via power point and visual presentation
• Physical Hazard
• Moral Hazard
• Morale Hazard
The impact on the organization
Session 3
Identification and Analysis of the Hazards via video presentation
• At the Work place and the facilities provided
• The use and maintenance of Tools and Equipments
• The Competency of its workers
• Liability arising from the workplace, use of equipments and action of its employees
Session 4
Study tour of factory (for in-house program)
• Putting theory into practice
Identification
• What are the hazards identified during the tour?
Likelihood and Severity Studies
• What is the likelihood of accident happening from the hazards identified?
• How serious can the damage be to the properties or injury sustained by its people?
How long will the business be interrupted by the accident resulting in loss of earnings?
Improvement Needs
• What must be done to control or eliminate the accidents from happening?
• Where must it be done?
• When must it be done?
• Why must it be done?
Session 5
Drawing up a Business Contingency Plan to safeguard and ensure the continuity of its business
Compliance with Occupational Safety & Health Act (OSHA) to safeguard its people from disease, injury or death at workplace
LEARNING OUTCOMES
Posses the knowledge, the awareness, the right attitude and the ability to help manage the facility and create a conducive and a safe working environment for its people and also bring immediate business benefits to the organization.
DURATION
2 full days including lunch and 2 tea breaks in between
COURSE FEE (INHOUSE PROGRAMME)
To be quoted upon request
CONTACT INFORMATION
Training Provider
CSH Knowledge Management Sdn Bhd
Royal Palms Business Suite
21, Jalan Putra Murni 3/3A, Putra Heights,
47650, Subang Jaya, Selangor
Training Provider Registration No. 2053
Contact Person:
Ms Mary Tan
Contact No
Handphone No: 016-337 3837
Handphone No: 012-337 3837
Tel/Fax No:03-51925227
E-Mail Address:
stmailto:stevencheah@csh.com.my
mary@csh.com.my
OPERATIONAL/ HAZARD ASSESSMENT &
IMPROVEMENT NEEDS FOR THE SMALL TO MEDIUM SIZED INDUSTRIES (IN-HOUSE PROGRAMME)
PROGRAMME OVERVIEW
Designed to enhance the technical knowledge and skills of its people who are involved in the day to day operations of the plant or facilities through the use of a proper and systematic risk management tools to identify, analyze, control or eliminate the inherent or potential hazards present in the plant or facilities.
If left unchecked, accident can caused wide spread damage to properties, injuries or death to its people, liability suits for negligence from the public at large and loss of business earnings through the physical disruption of the plant/facilities caused by the accident through one’s own negligence.
TARGET GROUP
Technicians, Plant Manager, Site Supervisors, Security & Safety Officers, Production Crews
CONTENTS
Session 1
Concept of Risk Management and its application at the workplace
The Risk Management Process:
• Identification,
• Analysis,
• Prioritize,
• Control
The various Risk Management Tools:
• Process Flow Chart,
• Risk Questionnaires,
• Check List,
• Annual Financial Report,
• Fault Trees,
• Site inspection etc
Session 2
Understanding the hazards via power point and visual presentation
• Physical Hazard
• Moral Hazard
• Morale Hazard
The impact on the organization
Session 3
Identification and Analysis of the Hazards via video presentation
• At the Work place and the facilities provided
• The use and maintenance of Tools and Equipments
• The Competency of its workers
• Liability arising from the workplace, use of equipments and action of its employees
Session 4
Study tour of factory (for in-house program)
• Putting theory into practice
Identification
• What are the hazards identified during the tour?
Likelihood and Severity Studies
• What is the likelihood of accident happening from the hazards identified?
• How serious can the damage be to the properties or injury sustained by its people?
How long will the business be interrupted by the accident resulting in loss of earnings?
Improvement Needs
• What must be done to control or eliminate the accidents from happening?
• Where must it be done?
• When must it be done?
• Why must it be done?
Session 5
Drawing up a Business Contingency Plan to safeguard and ensure the continuity of its business
Compliance with Occupational Safety & Health Act (OSHA) to safeguard its people from disease, injury or death at workplace
LEARNING OUTCOMES
Posses the knowledge, the awareness, the right attitude and the ability to help manage the facility and create a conducive and a safe working environment for its people and also bring immediate business benefits to the organization.
DURATION
2 full days including lunch and 2 tea breaks in between
COURSE FEE (INHOUSE PROGRAMME)
To be quoted upon request
CONTACT INFORMATION
Training Provider
CSH Knowledge Management Sdn Bhd
Royal Palms Business Suite
21, Jalan Putra Murni 3/3A, Putra Heights,
47650, Subang Jaya, Selangor
Training Provider Registration No. 2053
Contact Person:
Ms Mary Tan
Contact No
Handphone No: 016-337 3837
Handphone No: 012-337 3837
Tel/Fax No:03-51925227
E-Mail Address:
stmailto:stevencheah@csh.com.my
mary@csh.com.my
Sunday, April 3, 2011
Singapore: GIA urged to set up central fraud database. Read the Malaysia Context
Asia Insurance Review reported on 1.4.2011
"With fraudulent claims on the rise, the General Insurance Association of Singapore (GIA) was urged by Ms Luz Foo Mei Lan, Executive Director, Insurance, Monetary Authority of Singapore, at GIA's Annual Luncheon to get members to share their individual fraud experiences and explore the possibility of setting up a central database to enhance fraud detection"
In actual fact, making individual fraudulent claims are not uncommon in the malaysian environment. Majority of Customers who purchased insurance often misunderstood the principles of Insurance. After they have made the premium payment and no claim was made under their policy, they would constitute the insurance as a "investment" lost to them (paid for the premium but no returns).
So be it themselves or in cohort with their partners in crimes, some would find ways to make a fraudulent insurance claims at the expense of Insurers.
Would you believe that an individual can even chopped their fingers off in order to make a claim out of their PA Insurance in times of financial difficulty?
Have you witnessed people with pre-existing medical ailment, declaring in the proposal that they are in the best of health, taking up medical insurance at the last minute. Then painfully waited 3 months for the waiting period to expire before admitting themselves to a private medical centre for treatment. Medical bills are then presented to the the Insurer to seek reimbursement?
Heard of patients working in liason with the attending physician in charge to alter the medical findings and inflate the cost of treatment?
Some lazy people with monday blues, for no apparent medical ailment, would asked to be admitted to medical centre for observation citing pain in stomach etc and then asked to be discharged from the medical centre few hours later.
Heard of Motor vehicle owners purposely crashed their car into objects then inflate the repair costs. Motor cycle owners even reported their machines stolen when they have just dumped them into the river or sea?
For theft related claims especially personal items like jewelry or watch, customers may not have the original purchase receipts with them anymore. Insurer would require proof of purchase to justify the claim. How then can the customer make an insurance claim. Very simple, just get an old official receipt from friends similar to the items lost and present same to the Insurer.
The list goes on.
Onus is on the Insurer to proof that the claims are fraudulent.
"With fraudulent claims on the rise, the General Insurance Association of Singapore (GIA) was urged by Ms Luz Foo Mei Lan, Executive Director, Insurance, Monetary Authority of Singapore, at GIA's Annual Luncheon to get members to share their individual fraud experiences and explore the possibility of setting up a central database to enhance fraud detection"
In actual fact, making individual fraudulent claims are not uncommon in the malaysian environment. Majority of Customers who purchased insurance often misunderstood the principles of Insurance. After they have made the premium payment and no claim was made under their policy, they would constitute the insurance as a "investment" lost to them (paid for the premium but no returns).
So be it themselves or in cohort with their partners in crimes, some would find ways to make a fraudulent insurance claims at the expense of Insurers.
Would you believe that an individual can even chopped their fingers off in order to make a claim out of their PA Insurance in times of financial difficulty?
Have you witnessed people with pre-existing medical ailment, declaring in the proposal that they are in the best of health, taking up medical insurance at the last minute. Then painfully waited 3 months for the waiting period to expire before admitting themselves to a private medical centre for treatment. Medical bills are then presented to the the Insurer to seek reimbursement?
Heard of patients working in liason with the attending physician in charge to alter the medical findings and inflate the cost of treatment?
Some lazy people with monday blues, for no apparent medical ailment, would asked to be admitted to medical centre for observation citing pain in stomach etc and then asked to be discharged from the medical centre few hours later.
Heard of Motor vehicle owners purposely crashed their car into objects then inflate the repair costs. Motor cycle owners even reported their machines stolen when they have just dumped them into the river or sea?
For theft related claims especially personal items like jewelry or watch, customers may not have the original purchase receipts with them anymore. Insurer would require proof of purchase to justify the claim. How then can the customer make an insurance claim. Very simple, just get an old official receipt from friends similar to the items lost and present same to the Insurer.
The list goes on.
Onus is on the Insurer to proof that the claims are fraudulent.
Thursday, March 24, 2011
India: Insurers reel from underestimated third party auto losses. Read the Malaysia Context
India's non-life insurance industry stands to lose almost three times the profit it made last year because of the need to increase provisions for motor third party insurance claims, reports the Times of India (Source: Asia Insurance Review 10 March 2011).
In the Malaysian insurance environment, the increase provisions for motor claims had long being in place. Losses suffered by General Insurers especially from third party bodili injury and death claims had progressively deteriorated with claims ratios exceeding 200% since 2006.
In 2010, for every ringgit of third party bodily injury and death premiums received, Insurers paid out RM2.82 in claims before factoring in other related costs. The growing gap between premium collected and claims paid out by the industry had contributed to the displacement of third party insurance covers as more Insurers are not able to sustain such business on a financial viable basis.
As a result, some motor vehicle owners have had to purchase their motor policies from the Malaysian Motor Insurance Pool which has seen a sharp increase in the number of policies issued from 128,058 in 2009 from 5,897 in 2007 (The Star 24 March 2011)
For vehicle owners wishing to take up the motor insurance directly with the Insurers, additional premium or an accompanying PA Insurance, sometimes, is required as a pre-requisite to insuring their motor vehicles.
In the Malaysian insurance environment, the increase provisions for motor claims had long being in place. Losses suffered by General Insurers especially from third party bodili injury and death claims had progressively deteriorated with claims ratios exceeding 200% since 2006.
In 2010, for every ringgit of third party bodily injury and death premiums received, Insurers paid out RM2.82 in claims before factoring in other related costs. The growing gap between premium collected and claims paid out by the industry had contributed to the displacement of third party insurance covers as more Insurers are not able to sustain such business on a financial viable basis.
As a result, some motor vehicle owners have had to purchase their motor policies from the Malaysian Motor Insurance Pool which has seen a sharp increase in the number of policies issued from 128,058 in 2009 from 5,897 in 2007 (The Star 24 March 2011)
For vehicle owners wishing to take up the motor insurance directly with the Insurers, additional premium or an accompanying PA Insurance, sometimes, is required as a pre-requisite to insuring their motor vehicles.
Tuesday, March 15, 2011
Latest news on Japan's Earthquake and Tsunami
1.0 Global impact: Historic quake shoves insurers into unprecedented territory
As Japan's Meteorological Agency upgrades the magnitude of the country's biggest recorded earthquake from 8.8 to 9.0, several estimates place global insured losses from last Friday's quake at US$10 billion to US$50 billion while many more insurance industry players demur that it is too early to assess the losses. So far, neither the Japanese government nor the country's insurers have provided provisional estimates of insured losses.
2. Local impact: All eyes on payouts by domestic insurers
Attention is focused on Japanese domestic insurers, for which earthquake insurance claim payments from Friday's devastating quake could exceed 100 billion yen (US$1.2 billion), reportsDow Jones. The estimate is based on the increase in the number of earthquake insurance policyholders in the country since 1995.
3. Nuclear damage: Insurers likely to be spared from liability
Liability costs associated with damage at the quake-hit Fukushima nuclear plant will ultimately be borne by the Japanese government instead of the private insurance market, reports The Wall Street Journal.
4. Lloyd's: London watching Japan closely
The Lloyd's Market Association (LMA) says that it is monitoring closely the effects of the earthquake and tsunami in Japan and adds that it is too early to give any accurate assessment of the likely impact on the Lloyd's market.
5. Cat bonds: Up to US$1.5 bln at stake in quake
Financial investors, in the wake of last Friday's massive earthquake in northeastern Japan, could lose millions in investments in catastrophe bonds that have more than US$1 billion in exposure to Japanese earthquakes, reports Reuters.
Wednesday, March 9, 2011
Asia Pacific: Insurers to invest more in mobile access and online marketing
Asia Insurance Review 8th March 2011 reported
"Advances in mobile devices and online social networks, and their accompanying changes to consumer behaviour, are the top two factors driving investment priorities for insurers in mature Asia Pacific (Apac) economies, says the international consulting firm, Accenture, in a report titled "Distribution in the palm of your hand - The race to mobile distribution".
As a matter of fact, purchasing a product on line is now a norm in the buiness world, what with the modern and advanced technologies in place. For the younger generation of purchasers they have no qualms about making a purchase citing convenience and the many options (like credit card , interest free installment, minimum payment etc) which are available to them. Majority of these people are IT savvy and they can follow the purchase and payment transactions like a duck in the water.
In the insurance sector, however, except for the minority, most are still sceptical about purchasing insurance on line as it would mean exposing their personal details, credit card number,bank account number etc. I, for one, subscribed to this belief. For the older generation of purchasers, they would still prefer the traditional way of purchasing insurance through their trusted agent where personal service or personal touch is assured. Not only that, premium can be owed to agents who may be kind enough to pay the premium in advance free of interest on behalf of the customer.
The old generation of thoughts had to be phased out.eventually. With the advanced technology in mobile phones, the fast growing social network sites and change in consumer behavior, purchasing insurance online will be the order of the day.
"Advances in mobile devices and online social networks, and their accompanying changes to consumer behaviour, are the top two factors driving investment priorities for insurers in mature Asia Pacific (Apac) economies, says the international consulting firm, Accenture, in a report titled "Distribution in the palm of your hand - The race to mobile distribution".
As a matter of fact, purchasing a product on line is now a norm in the buiness world, what with the modern and advanced technologies in place. For the younger generation of purchasers they have no qualms about making a purchase citing convenience and the many options (like credit card , interest free installment, minimum payment etc) which are available to them. Majority of these people are IT savvy and they can follow the purchase and payment transactions like a duck in the water.
In the insurance sector, however, except for the minority, most are still sceptical about purchasing insurance on line as it would mean exposing their personal details, credit card number,bank account number etc. I, for one, subscribed to this belief. For the older generation of purchasers, they would still prefer the traditional way of purchasing insurance through their trusted agent where personal service or personal touch is assured. Not only that, premium can be owed to agents who may be kind enough to pay the premium in advance free of interest on behalf of the customer.
The old generation of thoughts had to be phased out.eventually. With the advanced technology in mobile phones, the fast growing social network sites and change in consumer behavior, purchasing insurance online will be the order of the day.
Tuesday, March 1, 2011
Australia: Global reinsurers reconsider business Down Under
Global reinsurers have taken a "hammering" from billions of dollars of payouts linked to a string of natural disasters in Australia (Flood, Cyclone) and New Zealand (Earthquakes) over the past 18 months, with some likely to reconsider doing business Down Under, reports the Sydney Morning Herald quoting QBE Insurance, Australia's biggest
underwriter.
Asia Insurance Review 1/3/2011
underwriter.
Asia Insurance Review 1/3/2011
Sunday, February 27, 2011
Motorists to pay more for their Insurance Premium
Motorists will need to pay more for their insurance premium from next year under a new framework announced by Bank Negara Malaysia this week (Source: The Star, 26 February 2011).
The increase would be "manageable" as it would be spread over four years with BNM refuting a report in a local daily which stated premium would rise by between 250% and 450%.
Example, citing fugures for certain category, motorcycles with 100cc and below, the annual increase would be between RM1.00 to RM3.50 for Third Party and RM1.00 and RM2.00 for Comprehensive. For Cars 1500cc and below, the annual increase would be RM6.00 to RM 34.00 for Third party and RM7.00 and RM19.00 for Comprehensive. Overall premium paid would depend on factors such as age of vehicle and motorist's history of claims.
The adjustment is necessary as the premium for motor insurance has not been reviewed since 1978 and Insurance Companies have constantly raised the issue of third party motor insurance being unprofitable given low premium which do not commensurate with the high claim costs.
According to BNM, the motor insurance business incurred an estimated annual loss of RM 650 million as at 2009/2010.
Under this new framework and until 2016, when the premium for motor insurance is expected to be liberalised and determined mostly by market forces, motorists can expect faster claims period from an avearge one to five years to six to eighteen months. Is this possible?
The increase would be "manageable" as it would be spread over four years with BNM refuting a report in a local daily which stated premium would rise by between 250% and 450%.
Example, citing fugures for certain category, motorcycles with 100cc and below, the annual increase would be between RM1.00 to RM3.50 for Third Party and RM1.00 and RM2.00 for Comprehensive. For Cars 1500cc and below, the annual increase would be RM6.00 to RM 34.00 for Third party and RM7.00 and RM19.00 for Comprehensive. Overall premium paid would depend on factors such as age of vehicle and motorist's history of claims.
The adjustment is necessary as the premium for motor insurance has not been reviewed since 1978 and Insurance Companies have constantly raised the issue of third party motor insurance being unprofitable given low premium which do not commensurate with the high claim costs.
According to BNM, the motor insurance business incurred an estimated annual loss of RM 650 million as at 2009/2010.
Under this new framework and until 2016, when the premium for motor insurance is expected to be liberalised and determined mostly by market forces, motorists can expect faster claims period from an avearge one to five years to six to eighteen months. Is this possible?
Friday, February 25, 2011
New Zealand: Insured quake losses to hit US$12 bln (updated 3/3/2011)
New Zealand: Swiss Re estimates quake cost at US$800 mln
Global reinsurer, Swiss Re, says that its preliminary estimate of its claims cost from the earthquake in New Zealand on 22 February is about US$800 million, net of retrocession and before tax.
The total insured claims for the insurance sector for the earthquake in New Zealand are estimated to be between US$6 billion to US$12 billion
3/3/2011
Insured losses from Monday's earthquake in Christchurch may reach US$12 billion, said JPMorgan Chase. The disaster is described as New Zealand's deadliest earthquake in eight decades.
Reinsurance rates could rise following NZ quake. New Zealand's deadliest earthquake in eight decades, which took place this week in the country's second largest city of Christchurch, may lead to higher prices for reinsurance in the Asia-Pacific region, reports Bloomberg.
Lucky..Malaysia
Asia Insurance Review
25/2/2011
Global reinsurer, Swiss Re, says that its preliminary estimate of its claims cost from the earthquake in New Zealand on 22 February is about US$800 million, net of retrocession and before tax.
The total insured claims for the insurance sector for the earthquake in New Zealand are estimated to be between US$6 billion to US$12 billion
3/3/2011
Insured losses from Monday's earthquake in Christchurch may reach US$12 billion, said JPMorgan Chase. The disaster is described as New Zealand's deadliest earthquake in eight decades.
Reinsurance rates could rise following NZ quake. New Zealand's deadliest earthquake in eight decades, which took place this week in the country's second largest city of Christchurch, may lead to higher prices for reinsurance in the Asia-Pacific region, reports Bloomberg.
Lucky..Malaysia
Asia Insurance Review
25/2/2011
Tuesday, February 22, 2011
Seminar on Fire Insurance Biz: Compete Competitively
A full day seminar was conducted by Steven Cheah at Concorde Hotel, K.Lumpur on 23rd February 2011. Attended by 350 agents from the Klang Valley.
This is a market orientated insurance based training program aimed at sharing ideas with Agents on how to compete competitively for a larger share of the fire insurance business in line with the rules of the Revised Fire Tariff.
Key topics delivered:
* Perception of Buisness Vs Reality Check
* 10 Reasons why Agents should sell Fire Insurance
* 5 Extra Reasons why Customers should buy from that particular Agent (when there are thousands around)
This is a market orientated insurance based training program aimed at sharing ideas with Agents on how to compete competitively for a larger share of the fire insurance business in line with the rules of the Revised Fire Tariff.* Perception of Buisness Vs Reality Check
* 10 Reasons why Agents should sell Fire Insurance
* 5 Extra Reasons why Customers should buy from that particular Agent (when there are thousands around)
* 15 Options for Agents to compete competitively for a bigger share of the Fire Insurance Business
* Challenge session on the Proposed Fire Insurance Program
Tuesday, February 15, 2011
Malaysia: Labuan scores US$1 bln insurance hattrick
The gross premium written for the insurance business in Labuan International Business and Financial Centre (LIBFC) surpassed US$1 billion in 2010, for the third consecutive year, reports the online edition of the Daily Express newspaper
Asia Insurance Review
15/2/2011
Asia Insurance Review
15/2/2011
Wednesday, February 9, 2011
Bank Negara advice on how to avoid fraud
PETALING JAYA: Bank Negara wants all insurance firms and relevant parties to be more vigilant and take heed of some of its pointers to combat insurance fraud.
The menace, which is in the form of deception or dishonesty for unjustified financial gain, is committed at different points in the transaction by either an insurer, agent, policy owner or third party claimant, the central bank said.
Some examples of fraud include creating a fraudulent claim, overstating the amount of losses, misrepresenting facts to receive payment and bogus agents/sale of forged cover notes.
The central bank said some of the pertinent pointers one has to take to protect oneself from insurance fraud are:
> Beware of any unregistered insurance agent offering his services. If in doubt, contact your insurance company or takaful operator or the General Insurance Association of Malaysia (PIAM), the Life Insurance Association of Malaysia (LIAM) or the Malaysia Takaful Association (MTA) to ensure the agent is an authorised one;
> Avoid paying premiums in cash. Choose to pay for premiums by cheque, money order or Internet payment to the insurance company or takaful operator directly;
> Do not sign a blank insurance or takaful proposal form, or insurance/ takaful claim form;
> Be suspicious if the benefits and price of insurance or takaful products offered by an agent seemed suspiciously favourable compared to products offered by other insurance companies or takaful operators;
> If you meet with an accident, be careful of strangers who offer quick cash or urge you to deal with specific workshops, medical clinic or law firm. They could be part of a fraud syndicate;
> Insist on detailed bills for repairs and medical services rendered and check for accuracy; and
> If you are being defrauded, have been or are being persuaded to take part in a fraud, contact your insurance company or takaful operator, PIAM/ LIAM/ MTA or the police.
The Star 15th January 2011
The menace, which is in the form of deception or dishonesty for unjustified financial gain, is committed at different points in the transaction by either an insurer, agent, policy owner or third party claimant, the central bank said.
Some examples of fraud include creating a fraudulent claim, overstating the amount of losses, misrepresenting facts to receive payment and bogus agents/sale of forged cover notes.
The central bank said some of the pertinent pointers one has to take to protect oneself from insurance fraud are:
> Beware of any unregistered insurance agent offering his services. If in doubt, contact your insurance company or takaful operator or the General Insurance Association of Malaysia (PIAM), the Life Insurance Association of Malaysia (LIAM) or the Malaysia Takaful Association (MTA) to ensure the agent is an authorised one;
> Avoid paying premiums in cash. Choose to pay for premiums by cheque, money order or Internet payment to the insurance company or takaful operator directly;
> Do not sign a blank insurance or takaful proposal form, or insurance/ takaful claim form;
> Be suspicious if the benefits and price of insurance or takaful products offered by an agent seemed suspiciously favourable compared to products offered by other insurance companies or takaful operators;
> If you meet with an accident, be careful of strangers who offer quick cash or urge you to deal with specific workshops, medical clinic or law firm. They could be part of a fraud syndicate;
> Insist on detailed bills for repairs and medical services rendered and check for accuracy; and
> If you are being defrauded, have been or are being persuaded to take part in a fraud, contact your insurance company or takaful operator, PIAM/ LIAM/ MTA or the police.
The Star 15th January 2011
Tuesday, February 8, 2011
Inhouse anti-fraud units scrutinise claims
Petaling Jaya: Bleeding from staggering claims, most insurance firms have now set up special anti-fraud units comprising specialised investigators to scrutinise claims.
Prudential Assurance Malaysia Bhd chief executive officer Charlie E. Oropeza said suspicious cases or those that involved large payouts were referred to the officers from the units who were well-trained to detect wrongdoings.
“The company will then make an informed decision on whether to pay the claims based on the findings from our detailed investigations.
“But having said that, it is important for people to know that as an insurance company, we are here to pay claims and will do it in a fair and equitable manner,” he said.
Oropeza said clients would ultimately have to pay expensive premiums if they made frequent or large claims.
On the extent of insurance fraud at the company level, he said: “We are unable to disclose the details but rest assured that it is within our expected tolerance level.”
He said Prudential also provided training and held regular meetings with its agency force to weed out fraudulent claims.
“The agents are our first line of defence and have a better insight into cases,’’ he said.
Without disclosing the quantum of fraudulent claims, Great Eastern Life Assurance Malaysia Bhd senior vice-president and head of risk management/compliance Cheong Soo Ching said the company had in place “robust” mechanisms to fight fraud and these were constantly refined and fortified.
“We also have an experienced team comprising well-trained professionals to handle fraud matters. They are entrusted with monitoring work and to detect any unusual trends or patterns,” he said.
To keep abreast of fraud risk developments, Cheong said Great Eastern constantly updated its staff and agents with risk awareness programmes.
“We also initiate discussions with them on how to improve on measures to check fraud. Regular analyses of cases are also carried out,” he said.
Lonpac Insurance Bhd adviser Tee Choon Yeow said: “Occasionally, we do come across fraud cases where claims are inflated or falsified. However, such attempts are under control because we have in place an efficient claim evaluation unit.”
The Star 15th January 2011
Prudential Assurance Malaysia Bhd chief executive officer Charlie E. Oropeza said suspicious cases or those that involved large payouts were referred to the officers from the units who were well-trained to detect wrongdoings.
“The company will then make an informed decision on whether to pay the claims based on the findings from our detailed investigations.
“But having said that, it is important for people to know that as an insurance company, we are here to pay claims and will do it in a fair and equitable manner,” he said.
Oropeza said clients would ultimately have to pay expensive premiums if they made frequent or large claims.
On the extent of insurance fraud at the company level, he said: “We are unable to disclose the details but rest assured that it is within our expected tolerance level.”
He said Prudential also provided training and held regular meetings with its agency force to weed out fraudulent claims.
“The agents are our first line of defence and have a better insight into cases,’’ he said.
Without disclosing the quantum of fraudulent claims, Great Eastern Life Assurance Malaysia Bhd senior vice-president and head of risk management/compliance Cheong Soo Ching said the company had in place “robust” mechanisms to fight fraud and these were constantly refined and fortified.
“We also have an experienced team comprising well-trained professionals to handle fraud matters. They are entrusted with monitoring work and to detect any unusual trends or patterns,” he said.
To keep abreast of fraud risk developments, Cheong said Great Eastern constantly updated its staff and agents with risk awareness programmes.
“We also initiate discussions with them on how to improve on measures to check fraud. Regular analyses of cases are also carried out,” he said.
Lonpac Insurance Bhd adviser Tee Choon Yeow said: “Occasionally, we do come across fraud cases where claims are inflated or falsified. However, such attempts are under control because we have in place an efficient claim evaluation unit.”
The Star 15th January 2011
Monday, February 7, 2011
Pros hired to detect fraud
PETALING JAYA: Concerned with the increase in fraudulent claims, insurance firms are now recruiting engineers, surveyors and accountants to work as loss adjusters.
Association of Malaysian Loss Adjusters (AMLA) chairman Lee Thim Fook said these professionals were vital in checking the wrongdoings in the industry.
“We need the expertise of each of these professionals as insurance claims encompass a wide area of interest and we have to get the right people for the job,” he said.
Lee said he was unable to provide specific details and data on the extent of the problem in Malaysia, but judging by the cases globally, fraudulent cases had been on the rise over the past few years.
He said other than hiring engineers, surveyors and accountants, other specialists in other areas were also recruited as adjusters
“Each of them have specific skills which are vital in detecting fraud claims
“We also collaborate with related bodies like the Malaysian Insurance Institute to conduct training for adjusters,” he said.
On top of that, Lee said conferences pertaining to fraud were organised regularly to keep adjusters abreast with current trends.
He noted that many claimants would stop pursuing their claims once insurers repudiated their claims.
“Insurance fraud which can be broadly classified as ‘planned insurance fraud’ and ‘opportunistic insurance fraud’ is a serious matter and is punishable under the Penal Code,” he said.
The Star 15th January 2011
Association of Malaysian Loss Adjusters (AMLA) chairman Lee Thim Fook said these professionals were vital in checking the wrongdoings in the industry.
“We need the expertise of each of these professionals as insurance claims encompass a wide area of interest and we have to get the right people for the job,” he said.
Lee said he was unable to provide specific details and data on the extent of the problem in Malaysia, but judging by the cases globally, fraudulent cases had been on the rise over the past few years.
He said other than hiring engineers, surveyors and accountants, other specialists in other areas were also recruited as adjusters
“Each of them have specific skills which are vital in detecting fraud claims
“We also collaborate with related bodies like the Malaysian Insurance Institute to conduct training for adjusters,” he said.
On top of that, Lee said conferences pertaining to fraud were organised regularly to keep adjusters abreast with current trends.
He noted that many claimants would stop pursuing their claims once insurers repudiated their claims.
“Insurance fraud which can be broadly classified as ‘planned insurance fraud’ and ‘opportunistic insurance fraud’ is a serious matter and is punishable under the Penal Code,” he said.
The Star 15th January 2011
Friday, February 4, 2011
Updates on the massive Flood in Australia (as at 5th February 2011)
Australia: Overall economic losses from floods could reach between US$10 bln and US$20 bln
Australia's recent flooding catastrophe has become the country's costliest natural disaster in history with A$5.6 billion (US$5.67 billion) in economic damages. The total cost of repairing and rebuilding could potentially push the overall economic losses between A$10 billion and A$20 billion, according to Aon Benfield's latest Monthly Cat Recap report.
The Queensland government failed to take out disaster insurance
reports The Australian. It is the only major state not to have insured public assets with a comprehensive disaster cover obtained on the international reinsurance market.
Asia Insurance Review
5th February 2011
Australia: Non-life insurers present wishlist for flood action
The Insurance Council of Australia (ICA), which represents general insurers Down Under, has released a 10-point plan to tackle future disasters, with establishing a standard definition of flood as the top priority, even as Australian Prime Minister Julia Gillard proposed a one-off flood levy to help pay for the cost of flood
reconstruction.
Asia Insurance Review
31st January 2011
Australia: Insurers argue that rebuilding levy will make insurance more expensive
Insurers in Australia are up in arms against a government proposal to introduce a levy nationwide to help fund the cost of rebuilding after natural disasters, arguing that such a levy will push up premiums, reports the Sydney Morning Herald. The federal government is considering the idea to pay for the clean-up of catastrophic events like Queensland's floods.
Asia Insurance Review
27th January 2011
Australia: Obstacles hamper reaching agreement on a common definition of flood
Despite public calls for a standard definition of floods in insurance contracts amidst the current flood devastation in Australia, adopting a common definition would not resolve problems for insurers or consumers, reports the Herald Sun quotingMr Chris Groth, Research Manager of financial research and ratings company Canstar Cannex.
Asia Insurance Review
26th January2011
Australia: Flood claims exceed US$1 bln
Insurers in Australia have received 31,300 claims for about A$1.2 billion (US$1.19 billion) as a result of the devastating flooding in the country caused by driving rain and overflowing rivers, reports Bloomberg. According to Mr Rob Whelan, the Chief Executive Officer of the Insurance Council of Australia, who provided the figures, about three-quarters of the claims, which do not include industrial and mining damage, are for property and 24% are for motor vehicles.
Asia Insurance Review
25th January 2011
Australia: Global reinsurer airs position on payouts for flood victims
Munich Re, the world's biggest reinsurer, has said that people who do not have flood coverage cannot be expected to be compensated for losses arising from the devastating floods which have hit Queensland and Victoria, reports the Australian Broadcasting Corporation (ABC).
Asia Insurance Review
21st January 2011
Australia: Premiums to rise in wake of flood catastrophe
Some of the world's biggest reinsurers are expected to review their risk assessment of Australia in the wake of the massive floods sweeping through large swathes of the country, reports the Sydney Morning Herald. Demands by reinsurers for an additional risk premium could hit home owners or businesses hard, because reinsurance is one of the mainfactors in how domestic insurers price policies.
Asia Insurance Review 20th Jan 2011
Australia: Govt considering flood levy to fund rebuilding
The Australian government is considering a flood levy to be paid by taxpayers to help fund large-scale flood rebuilding while preserving the Budget's return to surplus in 2012-2013, reports The Australian newspaper. Any levy would likely take the form of an addition to the 1.5% Medicare levy, which raises A$10 billion (US$9.9 billion) a year.
Asia Insurance Review 19th Jan 2011
Australia: Floods to cost global insurance industry US$6 bln
The Queensland floods may cost insurers and reinsurers worldwide as much as US$6 billion in what might be Australia's costliest disaster in history. Insured losses from last week's deluge in and around the capital Brisbane may be as high as US$4 billion, while damage from floods further north late last year may cost US$2 billion, reports Bloomberg citing Dr Milan Simic, Managing Director of catastrophe modeler AIR Worldwide
Asia Insurance Review 17/1/2011
Australia: Major insurers buffered from floods by catastrophe XL reinsurance
Despite the negative impact of the massive flooding in Australia on local insurers' profits, the rating agency, Moody's, has said that this is not a material credit event because the insurers have established provisions for catastrophic events and maintained extensive reinsurance programmes. Furthermore, flood coverage mostly relates to personal lines while high risk and high value exposures are excluded or have limited coverage under commercial policies. Separately, Fitch Ratings says that catastrophe reinsurance offers reasonable protection to Australia's major non-life insurers against floods in Queensland and Northern New South Wales.
Asia Insurance Review 13 Jan 2011
Australia's recent flooding catastrophe has become the country's costliest natural disaster in history with A$5.6 billion (US$5.67 billion) in economic damages. The total cost of repairing and rebuilding could potentially push the overall economic losses between A$10 billion and A$20 billion, according to Aon Benfield's latest Monthly Cat Recap report.
The Queensland government failed to take out disaster insurance
reports The Australian. It is the only major state not to have insured public assets with a comprehensive disaster cover obtained on the international reinsurance market.
Asia Insurance Review
5th February 2011
Australia: Non-life insurers present wishlist for flood action
The Insurance Council of Australia (ICA), which represents general insurers Down Under, has released a 10-point plan to tackle future disasters, with establishing a standard definition of flood as the top priority, even as Australian Prime Minister Julia Gillard proposed a one-off flood levy to help pay for the cost of flood
reconstruction.
Asia Insurance Review
31st January 2011
Australia: Insurers argue that rebuilding levy will make insurance more expensive
Insurers in Australia are up in arms against a government proposal to introduce a levy nationwide to help fund the cost of rebuilding after natural disasters, arguing that such a levy will push up premiums, reports the Sydney Morning Herald. The federal government is considering the idea to pay for the clean-up of catastrophic events like Queensland's floods.
Asia Insurance Review
27th January 2011
Australia: Obstacles hamper reaching agreement on a common definition of flood
Despite public calls for a standard definition of floods in insurance contracts amidst the current flood devastation in Australia, adopting a common definition would not resolve problems for insurers or consumers, reports the Herald Sun quotingMr Chris Groth, Research Manager of financial research and ratings company Canstar Cannex.
Asia Insurance Review
26th January2011
Australia: Flood claims exceed US$1 bln
Insurers in Australia have received 31,300 claims for about A$1.2 billion (US$1.19 billion) as a result of the devastating flooding in the country caused by driving rain and overflowing rivers, reports Bloomberg. According to Mr Rob Whelan, the Chief Executive Officer of the Insurance Council of Australia, who provided the figures, about three-quarters of the claims, which do not include industrial and mining damage, are for property and 24% are for motor vehicles.
Asia Insurance Review
25th January 2011
Australia: Global reinsurer airs position on payouts for flood victims
Munich Re, the world's biggest reinsurer, has said that people who do not have flood coverage cannot be expected to be compensated for losses arising from the devastating floods which have hit Queensland and Victoria, reports the Australian Broadcasting Corporation (ABC).
Asia Insurance Review
21st January 2011
Australia: Premiums to rise in wake of flood catastrophe
Some of the world's biggest reinsurers are expected to review their risk assessment of Australia in the wake of the massive floods sweeping through large swathes of the country, reports the Sydney Morning Herald. Demands by reinsurers for an additional risk premium could hit home owners or businesses hard, because reinsurance is one of the mainfactors in how domestic insurers price policies.
Asia Insurance Review 20th Jan 2011
Australia: Govt considering flood levy to fund rebuilding
The Australian government is considering a flood levy to be paid by taxpayers to help fund large-scale flood rebuilding while preserving the Budget's return to surplus in 2012-2013, reports The Australian newspaper. Any levy would likely take the form of an addition to the 1.5% Medicare levy, which raises A$10 billion (US$9.9 billion) a year.
Asia Insurance Review 19th Jan 2011
Australia: Floods to cost global insurance industry US$6 bln
The Queensland floods may cost insurers and reinsurers worldwide as much as US$6 billion in what might be Australia's costliest disaster in history. Insured losses from last week's deluge in and around the capital Brisbane may be as high as US$4 billion, while damage from floods further north late last year may cost US$2 billion, reports Bloomberg citing Dr Milan Simic, Managing Director of catastrophe modeler AIR Worldwide
Asia Insurance Review 17/1/2011
Australia: Major insurers buffered from floods by catastrophe XL reinsurance
Despite the negative impact of the massive flooding in Australia on local insurers' profits, the rating agency, Moody's, has said that this is not a material credit event because the insurers have established provisions for catastrophic events and maintained extensive reinsurance programmes. Furthermore, flood coverage mostly relates to personal lines while high risk and high value exposures are excluded or have limited coverage under commercial policies. Separately, Fitch Ratings says that catastrophe reinsurance offers reasonable protection to Australia's major non-life insurers against floods in Queensland and Northern New South Wales.
Asia Insurance Review 13 Jan 2011
Wednesday, February 2, 2011
"Weather" Insurance
Japan: Insurer introduces country's first-ever rain cover
According to Asia Insurance Review 2nd February 2011 edition, Japan Insurance Co has begun to sell weather insurance, a product that reimburses the full value of travel costs if it rains or snows more than a certain amount at a customer's domestic destination, reports The Yomiuri Shimbun.
Sounds interesting. Perhaps the Insurers in Malaysia should also consider granting similar protection against exceptional bad traffic jams that may caused customers to miss flights, appointments etc resulting in loss of business, unnecessary expenses incurred etc?
According to Asia Insurance Review 2nd February 2011 edition, Japan Insurance Co has begun to sell weather insurance, a product that reimburses the full value of travel costs if it rains or snows more than a certain amount at a customer's domestic destination, reports The Yomiuri Shimbun.
Sounds interesting. Perhaps the Insurers in Malaysia should also consider granting similar protection against exceptional bad traffic jams that may caused customers to miss flights, appointments etc resulting in loss of business, unnecessary expenses incurred etc?
Friday, January 21, 2011
Insurance News across Asia
Bangladesh: 400 applications received to set up new insurance companies
Bangladesh's Finance Ministry has been swamped with hundreds of applications to launch new private insurance companies in the country, reports the Financial Express. Among the applications, 90% are for life insurance companies and the rest for non-life.
South Korea: Unclaimed insurance sums approaching US$360 mln
The amount of insurance sums left unclaimed by customers in South Korea is reaching 400 billion won (US$358.5 million), reports Arirang News citing the General Insurance Association of Korea.
India: Temples turn to insurance
Cash-rich and gold-laden temples across India are seeking somewhat less divine intervention to protect their riches: From priests, pilgrims, ornaments, buildings, elephants and even cattle inside temple premises, the insured list is quite extensive, reports the Business Standard.
Japan: Pet insurance gaining popularity
More pet owners in Japan are taking out pet insurance to mitigate the expenses of caring for their pets which are living longer these days thanks to advances in medical technology, reports Kyodo News International.
Asia Insurance Review 21st January 2011
Bangladesh's Finance Ministry has been swamped with hundreds of applications to launch new private insurance companies in the country, reports the Financial Express. Among the applications, 90% are for life insurance companies and the rest for non-life.
South Korea: Unclaimed insurance sums approaching US$360 mln
The amount of insurance sums left unclaimed by customers in South Korea is reaching 400 billion won (US$358.5 million), reports Arirang News citing the General Insurance Association of Korea.
India: Temples turn to insurance
Cash-rich and gold-laden temples across India are seeking somewhat less divine intervention to protect their riches: From priests, pilgrims, ornaments, buildings, elephants and even cattle inside temple premises, the insured list is quite extensive, reports the Business Standard.
Japan: Pet insurance gaining popularity
More pet owners in Japan are taking out pet insurance to mitigate the expenses of caring for their pets which are living longer these days thanks to advances in medical technology, reports Kyodo News International.
Asia Insurance Review 21st January 2011
Thursday, January 20, 2011
To the Members/Followers of my blog
Dear Valued Members
Thank you for registering as members/followers of my blog.
To the newest members ie Glory, Sonny Voon, Liew Wai Hoong, Felix and Benny Ong, welcome on board. You people really practice what I called "Action speaks louder than words"
Feel free to post your comments in my blog or if you have any topics of interest that you may want to post and share it with members/ readers of my blog, you are most welcome to do so.
Warmest regards from
Steven Cheah
Thank you for registering as members/followers of my blog.
To the newest members ie Glory, Sonny Voon, Liew Wai Hoong, Felix and Benny Ong, welcome on board. You people really practice what I called "Action speaks louder than words"
Feel free to post your comments in my blog or if you have any topics of interest that you may want to post and share it with members/ readers of my blog, you are most welcome to do so.
Warmest regards from
Steven Cheah
Friday, January 14, 2011
Insurance Fraud costing Insurers hundreds of Millions
Information sourced from The Star, 14 Jan 2011 and summarized below for your reading pleasure.
Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims.
The problem is widespread and insurance companies have lost hundreds of millions of ringgit, forcing them to push up the premium rates and pass on the costs to other consumers.
Records from the Federal Police show that fraudulent claims have been increasing in the past few years with Selangor, Kuala Lumpur and Johore having the highest number of cases.
In 2007, a total of 38 cases involving RM4.1 million in losses were reported. However 2008, saw a slight drop in the number of cases with Selangor topping the states with RM1.3 million. The number of fraud cases was at its highest in 2009, with 65 cases involving RM5.9 million in losses. 2010 figures until August stood at RM 1.1 million with 50 cases reported.
Although the police put the amount involved at about RM 12million in the past 4 years, the industry estimates that bogus claims cost Insurers about RM500 million a year.
The claims come in all shapes and sizes:
Third party claims frauds are committed by reporting non existent accident where police report, hospital records, specialist reports and other documents - all contained false information.
Life/PA insurance fraud involves the use of false medical cards, forged / faked death and burial certificates, marriage certificates, police reports and other relevant documents.
Fire claims involve mostly industrial companies. Store owners whose businesses are on the decline or those with outdated goods have been found to have set their premises ablaze.Claim is said to be higher than the actual amount lost.
The last and most common claim involves car theft. There were known cases of people who were heavily in debt, resorted to working with syndicates by reporting that their vehicles had been stolen.
A word of caution from the author:
Making a fraudulent claim is a serious offence and is punishable under the Penal Code.
Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims.
The problem is widespread and insurance companies have lost hundreds of millions of ringgit, forcing them to push up the premium rates and pass on the costs to other consumers.
Records from the Federal Police show that fraudulent claims have been increasing in the past few years with Selangor, Kuala Lumpur and Johore having the highest number of cases.
In 2007, a total of 38 cases involving RM4.1 million in losses were reported. However 2008, saw a slight drop in the number of cases with Selangor topping the states with RM1.3 million. The number of fraud cases was at its highest in 2009, with 65 cases involving RM5.9 million in losses. 2010 figures until August stood at RM 1.1 million with 50 cases reported.
Although the police put the amount involved at about RM 12million in the past 4 years, the industry estimates that bogus claims cost Insurers about RM500 million a year.
The claims come in all shapes and sizes:
Third party claims frauds are committed by reporting non existent accident where police report, hospital records, specialist reports and other documents - all contained false information.
Life/PA insurance fraud involves the use of false medical cards, forged / faked death and burial certificates, marriage certificates, police reports and other relevant documents.
Fire claims involve mostly industrial companies. Store owners whose businesses are on the decline or those with outdated goods have been found to have set their premises ablaze.Claim is said to be higher than the actual amount lost.
The last and most common claim involves car theft. There were known cases of people who were heavily in debt, resorted to working with syndicates by reporting that their vehicles had been stolen.
A word of caution from the author:
Making a fraudulent claim is a serious offence and is punishable under the Penal Code.
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