- More than RM130 million in insurance premiums from the Extended Warranty Programme (EWP) for Malaysian-made cars like Proton and Perodua flows out of Malaysia annually. Most of this is ceded to an American reinsurance company.
- Allianz Insurance has become the lead insurer for the EWP, taking over a major percentage in 2009. It cedes 90% of the risk to the American reinsurer.
- There are concerns that allowing such a large outflow of premiums goes against retaining risk and capital locally, especially during the current financial situation. Bank Negara Malaysia's regulations are questioned.
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Original Title
thesun 2009-04-02 page04 rm130m outflow in insurance premiums via ewp
- More than RM130 million in insurance premiums from the Extended Warranty Programme (EWP) for Malaysian-made cars like Proton and Perodua flows out of Malaysia annually. Most of this is ceded to an American reinsurance company.
- Allianz Insurance has become the lead insurer for the EWP, taking over a major percentage in 2009. It cedes 90% of the risk to the American reinsurer.
- There are concerns that allowing such a large outflow of premiums goes against retaining risk and capital locally, especially during the current financial situation. Bank Negara Malaysia's regulations are questioned.
- More than RM130 million in insurance premiums from the Extended Warranty Programme (EWP) for Malaysian-made cars like Proton and Perodua flows out of Malaysia annually. Most of this is ceded to an American reinsurance company.
- Allianz Insurance has become the lead insurer for the EWP, taking over a major percentage in 2009. It cedes 90% of the risk to the American reinsurer.
- There are concerns that allowing such a large outflow of premiums goes against retaining risk and capital locally, especially during the current financial situation. Bank Negara Malaysia's regulations are questioned.
by Karen Arukesamy The source said a check with reached for comment on the mat- Negara Malaysia’s regulations and newsdesk@thesundaily.com senior managers and directors of ter. risk management framework in insurance companies showed that A detailed chart provided by the particular.” PETALING JAYA: More than the EWP did not require overseas industry source showed that Pro- “Our company’s main focus RM130 million in insurance pre- reinsurance as there is ample local ton’s share of the EWP premium this year remains the customer, miums flows out of the country expertise and acceptability in this is RM65 million annually, and and we are working towards annually under the Extended area. Perodua at least RM70 million. delivering excellence in all prod- Warranty Programme (EWP) for The source said that just like “With immediate effect from ucts, operations, processes and Malaysian-made cars. all Labuan-registered companies, 2009, Allianz Insurance has taken behaviours. According to sources, Allianz Allianz marketing/sales offices are over a major percentage of the “This is done through the One General Insurance Company (M) based in Kuala Lumpur. insurance share. They have Allianz initiative, which will ena- Berhad, a locally registered compa- “With a big multinational com- become the lead insurer for the ble us to gear the operations of ny, is the current lead EWP insurer pany like Allianz doing this busi- EWP,” the source said, indicating all our group companies towards of Proton and Perodua cars. ness, the reinsurance percentage a near monopoly in the business. servicing our customers to their The company has arranged for has increased to 90%. Does this Allianz Insurance chief exec- satisfaction,” Ng said. all co-insurers to cede 90% of risk make sense? What happened to utive officer Ng Hang Ming, in an “Our goal is to increase the to American-owned reinsurance local retention?” an industry email interview yesterday, said: number of new and retained cus- company Virginia Surety Ltd. source asked. “We are neither divulging informa- tomers because of our focus on “Virginia Surety is a reinsurance “The estimated yearly insur- tion on any customer relationship, customer service excellence.” company writing only extended ance premium for EWP from Pro- nor on reinsurance and co-insur- He said that as part of an inter- warranty insurance registered in ton and Perodua amounts to more ance arrangements. national group, Allianz Malaysia Labuan and premiums earned than RM130 million. Does it make “We can say, however, that all has access to best practices in here are being remitted back to sense to allow this outflow during our relationships are strictly in underwriting, claims, investment, the States,” a source told theSun the current financial meltdown?” line with the legal framework in IT and relevant operational proc- recently. Bank Negara could not be Malaysia in general, and Bank esses.
Hemananthani Sivanandam at the Dewan Negara yesterday
Tailor-made 49% jump in dengue cases
future for THIRTY-FIVE people have died from dengue fever this year, Deputy “The level of awareness of these diseases among Malaysians is high. munication for Behavioural Impact (Combi) to encourage public partici-
prisoner Mamat Health Minister Datuk Dr Abdul Latiff
Ahmad said. The figure, as of March 21, regis- But when it comes to compliance with preventive measures, people are still neglectful,” Abdul Latiff said. pation in the fight against dengue. “To date, we have had 11,892 vol- unteers at 585 locations to implement ters a 49% jump from the correspond- “According to the National Health Combi. The number of dengue cases KOTA BARU: Mamat (not his real name), who will ing period last year, he said. Morbidity Survey III, 89% of Malay- in some 84% of locations where the be released from the Pengkalan Chepa prison here in Abdul Latiff said 12,933 dengue sians know about dengue and how it programme was implemented has 22 days, has a more or less tailor-made future ahead cases were reported this year com- spreads, while 79% can identify aedes reduced significantly.” of him. pared with 8,666 over the same breeding grounds in their homes. To Heng Seai Kie’s supplementary The 34-year-old has been presented with a sewing period last year, 62% of which were “However, it is disappointing that question on whether allegations that machine to use the skill he developed during the six in the Klang Valley and Selangor. only 14% take the initiative to destroy the dengue and chikungunya situa- years he has been in prison, in addition to his good A total of 1,071 cases of chikun- mosquito breeding grounds,” he said tions in areas with PKR representa- conduct. gunya fever were reported as of in reply to a question from Datuk Yip tives were more serious, he replied: Pengkalan Chepa prison director Mohd Rosidek March 21, but the number has eased, Kum Fook. “That’s not true. Mosquitoes don’t Musa said the Kelantan Justices of the Peace Council with between 20 and 40 cases regis- Abdul Latiff said the ministry had choose who they want to bite and had donated the machine to Mamat. tered weekly. introduced programmes such as Com- from which (political) party.” “This will enable Mamat to set up a tailor shop Conficker to practise the skill he acquired at workshops he worm digs attended in prison,” he told reporters after Mamat received the machine from Datin Rapiah Mat Zin, who represented the council. in around the world No special IPO for minorities Mamat said he was grateful for the gift which pg 9 THE government has no plan to initiate and entrepreneurship development. for bumiputras and why listed IPO share would enable him to start life anew. special Initial Public Offerings (IPO) for These programmes will help everyone prices were higher than what was The sixth of 13 siblings learned to sew three minority groups, Deputy Finance Minis- including minorities improve their stand- offered, Kong said companies that have months after he was sent to prison on April 28, 2003, ter Datuk Kong Cho Ha said. ard of living,” Kong said. IPOs still have specific allocations for and has sewn a variety of clothing including uniforms Replying to a question from Datuk He said these initiatives would bumiputras managed by the Interna- according to customer needs. – Bernama Daljit Singh Dalliwat, he said the gov- increase opportunities to enable minor- tional Trade and Industry Ministry. ernment was, through various mecha- ity groups to participate in the develop- He said market forces, supply nisms, constantly trying to improve the ment of the economy as well as own and demand determine the prices of level of competitiveness among minority equity in the corporate sector. IPO shares. Where previously, IPO groups. To a supplementary question from shares were not listed in Bursa Mal- “This includes fair educational Ahamat @ Ahamad Yusopon on whether aysia, prices were determined by the opportunities, unit trusts, skills training there were still specific IPO allocations appraiser.
On March 12, the department seized 612 taxi permits may
alcoholic drinks and cigarettes worth briefs RM162,000 with RM385,500 in unpaid duties in Kampung Kepayang, Simpang be revoked PUTRAJAYA: The Commercial Vehicle Pulai near here and arrested two peo- Licensing Board (CVLB) will revoke or ple aged 30 and 40. – Bernama suspend 612 taxi permits held by indi- Perak Customs seizes viduals or companies for committing RM5.5m in contraband RM13.63m for Gaza various public transport offences. Entrepreneur and Cooperatives IPOH: The Perak Customs Department AS OF March 16, the Gaza humani- Development Minister Datuk Noh Omar seized contraband worth RM1.7 million tarian fund has received RM13.63 said CVLB is waiting for the list of errant with RM3.8 million in unpaid duties and million from the public, Deputy permit holders from the Road Transport arrested two drivers in the first three Foreign Minister Datuk Abdul Department (RTD) before issuing show- months of the year, its director Dzulkur- Rahim Bakri said in a reply to Datuk cause letters . nain Abdul Rahman said. Wira Syed Ali Tan Sri Syed Abbas “We will give them 14 days to reply He said the seizures included smug- Alhabshee. and if found guilty, the permits will be gled firecrackers and fireworks worth He said that when the offensive revoked or suspended without warn- RM94,000 with RM61,000 in unpaid on Gaza had begun, the government ing,” he told reporters after witness- duties recovered from a lorry yesterday. had immediately channelled US$1 ing the signing of a memorandum of The driver, who abandoned the lorry million (RM3.7 million) through agreement (MOA) between Koperasi at the exit road after the south-bound Mercy Malaysia. Integrasi Nasional Selangor Berhad Slim River Toll Plaza, escaped with a ve- On March 19, RM10.3 million was (Kinseb) and the Johor Biotechnology hicle driven by an accomplice, Dzulkur- channelled to 13 non-governmen- and Biodiversity Corporation (J-Biotech) nain told reporters here yesterday. tal organisations in Malaysia and yesterday. Last Wednesday, he said the depart- RM250,000 to Unicef for the imple- RTD enforcement director Salim ment detained the drivers of three mentation of humanitarian projects Parlan said recently, an operation in cars for smuggling 24,000 packets of “The aid distributed to Unicef is the Klang Valley found that 612 of 627 kretek cigarettes worth RM40,000 with for the continuity and development taxis checked had committed various RM138,000 in unpaid duties in Teluk Intan of the Palestinian children,” Abdul offences causing much inconvenience and Sitiawan. The drivers fled the scene. Rahim said. to passengers. – Bernama