Malayan Magazine

Malayan Prom Night The Malayan Group Christmas Party 2016

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Malayan Magazine

Editorial

Malayan VisionMalayan equals Non-life Insurance

Mission StatementMalayan guarantees to provide its

policyholders the best non-life insuranceprotection, and fair and prompt settlement

of valid claims at all times

The Malayan Magazine

The Malayan Magazine is a quarterly publication of Malayan Insurance for its employees, subsidiaries, affiliates, clients, and the general public. Please address all concerns to: Communications Unit, IMC Department Yuchengco Tower 1, 500 Quintin Paredes Street, 1006 Binondo, Manila • Tel. No.: 242-8888 local 8647 • Fax No.: 628-8755

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Martin D. YuchiocoEditor-In-Chief

Mark Gregory C. MirandaAngel F. FeliciaWriting, Layout and Design

Ma. Gertrudes G. LimCirculation

In December 19, 2016, the Malayan Group had a big Christmas celebration at One Canvas in Makati. It was truly a night to remember as all employees donned their best formal wear and enjoyed a night of party and performances

A December to Remember

May the good things of life be yours in abundance, not only at Christmas but always.

AMBASSADOR ALFONSO T. YUCHENGCO Chairman, MICO Equities, Inc.

reminiscent of high school prom night.

It was a year with many reasons to celebrate and the Malayan Group company-wide party was a fitting cap to 2016.

Malayan Magazine

Contents

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4th Quarter Issue 2016

News

Features

Regulars

4Malayan Awards its Shining Stars

6Malayan Employee recognized as new

YGC Values Exemplar

7Malayan Annual Managers Conference &

Fellowship Night

8The Malayan Plaza celebrates 10 years of

success

19A.M. Best’s Special Report: Non-Motor

Personal Lines Growth in Southeast Asia Could Provide Opportunities To Reinsurers

21CSR Corner

22Bowling Tournament 2016

24Writer’s Nest25

New Hires

26Birthdays

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13Malayan Prom Night

The Malayan Group Christmas Party 2016

Malayan Magazine

News

Malayan Insurance recognized its first batch of Malayan Shining Stars in a ceremony held at the Ramada Manila Central in Binondo, Manila on the 3rd of October 2016.

The Malayan Star Awards aims to recognize Malayan employees whose contributions made them model employees during the previous year. The Shining Stars were nominated by their fellow employees and were selected based on such factors like extent of

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effort, impact to business, modelling of core values, and ability to inspire and motivate other employees.

The awarding was led by President Ms. Yvonne S. Yuchengco and Chief Operating Officer Mr. Paolo Y. Abaya. Erickson Montecillo gave the acceptance speech on behalf of the awardees.

Congratulations to Malayan’s Shining Stars and may you all continue to shine and be a source of inspiration to all!

Malayan awards its Shining Stars

Malayan Magazine

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Malayan awards its Shining Stars

2015 Malayan Shining StarsJennifer Rajal (BAC-LEX)

Angelo Catalig (BITD)Baby Lyn De Ocampo (Corporate Offices)

Lynel Rodiano (Finance)Raymond Morales (FNAC)

Mae Jan Fontelo (HR & Admin)John Paul Benedicto (Sales)

Erickson Montecillo (Sales-Branches)Jason Zabala (Tokio Marine)

Anne Germaine Ramos (Underwriting)Nathaniel Oblena (Rising Star)

Nathaniel Oblena (Rising Star) Jennifer Rajal (BAC-LEX) Angelo Catalig (BITD)

Baby Lyn De Ocampo (Corporate Offices) Lynel Rodiano (Finance)

Raymond Morales (FNAC) Mae Jan Fontelo (HR & Admin) John Paul Benedicto (Sales)

Erickson Montecillo (Sales-Branches) Jason Zabala (Tokio Marine)

Malayan Magazine

Malayan Magazine

News

For the 9th year in a row, YGC honored its employees who have best personified its core values. The YGC Values Exemplar Awards was held last October 12, 2016 at the RCBC Savings Bank Corporate Center in BGC, Taguig. YGC executives, led by Malayan Insurance Chairperson Mrs. Helen Y. Dee, graced the affair. Malayan Insurance President Ms. Yvonne S. Yuchengco and COO Mr. Paolo Y. Abaya headed the attendees for MICO.

MICO’s very own Ms. Mae Jan B. Fontelo, HR Assistant, was recognized as Exemplar for Sense of Urgency for doing better the 30-day turnaround time in sourcing and hiring 45 Project Employees for Toyota Insure project which generated substantial production in 2015.

The award’s theme, “The Power of One” was lifted from Chairperson Mrs. Helen Y. Dee’s call for action to the YGC community reiterating that each one can so something great by simply being committed to his duties and responsibilities.

In his inspirational remarks, Irish motivational guest speaker Mike Grogan highlighted world-

class Filipino practices. He shared his admiration for Filipino Traits and urged Filipinos to be more appreciative of themselves and their unlimited potentials.

The YGC Values Exemplar Awards is a yearly program of the YGC HR Council. MICO HR and Administration Head Ms. Cecille V. Huidem chairs the Council with ER Head Ms. Georgia V. Bicos as secretary. For this search, MICO Claims Head Mr. Jun M. Noche was part of the Selection Committee and MICO Staffing Head Ms. Danna M. Pitahin was cited as one of the winning nominators.

Malayan Employee recognized as new YGC Values Exemplar

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Ms. Mae Jan B. Fontelo (center) was recognized as Exemplar for Sense of Urgency

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News

Malayan Annual Managers Conference & Fellowship NightMalayan Insurance Managers from Metro Manila Sales and Provincial Branches held their Annual Managers Conference on October 10 to 14, 2016 at the 32nd floor of the Malayan Plaza in Pasig City. They also enjoyed a fellowship night at the 33rd Floor of the Plaza on the last day of the conference.

A Leadership Advancement and Managerial Proficiency (LAMP) Program was also conducted for the Branch Managers on October 13, 2016. The program was facilitated by HR and Admin Division Head Ms. Cecille V. Huidem.

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News

The Malayan Plaza celebrates 10 years of success

In commemoration of ten years of enduring growth, The Malayan Plaza threw a grand celebration for its unit owners last November 18, 2016.

The event was hosted by Mr. Bien Sta. Ana, Head of the Malayan Plaza Front Desk, and by Ilaine Rodriguez, Head of the Property Management Office. Ms. Yvonne S. Yuchengco, Chairperson of the Malayan Plaza, opened the celebration with a heartwarming speech to welcome all the unit owners invited to the event.

The unit owners participated in several exciting games, and winners bagged cookware, tool kits, and

personal care packages. The Malayan Plaza also raffled off gift certificates for Starbucks and Mercury Drug Store, toiletries, and home appliances.

Food, drinks, and entertainment made the event even more memorable. Mr. Sta. Ana treated the guests with lively renditions of disco hits as the unit owners enjoyed the sumptuous dinner buffet. Unit owner Mr. Xavy Y. Zialcita also lured the crowd to the dance floor with a brief DJ performance.

Atty. Jose Martin Morente, President of the Homeowners Association, closed the event with an uplifting toast to the future success and continued strength of The Malayan Plaza.

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Gallery

Malayan Insurance had a presentation of micro insurance product Todo Asenso on October 4, 2016 in Batangas City. Shown in photo is Team Malayan led by President Ms. Yvonne S. Yuchengco, Sales Head Mr. Jun U. Cotoco, Lipa Branch Head Mr. Larry D. Inciong, BMD Head Mr. Frank P. Dagohoy, Regional Head Mr. Joel Q. Tabing, IMC Product Specialist Ms. Kaye Suelto and Aldous Anacion together with client representatives.

Malayan Insurance led by President Ms. Yvonne S. Yuchengco and Sales Head Mr. Jun U. Cotoco, attended the 20th Anniversary of Sanitary Care Products Asia (SCPA) on October 2016 at the company’s head office in Taguig City.

Todo Asenso Product Presentation

Malayan attends Trevi Foundation AnniversaryMalayan Insurance key officers and employees, led by President Ms. Yvonne S. Yuchengco, attended the 20th Anniversary of Trevi Foundation on November 4, 2016 at the Manila Peninsula Hotel.

Malayan attends SCPA Anniversary

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Gallery

A luncheon for Malayan Insurance Topnotchers was held on November 23, 2016 at Ramada Central Manila in Binondo. The MICO topnotchers were honored for their success in their respective Internal and External Trainings & Seminars. The topnotchers were joined by Malayan officers led by President Ms. Yvonne S. Yuchengco and COO Mr. Paolo Y. Abaya.

Ortigas Branch Product Presentation

Topnotchers Luncheon

The first Branded Product Presentation to agents of MICO-Ortigas Branch was held last November 2016. Coming from IMC Department, Product Specialist Ms. Rosselgean Consignado discusssed Malayan’s retail fire product line, which was followed by Product Specialist Ms. Kristine Bernadette Suelto who tackled the Personal Accident product line. It was a rich discussion with several questions from agents of Malayan’s newest Branch in Metro Manila.

Jennifer Elaine R. Acierto (TMD-UW)Shearpl Archelle Kryll Almanza (Motorcar)Jerick Paul I. Bawiga (Sales-Brokers)Alice Bernadette F. Berja (HR Services)Harryzel Constantino (BAC)Hilda L. Cornel (Sales-Brokers)Jose Lorenzo L. Dimaano (Learning & Development)Jovenelle P. Dote (Centralized Issuance)Genyl A. Ejada (FNAC)Mary Grace D. Galopo (Learning & Development)Ervi L. Lopez (Claims)Regine C. Mahinay (Internal Audit)

Aileen P. Martinez (Makati Sales Office)Ma. Margie P. Miralles (Makati Sales Office)Arisa Salome B. Miranda (Reinsurance/Foreign)Mary Pauline A. Mogol (Business Application Systems)Marie Racquel Natividad (Learning & Development)Maria Felisa L. Pesigan (Distribution & Development)Maria Victoria Reyes (Learning & Development)Eva P. Santiago (FNAC)Tracy A. Santos (Internal Audit)Jonas C. Sison (FNAC)Mandy C. Velasquez (Marine Underwriting)Mari Rose V. Velasquez (Makati Sales Office)Melissabeth B. Zambrona (Claims)

TOPNOTCHERS LIST

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Gallery

Malayan Group wins in 1st AIC Badminton TournamentThe Malayan Group was proclaimed Champion of the 1st Association of Insurance Claimsmen Inc. (AICI) Inter-Insurance Company Badminton Tournament held on October 8 and 22, 2016 at the Courtzone Badminton, Paco, Manila. Malayan’s winning team was composed of Mr. Ericden Dionisio (TMD), Ms. Mary Ann Ong (Lex Services), Mr. Jun De Leon (Distribution Development), Ms. Sharon Navarro (Fire Underwriting), Ms. Mae Jan Fontelo (HRS), Mr. Edward Fong (FNAC), Ms. Jenielyn Ricardo (Collection), and Mr. Jesper Abolencia (Actuarial).

Davao Insurer’s Club 2016 Sportsfest

Malayan joins HOG Rally 2016Malayan Insurance joins the Harley Owners Group (HOG) Rally 2016, one of the biggest gatherings of all bike clubs and premium motorcycle owners and enthusiasts in the country on November 12, 2016 at Promenade, Greenhills. HOG is the official riding club of Harley Davidson of Manila and Malayan Insurance representatives promoted Malayan’s Motorcycle Insurance.

Malayan Insurance participated in the 2016 Davao Insurer’s Club Sportsfest held on October 15, 2016 at the Greenheights Club House, Buhangin, Davao City. Malayan was part of the Gray Team which was declared Champion in Basketball, Water games, and Freethrow Shootout (Women).

Malayan Magazine

The Malayan Group Christmas Party 2016

Malayan Prom NightNews

It was a night of class and glamor as Malayan Insurance held its’ company-wide Christmas Party last December 19, 2016 at One Canvas Event Place in Makati City.

The Prom Night themed-event was even made more special with the presence of Malayan Insurance President Ms. Yvonne S. Yuchengco, Chief Operating Officer Mr. Paolo Y. Abaya together with other MICO officers.

The Dance Club set the mood of the program with their powerful cotillion production num-ber. While the talented Glee Club members serenaded the audience with their superb solo and group performances.

One of the highlights of the program was the group competition. The theme of presentation is “Celebrating High School Life”. Five groups showcased not just their singing and dancing

prowess but as well their creativity and wit. It was Underwriting group who took home the crown.

Big prizes were also given away for the employees. Aside from 120 pcs Robinsons Gift Certificate worth 500 pesos, major prizes were also raffled. Major prizes include Panasonic window-type air conditioner, Go Pro Hero 5, El Nido Tour Package, Hong Kong Tour Package and iPhone 7.

Dan Paulo Constantino of Budget and Control and Isah Pura Sadornas of Collection Department were crowned as the Prom King and Prom Queen. Both were hailed as the best-dressed male and fe-male who definitely stood out among the crowd.

Later in the evening, COO Paolo Abaya played the music as employees grooved and enjoyed their cocktail drinks.

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Malayan MagazineMalayan Magazine14

December 19, 2016 One Canvas, Makati City

The Malayan Group Christmas Party 2016

Malayan Magazine 15Malayan Magazine

The Malayan Group Christmas Party 2016

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Gallery

A celebration luncheon was held for the newly regularized employees on November 14, 2016 at the 10th Floor Training Room, Binondo Manila. Gracing the luncheon event was Malayan Insurance President Ms. Yvonne S. Yuchengco.

Malayan Insurance supported the Philippine Philharmonic Orchestra in their Christmas Concert-outreach program held last December 18, 2016 at Victorias City Cultural Center, Negros Occidental, and December 19, 2016 at Natalio G. Velez Sports and Cultural Center, Silay City, Negros Occidental. Malayan Insurance sponsored the travel insurance of the Philharmonic Orchestra.

Luncheon for Newly Regularized Employees

Basic Non-life Insurance SeminarShown in photo are the Basic Non-Life (BNL) Insurance Seminar graduates held last November 28, 2016 at the 10th Floor Training Room, Binondo Manila. The BNL Seminar was conducted by the Learning and Development Department and prepared the participants and aspiring agents for the licensure examination given by the Insurance Commission (IC).

Malayan supports Philharmonic Orchestra

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Gallery

The First Nationwide Assurance Corporation (FNAC) recognized its top bank referrors and sales representatives through a trip in Bohol on November 11 to 13, 2016. The Bohol trip had the most number of qualifiers since FNAC launched its yearly trip incentive promo in 2010. Qualifiers enjoyed a 3 day 2 night vacation at the prestigious Bellevue Hotel. Highlight of the event was the fellowship night and award ceremony where each qualifier was recognized and awarded with certificates.

Malayan Insurance, the top non-life insurance provider in the Philippines, partnered with one of the world’s leading reinsurers Munich Re to provide in-kind contributions for the Global Fund, an international financing institution and multi-stakeholder partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. Malayan Insurance and Munich Re conducted pro-bono risk assessment surveys on the central warehouses of the principal recipients of the Global Fund in the Philippines (Pilipinas Shell Foundation Inc., Save the Children Philippines, and Philippine Business for Social Progress) to help protect and insure their assets, which composed mainly of health care and pharmaceutical products and laboratory equipment. Aside from risk assessment services, a discussion on the Philippine insurance market was also conducted by Malayan Insurance.

Malayan Insurance and Munich Re support Global Fund’s fight against epidemics

FNAC Bohol Trip Incentive

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Gallery

Cubao and Marikina agents are shown in photos receiving their Christmas Gift Packs for being top producers of the 2016 i4u Personal Accident Insurance Christmas Cards promo. Together with the top producing agents are the employees and staff of Malayan Cubao and Marikina Branch.

i4u Christmas Gift Packs Turn-over

Year-End 2016 SnaphotsSome snapshots just before the Y2016 came to a close.

Vice President and Integrated Marketing Communications Head Mr. Martin D. Yuchioco represented the class of The Insurance School of Japan 43rd General Insurance Course in Tokyo, Japan. The ISJ General Course was conducted under the joint auspices of The General Insurance Association of Japan and The General Insurance Institute

Mr. MDYuchioco in ISJ General Course 2016

COO PYA with Accounting Department

CEO YSY with Accounting Department

CEO YSY with Underwriting

Year-End Collection Meeting

of Japan. Mr. Yuchioco delivered the Class Response during the Opening Ceremonies last October 17, 2016.

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Special Report

Insurers across Southeast Asia are keen to explore opportunities outside of the traditional commercial fire and motor lines that historically have dominated the non-life markets in which they operate. Moving into new lines brings numerous challenges, which will lead these insurers to seek partners to provide advice, support, and risk sharing, especially during the early stage of new product launches.

The new niches that are opening up as a result could provide new growth momentum to reinsurers. While these niches may be too small to be attractive to large global reinsurers, they will be more attractive for smaller reinsurers, including regional reinsurers. However, only those with relevant capabilities in helping cedants develop these new business lines and networks will be able to capitalize on this opportunity and be able to strengthen their relevance in the market. For these niches to be sustainable and offer steady growth, reinsurers will need to demonstrate the ability to keep innovating efficiency and to manage concentrations, as the cedants will reduce cessions as they become more familiar and comfortable with the new products.

Southeast Asian Insurers Looking Beyond Motor and Commercial FireInsurers in the major Southeast Asian markets are facing increasing challenges that may leave them amenable to comprehensive reinsurance solutions, with support not limited to providing capacity but more importantly targeted at product development and innovative distribution. Insurers are becoming more aware that they need to develop new sources of growth within their domestic markets, whether that means new lines of business beyond their traditional commercial fire and motor insurance products, or reaching new market segments by broadening their distribution channels.

Multiple factors are pushing insurers to look beyond motor and commercial fire. First, with motor insurance representing the largest line of business, sluggish to declining sales (Exhibit 1) in major motor

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vehicle markets such as Indonesia, Thailand, and Malaysia have weakened a primary source of premiums in these markets and is increasing pressure on this profit margins. This in turn is raising insurer’s awareness of the need to develop other lines of business.

Another factor driving expansion into other lines is that per capita GDP in many Southeast Asian countries is now considerably higher than it was a decade ago, with a consuming middle class that has grown considerably in size. This has created the potential for non-motor insurance products that could remain in demand even as consumers cut down on big-ticket items such as automobiles. One

Non-Motor Personal Lines Growth in Southeast Asia Could Provide Opportunities To ReinsurersAcknowledgementA.M. BEST SPECIAL REPORTMarket Review, December 22, 2016

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CSR Cornerexample is spending on travel, which has been growing strongly across the region even as overall auto sales slump (Exhibit 2). For insurance companies, the growth in travel has created opportunity to create consumer awareness to buy protection against inconvenience of lost luggage or the cost of accidents and health emergencies overseas. Indeed, travel has been a significant driver behind personal accident premium growth in many Southeast Asian markets.

Other examples of insurance opportunities among the emerging Southeast Asian middle class are health insurance and income protection products, with demand for each remaining strong. Reducing financial hardships due to serious health issues, and the need to supplement inadequate public and private health insurance schemes, are of interest to new middle class households. Meanwhile, more affluent consumers are showing interest in insurance products to fund medical tourism. The experience in neighboring India indicates that the potential exists in Southeast Asia. Personal accident/health represents 27% of the Indian non-life market’s gross premiums and is the single largest business line (with motor own damage ranked second at 24%). However, with the exception of Vietnam (where personal accident/health insurance also accounts for around 27% of non-life premiums, leading the non-life market ahead of motor), health insurance accounts for between 10% and 16% of gross premiums in major Southeast Asian markets such as Indonesia, Malaysia, and Singapore.

The third reason for the rising potential of non-motor personal lines business has to do with changing economic structures and regulations. In terms of the former, the growth of the formal employment sector has helped improve insurance penetration by facilitating the distribution of insurance products to workers. In Vietnam, for example, this has helped health insurance to grow faster than motor insurance in recent years. As for regulations, tariffs continue to play a role in some Southeast Asian markets, including Malaysia, Thailand, and Indonesia. While tariffs have helped to produce above-average underwriting profitability and provide market discipline, they have also had a dampening effect on insurance penetration and reduced the incentive for product and channel innovation. The trend toward gradual removal of regulatory limitations (with Malaysia having started in July 2016) could disrupt the profitability and stability of tariffed business lines – fire and

motor in the case of Malaysia – and will thus encourage the development of new lines of business as well as more variation in policy wordings for products that are currently tariffed.

Finally, personal lines targeting the urban affluent and middle class segments, alongside commercial fire, have to date been the main source of growth in Southeast Asian markets, with nearly all of that coming within metropolitan areas. However, we are starting to see insurance executives in many Southeast Asian markets express an interest in seeking growth from lower income segments, including those outside urban areas. This is partly due to saturation and competition in the cities, but also in anticipation of government policies aimed at increasing insurance penetration in rural areas (which ultimately helps to stabilize government budgets) and stimulating economic growth outside of the cities through infrastructure investments. Lower-income rural residents are considered more vulnerable to financial hardships from weather events or illness of the sole breadwinner than their urban counterparts, and thus have an even greater need for insurance.

Serving this segment, however, does not just require introducing a new product; it requires changes to existing business practices. The significantly lower per-policy premiums will require low-cost distribution and simple, efficient administration, as well as simple product features that appeal to first-time insurance buyers. A partner that seeks to help insurers capture this large segment will therefore not only need to have technical insurance knowledge, but also capabilities to help with distribution and a good understanding of this consumer segment, which may have very different behaviors from those in the metropolitan areas. Insurers will likely borrow many ideas from microinsurance. (Continued on page 27)

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CSR Corner

(Continued on page 27)

Ang proyektong Street Education Program o mas kilala sa tawag na SEP ng Malayan Insurance ay nagsimula na at muli, katuwang ang San Lorenzo Ruiz Parish at Childhope Asia Philippines. Sa pamamagitan nito, mabibigyan ng pagkakataon ang mga piling kabataan na magkaroon ng impormal na edukasyon. Mayroon humigit kumulang sa tatlumpung (30) batang lansangan ang nakikinabang sa programang ito. Tinuturuan silang sumulat, bumasa, bumilang at iba’t ibang kapakipakinabang na aralin. Sa bawat araw ng pagpasok, mayroon silang pagkain at mabuting aral na natutunan. Kasama sa programa ang regular na patingin sa doktor, mobile education, counseling at pagsubaybay sa mga gawain ng mga bata sa lansangan. Nakikinabang din ang mga magulang ng mga bata ito sa programa dahil sila ay binabahagian ng iba’t ibang kaalaman pangkabuhayan.

Disyembre 16, 2016 ng idaos ang Christmas Party ng mga bata. Masaya silang lahat sa kanilang natanggap na bagong kasuotan at sapatos na nagmula sa kanilang pangangaroling sa Malayan. Lahat ay sumali sa iba’t ibang palaro gaya ng stop dance, bring me, kalamansi relay, trip to Jerusalem at Pinoy henyo. Natapos ang kasiyahan sa pamamagitan ng pagsasalo sa masarap ng pagkaing hinanda para sa kanila.

SEP Christmas PartyIsinulat ni Ma. Gertrudes G. Lim

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Team Underwriting was the Champion for Class A in the Malayan Bowling Tournament 2016. With 9,680 pinfalls, Team Underwriting edged out the Team Officers that garnered 9,317 pinfalls.

For Class B, the Team composed of Sales and Office of the COO, was proclaimed champion with 7,559 pinfalls. The Team of HR & Admin, BITD and QSD came in second place with 7,111 pinfalls.

Malayan Magazine

Sports2016 Malayan

Bowling Tournament

The Teams that participated in this year tournament are Team Underwriting, Team Officers, Team HR & Admin, BITD, QSD, Team Tokio Marine and Investment, Team Financial Management and Office of the President, Team Sales and Office of the COO, and Team FNAC, BAC & Lex.

The Finals was held on November 28, 2016 at Paeng’s Midtown Bowl, Robinson’s Place Manila.

Ceremonial Throwing of the Ball representatives (standing l-r) Mr. Jessie Bajada (RI Accounting), Mr. Estelito Limbo (GSPD), Ms. Rowena Publico (Collection), Mr. Cyrus Abeleda (Marine Underwriting), Mr. Joel Mariano (FNAC), (sitting l-r) Mr. Rodolfo Mangalino (Surety), Mr. Julian Fidel Rosario (TMD), Mr. Regidor Oligo (TMD) and Mr. Ramon Roque (TMD)

Malayan Magazine 23Malayan Magazine

Class A Champion: Underwriting Class B Champion:

Sales, Office of the COO

Class AChampion: Underwriting2nd Place: Officers3rd Place: Tokio Marine, Investment

Class BChampion: Sales, Office of COO2nd Place: HR & Admin, BITD, Quality Service3rd Place: Underwriting

Highest Single (Male-Class A): Ramon RoqueHighest Average (Male-Class A): Cesar Toledo

Highest Single (Female-Class A): Babylyn AtienzaHighest Average (Female-Class A): Cecile Orozco

Highest Single (Male-Class B): Danilo Joseph SantosHighest Average (Male-Class B): Danilo Joseph Santos

Highest Single (Female-Class B): Jennet RamosoHighest Average (Female-Class B): Leizl Canlas

BOWLING WINNERS

2016 Malayan Bowling Tournament

Malayan Magazine

Writers’ Nest

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This section will feature articles and literary works by Malayan Insurance’s talented employee writers and bloggers.

Ready, Set, Seoul: Going Beyond Kimchi and K-pop By Arisa Miranda of RI/Foreign Subsidiaries

With Korean dramas and Korean idol groups getting more popular (referred to as Korean Wave or Hallyu), people all over the world are also getting more and more inclined to visit the Land of the Morning Calm. This is evident with the rise in Korean tourism and they even projected a 20% growth in 2016 (Union of International Associations, August 2016). Because the best way to explore a culture is to immerse oneself in the local scene, right?

Friends would usually ask me for some tips for their Korea trips, but majority of their questions involve the visa application process. For us Filipinos, we would need to get a visa before we can step in the Korean peninsula, unless you are only bound for Jeju Island which is visa-free. This may sound a little hassle for some, but trust me, Korean visa might actually be the easiest one to get. You just need the application form, employment certificate, Income Tax Return (ITR), bank statement, and bank certificate. After completing these documents, you can apply personally and for free to the Korean Embassy so you won’t have additional travel agency charges. Lines can be very long, but they are systematic that once your number is called, the average processing time is only five minutes (or less!). They will issue your single entry tourist visa in just a week, valid for 59 days thereafter. Visit Korean Embassy’s website (http://embassy_philippines.mofa.go.kr/) for more details.

Plane tickets will not hurt your pockets either, as there are several budget carriers offering seat sales from Manila/Cebu to Incheon, which is the airport mainly catering to Seoul tourists. For instance, I once got Php6,000 roundtrip ticket with 20kg baggage allowance for the return trip. Not bad, right? All you have to do is to watch out for promo fares. If you can’t catch these sales, plane tickets are also said to be cheapest six weeks before your flight. Book wisely!

There are several accommodations that are within every budget. Guesthouses are usually less expensive, and you can even have a feel of the standard Korean living. Some are offering traditional-themed rooms complete with paper-pasted windows, antique furniture, and heated floors (perfect during winter). I always stay at those near the subway stations, five-minute walk at most, for easy access to public transportation.

South Korea’s internet connection is one of the fastest in the world with an average speed of 26.7 Mbps (Akamai Technologies Q4 2015 The State of the Internet report). At the airport, Pocket/Mobile Wi-Fi devices, called Wi-Fi Egg, are available for rent at approximately Php300 a day. This is optional as your chosen accommodation is surely offering free Wi-Fi, so worry no more in updating all your social media accounts. “FreePublicWiFi@Seoul” or “SeoulPublicWiFi” can also be detected in tourist spots most of the time.

Take note of the appropriate attire during your visit since Korea has four seasons. Just to give you an idea, during my spring visit last year, I had four layers on—two trench coats, one long-sleeved polo, and a shirt. When I came back during summer, my usual Manila outfit worked fine. Please also wear comfy shoes and expect a lot of walking both uphill and downhill. I frequently give this advice after I mistakenly roamed the streets of Seoul and visited one of their grand palaces in high-heeled boots. For more cultural immersion, try wearing a hanbok, Korean traditional clothing, and you can even score free passes to the five palaces in the city while you strut your inner Korean royalty just like Jang Geum and Ju Mong.

Aside from historical and cultural sites, there are also lots of shopping districts, romantic date places, as well as bars and clubs. Yes, you can find almost anything that fits your interest. Plan your itinerary ahead and list down all the activities you want to do. There can be a lot of choices and you might be overwhelmed with all the things Seoul can offer. Travel blogs are just a click away with all the recommended destinations for every personality.

Visa? Plane ticket? Accommodation? Itinerary? All check!

Now that you are ready to go to South Korea, I will just leave it to you to see for yourself and discover its wonders. So, what are you waiting for? Get your 2017 planners do their job and have fun mingling with the Seoulites! You will realize that there is really more to this peninsula than kimchi and K-pop. Annyeong~

Malayan Magazine

New Hires

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1. Calvin M. De leon Sales Clerk Binondo Sales Office

2 Rb D. SalvaDoR Data Encoder Centralized Issuance

3 JoSe allan S. Huy Technical Assistant Claims

4 RonalD v. Canilao Sr. Underwriter Fire Underwriting

5 MyRa G. CatapanG Head, Affinity Programs ImC

6 MaRiuS MiCHael D. CanCio Sr. Account Executive

makati Sales Office

7 Rex eMilSon M. yuManG Jr. Adjuster Claims-motorcar

8 al-Jay H. FeRMin Sales Assistant makati Sales Office

9 JoHn MaRx S. paDeCio Risk Engineer Tokio marine-Underwriting

10 JoHn RaFael p. RaMoS Jr. Adjuster Claims-motorcar

11 MaRtin RoSenDo l. CaMpoS Associate Lawyer Legal

112 SaviouR M. Del RoSaRio Branch Clerk Olongapo

13 MeRlinaH louiSe C. lunoD Training Assistant Learning & Development

14 JaySon R. FloReS Filing Clerk Tokio marine-Policy Issuance

15 MaRvin l. aRCeo Branch Clerk Tarlac

16 HaRley Hunt a. GaRCia Actuarial & Risk mgnt. Assistant Actuarial And Risk management

17 CatHy lou S. QuiMSon Agency Recruitment & Development

manager- Vismin Learning & Development

18 JoHn Stanley a. aSiS Sr. Account Executive

Distribution Development

19 FaitH l. pabia Branch Clerk Naga

20 JeRiCHo S. Mapa Claims Processor BAC

21 Rea lyn G. DeloS ReyeS Accounting Clerk FNAC

22 Rowena C. ilaGan Field Sales Representative- Cavite FNAC

23 Queena S. aGuilaR Claims Processor Tokio marine-Claims

24 Melvin C. GutieRRez Account Executive makati Sales Office

25 aRMelita o. De GuzMan Branch Clerk Baliwag

26 JoSie p. MeDez Associate Lawyer Legal

27 lovelyn C. CRuz Collection Assistant Collection

28 RobeRt Roy S. pablo Risk Inspector General Santos

29 JaiRo p. linGat Field Sales Representative -Pampanga, FNAC

30 MaRia ConCepCion b. MenoR Sales Office Head Quezon Ave. Sales Office

31 SHaRon ann G. punzalan Collection Assistant Collection

32 eDilbeRt p. SiSon Affinity Development Officer- Vismin

ImC-marketing Services

41 DeniSe SteFi p. aGDiGoS Sr. Account Executive

Direct & Dealership

42 MayCHil G. MoDeQuillo Branch Clerk Cebu

33 MaRy Joy C. CoRbito Branch Clerk Tuguegarao

34 JoHn KennetH i. SinCo Jr. Adjuster Claims-motorcar

43 luiGi R. GabRiel Online AdminiStrative Assistant

Licensing Services Office

44 anGela MaRee u. tapuCol Claims Processor

BAC

35 MaRianne D. baloy Sr. Collection Specialist Collection

36 Jean yaSMine l. MenDoza Sales Clerk Direct & Dealership

45 JoSHua JaMeS a. bRavante Technical Assistant

Claims

46 beRnaRD v. liMpin Area Cashier- Vismin Cash management

37 SaRaH Jean t. Cuyba Recon Clerk Cash management

38 FReDDieliza a. DoRia Audit Staff

Internal Audit

47 Jenelyn J. MatanDaG Bookkeeper BAC

48 eRuel C. CaStillo Applications Systems Developer

Business Application Systems

39 Rely G. De la RoSa Branch Clerk Legazpi

40 nina F. bello Account Executive

Distribution Development

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Malayan Magazine

1 BERNADETTE C. GARCHITORENA DIRECT & DEALERSHIP 1 JOSE LORENZO L. DImAANO LEARNING & DEVELOPmENT 2 BENITO S. CASTILLO JR. RI ACCOUNTING 2 RALPH ARmAN D. SIA FNAC 2 RODOLFO A. SImBUL COLLECTION 2 JHOLINA ROSE C. SANTIAGO BAC 3 CESAR m. TOLEDO OFFICE OF THE PRESIDENT 4 mARIE JUIN B. PASCULADO TOKIO mARINE-UNDERWRITING-NON-PROPERTY 4 IVAN WARREN G. POQUIZ TECHNICAL SERVICES 4 JOHN mARX S. PADECIO TOKIO mARINE-UNDERWRITING-PROPERTY 4 RELY G. DE LA ROSA LEGAZPI 5 SATURNINO G. ESTEBAN II mARIKINA SALES OFFIC 6 AmB. ALFONSO T. YUCHENGCO mICO EQUITIES CHAIRmAN 6 PAUL DUNHILL L. ONG mAKATI SALES OFFICE 6 ELYJANE JOY G. PANGANIBAN CASH mANAGEmENT 7 CRIZELDA A. FONTILAR FNAC 7 CAmILLE P. SANQUI BAC 7 FAYE mISTY S. REYES DISTRIBUTION DEVELOPmENT 8 YVONNE S. YUCHENGCO OFFICE OF THE PRESIDENT 8 IAN ERICK C. GACUSAN BAC 9 CRISTOPHER C. HERNANDEZ FNAC 9 CARLAH B. BANES ILOILO 10 ERLANDO B. ANCOT BUSINESS APPLICATION SYSTEmS 10 SUSANA C. FONG INVESTmENT mANAGEmENT 10 GERALDINE A. SENIDDO COLLECTION 10 ALELIE KRIZZA D. PEDIENGCO COLLECTION 10 KENNETH VON G. COLOT CEBU 11 JOEY G. LUCAS REINSURANCE/FOREIGN 11 PETER JOHN C. FABULA mOTORCAR UNDERWRITING 13 VIRGILIO L. mAGDAYAO OFFICE OF THE UNDERWRITING DIVISION HEAD 13 FLORIAN B. VILLAmIN SURETY 13 JAN KENNETH S. mELENDRES PERSONAL ACCIDENT UNDEWRITING 13 JEONGmI OH TOKIO mARINE-PRODUCTION 13 mASAmI GO TOKIO mARINE-PRODUCTION 14 ALEXANDER V. BARRERA CAVITE 14 VIKTOR ERIK RHEVAL E. ABE BINONDO SALES OFFICE 14 JENIELYN B. DILIm LIPA 14 VALENTINE A. OCAmPO SALES-BROKERS 14 ARmELITA O. DE GUZmAN BALIWAG 15 INA mA. B. RIVERA DIRECT & DEALERSHIP 15 mARK FRANCIS C. TAGACTAC CAGAYAN DE ORO 16 JENIELYN m. RICARDO COLLECTION 17 mYRNA D. ORENSE LEX SERVICES 17 CHARmAINE G. PASCUAL FIRE UNDERWRITING 17 ANNITH VICENCIO INTERNAL AUDIT 17 mARILOU G. SANCHEZ mAKATI SALES OFFICE 18 LARRY D. INCIONG LIPA 18 mA. BERNARDITA R. CAWAD REINSURANCE/FOREIGN 18 JOVY L. ALVAREZ CORPORATE PLANNING 18 mARCIAN AZENITH N. mARIANO ZAmBOANGA 20 PAULINO F. ABELLA CLAImS 20 mA. CECILIA A. COLLADO HONDA-QUEZON AVENUE 20 ROmmEL G. mANANSALA BRANCHES mANAGEmENT 20 mELVIN V. FORONDA CLAImS-PERSONAL ACCIDENT 20 mELOU JANE A. REmOLLENA LAGUNA 21 CARLA T. mASILLONES FNAC 22 JOYCE L. JERUSALEm FIRE UNDERWRITING 23 mA. GERTRUDES G. LIm ImC-CORP. COmmUNICATIONS 23 JINKY C. PLAZO CLAImS-mOTORCAR 23 RENZ mAR R. CONCEPCION PERSONAL ACCIDENT UNDERWRITING 24 ImELDA D. mORALES CASH mANAGEmENT 24 JONAS C. SISON FNAC 24 ADELO A. ABELEDA ENGINEERING 24 FREDERICK T. PINEDA OFF. OF THE FINANCIAL mGmT. DIVISION HEAD 26 RICHARD m. GERARDINO DAVAO 26 mARIQUIT C. SISTER HONDA-KALOOKAN 27 RHODORA A. SANDOVAL ACCOUNTING 27 RAQUEL J. PALISOC CLAImS-REINSURANCE 28 ERVI L. LOPEZ CLAImS-mISCELLANEOUS 28 mONTESSA CARLA D. EUGENIO DIRECT & DEALERSHIP

1 FORTUNATO L. ADORNADO LEGASPI 1 JENNIFER CANDY m. ALIPIO QUALITY SERVICE 1 WILmA C. VILLANUEVA HR & ADmIN 1 mARIA VICTORIA L. REYES LEARNING & DEVELOPmENT 2 ROSEL R. STA. mARIA GENERAL SERVICES & PURCHASING 2 RAmON R. NAVARRO JR. FNAC 2 JAZEL O. RUBIO BUDGET AND CONTROL 3 THELmA G. GERONImO QUEZON CITY SALES OFFICE 3 JOSE mARI G. PRATS FNAC 4 ZYRA ANN P. LAT ALABANG SALES OFFICE 4 CALVIN m. DE LEON BINONDO SALES OFFICE 6 HENNY B. ANDAm CEBU 6 SHYRO B. TANO FIRE UNDERWRITING 6 BRYAN CARLO m. GOmEZ INTERNAL AUDIT 7 JOCELYN D. SICAT PAmPANGA 7 ANGELIQUE S. ALmONTE DIRECT & DEALERSHIP 7 mARIEVIC S. PEDROSA CEBU 7 REY mART C. mIJARES TAGUm 7 EDEN F. APUADA TOKIO mARINE-PRODUCTION 8 mARIA CLARISSA F. BERJA CENTRALIZED ISSUANCE 9 mARY ANNE S. ONG LEX SERVICES 9 mYRA S. GUTIERREZ DIRECT & DEALERSHIP 10 ROANNE mARIE m. AGUILOS OFF. OF THE UNDERWRITING DIVISION HEAD 10 JOSELITO G. PADER HONDA-QUEZON AVENUE 11 mA. ALICIA T. mALUBAY OFFICE OF HELEN Y. DEE 11 ALEX R. FAJARDO CLAImS-mOTORCAR 11 GHEANNE mARIE N. ALVIOR BACOLOD 11 ALFRED m. TANGHAL FIRE UNDERWRITING 12 HUBERT L. mAGCAmIT BUSINESS APPLICATION 12 BERNARD V. LImPIN CASH mANAGEmENT 13 EDWIN V. LUCAS TECHNICAL SERVICES 13 ARIANE Y. IGUP BAC 13 mARVIN L. ARCEO TARLAC 14 ROSEmARIE R. BUAN mAKATI SALES OFFICE 14 ROCHELLE D. ASENTISTA RI ACCOUNTING 14 ANA mARIE B. ARANAS TOKIO mARINE-PRODUCTION 15 mARIDEN m. mOLATO CENTRALIZED ISSUANCE 15 XEDRIC ANTHONY L. NG FNAC 16 RONIE C. ABLAY CEBU 16 RAFAEL m. JANDOC JR. CLAImS

17 KAZUNORI TSUJI TOKIO mARINE-OFFICE 18 KENETH L. SY CASH mANAGEmENT 18 JERWIN C. ALCANTARA GENERAL SERVICES & PURCHASING 18 HAZEL JANE F. VILLACORTA CEBU 18 GODFREY PAOLO m. LAYA mAKATI SALES OFFICE 18 CASELYN A. mELCHOR DIRECT & DEALERSHIP 19 SHEENA IRENE m. LAWAS DAVAO 20 mARY JANE L. VILLENA CLAImS-FIRE 21 mARIEL S. BEO CENTRALIZED ISSUANCE 21 ISAH PURA B. SADORNAS COLLECTION 22 ARNOLD L. QUESTIN TOKIO mARINE-CLAImS 23 mARIA FRANCESCA ELE R. DAVID SALES-BROKERS 23 LYNNYmmE L. COmIA BUDGET AND CONTROL 24 ROSALIE S. CAGAPE SALES-BROKERS 24 HERALD H. SERENA FNAC 25 EDEN ROSE S. mABAN FNAC 26 BELINDA I. AYCAIDE ALABANG SALES OFFICE 26 ARVIN C. RAZON TOKIO mARINE-ADmINISTRATION 26 CRISTINA R. PANGANIBAN CABANATUAN 26 JONEL m. GARCIA mARINE UNDERWRITING 27 KATSUKI TAKARADA TOKIO mARINE-PRODUCTION 27 SHIERLYN R. FAGELA OLONGAPO 28 TWENY m. VARGAS REINSURANCE/FOREIGN 28 mARIEL mEDIL CEBU 29 LUTHER A. VALLENTE BUSINESS APPLICATION SYSTEmS 29 mERCIO A. DABON JR. TOKIO mARINE-PRODUCTION 30 AILEEN C. BOGNOT QUEZON CITY SALES OFFICE 30 NOEL I. ALCOBA TOKIO mARINE-PRODUCTION 30 ELY m. mARIN CENTRALIZED ISSUANCE 31 JOSHUA G. BRIZUELA SALES-BROKERS 31 mARY JANE C. DE PAZ CENTRALIZED ISSUANCE

1 mARY ANN A. BRINGAS CENTRALIZED ISSUANCE 3 RODRIGO A. CONCEPCION CLAImS-mOTORCAR 3 PATRICK m. GALLOS SALES-BROKERS 3 mARIA BEATRIZ A. ADVERSALO BUSINESS INFORmATION 3 JUAN PAOLO J. mALLARI LEARNING & DEVELOPmENT 3 NORBERTO V. ROmANO JR. DUmAGUETE 3 mA. LAIKA T. TOLENTINO CENTRALIZED ISSUANCE 4 JASON T. CORPUZ FNAC 4 mARIA mELECIA VICTO P. AGBAYANI CENTRALIZED ISSUANCE 5 JEZREEL JEIEL D. mATA PERSONAL ACCIDENT UNDERWRITING 5 GERALD R. TORRES TECHNICAL SERVICES 6 JOSE mA. C. DUCON DISTRIBUTION DEVELOP 6 RYAN OLIVER Y. SEE CHINATOWN SALES OFFICE 7 HILDA m. LUCES OFF. OF THE STRATEGIC JAPANESE OFFICER 7 ALFREDO D. GATUS III TOKIO mARINE-PRODUCTION 7 GENEVIEVE C. CALIPAYAN CEBU 8 RYAN T. BRANZUELA BUSINESS APPLICATION SYSTEmS 8 ANTHONY m. LABINDALAWA PERSONAL ACCIDENT UNDERWRITING 8 JOSE CHITO I. CARIQUE BUSINESS PROCESS 9 JEREmIAH R. ABLAO CLAImS-mOTORCAR 9 DELSA O. GUDEN DAVAO 9 GENYL A. EJADA FNAC 9 CYRUS R. INGENTE TECHNICAL SERVICES 9 ARNEL m. GARCIA CENTRALIZED ISSUANCE 10 KYRA T. GALVEZ QUALITY SERVICE 10 IARA B. PEREZ CLAImS 11 LESLIE ANN B. mAGALLON BACOLOD 11 ERUEL C. CASTILLO BUSINESS APPLICATION SYSTEmS 12 SERLIE B. BULDA CAVITE 12 DAISUKE FUJII OFFICE OF THE STRATEGIC JAPANESE OFFICER 12 JENNELYN GEm S. BARCHETA DIRECT & DEALERSHIP 12 RITCHEL K. FRANCISCO FNAC 12 RODINA Y. SIQUIOCO OFFICE OF THE SALES DIVISION HEAD 12 mARIUS mICHAEL D. CANCIO mAKATI SALES OFFICE 13 EFREN REY A. RABANAL TOKIO mARINE-CLAImS 14 BIANCA ANA D. PARAS DAGUPAN 14 mELISSA G. OCAmPO RI ACCOUNTING 14 JULIAN FIDEL B. ROSARIO TOKIO mARINE-UNDERWRITING-PROPERTY 15 NONA A. BACAY LAGUNA 16 CARLO ANGELO B. DIAZ BAC 16 REYNARD L. DELA CRUZ BUDGET AND CONTROL 17 JEAN KARLA D. UNIDA QUEZON CITY SALES OFFICE 18 JASON L. ZABALA TOKIO mARINE-PRODUCTION 18 CLAIRE ANNE P. PRODON HONDA-mANILA 18 SARAH JEAN T. CUYBA CASH mANAGEmENT 19 ARLYNE L. GUINTO mAKATI SALES OFFICE 19 JAN CHRISTOPHER B. RIVERA BAC 19 ERWIN A. SANTOS TECHNICAL SERVICES 20 EVELYN J. SOTO LOWER LUZON AREA 20 JOANA mARIE P. mANDAC LEGAL 20 mIGUEL RAFAEL m. DELA CRUZ CAVITE 20 mARK JOEL L. LAGmAN DIRECT & DEALERSHIP 21 ROFELIA G. LUCIDO OFF. OF THE FINANCIAL mGmT. DIVISION HEAD 21 HERBIE ANNE V. DImAGIBA FNAC 21 BRYAN CHRISTOPHER B. TAN CLAImS-PERSONAL ACCIDENT 21 KYLE NICOLE m. LLANES CLAImS-FIRE 21 ROBERT GLENN L. DARLE DIRECT & DEALERSHIP 21 mICHELLE B. BACULI FNAC 21 KATHERINE JOY D. KALALO DIRECT & DEALERSHIP 22 JONATHAN C. RESUELLO INTERNAL AUDIT 22 ROGER C. DE PAZ COLLECTION 22 JULIUS D. LAGANZO PERSONAL ACCIDENT UNDERWRITING 23 JEFFREY B. SANTOS CLAImS-PERSONAL ACCIDENT 23 PETER ANDREW S. PUNZALAN mOTORCAR UNDERWRITIN 24 SARAH JANE SORTIDO COLLECTION 25 mICHAEL m. PEREZ CLAImS-mOTORCAR 25 mARY CHARISSE C. DAVE CENTRALIZED ISSUANCE 25 mELVIN T. CELINO CENTRALIZED ISSUANCE 26 ImELDA A. LIGUIDLIGUID CENTRALIZED ISSUANCE 27 FLORDELIZA L. REYES RI ACCOUNTING 27 ENRIQUE VICENTE C. DUCON CASH mANAGEmENT 27 DOmINIC m. GONZALES REINSURANCE/FOREIGN 27 ALVIN B. PILA TOKIO mARINE-UNDERWRITING-PROPERTY 27 NINO GERALD R. DE VEGA mAKATI SALES OFFICE 27 mARY JANE C. BUNO ACTUARIAL AND RISK mANAGEmENT 28 JENNIFER G. RAJAL BAC 28 WINSTON G. BALIGNASAY FIRE UNDERWRITING 29 FERDINAND B. DELA CRUZ CLAImS 29 REGINE C. mAHINAY INTERNAL AUDIT 29 JERICHO S. mAPA BAC 30 BENILDA O. ANG mOTORCAR UNDERWRITING

february

march

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The trends mentioned in this section may be part of an inevitable, natural evolution. As the benefits of economic growth spread into more segments of society, further insurance penetration requires the development of lines beyond the early growth leaders of commercial fire and motor. In many cases, this may involve the development of non-motor personal lines, reflecting the rising importance of consumers to economies in Southeast Asia. Indeed, as markets develop they tend to have a higher proportion of premiums from such business lines. The proportion of non-motor personal lines in India certainly suggests a great potential for the growth of such lines across Southeast Asia. While per capita GDP levels in India are lower than those found in major Southeast Asian markets, non-motor personal lines, led by health insurance, makes up a far larger part of the overall non-life market than in many Southeast Asian non-life markets (Exhibit 3).

An Opportunity for Reinsurers to help Southeast Asian Insurers EvolveHelping Southeast Asian insurers to evolve profitability within their local markets and serve wider segments of their societies could open up an opportunity for smaller and mid-sized reinsurers to differentiate themselves with specialist expertise and networks, rather than just capacity.

Beyond introducing new products, this will require reinsurers to develop new local distribution channels and supplier management to manage claims costs and help with the regulatory approval processes. The new products also must be operated efficiently at the lowest possible cost, since average non-motor personal lines (or small business) premiums will likely be significantly lower than the average premium for commercial fire that has dominated the insurer’s business mix. Ideally, this could be achieved through automation in administration and underwriting, in order to make the business scalable and help the insurers to efficiently administer a high volume of small-ticket policies and claims whilst minimizing leakages.

There are many small and mid-sized insurers in the Southeast Asian markets – Thailand, Indonesia, and the Philippines, for instance, each have more than 50 non-life insurers – and these are daunting challenges for those that operate at an expense ratio disadvantage. On the other hand, there are also well-resourced large insurers that may have focused historically on commercial fire yet now aspire to grow into the personal/small business lines, but lack the distribution, processes, and product development expertise to do so profitably. So the opportunity for reinsurers to position themselves as growth facilitators may arise not just from the needs of the many small and mid-sized insurers, but from the ambitions of some large insurers as well.

Conversations with Southeast Asian insurers suggest that

technical expertise for new product development is mostly associated with global reinsurers. However, the level of involvement with local partners and the depth of local market knowledge that is required could also be favorable for regional reinsurers that have such capabilities. Perhaps what might be conceivable would be complementary partnerships between medium-sized international reinsurers and regional reinsurers.

Ratings PerspectiveIncreasing consolidation among reinsurers and reinsurers in raising the bar for what is the minimum scale to compete. There is no question that specialization becomes an increasingly important differentiator to help reinsurers maintain their relevance. Without this, mid-sized players in particular, including regional reinsurers in Southeast Asia, are at risk of being increasingly pushed to the margins of the market.

The potential of the Southeast Asian insurance markets to include more non-motor personal lines (as well as other specialist lines as risks become more complex amidst evolving economies) provides reinsurers with a timely opportunity to position themselves as growth facilitators and innovators, given their size disadvantage as pure capacity providers. However, only those with the relevant capabilities will be able to successfully capture this opportunity. It’s unlikely that this is a large universe – and those that do have the ability must also demonstrate that they can successfully grow and defend this new niche over time before it would be considered a positive rating factor to their business profile.

Insurers may value a reinsurer’s assistance in setting up the infrastructure during the start-up phase of a new non-motor personal/small business product and be willing to share premiums and the risk of mispricing (especially where markets are deregulated, product features are modified, and little experience data is available to an insurer). However, these products are typically more homogenous and of small individual size. This makes it easier for the insurer to reduce business volumes with a reinsurance partner once the insurer has become familiar with a new product and is comfortable with its performance.

To manage the declining barriers to exit over time, reinsurers will need to demonstrate agility and the ability to frequently roll out innovative and relevant products and distribution solutions, whilst still maintaining efficient operating expenses. Also, managing concentrations would be important to contain the impact of increasing premium retentions over time, due to any one product and/or cedant. This may be difficult to achieve in practice, as markets are typically dominated by a small number of insurers.

(From page 20)

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