CHAPTER 9: ENTREPRENUER

OPPORTUNITY
ENTREPRENEURIAL OPPORTUNITY

 The insurance business has received a demand from day to day. The property, liability
or life is dependent upon insurance.
 Insurance is to ensure any future losses could be reduced effectively and reduce fear
and worry among the insured.
 Currently, the number of insurance companies keeps increasing to fulfil the demand.
About 22 insurance and takaful companies are listed under Bank Negara.
 Therefore, it is shown that the entrepreneurial opportunity can be implicit as the
chances of fulfilling the consumer demand and meeting the feasibility of satisfying the
requested product or service.
The insurance industry showed a good remarkable towards the gross domestic product (GDP). In
strengthening this sector, it received support from brokers, reinsurance, financial institutions (banks),
and other service specialists. This support showed a positive drive for the insurance companies
towards having magnificent management and financial stability.

Below are the definition relating to insurance sector and support systems:

• Insurance companies can be considered important as financial advisors since they safeguard the
financial stability of households, firms and life by ensuring their risks.

• Bancassurance can be defined as two collaborations between banks and insurers to distribute insurance
products to the bank customers. The most known bancassurance in Malaysia such as Etiqa Takaful. The
insurance company benefits from increased sales and a broader client base without expanding its
sales force.

• Reinsurance: is a contractual arrangement under which one insurance company, called the primary
insurer, ceding company or reinsured, transfers to another insurance company, known as the
reinsurer, all or part of one or more risks that the primary insurer has assumed under its insurance
contracts.
SERVICE SPECIALISTS
Marine &
Loss Loss
Engineers Cargo
adjusters assessors
surveyor
Engineering firms are They are specialists They investigate the They are generally
generally retained by appointed by insurer cause and extent of employed by insured
insurance companies to survey ships and the loss and report when it is difficult to
to report on risks or cargoes that have been their findings and assess the extent of the
claims on boilers, damaged and to report recommendations to loss. He is specialist in
pressure vessels, lifts, on the cause and the insurer who would calculating loss
cranes etc. extent of loss. then decide whether settlement.
the loss is covered and
if so, the amount of
compensation
required.
THE CHANNEL STRUCTURE OF THE INSURANCE INDUSTRY
ROLES OF INTERMEDIARIES IN CLAIM SETTLEMENT
PROCEDURE

✓ Claim notification

✓ Communication of insurer ‘s and insured’s position

✓ Claim settlement

✓ Help with claim document

✓ Claim negotiating or broking

✓ Recommendations to the insured in the event of a claim dispute

✓ Claim review

✓ Recording and monitoring the claim

✓ Funding the claim


List of Insurance and
Takaful Operator
Source: Bank Negara Malaysia
• AIA General Berhad
• AIG Malaysia Insurance Berhad
• AXA Affin General Insurance Berhad
• Allianz General Insurance Company (Malaysia) Berhad
• AmGeneral Insurance Berhad
• Berjaya Sompo Insurance Berhad
• Chubb Insurance Malaysia Berhad
• Danajamin Nasional Berhad
• Etiqa General Insurance Berhad
• Great Eastern General Insurance (Malaysia) Berhad
• Liberty Insurance Berhad
• Lonpac Insurance Berhad
• MPI Generali Insurans Berhad
• MSIG Insurance (Malaysia) Bhd
• Pacific & Orient Insurance Co. Berhad
• Pacific Insurance Berhad
• Progressive Insurance Berhad
• QBE Insurance (Malaysia) Berhad
• RHB Insurance Berhad
• Tokio Marine Insurance (Malaysia) Berhad
• Tune Insurance Malaysia Berhad
• Zurich General Insurance Malaysia Berhad
 JOB OPPORTUNITY IN INSURANCE SECTOR

Below is the example of employability opportunity within the insurance industry:

Underwriter:
• Underwriters play an important role in insurance industries. It is because underwriters are responsible for assessing
and evaluating all the proposed risks by the prospective insured.
• It takes consideration in the form of a commission, premium, spread or interest. If they accept all the risk proposed,
they need to calculate a suitable premium to be charge to the prospective insured.
• Underwriters provide consultation regarding risk management issues, determine the available coverage for specific
individuals and continue reviewing existing clients for continued coverage analysis.
Claim executive :
• The importance of claim executive (CE) in handling in the insured claim case management. The claim executive
provides sound advice and judgement and recommends the claim purpose to the manager.
• CE also will prepare a claim recording in terms of the errors notice in the claim audit sheet and then they will analyse
the report and provide suggestions to the manager.
• CE also will prepare a claim recording in term the errors notice in the claim audit sheet and then they will analyse the
report and provide suggestion to the manager. In every single claim proposed, CE will ensure there is no delay in the
service provision and will attend all the claim documents in a timely manner.
Risk Manager : Risk manager refers to those with in-depth knowledge of risk and safety, hazards and claim
management. This role will consult and advise an important aspect of an organisation.
JOB OPPORTUNITY IN INSURANCE SECTOR

AGENT and BROKER are the

middlemen in the insurance market.
AGENT

 Based on the agency agreement, an AGENT is

permitted to solicit:
An agent is a person who represents an insurance - insurance business
company in the performance of any functions covered -collect premiums
by the terms of agency agreement. -issue cover notes on behalf of the insurers.
 BROKER

1. An insurance broker is an agent who acts on behalf of the insured.

2. His job is to advise his clients on the most suitable covers at the most economic cost.

3. Brokers are expected to have in-depth knowledge of insurance and therefore are subject to professional liability.

5. Brokers are remunerated through payment of commission by the insurers. Commissions rates paid to broker are
higher that that paid to insurance agents.

4. Helps in presenting claims and getting them settled.

BROKER (INSURANCE & TAKAFUL BROKERS)
1.Anika Insurance Brokers Sdn. Bhd.
2.Antah Insurance Brokers Sdn. Bhd.
3.Aon Insurance Brokers (Malaysia) Sdn. Bhd.
4.BIB Insurance Brokers Sdn. Bhd.
5.KSDC Insurance Brokers Sdn. Bhd.
6.MIT Insurance Brokers Sdn. Bhd. (Previously MIT Perinsima)
7. MMS (Insurance Brokers) Sdn. Bhd.
8.MP Honan Insurance Brokers Sdn. Bhd.
9. Protac Insurance Brokers Sdn. Bhd.
10. Rosegate Insurance Brokers Sdn. Bhd.
11.Sentinel Insurance Brokers Sdn. Bhd.
12. Sime Darby Lockton Insurance Brokers Sdn. Bhd.
13. SP&G Gallagher Insurance Brokers Sdn. Bhd.
14. State Insurance Brokers Sdn .Bhd
15. Sterling Insurance Brokers Sdn. Bhd.
16. Tradewinds International Insurance Brokers Sdn. Bhd
17. Transnational Insurance Brokers (M) Sdn. Bhd.
18. Willis (Malaysia) Sdn. Bhd.
Source: https://www.bnm.gov.my/-/approved-insurance-and-
takaful-brokers
LOSS ADJUSTER

 They are independent parties appointed to survey any loss that has
occurred.
 They investigate the cause and extent of the loss and report their
findings and recommendations to the insurer who would then decide
whether the loss is covered and if so, the amount of compensation
required.
SURVEYOR

 A surveyor is essentially a professional link between the insured and

the insurer. Help the insurance companies manage and settle a claim
up to certain amount when there is a difference in actual cost between
the insurer and insured.
 As insurance surveyors, their role is to conduct business and personal
surveys and compile and deliver reports to insurance underwriters—all
the surveys related to improving the risk of future insurance claims.
 For instance, to become a surveyor for marine insurance, one must
have qualifications related to marine engineering.
EMPLOYABILITY OPPORTUNITY
Broker

Insurer
Agent/Underwriter /
Bancassurance
Claim exec/ /Surveyor

Service specialist: Loss Reinsurance

Adjuster/Assessor/ Marine &
cargo surveyor/Engineer
Surveyor
REFERENCES :

1. https://www.bnm.gov.my/documents/20124/796496/06.box1.pdf
2. Link of insurance and takaful ,reinsurance companies in Malaysia
https://apps.asiainsurancereview.com/IDA/Asp/CompanyList.aspx?company=&type=&jobType=&country=Malaysia&search=company&pagin=6
THANK YOU