Market Services

CORPORATE ACTIVITIES AND SERVICES

Malaysian Re has been actively involved in underwriting all classes of general reinsurance business from the Malaysian market. It has expanded its business internationally and is actively underwriting business from the Asian, Middle East and Africa markets. Malaysian Re will continue to provide prompt services and will ensure the existing products to be not only competitive but also meet the requirements of its customers.

MARKET SERVICES

Malaysian Re is currently involved in providing various services to the Malaysian insurance industry. The services amongst others include the following:-

A. MALAYSIAN MARKET POOLS

• Malaysian Aviation Pool

Malaysian Re assumed the role as Manager of the Malaysian Aviation Pool (MAP) effective 1 October 1996.  Currently, its membership comprises six (6) local insurers and two (2) reinsurers with a total underwriting capacity of RM338 million. The underwriting of risks is by a Committee, nominated by participating companies. The business written by MAP is primarily Malaysian risks and Malaysian interests abroad.

• Malaysian Energy Risks Consortium

Malaysian Energy Risks Consortium (MERIC) was established in March 1995 with the objective to optimise national retention, promote wider interest and develop underwriting skills in the specialised class of energy business. MERIC comprises eleven (11) local insurers and two (2) reinsurers with Malaysian Re taking on the role of Secretariat. It has a capacity to underwrite up to a combined single limit of RM50 million for upstream and downstream risks. The underwriting of risks is by a Committee, nominated by participating companies. The primary portfolio of the business written by MERIC is Malaysian risks and Malaysian interests abroad.

B. CENTRAL ADMINISTRATION BUREAU

Malaysian Re initiated the establishment of the Central Administration Bureau (CAB) in 1995 to manage the centralised computerised and web-based system (CABFAC) for the administration and settlement of facultative reinsurance between CAB members i.e. insurers and reinsurers operating in Malaysia. The elimination of reconciliation problems and the efficient settlement of balances and claims recovery between members were the main drivers for the formation of CAB. The cost of development and operations of the system were then, and still are, being jointly funded by its members. Following the success of the CABFAC system, the members of Persatuan Insurans Am Malaysia (PIAM), in 2009 conceptualised the idea of developing a centralised coinsurance system (CABCO) which would function on the same operating model as the CABFAC. The CABCO was formally launched in August 2011 to cater for the coinsurance business transactions between the local insurers.

C. TECHNICAL SERVICES

Surveying and Advisory Services on Risk Management

Malaysian Re provides Property and Engineering Risk Survey services to the local insurance industry for the purpose of special rating, underwriting and also loss estimation. Property Risk assessment and risk management services tailored to the insureds’ needs are also provided through their insurers when requested.

D. SPECIAL RATING

Malaysian Re was appointed by PIAM to form a Rating Committee specifically for the purpose of determining special rates for Fire and Industrial All Risks (IAR) insurances, for risks which qualify for special rating under the Fire Tariff. This Committee comprises not less than six (6) qualified or experienced insurance underwriters or risk surveyors from among PIAM members of whom not more than three (3) shall be from Malaysian Re. The Chairman of the Rating Committee shall be a representative from Malaysian Re. By virtue of this appointment, Malaysian Re also acts as the Secretariat to this Committee as well as handles the day-to-day operations of all matters pertaining to special rating applications.

E. INSPECTION

Malaysian Re was given the mandate by PIAM to form an Inspection Task Force to conduct inspections or carry out investigations on the conduct and activities of its members in accordance with the terms and provisions of the various Inter-Company Agreements. With effect from 1 April 1992, the various Inter-Company Agreements had now been amalgamated into a single agreement called “Inter Company Agreement On General Insurance Business (ICAGIB)”. Thus, the Inspection Department has been entrusted to provide practical, reliable and timely inspection on the General Insurance Companies’ compliance with provisions embodied in the “ICAGIB” on matters pertaining to:-

a. Dealing with Agents;

b. Motor Tariff;

c. Fire Tariff; and

d. Bond Insurance.

F. MARKET TRAINING

Over the years, Malaysian Re has and will continue to organise various training courses and seminars on insurance/reinsurance related topics in addition to market updates for staff of insurance companies to instil a higher degree of professionalism in the industry.

G. SCHEME FOR INSURANCE OF LARGE & SPECIALISED RISKS

The Scheme for Insurance of Large & Specialised Risks (SILSR) was implemented on 1 January 1994 with Malaysian Re appointed as Scheme Manager by Bank Negara Malaysia (BNM). The SILSR was formed with the primary objective of developing and enhancing the level of technical expertise and professionalism within the Malaysian insurance fraternity. In addition to this, SILSR’s function is to facilitate the most favourable cover at internationally competitive terms for the Malaysian risk owners. To this end, SILSR’s crucial role is to promote the optimum retention of Malaysian risks with reinsurance placed to the best national advantage.