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 (MAP)

Malaysian Re assumed the role as Manager of the Malaysian Aviation Pool (MAP) effective 1 October 1996. The objective of the Pool is to improve national retention, promote interest and develop underwriting skills in this specialized class of business. The Pool underwriting capacity stands at RM100 million. As Pool Manager, Malaysian Re’s role in addition to underwriting includes claim management, reinsurance arrangement and other administrative roles.  The business underwritten by MAP is primarily Malaysian risks and Malaysian interest abroad. Business from other Asian countries may be considered by MAP as described in the business plan for each underwriting year.

• Malaysian Energy Risks Consortium (MERIC)

Malaysian Energy Risks Consortium (MERIC) was established in March 1995 with the aim to optimize national retention, promote wider interest and develop underwriting skills in this specialized class of business. In 2019, MERIC has increased its capacity to RM75 million for upstream and downstream risks. The business underwritten by MERIC is primarily Malaysian risks and Malaysian interest abroad. Exposures from Assureds domiciled in Asia and Pacific region, Middle East and North Africa (and their interests abroad, worldwide) may be considered by MERIC.

Malaysian Re as Pool Manager of the consortium, underwrites, conducts the day to day operations including claims management, reinsurance arrangement and other secretarial function of the Pool.  Consortium members consist primarily of local insurance companies.

 

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

Malaysian Re provides surveying and advisory services on risk management to the local insurance industry for the purpose of underwriting and loss estimation. This role is undertaken by the Technical Services Department team which consists of experienced and qualified Risk Surveyors/Risk Engineers. The services offered by Technical Services Department includes:

  • Fire and Industrial All Risks (IAR) Special Rating Survey

  • Fire Survey for Insurance Underwriting

  • Fire Risk Management Survey

  • Property and Engineering Loss Estimates Survey

  • Automatic Sprinkler Installation Survey

  • Fire Extinguishing Appliances Consultation

  • Machinery Breakdown Survey

  • Contractors All Risks (CAR) / Erection All Risks (EAR) Survey

  • Burglary Survey

  • Risk Survey Training

  • Infrared Thermography Inspection (IRT).

In addition, the Technical team also provides technical support for the Re.Banjir system.

The Re.Banjir system, a home grown Malaysian Flood Model, is a risk assessment tool to support primary insurers to better estimate flood exposure on their property portfolio. The Re.Banjir was launched to the members of Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA) on 23 September 2013. The model currently assess flood exposures for risks in Peninsular Malaysia with plans to expand the model further to cover East Malaysia. Member companies have direct access to the model and generate the results on their own or request the assistance of the Re.Banjir Support Team. The results generated are in the form of Occurrence Exceedance Probability (OEP) and Annual Exceedance Probability (AEP) tables of the portfolio of members’ business. The Re.Banjir flood model had undergone several enhancements and stress tests to bring it to its present state.

 

D. SPECIAL RATING

Malaysian Re was appointed by PIAM to form a Rating Committee for the purpose of determining special rates for Fire and Industrial All Risks (IAR) insurances which qualify for special rating (Fire & IAR) as prescribed under the Revised Fire Tariff.

The Rating Committee comprises not less than six (6) qualified or experienced fire insurance underwriters or risk surveyors from any of PIAM Members of whom not more than three (3) shall be from Malaysian Re. The Chairman of the Rating Committee shall be from Malaysian Re. By virtue of this appointment, Malaysian Re will act as the Secretariat of the Rating Committee and handles the day-to-day operations of all matters pertaining to special rating applications.

 

E. INSPECTION

Malaysian Re was mandated by PIAM to form an Inspection Task Force in 1985. The Task Force duty was to conduct inspections and/or carry out investigations on the conduct and activities of its members in accordance with the terms and provisions of the Inter-Company Agreement on General Insurance Business (ICAGIB). The Inspection Task Force comprised of Malaysian-Re’s personnel and attached to PIAM. The original scope of Task Force pertains to matters concerning the Fire Tariff, Motor Tariff and Agents. In September 20, 2018, the Inspection Task Force under the direction of PIAM had cease its activities.

 

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.