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PRESENTATION ON MODULE 3

FromMalaysia

PRESENTATION ON MODULE 3

FromMalaysia

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QUESTION NO. 1QUESTION NO. 1

Malaysia is geographically a natural disaster free country/ we are away from

the earthquake zone

However, we did experienced natural disasters such as flood and storms but on a small scale.

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QUESTION NO. 2QUESTION NO. 2

There was no available statistics on insured economic losses due to the minimal exposure on natural disasters However, most of commercial properties and about 25% of private properties in Malaysia were insured against natural disaster.

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QUESTION NO. 3QUESTION NO. 3

The retention on general cat XOL cover had been stable for the last 5 years.

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QUESTION NO. 4QUESTION NO. 4

The current retentions were adequate, because at most the retention were pegged at 2% of shareholders fund.

In general, the insurance company in Malaysia were risk average.

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QUESTION NO. 5QUESTION NO. 5

Yes, the rates were tariff rated.

These rates were computed based on data provided by the industry.

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QUESTION NO. 6QUESTION NO. 6

Government relief disaster fundRisk transfer – by reinsuranceCompulsory cat pool.

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PROSPROS

Easily available fund in case of natural disaster.Mitigate losses.To minimize long economic

disruptions

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CONSCONS

Over reliance on government subsidy & limit government fund for development.Increase in premium will increase in cost of good sold & as a result our product become less competitive Public have to bear the cost of the fund.