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).
Saturday, August 6, 2011
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
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