Insurance Banana Skins 2013 - Malaysian results


Insurance Banana Skins 2013 - Malaysian results

Key concerns among insurers in Malaysia

Insurance Banana Skins 2013 is a biennial survey of the risks facing the insurance industry, produced by the Centre for the Study of Financial Innovation (CSFI) in association with PwC.

This is the third Insurance Banana Skins survey, which sets out to identify the risk concerns at the top of the boardroom agenda and how these perceptions change over time. It includes insights from over 660 insurers, regulators and close observers of the industry across 54 countries.

There were 14 respondents from Malaysia.

A stark contrast in results was observed between Malaysia and that of the world’s. In particular:

  • The depth of regulatory requirements, a key priority globally, but further down the list of concerns among Malaysian insurers
  • Talent, one of the top five concerns and a continuing trend in Malaysia but far down the list of concerns, globally

Among Malaysia’s priorities:

Among Malaysia's priorities:
Among Malaysia's priorities:
  • Quality of management
  • Quality of risk management
  • Human resources
  • Actuarial assumptions
  • Corporate governance
  • Reputation
  • Product development
  • Investment performance
  • Macro-economic environment
  • Guaranteed products
  • Regulation
  • Natural catastrophes
  • Political interference

Observations and comments

1) According to Dr Michael Heng:

PwC Malaysia assurance executive director Angie Wong interviewed Dr. Michael Heng, the CEO of Tokio Marine Insurans (Malaysia) Berhad, a survey respondent. Watch this video on
his thoughts and observations on the survey results and the industry outlook, in particular:  

  • How the Malaysia insurance industry has evolved since the last Insurance Banana
    Skins survey in 2011
  • The gap between local and global priorities especially in the area of regulatory risk and talent
2) Comments from respondents on:

On risk management:
“The fundamental risk management frameworks are in place, but they are not so robust.”

On talent in the area of corporate governance:
“In general, there is a dearth in talent at board level when it comes to insurance expertise especially in the takaful / retakaful arena.”

On reinsurance risk:
Concerned about “rate softening and credit risk increase due to possibility of reinsurer default.”