MII Annual Report 2011 - MII Institutional Repository

M I I A n n u a l R e p o r t 2 0 1 1

2011annual report

(35445-H)

MII City Centre @ Maju Junction MallS17-S28, 2nd Floor, (below the food court)

Maju Junction Mall

1001, Jalan Sultan Ismail,

50250 Kuala Lumpur, Malaysia

HEADQUARTERS:No. 5, Jalan Sri Semantan Satu,

Damansara Heights, 50490

Kuala Lumpur, Malaysia

Tel : +603 2087 8882 / 8883

Fax : +603 2093 7885

Email : [email protected]

Website : www.insurance.com.my

Tel : +603 2087 8882 / 8883

Annual Report 2011

ContentNotice of Annual General Meeting 2Vision, Mission & Core Values 3Corporate Information 4Board of Directors 5Management Team 6Message from CEO 7Audit Committee Report 11

MII Activity Report MIIasaTrainingProvider 14 MIIasanExaminationCentre 34 MIIasaProfessionalBody 53 MIIasaConferenceOrganiser 57 MIIasaKnowledgeCentre 72 MIIastheSecretariatofAITRI 79 BusinessDevelopment 87 StaffTrainingandDevelopment 98 InformationTechnology 103

Financial Statements Directors’Report 108 IndependentAuditors’Report 111 StatementsofComprehensiveIncome 113 StatementsofFinancialPosition 114 StatementsofChangesinEquity 116 StatementsofCashFlows 117 NotestotheFinancialStatements 119 StatementbyDirectors 144 DeclarationbytheofficerprimarilyresponsibleforthefinancialmanagementoftheInstitute 144

Proxy Form 145Accredited Representative Form 146

Annual Report 20112

THE MALAYSIAN INSURANCE INSTITUTE(Incorporated in Malaysia)

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the 34th Annual General Meeting ofThe Malaysian Insurance Institute will be held at

the Carlton 6, Level 2, Carlton Conference Centre,The Ritz-Carlton Kuala Lumpur, No 168, Jalan Imbi, 55100, Kuala

LumpuronFriday,29June2012at9:00a.m.forthefollowingpurposes:

AGENDA

AS ORDINARY BUSINESS

1. Toreceivetheauditedfinancialstatementsfortheyearended31December2011together

withtheDirectors’andAuditors’Reportsthereon.*

2. ToelectDirectorsinaccordancewithArticle72(1)(b)oftheInstitute’sArticlesofAssociation. Resolution 1

3. Tore-appointMessrsDeloitteKassimChanastheauditorsoftheInstitute,toholdofficeuntil

theconclusionofthenextAnnualGeneralMeetingandtoauthorisetheBoardofDirectors

tofixtheirremuneration.

Resolution 2

4. To transact any other business which may be properly transacted at an Annual General

Meetingforwhichduenoticeshallhavebeengiven.

ByOrderoftheBoard

LIM SECK WAH (MAICSA 0799845)M. CHANDRASEGARAN A/L S. MURUGASU (MAICSA 0781031)CompanySecretaries

7May2012

Notes:

a) Amemberentitledtoattendandvoteatthismeetingisentitledtoappointaproxytoattendandvoteinhisstead.

b) AproxyshallbeanindividualmemberoftheInstitute.Noproxyshallbeaproxyformorethantwo(2)individualmembers.

c) Theinstrumentappointingaproxyoraccreditedrepresentativeandthepowerofattorneyorotherauthority(ifany)underwhich

it is signed or notarially certified or office copy thereof shall be deposited at the Registered Office of the Institute, No. 5 Jalan

Sri Semantan Satu, Damansara Heights, 50490 Kuala Lumpur, not less than forty eight (48) hours before the time appointed for

holdingthemeeting.

* The Annual Report and Financial Statements can also be accessed and obtained through our homepage address,

www.insurance.com.my.

VISIONTo be the preferred insurance institute for human capital development and professional

standardsininsuranceinMalaysiaandEmergingMarkets

MISSION Strengtheningtheindustryandaddingvalueasstrategicpartnerswiththeinsurancecommunity

by:

l Raisingthelevelofprofessionalstandards

l Deliveringeffectivehumancapitaldevelopmentprogrammes

l Promotinginsurancerelatedknowledgeandinformation

l Providingaplatformforsocialandnetworkingopportunities

l Supportingthenationalagendainpromotinginsurancetrainingandeducation

CORE VALUESResourcefulWearesolution-orientedbyexploringpossibilitiestoachievetheobjectives

Speed Westrivetobefastandaccurateatalltimes

Customer Webenchmarkagainstbestpracticestomeetandexceedtheneedsofourcustomers

Integrity We inspire trust and confidence among customers and partners by upholding good corporate

governance

Learning Weplayamoreeffectiverolebycontinuouslystrivingforknowledgeandskillsenhancement

Annual Report 2011 3


Annual Report 20114


CORPORATE INFORMATION

Board of Directors

Mr.HashimHarun(Chairman)

Mr.ShaikhAbdulRasheedAbdulGhaffour

(appointedon29.06.2011)

Y.BhgDato’AdrianLowHeongChow@

LohHeongChow

Y.BhgDato’HajiSyedMoheebSyedKamarulzaman

Mr.AlexFoongSooHah

Y.BhgDatoKohYawHui

Mr.VincentKwoShihKang(appointedon14.02.2012)

Mr.K.LoganA/LK.A.Ratnam(appointedon08.08.2011)

Mr.AlexLowChoonHoong

Ex-Directors

Mr.AhmadHizzadBaharuddin(resignedon29.06.2011)

Mr.MohdDinMerican(appointedon29.06.2011,

resignedon14.02.2012)

Mr.MdAdnanMdZain(resignedon29.06.2011)

Mr.AnuarMohdHassan(resignedon12.04.2011)

Mr.LeeThimFook(resignedon08.08.2011)

Y.BhgDatukLakshmananMeyyappan

(resignedon29.06.2011)

Mr.JahanathA/LMuthusamy(resignedon12.04.2011)

Chief Executive OfficerMrs.KhadijahAbdullah

Company SecretariesMrs.LimSeckWah(MAICSA:0799845)

Mr.M.ChandrasegaranA/LS.Murugasu

(MAICSA:0781031)

BankersMalayanBankingBerhad

RHBBankBerhad

Registered Office and Principal Place of BusinessNo.5JalanSriSemantanSatu

DamansaraHeights

50490KualaLumpur,Malaysia

Tel.No.:03-20878882/8883

FaxNo.:0320937885

MII Executive Committee (EXCO)

Mr.ShaikhAbdulRasheedAbdulGhaffour

(EXCOChairman)

Y.BhgDato’AdrianLowHeongChow@

LohHeongChow

Y.BhgDato’HajiSyedMoheebSyedKamarulzaman

Mr.AlexFoongSooHah

Mr.VincentKwoShihKang

Mr.K.LoganA/LK.A.Ratnam

Audit CommitteeY.BhgDatukLakshmananMeyyappan

(AuditCommitteeChairman)(resignedon29.06.2011)

Y.BhgDatoKohYawHui

Mr.AlexLowChoonHoong

AuditorsMessrs.DeloitteKassimChan

CharteredAccountants

Level19,Uptown1

1,JalanSS21/58

DamansaraUptown

47400PetalingJaya

Selangor

(FirmNo.:AF0080)

MII Websitewww.insurance.com.my

MII Members’ [email protected]

General [email protected]

MII City CentreS17-S28,2ndFloor

MajuJunctionMall

1001JalanSultanIsmail

50250KualaLumpur,Malaysia

Tel.No.:03-26918233

FaxNo.:0326932370



BOARD OF DIRECTORS

Mr. Hashim HarunPresident&CEO

MalaysianReinsuranceBerhad

(ChairmanofPIAM)

Mr. Shaikh Abdul Rasheed Abdul Ghaffour

Director

FinancialSectorDevelopment

Department

BankNegaraMalaysia

Mr. Vincent Kwo Shih KangCEO

Uni.AsiaLifeAssuranceBerhad

(PresidentofLIAM)

Mr. Alex Foong Soo HahMIIDirector

Y.Bhg Dato’ Adrian Low Heong Chow @

Loh Heong ChowMIIDirector

Mr. K.Logan A/L K.A. Ratnam

CEO

LoganLossAdjustersSdn.Bhd

(ChairmanofAMLA)

Mr. Alex Low Choon HoongCEO&ManagingDirector

JardineLloydThompson

Sdn.Bhd

(ChairmanofMITBA)

Y. Bhg Dato Koh Yaw HuiDirector&CEO

GreatEasternLifeAssurance

(Malaysia)Berhad

Y.Bhg Dato’ Haji Syed Moheeb Syed

KamarulzamanManagingDirector&CEO

TakafulIkhlasSdn.Bhd

(PresidentofMTA)

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MESSAGE FROM CEO

FINANCIAL PERFORMANCE

In2011,ourrevenueincreasedby16%toRM17,672,941

fromRM15,225,424in2010,duetogreaterparticipation

in our examinations, training programmes and

conferences. The positive performance earned us

a higher surplus after tax by 81% at RM1, 945,410

comparedtoRM1,074,007in2010.

Thehigherrevenuereportedwasalsoderivedfromour

continuous efforts in introducing more new training

and education programmes, penetration of new

markets, increase in the conduct of the examinations

andprudentcostmanagement.

LAYING THE FOUNDATIONS OF HUMAN CAPITAL DEVELOPMENT EXCELLENCE

Recent developments in MII have seen the Institute

in its transformation journey from being a typical

non-profit insurance training provider to a human

capital development solution provider. Among

the major achievements we achieved in 2011 was

the increased number of candidates taking our

examinations throughout the year. In 2011, we

achieved a phenomenal figure of 115, 609 candidates

taking our examinations at our 9 Computer-Based

Examination (CBE) centres, 22 manual examination

centres nationwide and at our international centres in

Dhaka, Bangladesh and Jakarta, Indonesia, compared

to 112,000 candidates in 2010. This contributed

to an increase of 3,670 candidates involving 1,096

examinationsessions.

Asapreferred trainingarmfor theMalaysian insurance

industry, we are committed to providing more and

improved training programmes to equip the insurance

fraternity with the best knowledge and technical

expertise that will help them in their careers. The

number of professional, technical and non-technical

programmes remained strong with over 200 classes

conducted in 2011, attracting 8,622 participants in

2011.Theyearalsosawusreceivingmore international

participationinourtrainingandeducationprogrammes

with 362 foreign participants from Bangladesh,

Indonesia, Iran, Seychelles, Kazakhstan, Bhutan,

Mongolia,Vietnam,Nigeria,Maldives,andSaudiArabia,

among other countries. We were proud to receive for

the first time, study tour groups of 65 delegates from

Nigeria, Mongolia and Saudi Arabia who attended our

special courses in Kuala Lumpur.We were also invited

to Iran, Vietnam and Maldives to conduct our special

courses in their home countries. It was an exciting

journeyforustoconductourfirstoverseasprogramme

in Maldives.This is a clear indication that MII is highly

regarded as the preferred resource for professional

development of the insurance fraternity locally and

internationally.

2011 was another meaningful year for MII, during which our performance was pushed into higher gear with the passion of our team and the significant support from the insurance industry and Bank Negara Malaysia. We exceeded most of our KPIs and achieved significant financial performance despite our position as a non-profit organisation. We also met our commitments to our stakeholders by providing high quality training and education programmes in developing the human capital of the insurance industry. We will continue to carry out all the various initiatives to better support our quest to elevate the professional standards of the insurance industry in Malaysia as well as in other emerging markets.

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Annual Report 20118


MESSAGE FROM CEO (cont’d)

2011 was also a milestone in the enhancement of

a knowledgeable insurance community with the

introduction of new conferences to cater for the

growing need for a knowledgeable workforce and

educated insurance fraternity. We conducted 3 new

conferences that contributed to a significant increase

of2,341conferenceparticipants,from1,272conference

participantsin2010to3,613in2011.Theseconferences

were: 1) 1st Malaysia Insurance Summit which catered

for the senior management of insurance companies

and served as a platform to discuss various strategic

industry issues and developments; 2) Konvensyen

Ejen Takaful 2011 (Takaful Agents Convention 2011)

jointly-organised with IBFIM and Malaysian Takaful

Association (MTA), and targeted at takaful agents; and

3) MDRT Day 2011 which focused on life agents and

financial planners.TheTakaful Agents Convention 2011

and MDRT Day 2011 were organised to inspire agents

to triumph over the mounting challenges faced in the

industryandtoimprovepublicperceptionofinsurance.

We have been achieving steady progress and

developments in our mission to promote insurance

knowledge and information. Our Knowledge Centre

received 6,576 visitors in 2011, an increase of 21%

over 2010. The Knowledge Centre made numerous

achievements in improving contents, services and

facilities, all of which are in line with one of our

objectives which is to provide a specialised insurance

knowledgecentretheindustrycanbeproudof.Wealso

take pride in having been given the mandate to lead

the Knowledge ManagementTask Force (KMTF). KMTF,

consistingofMII,Asian InstituteofFinance (AIF), IBFIM,

Institut Bank-Bank Malaysia (IBBM), and International

Centre of Education in Islamic Finance (INCEIF), looks

into the integration and rationalisation of knowledge

management resources, technologies and expertise

amongitsmembers.

With regard to publications, we continued to provide

platforms for knowledge enhancement with our

bi-annual journal, Insurance and Takaful Journal (INTAJ) and our bi-monthly magazine, INSURANCE.

These initiatives are aimed to continuously provide

the industry with updated knowledge and we are

very proud to have received positive response by the

industry.

EXPANDING LOCAL GROWTH

In our continuous commitment to serve the industry

better and in keeping with the fast development of

information technology, we took yet another step

forward by setting up additional 6 CBE centres in

Kota Bharu, Kota Kinabalu, Kuching, Ipoh, Melaka and

Kuantan.These new centres complement the existing

CBE centres in Kuala Lumpur, Johor Bahru and Penang.

With a total of 9 CBE centres nationwide to date, we

plan to expand with 2 more CBE centres in Sungai

Petani and Miri in 2012.This is part of our continuous

efforttoprovidesuperiorservicestoourcustomersand

reachoutnationwide.

Our training developments were also given a boost as

we further expanded our reach to the industry outside

the Klang Valley by opening new classes for CMII in

Johor Bharu, Kota Kinabalu, Kuching, Penang and

Melaka.This makes the total number of classes for our

Associateship, Diploma and Certificate programmes 41

classesinvolving737students.

In addition, we have been very honoured to have

received continued support from Malaysian National

Reinsurance Berhad (MNRB) through their generous

50% sponsorships for AMII and DMII students from the

industry. In 2011, 27 students from various insurance

andtakafulcompanieswereawardedthesponsorship.

We believe that the expected growth will be better

achieved with the existence of a strong insurance

community within the Malaysian insurance industry.

Therefore, we continuously provide various avenues

through our membership programmes and events to

providenetworkingopportunitiesamongpeopleinthe

insurance industry as a catalyst for better cooperation

and knowledge-sharing in our quest to build a strong

insurancefraternity.




SPREADING GLOBAL REACH

Our local and international connectivity through

our strategic alliances with other world-renowned

insurance-related institutions has also helped us to

heighten our professional profile for the industry.

Recognising the market potential that we can garner

from establishing strong relations with reputable

partners, we made several more collaborations to

complement our current cooperation with other

institutions worldwide. In 2011, Insmart Company

Limited, Vietnam, signed an MoU with MII to mark a

collaborative relationship on the initiative to provide

our offerings in Vietnam. We also opened up a new

knowledge path through our new collaboration with

AGOCInternationalLtd,UK,inofferingourprogrammes

in Saudi Arabia. In addition, we signed an MoU with

Inspire Global Pte. Ltd, Singapore, for cooperation

between the 2 organisations in providing advanced

insurance technical programmes in Malaysia. These

exciting collaborations will help us in spreading our

wings abroad and mark MII and Malaysia as the centre

forhumancapitalexcellenceforinsurance.

On the regional front, MII as the Secretariat of the

ASEAN Insurance Training and Research Institute

(AITRI), continued to strengthen its cooperation and

received strong support from insurance regulators and

associations in ASEAN and non-ASEAN countries. 2011

marked our achievement in conducting 4 programmes

for regulators, which attracted 109 participants from

ASEAN and non-ASEAN countries. The annual Young

ASEANManagerAward(YAMA)2011,inspiredunderthe

spiritofASEANtohonouroutstandingyoungmanagers

for their achievement, contribution and dedication

to the insurance industry, was successfully held in

Singapore. We hope that this initiative will attract

more outstanding young talents to join the insurance

fraternity and become future leaders who will enhance

theregionalinsuranceindustrybusinesslandscape.

CAPACITY BUILDING INITIATIVES

TheCapacityBuildingFundwhichhasbeencontributed

by Bank Negara Malaysia and the insurance industry

has greatly facilitated the delivery of capacity building

projects for the industry. Some of these projects are

beingchannelledthroughMIIastheenablertosupport

the industry’s futureperformanceandcompetitiveness.

With the fund,wehaveplanned19majorprojects that

will ensure MII’s relevance and capability to develop

skillsandknowledgewithin the industry.Amongthese

include the development of professional qualifications;

the incorporation of research work into the Institute’s

knowledge management portfolio; the automation

of administrative processes such as professional

examination registration and payment; and computer

centres.

WesuccessfullycompletedtheCompetencyFramework

for the Malaysian Insurance and Takaful Industry (CF-

MITI). CF-MITI, a world class competency framework

that provides a definitive learning and human capital

reference plan for the industry, was launched on 28

March 2011. CF-MITI was developed together with

LIMRA/LOMA,USA,andTheAustralianandNewZealand

Institute of Insurance and Finance (ANZIIF), Australia.

Other projects and developments derived from the

capacity building initiatives were the MII Data Centre

and other online systems utilised in our accounting,

security and human resource. These have significantly

improved our operations and increased the quality of

ourservicestoourcustomers. Another industry-driven

programme conducted under this initiative was the

Insurance Claims Forum with Judges of Malaysia. The

forum provided a useful platform for judges, leading

local insurance practitioners and legal advisors to

discuss legal and claims issues involving the insurance

industryandthepublic.

MOVING FORWARD

In line with Bank Negara Malaysia’s Financial Sector

Master Plan to establish a talent development support

to build a dynamic financial sector in Malaysia by

developing talent at entry level, promoting continuous

learning for the existing workforce and ensuring

an adequate supply of skilled talent to meet the

challenges in the new financial landscape, MII will

continue togenerate improved learningandeducation

programmesandfacilitiesfortheinsuranceindustry.

ACKNOWLEDGEMENTS

I would like to acknowledge all our stakeholders,

namely our members, customers, business partners,

insurance associations, the media and Bank Negara

Malaysia for their continued support and contribution

toMII.IwouldalsoliketothankMIIEXCOmembers,the

MIIAuditCommitteeandtheMIIBoardofDirectors for

their guidance and invaluable advice to move MII to

the next level. Finally, my heartfelt appreciation for the

MII team who has shown that together in unity, MII is

able to achieve great things in pursuing our desire of

“Spreading Our Wings for Local Growth and Global

Reach”.

Thankyou.

Khadijah AbdullahChiefExecutiveOfficer

Annual Report 201110





AUDIT COMMITTEE REPORT

Constitution

TheAuditCommitteewasestablishedbytheMIIBoardofDirectors(theBoard)on15thOctober2001toimplement

andsupporttheoversightfunctionoftheBoardrelatingto:

l accountingpolicies,financialreportingpractices,riskmanagement,controlandgovernanceprocesses;

and

l provisionofalineofcommunicationbetweentheBoardandtheexternal/internalauditors.

Membership and Composition

ThemembersoftheAuditCommitteeareappointedbytheBoard. TheAuditCommitteecomprisesnofewerthan

3members,allofwhomarenon-executivedirectors. TheChairmaniseitherappointedbytheBoardorelectedby

membersoftheAuditCommitteefromamongthemselves.

Authority

TheAuditCommitteeisauthorisedbytheBoardtorevieworinvestigateanyactivitywithinitstermsofreference.It

hasfullandunrestrictedaccesstoanyinformation,records,personnel,andpropertiesofMII.

TheAuditCommitteeisalsoauthorisedtohaveaccesstoindependentprofessionalorexternallegaladvice,andto

secureattendanceofoutsiderswithrelevantexperienceandexpertise,wheneveritisdeemednecessary.

Meeting and Quorum

TheAuditCommitteemeetsat least3timesperannum. Thequorumforeachmeeting is2members,whichmust

includetheChairman.

TheChiefExecutiveOfficerandtheHeadofInternalAuditarerequiredtoattendeachmeeting.Anyotherdirectors

and employees of MII or outsiders may attend the meeting upon invitation of the Audit Committee. The Audit

Committeemeetswiththeexternalauditorsatleastonceayear.

In 2011, the Audit Committee met 3 times on 27 April, 6 October and 6 December.The record of attendance is as

follows:

Members Attendance

Mr.AlexLowChoonHoong(Chairman) 3/3

Y.BhgDatoKohYawHui 2/3

Y.BhgDatukLakshmananMeyyappan* 1/1

Note:

* ResignedasamemberoftheBoardandChairmanoftheAuditCommitteeon29/06/11

Therewere3meetingsheldasper theminimumrequirementof therevisedTermsofReference. TheChairmanof

theAuditCommitteereportstotheBoardonallsignificantmattersdeliberatedineachmeeting.



AUDIT COMMITTEE REPORT (cont’d)

Duties

ThemaindutiesoftheAuditCommitteeare:

l to consider the appointment of a suitable accounting firm to act as external auditors. Among the factors

thatmaybeconsideredareadequacyofexperienceandresourcesofthefirm,thecredentialsofthepersons

assignedtotheaudit,andtheauditfee;

l toendorsedecisionregardingappointmentorterminationoftheHeadofInternalAudit;

l todiscusswiththeexternalandinternalauditors,theirauditplans,natureandscope;

l toreviewthehalf-yearinterimaccounts(ifany)andtheauditedannualfinancialstatements;

l to discuss with the external auditors their evaluation of the quality and the effectiveness of the system of

internalaccountingcontrols;

l to review the internal audit reports and discuss with the internal auditors their evaluation of the risk

management,control,andgovernanceprocesses;

l to review the co-operation or assistance given by MII management and staff to the external and internal

auditors;

l toexaminetheappropriatenessoftheaccountingpoliciesandmanagementpracticesadopted;

l to review whether there is a reasonable ground to believe that the external auditors are not independent

and/ornotsuitableforreappointment;and

l toconsideranyotherissues,asproposedbytheBoard.

Highlight of Activities

TheAuditCommitteeundertookthefollowingroutinedutiesin2011:

l reviewedthe2010auditedfinancialstatements;

l reviewedandapprovedthe2012internalauditplan;

l reviewed the internal audit reports covering ‘Administration Unit’, ‘Business Development Department’,

‘EducationUnit’,‘GeneralInsuranceTraining&Conference’,and‘ProfessionalCertificationUnit’;

l reviewedtheERMreportscoveringstatusofimplementationofriskactionplans;and

l consideredandendorsedinternalaudit’srecommendationsandmanagement’sresponses.

Duringtheyear,theAuditCommitteealsoendorsedtheproposaltoreducethenumberofitsmeetingsfromatleast

4 to 3 per annum, which was subsequently approved by the Board. This reduction does not impair the effective

functioningoftheAuditCommittee.

Internal Audit Department

MII has a dedicated Internal Audit department which was established in 2002. The Internal Audit department

assiststheAuditCommitteeandthemanagementintheeffectivedischargeoftheirdutiesonmatterspertainingto

internalcontrols,riskmanagementandgovernanceprocesses.TheHeadofInternalAuditreportsfunctionallytothe

AuditCommitteeandadministrativelytotheChiefExecutiveOfficer.

MII ACtIVItY RePoRt



ACTIVITY REPORT

MII AS A TRAINING PROVIDER

1. OVERVIEW

Ourroleinthetrainingservicesistosupportandcomplementthehumancapitaldevelopmentinitiativesof

the industry.Our trainingservicesare focusedon technical,professionalor specificareasnotundertakenat

thecompanylevel.

3 main categories of training are offered to the public, namely General InsuranceTraining, Life Insurance

TrainingandProfessionalandCertificatedProgrammes.Theseprogrammesaredevelopedtobuildtechnical

competenciesoftheinsurancefraternityrangingfromstaffofgeneralandlifeinsurancecompanies,brokers,

lossadjusters,financialplanners,riskmanagementpersonnelandmanyothers.

2. GENERAL INSURANCE TRAINING

Generalinsurancetrainingisdividedinto2mainstreams,TechnicalTrainingCoursesandPremierSeries.

2.1. TECHNICAL TRAINING COURSES

The technical training courses offer 3 levels of programmes with target audiences ranging from new

entrants to management staff.The courses are structured as basic, intermediate and advanced, with

each level containing the specified teaching units of the essential contents that the particular topic

or subject matter must have.The MII City Centre in Maju Junction Shopping Mall, Kuala Lumpur, is

currentlythemaintrainingvenueforthesecourses.

In meeting the different and specific needs and requirements of individual companies in developing

their staff competencies, all the above training can accordingly be customised as in-house training.

In this case, the preference of training venue and the choice of trainers will be determined by the

companies,whilewe recommendthe topicsbasedon the trainers’areasof specialisation,experience

andmarketexposure.For internationalcustomers, in-housetrainingcanbeheldeither in theirhome

countryorinMalaysiaandsuchtrainingisidentifiedasspecialcoursesforforeignparticipants.

In tandem with our overall good performance in 2011, general insurance training reported a higher

number of classes conducted as compared to 2010 i.e. an increase of 24% or 30 classes. Out of 156

classes, 107 were conducted as public courses while the remaining 49 classes were conducted as in-

housecourses. Theclassesforpubliccoursessawaslightdecreaseof4%from111 in2010to107 in

2011. Conversely, the demand for in-house training surged to 277% from 15 to 49 classes, reflecting

the change in customers’ preference to organise the courses in-house, probably due to cost savings

aswellascompanyfocus. Correspondingly,thenumberofparticipantsregisteredasteadygrowthof

49%with2,145in2011comparedto1,441participantsin2010.



ACTIVITY REPORT (cont’d)

The basic courses captured a significant growth with 1,168 participants in 2011 compared to 520

participants in2010.The intermediatecoursesalsoreportedan increaseof153from817participants

in2010to970participantsin2011.However,thenumberofparticipantsforadvancedcoursesdeclined

drastically from 104 in 2010 to 7 in 2011. In 2010, we organised a one-time training programme

designedforBhutandelegateswhichlocalandotherforeigncountrieswerealsoinvitedtoparticipate.

Thissignificantlyboostedthenumberofparticipantsfortheyear.Theotherreasoncontributingtothe

decreasewasthattheadvancedcourses(underPremierSeries)in2010werenolongerofferedin2011.

General Insurance Training Courses in 2011 and 2010:

No. Course2011 2010

No. ofClasses

No. ofParticipants

No. ofClasses

No. ofParticipants

1 PublicTechnical 61 469 84 645

PremierSeries 46 408 27 299

Sub-Total: 107 877 111 9442 In-House

Technical 36 1047 13 475

SpecialCoursesforForeign

Participants 13 221 2 22

Sub-Total 49 1,268 15 497Grand Total 156 2,145 126 1,441

Overall Number of Training Classes and Participants by Level in 2011 and 2010:

No. Level2011 2010

No. of Topics

No. of Classes

No. of Participants

No. of Topics

No. of Classes

No. of Participants

1 Basic 70 64 1,168 17 61 520

2 Intermediate 71 91 970 51 59 817

3 Advanced 1 1 7 5 6 104

Total 142 156 2,145 73 126 1,441

Public and In-House Training Courses by Level in 2011 and 2010:

2011 2010

No. LevelPublic In-House Public In-House

No. ofClasses

No. ofParticipants

No. ofClasses

No. ofParticipants

No. ofClasses

No. ofParticipants

No. ofClasses

No. ofParticipants

1 Basic 34 311 36 1,047 48 387 13 475

2 Intermediate 72 559 13 221 57 453 2 22

3 Advanced 1 7 – – 6 104 – –

Total 107 877 49 1,268 111 944 15 497




2.2. PREMIER SERIES

ThePremierSeriesaretargetedatamoreadvancedaudienceandfocusontopicsmeetingthecurrent

needs, trends and practices of local and regional markets.The courses blend the trainers’ extensive

working experience and exposure exclusive to their respective areas of expertise with study visits

to bring classroom knowledge to the actual work site. The courses have attracted many foreign

participantsandinviewofthat,hotelsareconsideredappropriatevenuestoconductthetraining.This

istofacilitateaccommodationconvenienceforforeignparticipants.

During2011,wesuccessfullyoffered46PremierSeries,anincreaseof19coursesor70%ascompared

to 27 in 2010.The courses attracted 408 participants compared to 299 in the previous year. Foreign

participationrecordedan increaseof15%from62 in2010to71 in2011.The ratioof local to foreign

participantswas5:1or83%localand17%foreign.Theincreaseinthenumberofparticipantswasdue

to the increasednumberofofferedcoursesandstrongtestimonyof thequalityand relevanceof the

courses. Some of the courses also included site visits to places relevant to the subject matter of the

courses.

Premier Series with Site Visits Conducted in 2011:

No. Premier Series Courses Site Visits

1 ApplyingFireEngineeringKnowledgein

PropertySurvey&LossControls

PYROGEN MANUFACTURING SDN BHD40150,ShahAlam,Selangor

2 A Comprehensive Course in Aviation

Insurance

MAS ENGINEERING & MAINTENANCEKualaLumpurInternationalAirport

64000,Sepang,Selangor

and

CTRM AVIATION SDN. BHDCompositesTechnologyCity

BatuBerendam,Melaka

3 AComprehensiveCourseInEngineering

InsurancePractice

KL-KUALA SELANGOR EXPRESSWAY BHD(LATAR)KompleksOperasi

LebuhrayaKL-KualaSelangor

BestariJaya,Selangor

4 A Comprehensive Course in General

Insurance(Claims)

WESTPORTS MALAYSIA SDN BHDPulauIndah,PortKlang,Selangor

The majority of the international participants were from ASEAN countries while the remainder came

fromSaudiArabia,PapuaNewGuinea,SriLanka,Pakistan,HongKong,Maldives,OmanandQatar.




22-23June2011,PremierCourse:

FireTariffClausesMadeSimple,TheLegendHotel,KualaLumpur

1-3Nov2011,PremierCourse:

ComprehensiveCourseinAviationInsurance,sitevisittoMASCargoSubang,Selangor




2.3. FOREIGN PARTICIPANTS

In 2011, we received better overseas participation in our general insurance training courses,

particularlyfromregionalandemergingmarkets,recordinga127%increaseascomparedto2010.324

foreign participants attended the general insurance training courses in 2011 as compared to 143 in

2010.Themajorityof foreignparticipants i.e.221cameforthespecialcourses,while71attendedthe

PremierSeriesand32cameforthetechnicaltrainingcourses.

For the first time, we received participants from Mongolia and Nigeria. Participants from Bhutan

represented the largest group with 38 participants, followed by Indonesia with 30 participants and

Nigeriawith21participants.Participants fromBhutanandNigeriaattendedourspecialcourseswhile

participantsfromIndonesiacameforthePremierSeries.

Amongthereasonsforthesignificantincreaseweretheselectionoftopicsthatmetmarketdemands

and reputable trainers who are not only experts in the respective areas but are also willing to share

theirvaluabletechnicalexperiencewithparticipants.Reasonablecoursefees,flexibilityexercisedinour

coursesandgoodlearningexperienceattracted“repeatcustomers”toreturnformorecourseswithus.

Furthermore,someofthetrainingcoursesincludedsitevisits,whichaddedvaluetothetraining.

Number of Foreign Participants Attending General Insurance Training Courses in 2011 and 2010:

No. Course 2011 2010 Increase/Decrease %1 TechnicalTraining* 32 59 (45.76%)

2 PremierSeries** 71 62 14.52%

3 SpecialCourses*** 221 22 904.45%

Total 324 143 126.57%

Notes:

* TechnicalTraining : 3 levels ofprogrammes (basic, intermediateandadvanced)with targetaudiences ranging

fromnewentrants tomiddlemanagementstaff.Thecoursescontainthespecificteaching

unitsoftheessentialcontentsthattheparticulartopicorsubjectmattermusthave.

** PremierSeries : Specialised programmes targeted at a more advanced audience and focus on topics

meetingthecurrentneeds,trendsandpracticesoflocalandregionalmarkets.Thecourses

blendthetrainers’extensiveworkingexperienceandexposureexclusivetotheirrespective

areasofexpertisewithstudyvisitstobringclassroomknowledgetotheactualworksite.

*** SpecialCourses : Customised courses organise for foreign participants where the training is conducted in

Malaysiaorintheirhomecountry.




Number of Participants at Technical Training Courses and the Premier Series by Country in 2011 and 2010:

No. Country No. of ParticipantsTechnical Training Courses 2011 20101 Brunei – 7

2 Cambodia 2 –

3 HongKong – 2

4 Indonesia 13 11

5 Laos 1 –

6 Maldives – 2

7 Oman – 3

8 Pakistan – 1

9 PapuaNewGuinea 2 4

10 RepofKiribati – –

11 SaudiArabia 4 12

12 Singapore – –

13 SriLanka 5 2

14 Sudan 4 –

15 Vietnam 1 15

Total 32 59Premier Series 2011 20101 Bangladesh 2 –

2 Bhutan – 10

3 Brunei 10 18

4 Cambodia 4 –

5 Indonesia 30 23

6 Laos 2 1

7 Madagascar – 1

8 Maldives 2 4

9 Nepal 2 –

10 Pakistan 1 –

11 PapuaNewGuinea 1 –

12 Philippines 3 –

13 Qatar 1 –

14 SaudiArabia 1 –

15 Singapore 4 –

16 SriLanka 2 1

17 Thailand 6 3

18 Vietnam – 1

Total 71 62




2.3.1. In-House Training for Foreign Participants

In collaboration with the Chartered Insurance Institute of Nigeria (CIIN) and the Association of

Mongolian Insurers (MIA), we provided 2 special courses for 21 and 16 insurers/members of

CIINandMIArespectively.Further,weassisted indevelopingthehumancapitalof4 insurance

companies, namely the Royal Insurance Corporation of Bhutan Ltd; Malath Cooperative

InsuranceandReinsuranceCoRiyadh,SaudiArabia;Allied InsuranceCompanyofTheMaldives

Pvt Ltd; and Moallem Insurance Company,Tehran, Iran. For the last 2 companies, the training

wasconductedintheirhomecountries.

Number of Participants Attending Special Courses by Country in 2011 and 2010:

No. Country 2011 2010

1 Kazakhstan – –

2 Bhutan 38 –

3 Mongolia 16 –

4 Vietnam – 22

5 Nigeria 21 –

6 Maldives 85 –

7 SaudiArabia 11 –

8 Iran 50 –

Total 221 22

Special Courses by Country, Company and Course in 2011:

Country/Company Course DateNo. of

Participants

MALDIVESAlliedInsurance

Companyof

TheMaldives

PvtLtd

Coursesconductedin

Maldives

BasicCourseinUnderwritingofFire

andMiscellaneousInsurance26-27March2011 20

BasicCourseinUnderwritingof

MarineCargo&HullInsurance16-17April2011 20

Hospital&SurgicalInsurance-

Underwriting&Claims18-19June2011 20

MarketingofGeneralInsurance

Business2-3July2011 13

GeneralInsuranceClaims-Marine

Cargo&HullandPropertyInsurance16-17July2011 12

SAUDI ARABIAMalathCooperative

Insuranceand

Reinsurance

Company

Coursesconductedin

KualaLumpur

TheEssentialsofPropertyInsurance

–Engineering,Fire,Motor,Marine

andMiscellaneousClassesof

Insurance

30May–3June2011 11





Participants

BHUTANRoyalInsurance

Corporationof

BhutanLtd

Coursesconductedin

KualaLumpur

General Insurance Underwriting & Claimsl EngineeringInsurance

l MarineInsurance

l InsuranceofthePerson

l Underwriting&Claims

l MiscellaneousInsurance

20-30June2011 9

Life Insurance Underwriting & Claimsl Principles,LegalAspects,

Law&RegulationsofLife

Insurance

l LifeInsuranceProducts

l LifeInsuranceUnderwriting

andClaims

l ActuarialPrinciples

l PracticeofLifeInsurance,

PolicyCondition,

l PolicyValue

l MarketingStrategiesofLife

Insurance

15-26August2011 10

Specialised Programmes for Insurance Policies & Proceduresl MotorInsurance

l IndustrialInsurancePolicy

l FireInsurancePolicy

l Engineering(CAR,EAR&

AdvanceLossofProfits)

l MiscellaneousInsurance

Policy

13-26November2011 9

General Insurance Underwriting & Claims Managementl RiskandInsurance

l IndustrialAllRisks&Crop

Insurance

l FireInsurance&FireBusiness

Interruption

l MiscellaneousAccident

Insurances

l EngineeringInsurance

l MarineCargoInsurance

l LiabilityInsurance

l InsuranceofthePerson

20-30December2011 10





Participants

MONGOLIAMongolianInsurers

Association

Coursesconductedin

KualaLumpur

FinanceFunction

RiskManagement

MotorInsurance

PropertyInsurance

LiabilityInsurance

24-28October2011 16

NIGERIACharteredInsurance

InstituteofNigeria

Coursesconductedin

KualaLumpur

OverviewofTakaful

HospitalandSurgical

MotorInsurance

MarineCargo&Hull

24-26October2011 21

IRANMoallemInsurance

Company,Tehran

Coursesconductedin

Tehran

MotorLossAssessmentCourse 29-30October2011 50

Total 221

24-26October2011,SpecialCoursesfortheCharteredInsuranceInstituteofNigeria,

PrinceHotel&Residences,KualaLumpur




2.4. EVENT MANAGEMENT

Wealsooffereventmanagementseminarswhenrequested.In2011,wecollaboratedwithPerbadanan

InsuransDepositMalaysia(PIDM)inassistingtoorganiseandsupportindustrybriefingsonTakafuland

InsuranceBenefitsProtectionSystems(TIPS).

13roadshowswereorganisednationwidewith919participantsattendingtheprogramme.

Session Location Date No. of Participants

1 Georgetown,Penang 19May2011 180

2 JohorBahru,Johor 24May2011 114

3 KualaTerengganu,Terengganu 23June2011 35

4 Kuching,Sarawak 19July2011 127

5 KotaKinabalu,Sabah 26July2011 114

6 AlorSetar,Kedah 27September2011 46

7 KualaLumpur(Session1) 6October2011 37

8 Ipoh,Perak 13October2011 30

9 Melaka 18October2011 32

10 Seremban,NegeriSembilan 19October2011 80

11 KualaLumpur(Session2) 2November2011 55

12 KotaBharu,Kelantan 15November2011 26

13 Kuantan,Pahang 17November2011 43

Total 919

24May2011,PIDMTIPS:

MIIAwarenessSessioninJohorBahru,Johor




19May2011,PIDMTIPS:

MIIAwarenessSessioninGeorgetown,Penang

3. LIFE INSURANCE TRAINING

Life insurancetraining isdivided into3mainareas,namelyTechnicalTraining,LeadershipandTeambuilding

andAgencyManagement

In2011,greaterfocuswasgiventoofferingcustomisedandrelevanttrainingtomeettheneedsofstaffand

agentsoflifeinsurancecompaniesandtakafuloperators.

Life Insurance Training Activities Conducted in 2011 and 2010:

2011 2010

Activity No. of

SessionsNo. of

ParticipantsNo. of

SessionsNo. of

Participants

LifeInsuranceCourses 54 4,821 45 2,464

Thenumberoflifeinsurancecoursesroseby20%from45sessionsin2010to54sessionsin2011.Therewas

alsoasignificantincreaseof96%inthenumberofparticipantsfrom2,464in2010to4,821in2011.

Thefollowingcategoriesofcoursescontributedtotheincreaseinthenumberofsessionsandinparticipation:

i. LeadershipandTeambuilding

ii. LifeAgentsConvention




Life Insurance Training, Number of Sessions and Participants in 2011 and 2010:

No. of SessionsAgent

Participation Staff

ParticipationTotal No. of

ParticipationTraining Category 2011 2010 2011 2010 2011 2010 2011 2010Skill-Building 21 24 240 900 472 349 712 1,249

Leadership&Teambuilding 24 11 446 395 666 132 1,112 527

LifeAgentsConvention 3 1 2,914 538 – – 2,914 538

AgencyManagementTraining

Course(AMTC) 6 9 83 150 – – 83 150

Total 54 45 3,683 1,983 1,138 481 4,821 2,464

TheLeadershipandTeambuildingprogrammereportedasignificantincreaseinthenumberofsessionsfrom

11 sessions in 2010 to 24 sessions in 2011.The number of participants increased from 527 in 2010 to 1,112

in 2011. One of the factors that contributed to the increase was the participation of MCIS Zurich Insurance

Berhad which made theTeambuilding course compulsory for their staff. Participation from this company

contributedabout40%tothetotalnumberofparticipantsattendingtheTeambuildingsessionsin2011.

TheincreaseinthenumberofsessionsfortheLifeAgentsConventionfrom1sessionin2010to3sessionsin

2011wasduetothesuccessfulco-organisationofthefollowing2inauguralconventions:

i. Takaful Agents Convention 2011 organised in collaboration with MalaysianTakaful Association (MTA)

andIBFIM

ii. MalaysiaMDRTDay2011organisedincollaborationwithMalaysiaMDRTCommunicationCommittee.

The2eventscontributedabout60%tothetotalnumberofparticipantsin2011.

Participantsatoneoftheskill-buildingtrainingcourses




Participantsatleadership&teambuildingtraining

3.1. BUMIPUTERA TRAINING FUND (BTF)

TheBumiputeraTraining Fund (BTF) was established in 1996 with the main objective of encouraging

more Bumiputera to join the agency force and providing Bumiputera life insurance agents and staff

with opportunities to develop the necessary skills and knowledge towards a long term career in life

insuranceselling.

Training Category, Number of Sessions and Number of Participants in BTF Courses in 2011 and 2010:

No. of SessionsAgent

Participation Staff

Participation Total No. of Participants

Training Category 2011 2010 2011 2010 2011 2010 2011 2010Skill-Building 16 17 140 754 264 102 404 856

Leadership&Teambuilding 16 11 316 317 258 75 574 392

LifeAgentsConvention 1 1 932 524 – – 932 524

AMTC 1 2 4 23 – – 4 23

Total 34 31 1,392 1,618 522 177 1,914 1,795




In2011,RM528,520oftheBTFwasutilisedtosubsidisecourses,benefiting1,914Bumiputerastaffand

agentsoflifeinsurancecompanies.Thefollowingcontributedthemosttotheincreaseinthenumber

ofparticipants:

i. Leadership & Teambuilding

Thenumberofsessionsincreasedfrom11in2010to16in2011andthenumberofparticipants

increased from 392 in 2010 to 574 in 2011. 441 of the participants were from MCIS Zurich

InsuranceBerhad.

ii. Bumiputera Life Insurance Convention

TheBumiputeraLifeInsuranceConventionsawanincreaseof78%inthenumberofBumiputera

life insurance agents participating. One of the factors that contributed to the increase was

the support provided by Etiqa Insurance & Takaful that contributed about 50% of the total

participantstotheconvention.

4. PROFESSIONAL AND CERTIFICATED PROGRAMMES

4.1. PROFESSIONAL PROGRAMMES

MII continued to provide high quality professional education to support the human capital

development of the insurance industry. The MII professional qualifications are internationally

recognised as benchmark for career enhancement and professional development in insurance and

financial services.The qualifications obtained from these programmes will provide participants with

substantialbreadthanddepthofknowledgeandtheabilitytoapplythatknowledgeintheworkplace.

2011alsosawthecontinuedimplementationofthe3progressivequalificationsforgeneral insurance

professionals i.e. Certificate, Diploma and Associateship. The usual learning progression for the

majority of students is from the Certificate ofThe Malaysian Insurance Institute (CMII) or Diploma of

The Malaysian Insurance Institute (DMII) to the Associateship of The Malaysian Insurance Institute

(AMII)within3to4years.However,studentsmayalsoenteratanylevelprovidedtheymeettheentry

requirement.

A notable achievement in 2011 included the enrolment of 237 students in the CMII programme.The

DMIIprogrammeregisteredan11%increaseinthenumberofstudentsfrom210studentsenrolledin

2010ascomparedto233studentsenrolledin2011.

Incontrast,AMIIrecordedadecreaseof40%inthenumberofstudentscomparedto2010asmostof

theAMIIstudentsinthe2010intakehadgraduatedin2011.ThenumberofAMIIstudentsisexpected

to increase in 2012as more of thecurrent DMII studentscomplete their programme andprogress to

theAMII.

Anothernotableachievementwasa229%increaseinthenumberofstudentstakingtheInternational

Certificate in Risk Management (CIRM) as many CIRM students took advantage of the 50% subsidy

offered by the Capacity Building Fund.There was no student registered for the Diploma of Financial

Services (DFS) programme in 2011, as the programme was put on hold for improvement and will be

reintroducedatalaterdate.




MII is one of the approved training providers for the Registered Financial Planner (RFP) programme.

RFP is a designation that has been approved by Bank Negara Malaysia (BNM) as the qualification to

apply for the Financial Adviser’s Licence and Financial Adviser’s Representative Licence. The RFP

designation has also been approved by the Securities Commission Malaysia (SC) as one of the

qualifications to apply for the Investment Adviser’s Licence and the Capital Markets Services Licence.

RFPisofferedin2streams:RFP(Conventional)andRFP(Shariah).

Thedemandfor theRFPprogrammeespecially for theRFP (Conventional)programmehasdecreased

overtheyearsasevidencedfromthenumberofstudentsregisteredfortheRFPExamination.In2011,

MIIconducted1RFP(Conventional)classof20studentscomparedto2classes in2010comprisingof

25 students. However, the number of students attending the RFP (Shariah) classes increased by 17%

from36studentsin2010to42studentsin2011.

Number of Students and Classes for Professional Programmes in 2011 and 2010:

No. ProgrammeNo. of Classes No. of Students

2011 2010 2011 20101 AssociateshipofTheMalaysian

InsuranceInstitute(AMII)

12 15 182 305

2 DiplomaofTheMalaysianInsurance

Institute(DMII)

12 10 233 210

3 CertificateofTheMalaysianInsurance

Institute–Insurance(CMII)

12 – 237 –

4 DiplomaofFinancialServices(DFS) – 2 – 30

5 InternationalCertificateinRisk

Management(CIRM) 2 1 23 7

6 RegisteredFinancialPlanner

(RFP)(Conventional)

1 2 20 25


(RFP)(Shariah)

2 1 42 36

Total 41 31 737 613

4.1.1 In-House and Public Classes

The CMII, DMII and AMII programmes may be offered as public or in-house programmes. For

larger companies that have more students, classes may be conducted in-house. The trend

of 2010 continued in 2011 where more public programmes were conducted as compared to

in-house programmes. Out of 41 classes, only 7 classes or 17% were conducted as in-house

programmes. 34 classes were conducted as public programmes, an increase of 42% as

comparedto2010.




Number of In-House and Public Classes and Students in 2011 and 2010:

In-House PublicNo. of

ClassesNo. of

StudentsNo. of

ClassesNo. of

StudentsNo. Programme 2011 2010 2011 2010 2011 2010 2011 20101 AssociateshipofTheMalaysian


1 2 18 42 11 13 164 263

2 DiplomaofTheMalaysian

InsuranceInstitute(DMII)

2 3 29 35 10 7 204 175

3 CertificateofTheMalaysian

InsuranceInstitute–Insurance

(CMII)

2 – 29 – 10 – 208 –

4 DiplomaofFinancialServices

(DFS)

– 2 – 30 – – – –

5 InternationalCertificateinRisk

Management(CIRM)

– – – – 2 1 23 7


(RFP)(Conventional)

1 – 20 – – 2 – 25


(RFP)(Shariah)

1 – 28 – 1 1 14 36

Total 7 7 124 107 34 24 613 506

4.1.2. Classes Conducted Locally

In 2011, MII conducted a total of 41 classes in Johor Bahru, Kota Kinabalu, Kuching, Kuala

Lumpur, Penang and Melaka. 80% or 33 classes involving 594 students were held in Kuala

Lumpur. CMII classes were offered for the first time in Johor Bahru, Kota Kinabalu, Kuching,

PenangandMelaka.

Number of Classes Conducted Locally in 2011:

No. Programme LocationNo. of

ClassesNo. of

Students1 DiplomaofTheMalaysianInsurance

Institute(DMII)

JohorBahru 1 14


Institute(DMII)

KotaKinabalu 1 24


Institute(DMII)

Kuching 1 16


Institute(DMII)

KualaLumpur 9 179

Total 12 233

Cont’d




No. Programme LocationNo. of

ClassesNo. of

Students1 AssociateshipofTheMalaysian


KualaLumpur 12 182

Total 12 1821 CertificateofTheMalaysianInsurance


JohorBahru 1 18



KotaKinabalu 1 17



Kuching 1 20



Penang 1 19



Melaka 1 15



KualaLumpur 7 148

Total 12 2371 InternationalCertificateinRisk

Management(CIRM)

KualaLumpur 2 23

Total 2 231 RegisteredFinancialPlanner

(RFP)(Conventional)

KualaLumpur 1 20

Total 1 201 RegisteredFinancialPlanner

(RFP)(Shariah)

KualaLumpur 2 42

Total 2 42Grand Total 41 737

4.1.3 Classes Conducted Overseas

2 classes for the AMII were conducted in Jakarta, Indonesia and in Dhaka, Bangladesh. Both

classes were facilitated by local lecturers from these countries with the assistance of lecturers

fromMII.ClassesinIndonesiaandBangladeshwereattendedby5and24studentsrespectively.

4.2. INTERNATIONAL PARTICIPATION

Ourflagshipprofessionalprogrammes,inparticulartheAMII,continuedtogainrecognitionandattract

internationalparticipantsnotonlyfromtheASEANmarketbutalsofromotheremergingmarketssuch

astheMiddleEastandAsia.

In 2011, 38 international students enrolled for the AMII class-based programme conducted locally

andininternationalcentres.Thiswasadecreaseof63%inthenumberofstudentscomparedto2010.

The decrease was because the classes in Cambodia were put on hold in 2011 due to the pending

agreementfromtheinsuranceassociationinCambodiatooffertheprogrammetoawidermarket.As

forBangladesh,lesserstudentsregisteredin2011duetoworkcommitment.

A special class for international students was conducted in Kuala Lumpur with 9 students from

Indonesia,Vietnam,Maldives,IranandSeychelles.




Number of International Students by Centre in 2011 and 2010:

No. Centre

No. of Students No. of Students

2011 20101 Bangladesh 24 61

2 Cambodia – 27

3 Indonesia 5 –

4 Malaysia 9 15

Total 38 103

4.3. INDUSTRY SPONSORSHIP

For the fifth consecutive year, Malaysian National Reinsurance Berhad (MNRB) continued its support

in the promotion of professionalism for the insurance industry by generously extending 50%

sponsorshipstopersonnelfromvariousinsurancecompanies.In2011,ascholarshipworthRM145,835

was awarded to 27 students, of which 14 were for the DMII programme and another 13 for the AMII

programme.11companiesfromthegeneral,compositeandbrokingsectorsoftheindustrybenefited

fromthissponsorship.

Since2007,132studentshavebeenawardedsponsorship,51studentshavegraduatedwhiletherest

arestillpursuingtheprogrammes.

Number of Students Awarded MNRB Sponsorship from 2007 to 2011:

Year Batch DMII No. of Students Graduated AMII No. of Students Graduated2011 5th 14 Programmeinprogress 13 Programmeinprogress

2010 4th 13 Programmeinprogress 14 Programmeinprogress

2009 3rd 14 10 15 Programmeinprogress

2008 2nd 11 9 12 11

2007 1st 12 7 14 14

Total 64 26 68 25

Companies that Benefited from the MNRB Sponsorship from 2007 to 2011:

1. AAOGlobalInsuranceBrokersSdnBhd

2. AIGGeneralInsuranceBhd(knownasChartisMalaysiaInsuranceBerhadsince

7December2009)

3. AllianzGeneralInsuranceCompany(M)Bhd

4. AmGInsuranceBhd

5. AnikaInsuranceBrokersSdnBhd

6. AntahInsuranceBrokersSdnBhd

7. AonInsuranceBrokers(M)SdnBhd

8. AsiaInsurance(M)Bhd(nolongerinbusiness)

9. AXAAffinGeneralInsuranceBhd

10. BerjayaSompoInsuranceBhd

11. BHInsurance(M)Bhd(mergedwithAXAAffinGeneralInsuranceBerhadsince1January2011)

12. EtiqaInsuranceBhd




13. HongLeongAssuranceBhd

14. InsfieldsInsuranceBrokersSdnBhd

15. JernehInsuranceBerhad

16. KurniaInsurans(Msia)Bhd

17. LabuanReinsurance(L)Ltd

18. LonpacInsuranceBhd

19. MaleneInsuranceBrokers(M)SdnBhd

20. MaphilindoInternationalSdnBhd

21. MarshInsuranceBrokers(M)SdnBhd

22. McLarensSaksama(M)SdnBhd(alsoknownasMSMInternational)

23. MITInsuranceBrokersSdnBhd

24. MSIGInsurance(M)Bhd

25. MUIContinentalInsuranceBhd

26. Multi-PurposeInsuranceBhd

27. OrientalCapitalAssuranceBhd

28. OverseasAssuranceCorporation(M)Bhd

29. PrudentialAssuranceMalaysiaBhd

30. RHBInsuranceBhd

31. RosegateInsuranceBrokersSdnBhd

32. SimeDarbyLocktonInsuranceBrokersSdnBhd

33. TakafulIkhlasSdnBhd

34. TheMalaysianInsuranceInstitute

35. TokioMarineInsurans(M)Bhd

36. Uni.AsiaGeneralInsuranceBhd

4.4. CERTIFICATED PROGRAMMES

MII certificated programmes are programmes that are recognised by the insurance industry as

qualifications to perform specific job or task. At the end of the programme, a certificate is awarded

to participants who demonstrate that they have met the intended learning outcomes and passing

the assessment. Our certificated programmes are categorised as mandatory and non-mandatory

programmes.

IncludedunderthemandatoryprogrammesareprogrammesforlicensingandTrain-The-Trainer(TTT),

whichareasfollows:

i. BasicCertificateCourseinInsuranceLossAdjusting(BCCILA)

ii. BasicCertificateCourseinInsuranceBroking(BCCIB)

iii. RegisteredFinancialPlannerTrain-The-Trainer(RFP-TTT)

iv. BasicAgencyManagementCourseTrain-The-Trainer(BAMC-TTT)

The BCCILA is aimed at new entrants to the insurance loss adjusting field while the BCCIB is for

potential insurance brokers. In 2011, BCCILA recorded an increase of 51% as there were 2 additional

sessionsconductedfor70studentsofPoliteknikSultanSalahuddinAbdulAziz,ShahAlam.TheBCCIB

alsorecordedanincreaseof12%inthenumberofparticipants.




The RFP-TTT and BAMC-TTT are meant to certify in-house trainers to deliver the RFP and BAMC

programmes in their respective companies.There was a decrease of 42% in the number of RFP-TTT

traineeswithonly42traineesregistering in2011ascomparedto73 in2010.Similarly, for theBAMC-

TTT, 15 trainees attended in 2011, a decrease of 29% as compared to 2010.The demand for these

programmes is expected to drop as sufficient in-house trainers would have been certified over the

years.

The non-mandatory programme is the Certificate in General Insurance Actuarial Practice (CGIAP).

This programme was developed in response to the needs and request of the industry especially for

personnel working with actuaries after the implementation of the Risk-Based Capital Framework

starting from 1 January 2009. Since the introduction of this programme in 2008, 37 personnel in the

industryhaveattendedtheprogramme.CGIAPwasnotconductedin2011duetoinsufficientnumber

ofstafffromtheindustryregisteringfortheprogramme.

Number of Participants Attending Certificated Programmes in 2011 and 2010:

No. Programme

No. of Participants

2011 2010

1 BasicCertificateinInsuranceLossAdjusting(BCCILA) 159 105

2 BasicCertificateCourseinInsuranceBroking(BCCIB) 77 69

3 Train-the-Trainer(TTT)forRegisteredFinancialPlanner(RFP) 42 73

4 Train-the-Trainer(TTT)forBasicAgencyManagementCourse

(BAMC)

15 21

5 CertificateinGeneralInsuranceActuarialPractice(CGIAP) – 11

Total 293 279




MII AS AN EXAMINATION CENTRE

1. OVERVIEW

As the official examination centre and the custodian of standards for the Malaysian insurance industry, we

handlednumerousexaminationsforvariousqualificationsforthestaffandagencyforceoftheindustryatour

variouscentresthroughoutMalaysia.

1,096 examination sessions were conducted in 2011 involving 115,609 candidates at 22 centres in 14

states.This was an increase of 3,670 candidates as compared to 111,939 candidates in 2010. 10 different

examinationswereconducted in2011.ThePre-ContractExamination for InsuranceAgents (PCEIA) recorded

the largest number of candidates numbering 50,999, followed by the Takaful Basic Examination (TBE)

with 30,665 candidates.TBE contributed to the major increase in the number of candidates sitting for the

examinationduetoactiverecruitmentactivitiesbynewandexistingtakafulplayersintheindustry.

Types of Examination, Number of Examination Sessions, Candidates and Exam Centres in 2011:

Examination

No. ofExam

SessionsMonth/Day of Exam

in 2011No. of

Candidates

No. ofExam

Centres

No. Professional Programmes

1AssociateshipofThe

MalaysianInsuranceInstituteAMII

4 Jan,April,July,Oct 1,319 11

2DiplomaofTheMalaysian

InsuranceInstituteDMII

3

CertificateofTheMalaysian

InsuranceInstitute-

Insurance

CMII 4 April,July,Oct,Nov 221 9

4 RegisteredFinancialPlanners RFP 4 Feb,May,Aug,Nov 539 8

Certificated Programmes

5BasicCertificateCoursein

InsuranceLossAdjusting BCCILA 4 Jan,April,Aug,Oct 159 9

6BasicCertificateCoursein

InsuranceBroking BCCIB 4 March,May,July,Oct 75 9

7BasicAgencyManagement

Course BAMC 4 March,June.Sept,Dec 1,475 13

Agents’ Qualifying Examinations

8(a)Pre-ContractExaminationfor

InsuranceAgents

PCEIA

paper-

and-

pencil

55

Scheduledexam:

everymonth

Ad-hoc:averageevery

Sat

15,939 22

Cont’d




Examination

No. ofExam

SessionsMonth/Day of Exam

in 2011No. of

Candidates

No. ofExam

Centres

8(b)Pre-ContractExaminationfor

InsuranceAgents

PCEIA

computer-

based

452

KLcentre:everyday

(MontoFri)

Outstation/Ad-hoc:

everySat

35,060 9

9(a)

TheCertificateExamination

inInvestment-LinkedLife

Insurance

CEILLI

paper-

and-

pencil

51

Scheduledexam:

everymonth

Ad-hoc:averageevery

Sat

9,693 22

9(b)

TheCertificateExamination

inInvestment-LinkedLife

Insurance

CEILLI

computer-

based

452

KLcentre:everyday

(MontoFri)

Outstation/Ad-hoc:

everySat

20,464 9

10 TakafulBasicExamination

TBE

paper-

and-

pencil

62

Scheduledexam:

everymonth

Ad-hoc:averageevery

Sat

30,665 22

Total 1,096 115,609

2. COMPUTER-BASED ASSESSMENT SYSTEM (C-BASS)

We offer an alternative mode of examination, the computer-based examination (CBE), in addition to the

paper-and-pencil (PPE) examination for the agents’ qualifying examinations.The CBE, conducted via a web-

basedcomputer-basedassessmentsystem(C-BASS),comprisesarobustquestionbanksystem(Q-Bank)anda

computer-basedexaminationsystem(CBES).

We began by offering CBE at 3 centres, namely Kuala Lumpur, Johor Bahru and Penang. In January 2011,

westartedtoofferCBEat3othercentres,namelyKotaBharu,KotaKinabaluandKuching. InOctober2011,

another 3 new CBE centres were opened in Ipoh, Melaka and Kuantan.This was delivered earlier than the

original plan which was to have been achieved by early 2012. Therefore, we now have 9 CBE centres

nationwideandmoreplansareinthepipelinetoopen2moreCBEcentresinSungaiPetaniandMiriin2012.

The industry has responded positively to the functions of the 9 CBE centres and the trend has shown a

significantincreaseinthenumberofcandidatestakingtheCBEoverthepastfewyears.

The main advantage of candidates taking the CBE is results that can be obtained immediately after each

examination session and therefore potential agents can be recruited immediately upon their passing the

agents’ qualifying examination. In addition, the examinations can be conducted more frequently, allowing

morecandidatestopassthroughthesystemforrecruitment.




Computer Based Examination (CBE) Centres in Operation

JOHORBAHRU

MELAKA

KUALALUMPUR

IPOH

PENANGKOTABHARU

KUANTAN

KUCHING

KOTAKINABALU

9 CBE Centres

2.1. COMPUTER-BASED EXAMINATIONS – OUTSTATION CENTRES

PENANG CENTRE J0HOR BAHRU CENTRE

KOTA BHARU CENTRE KOTA KINABALU CENTRE




KUCHING CENTRE IPOH CENTRE

KUANTAN CENTRE MELAKA CENTRE

3. EXAMINATION E-PERMIT AND E-RESULT

We have made the examination e-permit and e-result facilities available over the Internet, as part of our

commitment to serve the industry more efficiently.The e-permit and e-results replace the normal manual

hardcopy examination entry permit and result notification slip for the PCEIA, CEILLI, TBE and BAMC

examinations.

In 2011, we continued to offer the examination e-permit and e-result notification slip facilities to other

examinationssuchasAMII,DMII,CMII,BCCILA,BCCIBandRFP.

Candidates are able to print the examination e-permits before the scheduled examinations and the

e-result notification slips within a specified time after the end of the examination from our website at

www.insurance.com.my.

Onceuploadedontoourwebsite,theexaminatione-permitsande-resultnotificationslipscanimmediately

beinthehandsofcandidates.Assuch,candidatesnolongerhavetowaitforthepostalservicetodeliverthe

examination entry permit and result notification slip. As for the companies, human resources are no longer

neededtoensuredeliveryoftheexaminationentrypermitsandresultnotificationslipstocandidates.




E-permit for professional certification examinations

E-permit for agency examinations




E-result webpage for all examinations

4. EXAMINATION PASS RATE FOR PROFESSIONAL PROGRAMMES

4.1. ASSOCIATESHIP OF THE MALAYSIAN INSURANCE INSTITUTE (AMII) AND DIPLOMA OF THE MALAYSIAN INSURANCE INSTITUTE (DMII)

(a) AMII and DMII - Local Students

AMII and DMII programmes are offered in 2 study schemes, class-based and self-study. Self-

studystudentsarethosewhoarenotabletoattendtheclass-basedprogrammeduetodistance

andtimeconstraintsandthereforetaketheexaminationona100%finalexaminationbasis. In

thecaseofclassed-basedstudents,themarksallocationfortheDMIIis40%forcourseworkand

60%forthefinalexaminationwhilefortheAMIIit is50%forcourseworkand50%forthefinal

examination.

In 2011, 1,254 candidates sat for the AMII and DMII examinations. 1,049 were class-based

students and 205 were self-study students.The average pass rate by session ranged between

51% and 64%, with the total number of subjects taken between 11 and 18 subjects. The

numberofcandidatessittingfortheexaminationsin2011decreasedby2%or22candidatesas

comparedto2010.

Examination sessions were conducted on 25-27 January, 26-28 April, 26-28 July and 18 - 20

October2011atvariouscentresthroughoutthecountry.




AMII and DMII Examinations Statistics (Local Students) for 2011 and 2010:

ExamSession

2011 2010No. of

Subjects Sat PassedAveragePass %

No. of Subjects Sat Passed

AveragePass %

January 11 276 144 52% 8 217 127 59%

April 15 319 204 64% 20 368 175 48%

July 18 327 196 60% 14 322 192 60%

October 18 332 169 51% 17 369 178 48%

Total 1,254 713 57% 1,276 672 53%

(b) AMII and DMII (Class-Based) - International Students

In2011,wecontinuedtoconducttheAMIIandDMIIexaminationsoutsideMalaysia,namely in

Dhaka,BangladeshandJakarta,Indonesia.

65 candidates sat for the AMII and DMII examinations at these international centres. The

averagepass ratebysessionrangedbetween13%and14%with the totalnumberofsubjects

takenbetween3and5subjects.

The number of candidates sitting for the examinations reflected a decrease of 63% or 113

from 178 candidates in 2010 to 65 candidates in 2011.This was because no examination was

conducted in Cambodia in 2011 due to the review exercise of the current agreement with

the local insurance association to offer the programme to a wider market. As for Bangladesh,

the decrease was because no student registered for the October examination session due to

workcommitmentandthussignificantlyreducingthetotalnumberofexaminationcandidates

throughouttheyear.

AMII Examination Statistics (International Students) for 2011 and 2010:

Exam Venue

2011 2010No. of

Subjects Sat PassedAverage Pass %

No. of Subjects Sat Passed

Average Pass %

Dhaka,

Bangladesh

5 57 8 14% 4 121 77 59%

PhnomPenh,

Cambodia

Noexaminationconducted 11 49 31 63%

Jakarta,

Indonesia

3 8 1 13% 7 8 1 13%

Total 65 9 14% 178 109 61%




(c) AMII/DMII International Examination Centres

4.2. CERTIFICATE OF THE MALAYSIAN INSURANCE INSTITUTE – INSURANCE (CMII)

In 2011, 221 candidates sat for the CMII examination with an average pass rate of 58%. The

examinationsessionswereconductedinApril,July,OctoberandNovember2011.Wewillcontinueto

encouragetheindustrytotaketheCMIIasanintroductorycertificationforstaffwithoutanyinsurance

background.

CMII Examination Statistics for 2011 and 2010:

Month

2011 2010

Sat Passed Pass % Sat Passed Pass %

April 35 29 83%

NoexaminationconductedJuly 97 62 64%

October 50 18 36%

November 39 19 49%

Total 221 128 58% – – –

4.3. REGISTERED FINANCIAL PLANNER (RFP)

In 2011, 539 candidates sat for the RFP examinations, a decrease of 42% or 398 candidates for the

various modulesascompared to2010.The overall performance of thecandidates for 2011 improved

slightly, with an average pass rate of 82% as compared to the 81% average pass rate in 2010. 3

modulesi.e.modules3,5and6recordedanincreaseinthepassratefor2011ascomparedto2010.

Sincetheinceptionoftheprogramme,theEstatePlanningmodulehasachievedthehighestpassrate

of97%.208candidatescompletedtheRFPprogrammebycompletingallthe7RFPmodule.




RFP Statistics for Each Module for 2011 and 2010:

No. Module

2011 2010

Sat Passed Pass % Sat Passed Pass %1 Fundamentalsof

FinancialPlanning

125 106 85% 200 181 91%

2 RiskManagementand

InsurancePlanning

123 115 93% 135 130 96%

3 InvestmentPlanning 62 49 79% 106 82 77%

4 TaxPlanning 65 49 75% 124 98 79%

5 EstatePlanning 59 57 97% 111 104 94%

6 RetirementPlanning 52 41 79% 164 115 70%

7 ApplicationofFinancial

Planning

53 23 43% 97 48 49%

Total 539 440 82% 937 758 81%

5. EXAMINATION PASS RATE FOR CERTIFICATED PROGRAMMES

5.1. BASIC CERTIFICATE COURSE IN INSURANCE LOSS ADJUSTING (BCCILA)

In2011,159candidatessatfortheBCCILA,a41%increaseover2010.4examinationswereconducted

inJanuary,April,AugustandOctober2011afterthecandidatesattendeda4-daycoursewithus.The

passratein2011registeredanaverageof87%,whichwas6%higherascomparedtothe2010average

passrate.

BCCILA Examination Statistics for 2011 and 2010:

Month2011 2010

Sat Passed Pass % Sat Passed Pass %January 18 15 83% – – –

February – – – 31 23 74%

April 22 16 73% 18 8 44%

July – – – 35 33 94%

August 92 87 95% – – –

October 27 20 74% 29 27 93%

Total 159 138 87% 113 91 81%




5.2. BASIC CERTIFICATE COURSE IN INSURANCE BROKING (BCCIB)

In2011,75candidatessat fortheBCCIB,an increaseof3%or2candidatesascomparedto2010.The

examinationswereconductedafterthecandidatescompleteda5-daycoursewithus.Theexamination

sessionswereheldinMarch,May,JulyandOctober2011.2011registeredanaveragepassrateof93%,

whichwasanincreaseof9%overthe2010averagepassrate.

BCCIB Examination Statistics for 2011 and 2010:

Month

2011 2010


March 6 6 100% 23 18 78%

May 14 13 93% – – –

June – – – 12 10 83%

July 26 26 100% – – –

August – – – 16 14 88%

October 29 25 86% – – –

November – – – 22 19 86%

Total 75 70 93% 73 61 84%

5.3. BASIC AGENCY MANAGEMENT COURSE (BAMC)

1,595candidatessat for theBAMCexaminationsandregisteredanaveragepass rateof92% in2011.

This was an increase of 10% or 151 candidates sitting for the examinations as compared to 2010. 4

examinationswereconductedinMarch,June,SeptemberandDecember2011.

BAMC Examination Statistics for 2011 and 2010:

Exam Session

2011 2010


March 284 262 92% 137 120 88%

June 470 444 94% 493 459 93%

September 486 441 91% 469 441 94%

December 355 328 92% 345 312 90%

Total 1,595 1,475 92% 1,444 1,332 92%




6. EXAMINATION PASS RATE FOR AGENTS’ QUALIFYING EXAMINATIONS

6.1. PRE-CONTRACT EXAMINATION FOR INSURANCE AGENTS (PCEIA)

a) Overview

The Pre-Contract Examination for Insurance Agents (PCEIA) is a pre-qualifying examination

whichhastobepassedinordertobealifeorgeneralinsuranceagent.Thisexaminationisone

ofthe2examinationswhichweofferin2modes,PPEandCBE.ThePCEIAexaminationisdivided

into 3 parts. Part A tests the Principles of Insurance, Part B focuses on General Insurance and

PartCfocusesonLifeInsurance.PassingPartAofthePCEIAiscompulsoryforpersonswanting

to join the agency force whether in the life or the general insurance sector. PCEIA (PPE) and

thePCEIA(CBE)examinationsareavailableinBahasaMalaysia,EnglishandMandarin.ThePCEIA

(PPE)isalsoofferedinTamil,basedonrequest.

In2011,50,999candidatessatforthePCEIAexaminationsthroughoutMalaysia.Ofthese,15,939

candidatessatforthePCEIA(PPE)and35,060candidatessatforthePCEIA(CBE). Overall,2011

sawadecreaseof4%or1,991candidatesforthePCEIAexamination.

The number of candidates who sat for the PCEIA (PPE) declined by 23% or 4,834 candidates

as compared to 2010. However, the number of candidates sitting for the PCEIA (CBE) saw an

increaseof9%or2,843morecandidatesascomparedto2010. In2011,69%ofthecandidates

optedforthePCEIA(CBE)ascomparedto61%in2010.

PCEIA (PPE and CBE) Statistics for 2011 and 2010:

YearExam Mode

Paper-and-Pencil Examination (PPE)

Computer-Based Examination (CBE) Total PPE

& CBELife General Total Life General Total

2011

Sat 12,668 3,271 15,939 29,370 5,690 35,060 50,999

Passed 7,507 2,392 9,899 17,884 4,175 22,059 31,958

Pass% 59% 73% 65% 61% 73% 63% 63%

2010

Sat 17,009 3,764 20,773 28,697 3,520 32,217 52,990

Passed 10,827 2,795 13,622 17,654 2,746 20,400 34,022

Pass% 64% 74% 66% 62% 78% 63% 64%

Variance 2011 vs. 2010

Sat (4,341) (493) (4,834) 673 2,170 2,843 (1,991)

Variance

%(26%) (13%) (23%) 2% 62 9% (4%)




6.1.1. PCEIA - Paper-and-Pencil Examination (PPE)

The PCEIA (PPE) is conducted on an average of twice a month at 22 examination centres in

Malaysia.However,duetotheincreasingdemandandrequestsbycompanies,wealsoconduct

thePCEIA(PPE)sessionsonanunscheduledorad-hocbasisonaverageeverySaturday.

2011 saw a decline of 23% or 4,834 candidates sitting for the PCEIA (PPE) as compared to the

figurefor2010.Theaveragepassratedecreasedby4%to62%in2011ascomparedto66%in

2010.

PCEIA (PPE) Overall Statistics for 2011 and 2010:

2011 2010

Life General Total Life General Total


Sat 12,668 3,271 15,939 17,009 3,764 20,773

Passed 7,507 2,392 9,899 10,827 2,795 13,622

Pass% 59% 73% 62% 64% 74% 66%


Life General Total

Sat (4,341) (26) (493) (13) (4834) (23)

(a) PCEIA (PPE) - Life Insurance Route

In 2011, the number of candidates sitting for the PCEIA (PPE) - life insurance route

droppedby26%or4,341candidatesto12,668candidates.Thefigurefor2010was17,009

candidates. These candidates comprised 79% of the total candidates who sat for the

PCEIA(PPE)in2011ascomparedto82%in2010.Theaveragepassratedecreasedby5%

to59%incontrastto64%in2010.

PCEIA (PPE) Life Route Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010

Sat 12,668 17,009 (4,341)/(26%)

Passed 7,507 10,827 (3,320)

Pass% 59% 64%




In 2011, the number of candidates taking the examinations in all 4 available languages

declined as compared to 2010.The number of candidates sitting for the examination

in English in 2011 decreased by 37%. Candidates taking the examination in Mandarin,

Bahasa Malaysia andTamil showed a similar trend, with a drop of 23%, 14% and 10%

respectively.

PCEIA (PPE) Life Route Statistics by Language for 2011 and 2010:

2011 2010

BahasaMalaysia English Mandarin Tamil Total


Sat 5,010 4,190 3,449 19 12,668 5,850 6,681 4,457 21 17,009

Passed 2,734 2,663 2,106 4 7,507 3,161 4,686 2,977 3 10,827

Pass% 55% 64% 61% 21% 59% 54% 70% 67% 14% 64%

(b) PCEIA (PPE) – General Insurance Route

ThenumberofcandidatessittingforthePCEIA(PPE)-generalinsuranceroutedecreased

by13%or493candidatesto3,271candidates in2011ascomparedto3,764candidates

in2010.Theoverallpassratedroppedslightlyto73%in2011.Theratewas74%in2010.

PCEIA (PPE) General Route Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 3,271 3,764 (493)/(13%)

Passed 2,392 2,795 (403)

Pass% 73% 74%

In 2011, the English version of the examination remained popular as the preferred

language. However, the number of candidates sitting for the examination decreased by

15%ascomparedto2010.CandidatesfortheexaminationsinMandarin,BahasaMalaysia

andTamilshowedthesametrend,reportingadecreaseof16%,8%and33%respectively.

PCEIA (PPE) General Route Statistics by Language for 2011 and 2010:

2011 2010



Sat 1,030 1,580 659 2 3,271 1,118 1,861 782 3 3,764

Passed 708 1,194 490 0 2,392 787 1,405 602 1 2,795

Pass% 69% 76% 74% 0% 73% 70% 75% 77% 33% 74%




6.1.2. PCEIA: Computer-Based Examination (CBE)

ThePCEIA(CBE)wasconductedthroughout2011fromMondaytoFridayattheMIICityCentre,

Maju Junction Mall, Kuala Lumpur, except on public holidays. 4 sessions were conducted on

MondaysandWednesdays,3sessionsonTuesdaysandThursdays,and2sessionsonFridays.As

forthecentresinJohorBahruandPenang,4sessionsoftheCBEwereconductedeverySaturday

from 9.00 am to 7.00 pm. Due to increasing demand and requests by companies, the CBE

sessionswereconductedonSaturdaysattheMIICityCentreandonSundaysatJohorBahruand

Penang centres on an ad-hoc basis in addition to the pre-determined schedule. 4 sessions of

theCBEwereconductedeachmonthfrom9.00amto7.00pmattheotherout-stationcentres,

namelyKotaKinabalu,Kuching,KotaBharu,Ipoh,MelakaandKuantan.

2011recordedagrowthof9%or2,843candidatesascomparedto2010.TheCBEwaspreferred

due to the immediate release of results after each examination, speeding up the candidates’

recruitmentregistrationprocessas insuranceagents.Theaveragepassrateremainedthesame

at63%for2011and2010.

PCEIA (CBE) Overall Statistics for 2011 and 2010:

2011 2010

Life General Total Life General Total

Computer-Based Examination (CBE)

Sat 29,370 5,690 35,060 28,697 3,520 32,217

Passed 17,884 4,175 22,059 17,654 2,746 20,400

Pass% 61% 73% 63% 62% 78% 63%


Life General Total

Sat/% 673 2% 2,170 62% 2,843 9%

(a) PCEIA (CBE) - Life Insurance Route

In 2011, the number of candidates who sat for the PCEIA (CBE) - life insurance route

increasedby2%or673candidatesascomparedto2010.However,thepassratedeclined

slightlyto61%from62%.

PCEIA (CBE) Life Route Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 29,370 28,697 673/2%

Passed 17,884 17,654 230

Pass% 61% 62%




(b) PCEIA (CBE) - General Insurance Route

ThenumberofcandidatestakingthePCEIA(CBE)-generalinsurancerouteincreasedby

62%or2,170candidatesascomparedto2010.However,theoverallpassratedecreased

by5%to73%from78%in2010.

PCEIA (CBE) General Route Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 5,690 3,520 2,170/62%

Passed 4,175 2,746 1,429

Pass% 73% 78%

6.2. THE CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE (CEILLI)

a) Overview

CEILLI is a pre-qualifying examination for life insurance agents who want to sell investment-

linked life insurance products for life insurance companies. This examination is one of the

2 examinations which we offer in 2 modes, PPE and CBE.The PPE and CBE examinations are

availableinBahasaMalaysia,EnglishandMandarin.

In 2011, 30,157 candidates sat for the CEILLI examinations throughout Malaysia. 9,693

candidatessat for thePPEand20,464sat for theCBE. Overall, thetotalnumberofcandidates

for 2011 saw an increase of 10% or 2,757 candidates over the figure for 2010. The overall

averagepassratewas53%,adropof1%ascomparedto2010.

The number of candidates who sat for the CEILLI (PPE) declined by 2% or 170 candidates as

compared to 2010. However, the number of candidates sitting for the CEILLI (CBE) saw an

increaseof17%or2,927morecandidatesascomparedto2010.In2011,68%ofthecandidates

optedfortheCEILLI(CBE)whilein2010thefigurestoodat64%.

CEILLI Overall Statistics for 2011 and 2010:

YearExamMode


Computer-Based Examination (CBE) Total PPE & CBE

2011

Sat 9,693 20,464 30,157Passed 5,091 10,904 15,995Pass% 53% 53% 53%

2010

Sat 9,863 17,537 27,400Passed 5,658 9,193 14,851Pass% 57% 52% 54%

Variance2011

vs.2010

Sat (170) 2,927 2,757Variance% (2%) 17% 10%




(a) CEILLI Paper-and-Pencil Examination (PPE)

The CEILLI (PPE) is conducted on average twice a month at 13 examination centres all

over the country. However, due to increased demand and requests by companies, the

CEILLI (PPE) sessions were also conducted as unscheduled or on an ad-hoc basis on

averageeverySaturday.

Thenumberofcandidatessitting for theCEILLI (PPE)declinedby2%or170candidates

in 2011 as compared to 2010. The average pass rate was 53%, a decrease of 4% as

comparedto57%in2010.

CEILLI (PPE) Overall Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 9,693 9,863 (170)/(2%)

Passed 5,091 5,658 (567)

Pass% 53% 57%

TheCEILLI(PPE)examinationsconductedinBahasaMalaysiasawanincreaseof5%inthe

numberofcandidates.However,theexaminationsinMandarinreportedadecreaseof2%

whilethenumbertakingtheexaminationinEnglishdroppedby8%.

CandidateswhosatfortheexaminationinEnglishreportedthehighestpassrateof65%,

followedbyMandarinat50%andBahasaMalaysiaat42%.Theoverallaveragepassrate

droppedby4%from57%in2010to53%in2011.

CEILLI (PPE) Statistics by Language for 2011 and 2010:

2011 2010Bahasa

Malaysia English Mandarin TotalBahasa

Malaysia English Mandarin Total

Sat 3,150 3,249 3,294 9,693 2,994 3,523 3,346 9,863

Passed 1,313 2,127 1,651 5,091 1,302 2,497 1,859 5,658

Pass% 42% 65% 50% 53% 43% 71% 56% 57%

(b) CEILLI Computer-Based Examination (CBE)

The CEILLI (CBE) was conducted throughout 2011 on Mondays to Fridays at MII City

Centre, Maju Junction Mall, Kuala Lumpur, except on public holidays. 4 sessions were

conducted on Mondays andWednesdays, 3 sessions onTuesdays andThursdays, and 2

sessionsonFridays.As forthecentres inJohorBahruandPenang,4sessionsoftheCBE

wereconductedeverySaturdayfrom9.00amto7.00pm.Duetoincreasingdemandand

requests by companies, the CEILLI (CBE) examinations were also conducted ad-hoc on

SaturdaysattheMIICityCentreandonSundaysattheJohorBahruandPenangcentres.

As for the other out-station centres, namely Kota Kinabalu, Kuching, Kota Bharu, Ipoh,

Melaka and Kuantan, 4 sessions of the CEILLI (CBE) were conducted each month from

9.00amto7.00pm.




2011recordedagrowthof17%or2,927candidatesascomparedtothefiguresfor2010.

CBE has become the preferred mode of examination due to the immediate release

of results after each examination, speeding up candidates’ recruitment registration

processasinsuranceagents.Theaveragepassratereportedanincreaseof1%to53%as

comparedto52%in2010.

CEILLI (CBE) Overall Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 20,464 17,537 2,927/17%

Passed 10,904 9,193 1,711

Pass% 53% 52%

The number of candidates sitting for the CEILLI (CBE) examinations in all languages

increased, with the examination in Mandarin reporting the highest increase of 20%.

CandidateswhosatfortheexaminationinEnglishreportedthehighestpassrateof66%,

followedbyMandarinat44%andBahasaMalaysiaat36%.Theoverallaveragepassrate

increasedby1%from52%in2010to53%in2011.

CEILLI (CBE) Statistics by Language for 2011 and 2010:

2011 2010Bahasa

Malaysia English Mandarin TotalBahasa

Malaysia English Mandarin TotalSat 4,376 10,125 5,963 20,464 3,808 8,776 4,953 17,537

Passed 1,554 6,732 2,618 10,904 1,328 5,751 2,114 9,193

Pass% 36% 66% 44% 53% 35% 66% 43% 52%

6.3. TAKAFUL BASIC EXAMINATION (TBE)

The Takaful Basic Examination is an examination made compulsory for all takaful agents by the

MalaysianTakafulAssociation(MTA).ThefirstTBEwasintroducedin2009.Currently,theexaminationis

offeredinBahasaMalaysiaandinthePPEmodeonly.

30,665 agents sat for the examination in 2011 as compared to 27,464 in 2010, an increase of 12%.

Outof the30,665agentswhosat for theexamination,79%of theagentspassedtheexamination. In

2011,theTBEwasconductedtwiceamonth,makingit22sessionsat22examinationcentresallover

Malaysia.

Takaful Basic Examination Overall Statistics for 2011 and 2010:

2011 2010Variance

2011 vs 2010Sat 30,665 27,464 3,201/12%

Passed 24,076 22,028 2,048

Pass% 79% 80%




7. EXAMINATIONS DEVELOPMENT

The Examinations Development Unit under the Examinations Management Department ensures quality

standardswhilemaintainingourquestionbank forallexaminationsconductedbyMII. Thedevelopmentof

questionpapers involvesappointingquestionsetters,moderators, translatorsandproof-readers, rightup to

theproductionofthefinalexaminationpapers.Theunitalsoassessesaccreditationofpriorlearningforsome

ofthemajorandcompulsoryexaminationsoffered.

Theunitiscommittedtocontinuouslyenhancethequalityandstandardoftheexaminationsofferedtobein

linewithinternationalstandards.Assuch,theUnit

i. Develops the questions using the guidelines given by Majlis Peperiksaan Malaysia (MPM), The

Chartered Insurance Institute,UK (CII),andotherprofessionalbodies toensure reliability,validityand

quality.

ii. Continuouslyreviewsthequestionsperiodicallytoensurethatthequestionsremaincurrent, relevant

andintandemwiththeneedsoftheindustry.

iii. Ensuresthemoderationandreviewofexaminationquestionsbysubjectmatterexperts.

iv. Imposesahighlevelofsecurityintheprocessofensuringthequestionsarereliableandvalid.

Significant Achievements in 2011

TheExaminationsDevelopmentUnit

i. Developed1,781setsofe-papersforthePCEIAandtheCEILLI(CBE).Thenumberofe-papersproduced

increasedby12%forbothexaminationsin2011ascomparedto2010.

ii. Developed1,371setsofquestionspapersforallPPE.Thenumberofsetsofquestionpapersproduced

increasedby55%ascomparedto2010duetotheconductofmoread-hocexaminationsforthePCEIA,

CEILLIandTBEexaminations.

iii. CarriedoutamoderationexerciseforPCEIAandCEILLIexaminationquestionsfrom14to22November

2011as requestedbytheLife InsuranceAssociationofMalaysia (LIAM)JointEducationCommitteeat

itsmeetingheldon17October2011.Allquestionswerecheckedfortechnicalaccuracies,correctness

andambiguity,andcomparedagainst theBahasaMalaysiaandMandarintranslations.10moderators

fromvariouscompaniesrecommendedbytheLIAMEducationCommitteeparticipatedintheexercise.

2,376 examination questions in three languages i.e. Bahasa Malaysia, English and Mandarin were

moderated.Generally,themoderatorsexpressedsatisfactionwiththeexaminationquestionsinterms

ofquality,standardandrelevance.

iv. Implemented successfully a detailed breakdown of the marks allocation for marking schemes for the

MIIDiplomaandtheMIIAssociateshipsubjects.

v. Continued to process requests for exemptions in respect of prior learning that students have

undertakenoutsideofMIIqualifications.




8. EXTERNAL EXAMINATIONS

Wecontinuedtobegiventhetrustandmandateastheregionalexaminationcentrebyseveralinternational

examining bodies during the year.We facilitated the following examinations for 410 candidates in various

externalexaminations:

External Examinations Facilitated by MII in 2011 and 2010:

No. Examination

No. of Candidates

2011 20101 CasualtyActuarialSociety(CAS),UK 29 19

2 CharteredInstituteofInsurance(CII),UK 93 95

3 CharteredInstituteofLossAdjusters(CILA),UK Noexam 7

4 SocietyofActuaries(SOA),USA 246 382

5 InstituteofRiskManagement(IRM),UK 41 14

6 Australian and New Zealand Institute of Insurance and Finance

(ANZIIF),Australia

1 1

Total 410 518




MII AS A PROFESSIONAL BODY

1. OVERVIEW

As a professional body, we maintain a membership register comprising Individual and Institutional

members. Individual membership includes Associate, Fellow, Ordinary and Affiliate membership. In 2011,

we had 1,188 individual members. Institutional members comprise all registered insurance and reinsurance

companies,insurancebrokersandlossadjustersinMalaysia,makingatotalof126Institutionalmemberswith

approximately25,000staffofthesecompanies.

Our membership offers a platform for members to enjoy privileges in our products and services and

professionalnetworkingthroughinvitationtoouractivitiesandevents.Selectedbenefitsarealsoextendedto

staffofourInstitutionalmembers.

1.1. MII MEMBERSHIP STATUS IN 2011

Asat31December2011,wehad1,188individualmembersand126institutionalmembers.

1.1.1. Number of MII Individual Members in 2011:

No. Membership CategoryYear

2011 20101 Affiliate 504 482

2 Ordinary 380 410

3 Associate 293 236

4 Fellow 11 11

Total 1,188 1,139

The slight increase of 4% in the total number of Individual members in 2011 was due to the

increaseinthenumberofAffiliateandAssociatemembersasaresultofthecontinuousefforts

to promote our membership to potential members. Promotional activities were conducted

extensivelyatourconferences,internaleventsandotherexternalevents.

1.1.2. Number of MII Institutional Members in 2011:

No. SectorYear

2011 20101 Reinsurance 7 7

2 Composite 9 9

3 General 21 21

4 Life 8 8

5 Brokers 36 36

6 Adjusters 36 36

7 Others(Non-Insurance) 9 11

Total 126 128




All current Institutional members which are licensed under the Insurance Act 1963 remained as our

Institutionalmembers in2011.However,theoverallnumberof Institutionalmembersdecreasedfrom

128companymembers in2010to126in2011.Thiswasattributedparticularlytothedecrease inthe

numberofnon-insuranceInstitutionalmembersfrom11membersin2010to9membersin2011.Non-

insurancecompaniesarenotrequiredtobeInstitutionalmembersofMII.

2. MEMBERSHIP ACTIVITIES

9activities involving455membersweresuccessfullyorganised in2011.Theactivitiesrangedfromindustry-

wide events to specific activities. These activities were a platform for members to network and gain

knowledge.

In order to cater for all categories of members including insurance industry staff and the agency force, we

organised 8 membership talks with the topics ranged from technical insurance to non-technical insurance

subjectssuchasPsychometricsandWillsWriting.

Wealsocontinuouslyparticipated inexhibitionsat seminarsandconventionsorganisedbyexternalparties.

Theseinitiativesweretocreateawarenessofourmembershiptopotentialindividualmembers.

2.1. MEMBERSHIP TALKS IN 2011

Membership Talks in 2011:

No. Date Topic

1 24January2011 The principle of utmost good faith in insurance: Has the evolution

stopped?

2 23February2011 Wasiat

3 26March2011 StudySkills&ExaminationTechniques

4 6April2011 Understanding Shipbuilders’ Risk- From a Practical Risk Management

Perspective

5 6April2011 TheLearningExperience:“EnrichyourMind,Body&Soul”

6 14May2011 WillsWriting

7 29June2011 Psychometrics

8 17October2011 LiabilityInsurance




29June2011,BreakfastTalkonPsychometrics,

MIICityCentre,KualaLumpur

2.2. INSURANCE INDUSTRY BOWLING TOURNAMENT 2011

Aspartofourmissiontoprovideaplatformforsocialandnetworkingopportunitiestostaffacrossthe

insuranceindustry,theInsuranceIndustryBowlingTournamentwassuccessfullyorganisedforthefifth

yearon22October2011atSunwayMegaLanes,SunwayPyramid,Selangor.Thisservedasanexcellent

opportunityfortheindustrytogettogetherasaunifiedindustry.240playersfrom29companiesfrom

all sectors of the insurance industry including general and life companies, brokers and loss adjusters

participatedinthetournament.

Place Company Prize

Champion EtiqaInsuranceBerhad-GroupA Championtrophy,trophyforeach

player,cashandhamper

1strunner-up GreatEasternLifeAssuranceBerhad-

GroupA

Trophyforeachplayer,cashand

hamper

2ndrunner-up EtiqaInsuranceBerhad–GroupB Trophyforeachplayer,cashand

hamper

4thplacing AmAssuranceBerhad–GroupA1 Trophyforeachplayer,cashand

hamper

5thplacing INGInsuranceBerhad-GroupING

Alpha

Trophyforeachplayer,cashand

hamper




Participantsatthebowlingtournament




MII AS A CONFERENCE ORGANISER

1. OVERVIEW

Annually, we conduct about 6 to 8 national and international level conferences specially designed to meet

the specific needs of the industry.These receive tremendous support from various local and international

organisations.Inadditiontothegainingandsharingofknowledgeandexperiences,ourconferencesprovide

valuableplatformsfornetworking.

We successfully organised 7 conferences for the insurance industry in 2011.These drew 3,613 participants

from Malaysia, Brunei, Hong Kong, India, Indonesia, Lebanon, Maldives, Nepal, Pakistan, Philippines, Russia,

Singapore, Sri Lanka, Switzerland,Thailand, United Arab Emirates (UAE), United Kingdom (UK) and United

States of America (USA). 81 international and local key speakers presented exciting papers, sharing their

expertise with the delegates.We have been very honoured to receive the invaluable support of speakers in

their voluntary presence at all the events.This has been extremely beneficial to MII in our aim of providing

worldclassknowledgeandexpertisetodelegatesattendingtheconferences.

The year also saw 2 new collaborations, resulting in the organisation of 2 inaugural conventions. The first

wastheTakafulAgentsConvention, incollaborationwiththeMalaysianTakafulAssociation(MTA)andIBFIM.

The second was Malaysia MDRT Day 2011, in cooperation with Malaysia MDRT Communication Committee.

In addition, we organised the 1st Malaysia Insurance Summit on 25-26 July 2012 as a strategic insurance

gatheringfortheMalaysianinsuranceindustry.

Conferences/Conventions Organised in 2011:

No. Conferences/Conventions DateNo. of

ParticipantsNo. of

Speakers

General Insurance Conferences/Conventions

1 InternationalClaimsConvention 4-5April2011 60 15

2 FAIRMedicalandHealthInsurance

Conference

6–7June2011 48 15

3 1stMalaysiaInsuranceSummit 25–26July2011 112 26

4 GeneralInsuranceAgentsConvention 13September2011 480 5

Life Insurance Conferences/Conventions

1 KonvensyenEjenTakaful2011 18June2011 510 9

2 MalaysiaMDRTDay 22July2011 1,471 6

3 KonvensyenEjenInsuransHayat

Bumiputera

29October2011 932 5

Total 3,613 81




2. CONFERENCES ORGANISED

2.1. INTERNATIONAL CLAIMS CONVENTION

FollowingthesuccessoftheInternationalClaimsConvention2010,MII,withthesupportofPersatuan

Insurans Am Malaysia (PIAM) and the Life Insurance Association of Malaysia (LIAM), convened the

International Claims Convention 2011 from 4 to 5 April 2011 at Prince Hotel and Residence, Kuala

Lumpur.The conference theme was“Competitive Advantage through Effective Claims Management”.

Mr Rajandran a/l Rasappan, Senior Private Secretary to Y.B. Senator Dato’ T. Murugiah, ex-Deputy

MinisterinthePrimeMinister’sDepartment,officiatedtheconvention.

Theconventionattracted60participantsfromSingapore,UK,Russia,SriLanka,ThailandandMalaysia

and15renownedindustryexpertsfromMalaysia,Philippines,SingaporeandUK.However,thenumber

of participants attending the convention in 2011 was lower than that in 2010 by 41% due to market

competitivenessassimilarconferenceswereorganizedbyotherprivateprovidersinAsia.Nonetheless,

thosewhoattendedprovidedveryencouragingevaluation.

The convention highlighted the unpredictable challenges facing the insurance industry in managing

claims,capitaladequacyandsolvency.Theconventionfocusedonthedomesticandregionalcontexts,

allowingre-examinationoftheappropriateoperatingmodelforfutureclaims.

Testimonials from participants

“Basically, this convention is a refresher on claims fundamentals and alerts us as to the technology available today to manage claims. I (as a reinsurer) am happy to know what is currently happening in the claims environment by listening to the experiences of the professional experts.”

AlexChen,SeniorExecutiveClaims,BestRe(L)Limited,Malaysia

“A very informative session.”

Azimah,Manager,ChartisMalaysiaInsuranceBerhad,Malaysia

“Well organised seminar. Good list of speakers. Relevant topic. And very informative. Panel sessions are interesting.”

CheungLiHan,DeputyManagerClaims,LabuanReinsurance(L)Ltd,Malaysia

“Beneficial in adding to our knowledge.”

MariamChuah,AssistantManager,ThePacificInsuranceBerhad,Malaysia




Fromleft:MrsRoslizaMdYusoff(NICSDeputyChairman),MrLeeThimFook(ex-AMLAChairman,ex-MII

Director),MrRajandrana/lRasappan(RepresentativefromtheDeputyPrimeMinister’sOfficeMalaysia),

MrHashimHarun(MIIandPIAMChairman),MrsKhadijahAbdullah(MIICEO),andMrVincentKwoShih

Kang(LIAMPresident)

Participantsattheconference

2.2. FAIR INTERNATIONAL HEALTH INSURANCE CONFERENCE

In our effort to update insurers on the fast advancing challenges faced by the healthcare industry,

especiallyintheAsianandAfricanregions,MIIandtheFederationofAfro-AsianInsurersandReinsurers

(FAIR) joined forces inorganisingtheFAIR InternationalHealth InsuranceConference.Thisconference

washeldfrom6to7June2011atPrinceHotelandResidence,KualaLumpur.Y.B.DatukRosnahBtHj

AbdRashidShirlin,DeputyMinisterofHealth,MinistryofHealthMalaysia,officiatedtheevent.




The 2-day international conference provided a platform for engagement with many renowned field

practitionersfromadvancedandlocalmarketstosharetheirexpertiseandexperience,andaddressed

keyissueswithparticipants.48participantsfromBangladesh, Indonesia,Lebanon,Malaysia,Maldives,

Pakistan,Singapore,UAEandUSAattendedtheconference.Thenumberofparticipantsdidnotmeet

our expectation due to similar conferences being held in other parts of Asia on a similar subject.

Nevertheless,thosewhoattendedprovidedpositivefeedbackanditencouragedclosernetworking.

Participantsaftertheconference

Y.B.DatukRosnahBtHajiAbdulRashidShirlindeliveringherkeynoteaddress





“Good selection of speakers. Kudos to the organising committee of MII and all involved for their great organising skill. Everything went so well. Very professionally executed!!!”

SusanVongSooGoon,GeneralManager,AccuredLifeServiceSdn.Bhd,Malaysia

“An excellent conference with mix of topic and speakers. Do keep it up.”

AnilNair,CEO,IRISTechnologies(eklaims),Dubai

“Very good speakers and very informative.”

NorAnisahBtHasanAdli,PrudentialBSNTakafulBerhad,Malaysia

“Excellent speakers from diverse segments of the health insurance industry.”

HairiyahIsmail,IkatanAsiaPacific,Malaysia

“It was an informative and meaningful event.”

RozlenaSaminTaib,CIMBInsuranceBrokers,Malaysia

“Great panel of speakers and useful topics. Lots of insight provided on almost all aspects of medical insurance.”

KennyOng,TakafulIkhlasSdnBhd,Malaysia

“Very informative and excellent conference.”

PapiaRahman,GreenDeltaInsurance.CoLtd,Bangladesh

“A well organised event that brought many players together.”SheikhAbdulRahman,TakafulIkhlasSdnBhd,Malaysia

2.3. 1ST MALAYSIA INSURANCE SUMMIT

MII,withthesupportofPIAM,LIAM,AssociationofMalaysianLossAdjusters(AMLA)andTheMalaysian

InsuranceandTakafulBrokersAssociation(MITBA),organisedthe1stMalaysia InsuranceSummitwith

the theme“Insurance towards Creating Greater Value for Business Growth”. Delegates gathered at

thePalaceoftheGoldenHorsesHotel,KualaLumpur,over2daysfrom25to26July2011tolistento

the views of C-level executives and subject matter experts and to debate on matters concerning the

landscapeoftheMalaysianinsuranceindustry.

Officiated by Mrs Khadijah Abdullah, the summit attracted 112 delegates from Brunei, Hong Kong,

Malaysia, Nepal, Singapore and UK. 26 industry experts from Hong Kong, Malaysia, Singapore,

SwitzerlandandUKpresentedtheirpapersandsharedtheirexpertise.

The summit provided a great opportunity for the delegates to exchange notes and discuss business

and strategic issues. The summit aimed to be the catalyst for a paradigm shift in the Malaysian

insurance industry and lead the market towards faster transformation in line with the government’s

aimofthenationachievinghigh-incomenationstatusby2020.




YBhg Dato’ Hj.SyedMoheeb SyedKamarulzaman,President& CEO,Takaful

IKHLASSdnBhdasoneofthespeakers

MrShahrilAzuarJimin,CEO,EtiqaTakaful

Berhaddeliveringhispresentation

Industryleadersasspeakersattheevent





“Congratulations to MII for the initiative to organise this summit which is a good platform to share and change ideas and perspectives.”

Zulkifli,SeniorManager,SyarikatTakafulMalaysiaBerhad,Malaysia

“Good for learning new market development and networking.”

AndrewChoo,ChiefOperatingOfficer,MSMAdjusters,Malaysia

“I have learned quite a lot on the topic. I enjoyed all the presentations very much particularly panel session 2 on Shaping Professionalism & Talent for the Insurance Industry.”

FongSiewKien,Head,CorporatePerformance,ETIQAInsurance&Takaful,Malaysia

“Interesting knowledge was shared in this conference.”

SurayatiHjBesar,InsuranceIslamTaibSdnBhd,Brunei

“Interesting. The speakers shared ideas especially on talent and professionalism in the insurance industry. Insightful discussions.”

RoslinawatiIbrahim,InsuranceIslamTaibSdnBhd,Brunei

“Good seminar to address specific development needs.”

JaniceHanMeiHui,BankNegaraMalaysia

“Excellent topics and well organised.”

KamalAbdullah,IltizamPerkasa,Malaysia

2.4. GENERAL INSURANCE AGENTS CONVENTION

The General Insurance Agents Convention is an annual event organised by MII with the support of

PIAM. Subsequent to the success of the event in the previous years, the convention was again held

on 13 September 2011 at Palace of the Golden Horses, Kuala Lumpur.Y. Bhg. Dato’ Seri Zainal Rahim

bin Seman, Secretary General of the Ministry of Human Resource Malaysia, graciously delivered the

keynoteaddressandofficiatedtheconventiononbehalfofY.B.SenatorDato’Maznah,DeputyMinister,

MinistryofHumanResourceMalaysia.

The grand convention with the theme “Transformation for Better Results” attracted 480 general

insurance agents. 5 renowned speakers spoke on various topics that benefited the audience. The

conventionpresentedagentswithaplatformtogainnewknowledgeandskillstoenablethemtoplay

abiggerroleintheindustry.





“Good variety of topics and good knowledgeable speakers.”

WengEuGene,QBEInsurance(Malaysia)Berhad,Malaysia

“The committee has done a very good job!!!”

TomHock,QBEInsurance(Malaysia)Berhad,Malaysia

“The best ever organised with health check and foot massage.”

MahKhimChow,PacificInsuranceBerhad,Malaysia

“Keep up the good work.”

AlexKwan,BerjayaSompoInsuranceBerhad,Malaysia

“Well organised.”

NgYengYoon,JernehInsuranceBhd,Malaysia

“A must attend. Very good. New knowledge and new experience.”

SitiIsahAhmad,EtiqaTakafulBhd,Malaysia

MrRohnRajendeliveringhispresentation




Participantsattheconvention

2.5. KONVENSYEN EJEN TAKAFUL (TAKAFUL AGENTS CONVENTION)

The inaugural Takaful Agents Convention was organised in collaboration with IBFIM and with the

supportoftheMalaysianTakafulAssociation(MTA)atPutraWorldTradeCentre(PWTC),KualaLumpur

on 18 June 2011. The theme for the event was‘Menggapai Kecemerlangan Bersama Takaful”.Y.B.

SenatorDato’DrAwangAdekHussin,DeputyFinanceMinister,MinistryofFinanceMalaysia,officiated

theevent.

The event aimed to create a platform for the 510 takaful agents who attended to learn and acquire

newknowledge,skillsandexperiencesfromtherenownedspeakersandforumpanelists.

(Secondfromleft)Y.B.SenatorDato’DrAwangAdekHussinofficiatingtheevent,witnessedby(farleft)

MrWanMohdFadzlullahWanAbdullah,representativefromMTA;(secondfromright)Y.Bhg.Dato’Dr

AdnanAlias, IBFIMChairman;and(farright)MrTaiporSuhadah,MIIHeadofEducation,LifeTraining&

Membership





Renownedspeakersattheconvention





“Pengisian ilmu berkenaan takaful yang terbaik.”

RoshidahAbdAziz,EtiqaTakafulBhd

“Konvensyen ini berjaya menggabungkan dari perbagai syarikat insurans & takaful dan dapat mewujudkan silatulrahim.”

AzmatDerasip,PAMB

“Topik yang baik dan barisan penceramah terutama panelis yang berpengalaman.”

NazwaBintiOmar,MAATakaful

“Konvensyen ini memberi peluang untuk menimba ilmu and memotivasikan diri.”

Muzayanah,TakafulIkhlas

“Forum syariah terbaik – banyak isu semasa dibincang dan tukar pendapat.”LimPengBoon,PAMB

“Ketepatan waktu dan pengendalian yang meyakinkan dan amat baik.”

HisamuddinFuad,PAMB

“Adakan Konvensyen sebegini setiap tahun.”

MohdNasirIsmail,GELTakaful

2.6. MALAYSIA MDRT DAY

MII and the Million Dollar Round Table (MDRT) Communication Committee Malaysia organised

the inaugural MDRT Day 2011 with the theme“Sparking Change” on 22 July 2011 at Sime Darby

Convention Centre, Kuala Lumpur. A line-up of top MDRT, Court of theTable (COT) andTop of the

Table (TOT) speakers shared their success stories at the event.This 1-day convention which saw the

attendance of 1,471 agents was organised with the objective to inspire insurance agents to work

harderinordertofacechallengesbroughtonbythecompetitionandtheeconomicwoes.

Theopeningceremonyoftheevent




MrMohamadManmohanAbdullah,MDRTCountryChair,Malaysiawelcomingthedelegates

Participantsattheevent





“MDRT DAY 2011 was a Wow event. Knowledge. Selling skills. Attitude. Passion. All were on showcase. Thank you to Mohan and the organising committee and MII.”

JeffreyChiew

“Well done to Manmohan Abdullah and the team who have brought us Malaysia’s 1st MDRT Day and it’s really amazing and sparking change for all of us especially the new agents we brought to the event.. Thanks again...”

JessicaTee

“Well done guys! Bravo! Looking forward to next year.”

ChooBoonSern

“It was AMAZING! A SUCCESS! From the beginning to the end. And it’s enough to tell the rest of the world that WE HAD A SPARKING GREAT TIME! Thank you Mr Mohan and MII and the rest of the TEAM (Together Everyone Achieves More)...of the MDRT Day. GOD BLESS each and everyone who had a hand in the success of the convention! Thanks Low, from the bottom of my heart, for you and the MII guys made sure my power point problems were solved by the time I had to speak. I could not have done well without YOU!”

LailaJohari

“Congratulations to ALL! This is the best MDRT Day in South East Asia. Well organised and great speakers”

TerezPerez,SouthEastAsiaZoneChair

“Thank you, Boss, for a wonderful memorable experience. All the speakers were just awesome. May Lee, Heng Shoou Ju, Ng Yah Ling, Laila Johari, Amutha Karpanan and last but not least Ruby Chuaunsu from the Philippines. These inspiring ladies were just SUPERB!!! I have learnt so much in a mere 8 hours. Certainly some changes are sparking in ME!!! Bravo indeed!”

JasmineLilyHo

2.7. KONVENSYEN EJEN INSURANS HAYAT BUMIPUTERA (BUMIPUTERA LIFE INSURANCE AGENTS CONVENTION AND AWARD)

The Bumiputera Life Insurance Agents Convention is an annual event organised with the support of

LIAM.The2011conventionheldon29OctoberatPWTC,KualaLumpur,wasthemed‘EjenPemangkin

Pembangunan Insurans”. 932 Bumiputera agents attended the convention, a tremendous increase

as compared to the attendance of 538 participants at the event organised in 2010.Y.B. Datuk Hajjah

Rohani Hj Abd Karim, Deputy Minister, Ministry of DomesticTrade, Cooperatives and Consumerism

Malaysia,graciouslyofficiatedtheconvention.




TheobjectivesoftheeventweretofurtherdevelopBumiputeralifeinsuranceagentstobecomemore

productiveandsuccessfulwhileprovidingvalueaddedservicetotheircustomersandtobetterserve

theBumiputerapopulationwhilehelpingthemraisetheirawarenessandknowledgeon insuranceto

better equipped in terms of financial protection, investment and financial planning. In conjunction

with the convention, a presentation of awards to the Top 40 Agency Leaders and Top Personal

Producersfrom10lifeinsurancecompanieswasorganised.Theawardwasintroducedtoacknowledge

andrecognisetheachievementsofagentsof life insurancecompanies. Itwasextremelywellreceived

andhighlyappreciatedbycompaniesandBumiputeraagencyleadersandagents.


“Inspiring.”

MohdNazamudin,MCISZurichInsuranceBerhad

“Para penceramah yang hebat.”

SuhailaSaidin,ETIQAInsuranceBerhad

“Yang terbaik, persiapan tempat, protokol majlis.”

MuhdZulkifliHashim,MCISZurichInsuranceBerhad

“Perkongsian idea, membuka minda, merangsang semangat supaya terus beristikhomah.”NorAziahKamarudin,ETIQAInsuranceBerhad

“Sessi Mohd Hamzavi terbaik.”

RohayuIshak,INGInsuranceBerhad

“Mengendalikan konvensyen ini susah tapi anda telah berjaya. Input yang saya terima amat berkesan kerana fokus ketiga-tiga penceramah adalah sama.”

MohdKhairiMohdAini,HongLeongAssuranceBerhad

ThewinnersinagroupphotowithMrsKhadijahAbdullahand

Y.B.DatukHajjahRohaniHjAbdKarim.








MII AS A KNOWLEDGE CENTRE

1. OVERVIEW

We have made steady progress and developed considerable strengths over the years in our mission to

promote insurance knowledge and information. In 2011, our Knowledge Centre (MII KC) received 6,576

visitors, an increase of 21% over 2010. The increase resulted from the activities and promotions that we

conductedthroughouttheyear.

Guided by its 3 pillars, Library Services, Research and Knowledge Management, and the Knowledge Centre

RoadMap,MIIKCaccomplishedseveralmilestones.ThankstothesupportprovidedbytheCapacityBuilding

Fund,MIIKCundertookandmaterialisednumerousprojects.

KC ROADMAP

KnowledgeManagement

Research

LibraryServices

KC PILLARS

PHASE 32012-

PHASE 22009-2011

PHASE 12007-2009

Strategic focus: Knowledge Community

� Establish Community of Practices

� Promote knowledge sharing culture

Strategic focus: Knowledge Creation

& Enrichment

� Promote research works

� Mobilise research funds

� Publish research, journal, case studies etc

Strategic focus: Content, Services & Infra

� Enhance library services

� Leverage on ICT

� Increase total collections




2. DEVELOPMENTS IN 2011

2.1. NEW REFERENCES

In 2011, we purchased 900 new reference books and materials. The total collection in circulation

amountedto4,700intheformofstudytexts,books,magazines,journalsandserials.

2.2. INSURANCE AND TAKAFUL JOURNAL (INTAJ)

WepublishedthefirstvolumeofInsurance and Takaful Journal (INTAJ)inJuly2011.INTAJisanindustry

collaboration with Universiti Kebangsaan Malaysia which supports our mandate to promote research

studies and knowledge creation in the insurance industry. Published twice a year, INTAJ contains

papersfromacademiciansandindustrypractitioners.

INTAJFirstEditioncover

2.3 NETWORKING GROUPS

2.3.1. Knowledge Management Task Force (KMTF)

TheKnowledgeManagementTaskForceconsistsofMII,AsianInstituteofFinance(AIF), Institut

Bank-Bank Malaysia (IBBM), IBFIM and International Centre of Education in Islamic Finance

(INCEIF) and was initiated on 14 December 2010. Bank Negara Malaysia (BNM) and Securities

CommissionMalaysia(SC)wereappointedasadvisorstothetaskforce.ThefocusofKMTFisto

look into the integration and rationalisation of collections, resources, systems and technology,

distribution channels, joint-activities and knowledge management among its members. We

havebeengiventhemandatetoleadthetaskforce.




KMTFMeetingatMIIHeadquarters,DamansaraHeights,KualaLumpur

2.3.2. MII Knowledge Centre Committee (MKCC)

Among our commitments is to ensure that the MII KC’s facilities and resources are highly

relevant to the needs of the insurance industry.Thus, MKCC was formed in October 2011 to

bringtogethermembersoftheinsuranceindustryasacommitteetoadviseusonourinitiatives

toenhanceMIIKC’scapacityandservetheindustrybetter.

MKCC1stmeeting,MIIKnowledgeCentre,MIICityCentre,KualaLumpur




2.3.3. Knowledge Management’s Community of Practice (KM CoP)

We were involved in KM CoP which embraces benchmarks and best practices in Knowledge

Management. Members of the group include organisations such as Jabatan Kerja Raya (JKR),

Malaysia Productivity Corporation (MPC), Standards and Industrial Research Institute Malaysia

(SIRIM), and The Malaysian Administrative Modernisation and Management Planning Unit

(MAMPU),amongothers.

17-21October2011,TrainingofTrainerKnowledgeManagementImplementation

thatledtotheinitiationofKMCoP

KMCoPvisit,KnowledgeManagementCentre,BankNegaraMalaysia




2.3.4 Special Library Committee (SLC)

It was an honour for us to have been appointed a member of the SLC.The SLC, formed by

Persatuan Pustakawan Malaysia (PPM), provides specialist librarians in Malaysia a platform to

discussandpromotetheirworkwithintheknowledgecommunity.Currently,BERNAMAInfolib

leads the SLC. SLC membership comprises BERNAMA Infolib, MII KC, Pusat Sumber Petroleum

PETRONAS, Lincoln Resource Centre U.S. Embassy, Malaysia Productivity Corporation library,

Pusat Dokumentasi Melayu Dewan Bahasa dan Pustaka, Institute of Diplomacy and Foreign

Relations Malaysia library, Casa Innovasi, Minconsult Sdn Bhd library and Zaid Ibrahim & Co

library.

SpecialLibraryCommitteemeeting,BERNAMAInfolib,KualaLumpur

2.4. SOCIAL MEDIA

The MII KC has launched its own Facebook community as a powerful tool to stay connected with its

membersandthepublicmoreefficientlyandeffectively.TheFacebookfanpagenamed‘TheMalaysian

Insurance Institute Knowledge Centre’ provides information on MII KC activities and various other

insurance-related knowledge and updates. The fan page receives encouraging support from the

industrywithincreasingnumberofpeoplejoiningasfans.




2.5. KNOWLEDGE MANAGEMENT DAY

Knowledge Management Day is organised every quarter at MII Headquarters, Damansara Heights,

Kuala Lumpur with the objective to strengthen the MII KC’s third pillar, which is Knowledge

Management. The activities conducted under this programme include motivational video shows

for personal development, quizzes, lucky draws and a reach out initiative known as KC Comes 2

U. Perpustakaan Negara Malaysia (PNM) was very supportive of this initiative by lending 300 of its

collectionforMIImemberstoborrowfor1monththroughoutthe4programmesconductedin2011.

Theprogrammesreceivedpositivefeedbackfromstaff,membersandotherKMpractitioners.

Attendeesoftheprogramme




MrHairulHilmiRamlee,HeadofMIIKnowledgeCentre,

presentingtheluckydrawprizetoMrsPauziah

fromHCMEngineeringSdnBhdduringthe4thKMDayon1December2011

2.6. KNOWLEDGE PACK

In 2011, we produced the second and third volumes of Knowledge Pack in digital format which can

be downloaded from www.insurance.com.my. The Knowledge Pack provides relevant industry

information such as statistical reports and key insurance data extracted and edited from reliable

sources.

Volume2 Volume3




MII AS THE SECRETARIAT OF AITRI

1. OVERVIEW

The ASEAN Insurance Training and Research Institute (AITRI), a non-profit organisation established by

InsuranceRegulatorsofthe10ASEANmembercountries,wasofficiallyincorporatedon1December2004in

Malaysia.WeweregiventhehonourtoleadanddrivethemandateastheSecretariatofAITRI.AITRIcontinues

tofulfilitsmandatetoserveandfacilitatehumancapitaldevelopmentneedsthrougheducation,trainingand

researchforASEANregulatorsandinsurers.

2. PROGRAMMES FOR REGULATORS

In2011,AITRIsuccessfullyconducted4humancapitaldevelopmentprogrammesfortheinsuranceregulators

in Malaysia, Brunei,Thailand and Cambodia. These training programmes were delivered by 13 field experts

from regulatory bodies and private institutions. AITRI has also been honoured to receive some funding and

sponsorshipsupportfromBankNegaraMalaysia,TorontoCentre,MonetaryAuthorityofSingapore,TheWorld

Bank, Canadian International Development Agency, Authoriti Monetari Brunei Darussalam, International

Association of Insurance Supervisors, Office of Insurance Commission Thailand, National Association of

Insurance Commissioners, Ministry of Economy and Finance Cambodia and AITRI Members Contribution

Fundforitsprogrammes.In2011,89participantsfromASEANcountriesand20participantsfromnon-ASEAN

countries, namely Australia, Azerbaijan, Bhutan, Hong Kong, Kenya, Mauritius, Namibia, Nepal, Papua New

Guinea,SaudiArabiaandSwazilandattendedAITRIprogrammes.

18–22April2011,RegionalSeminaronCrisisPreparednessfor

SeniorInsuranceSupervisors,KualaLumpur,Malaysia




AITRI Programmes Conducted in 2011:

Title Date Host/Venue Funded/Supported by

RegionalSeminaron

CrisisPreparedness

forSeniorInsurance

Supervisors

18-22April2011 LanaiKijang

BNMTraining

Centre,

Malaysia

l BankNegaraMalaysia

l TorontoCentre

l MonetaryAuthorityof

Singapore

l TheWorldBank

l CanadianInternational

DevelopmentAgency

l AITRIMembersContribution

Fund

AITRIWorkshopon

On-SiteandOff-Site

Examination

13–16June2011 Centrepoint

Hotel,Brunei

l AuthoritiMonetariBrunei

Darussalam

l TorontoCentre

l InternationalAssociationof

InsuranceSupervisors

CourseonCapital

AdequacyandSolvency

Supervision

19–21September2011 Training

Centre,Office

ofInsurance

Commission,

Thailand

l OfficeofInsurance

Commission,Thailand

l BankNegaraMalaysia

l MonetaryAuthorityof

Singapore

l NationalAssociationof

InsuranceCommissioners

SeminaronReinsurance

Supervision

24–27October2011 Phnom

PenhHotel,

Cambodia

l MinistryofEconomyand

Finance,Cambodia

l TorontoCentre

l CanadianInternational

DevelopmentAgency

13-16June2011,WorkshoponOn-Site&

Off-SiteExaminationforInsuranceSupervisors,BandarSeriBegawan,Brunei




Participants from ASEAN and Non-ASEAN Member Countries at 2011 AITRI Programmes:

ASEAN Country

CrisisPreparedness for

Senior Supervisors

On-Siteand Off-Site

Examinations

Capital Adequacy and Solvency Supervision

Reinsurance Supervision

Brunei – 6 2 –

Cambodia 2 2 2 7

Indonesia 2 2 1 –

Laos 2 2 2 2

Malaysia 5 2 2 2

Myanmar 1 – – –

Philippines 1 – – –

Singapore 2 4 1 –

Thailand 4 3 25 3

Vietnam – – – –

Total 19 21 35 14

Non- ASEANCountry

CrisisPreparedness for

Senior Supervisors

On-Siteand Off-Site

Examinations

Capital Adequacy and Solvency Supervision

Reinsurance Supervision

Australia 1 – – –

Azerbaijan 2 – – –

Bhutan – – 1 –

HongKong 1 – – –

Kenya 2 2 – 2

Mauritius 1 – – –

Namibia – – 2 –

Nepal – – 2 –

PapuaNew

Guinea

1 1 – –

SaudiArabia 1 – – –

Swaziland 1 – – –

Total 10 3 5 2Grand Total 29 24 40 16




19–21September2011,CourseonCapitalAdequacyandSolvencySupervision,Thailand

24–27October2011,SeminaronReinsuranceSupervision,Cambodia

3 INDUSTRY EVENTS

3.1. YOUNG ASEAN MANAGER AWARD 2011

TheYoungASEANManagerAward(YAMA) isaproject initiatedbytheASEANInsuranceCouncil (AIC)

andorganisedbyTheASEANInsuranceTrainingandResearch Institute (AITRI).Thisprestigiousaward

is inspired under the spirit of ASEAN to honour outstanding young managers for their achievement,

contribution and dedication to the insurance industry and to recognise their potential, talent and

leadershipqualities.




TheYoung ASEAN Manager Award 2011 was held in Singapore in conjunction with the 14th ASEAN

Insurance Regulators Meeting (AIRM). 18 nominations from 5 ASEAN countries competed for this

prestigiousawardin2011.

3.1.1. 2011 YAMA Judges

The panel of judges for the award comprised 11 industry leaders from Brunei, Indonesia,

Malaysia, Philippines, Singapore and Thailand. The judges had a challenging time to name

the recipient of the award due to the high quality of the finalists.The process involved online

assessmentbasedonessaywrite-upsandinterviewswiththefinalists.

3.1.2. 2011 YAMA Recipient

Therecipientoftheawardfor2011wasMrKohKokKeong,HeadofDepartmentofInformation

Technology,Manulife(Singapore)PteLtd.Hewaschosenbasedonhiscommendableleadership

qualities, seriesofachievementsandsignificantcontributions to thegrowthanddevelopment

oftheinsuranceindustry.

The award was presented by Ms Luz Foo, Executive Director, Insurance, Monetary Authority of

Singapore(MAS),accompaniedbyMsHelenYeo,ChairmanofAIC;MrTeddyHailamsah,ex-AIC

Secretary General and Ms Evelina Fadil Pietreuschka, AIC Secretary General, at theWelcoming

Dinner held at Horizon Pavilion, Shangri-la’s Rasa Sentosa Resort. The other two finalists were

MrWong Chung Chiat, P.T. Asuransi Jiwa Sequis Life, Indonesia and Ms Nursuryati Mahmud,

ManulifeSingaporePteLtd.

MsEvelinaFadilPietreuschka,MrTeddyHailamsah,MsHelenYeoandMsLuzFoo,

withYAMA2011finalistsduringthewelcomingdinneratSentosaResortSingapore




YAMA2011finalistsandwinner,MrWongChung,

MrKohKokKeong(winner)andMsNursuryatiMahmud

3.2. 8TH ASEAN INSURANCE CONGRESS

AITRI was appointed the permanent secretariat for this event under the auspices of the ASEAN

Insurance Council (AIC).The event was successfully conducted on 23 November 2011 at Pan Pacific

Hotel inSingaporewiththetheme“DefiningtheRightBusinessModels forFutureASEAN”.Thetopics

were selected by the AIC Congress Organising Committee comprising key personnel in the ASEAN

Insuranceindustry.MrCarloAngeloDiaz,theYAMA2010awardrecipient,wastheChairmanoftheAIC

OrganisingCommittee.

17 field experts from USA, Malaysia, Philippines and Singapore participated in the delivery of papers

on the various topics.The congress was attended by 89 delegates from 5 ASEAN countries, namely

Indonesia, Malaysia, Philippines, Singapore andThailand and from 3 non-ASEAN countries, namely

Nigeria,HongKongandSriLanka.




MrCarloAngeloaddressingtheparticipantsduringhiswelcomingspeech

Participantsatthecongress




MsHelenYeo(secondfromleft)presentingatokenofappreciationtoMsLuzFoo

(secondfromright)forofficiatingthe8thAIC,witnessedby

MrsKhadijahAbdullah(farleft)andMrCarloAngelo(farright)


“It was a wonderful and a good learning experience. I was most excited about the content of the workshop which is relevant to my current job situation. Next time I will not hesitate to attend another workshop organised by AITRI if I get the opportunity”

Mr.SandileDlamini,RegistrarandCEO,RegistrarofInsuranceandRetirementFunds,Swaziland

Crisis Preparedness for Senior Insurance Supervisors (18-22 April 2011)

“The seminar is good for knowledge and experiences exchange”

Mr.AsepIskandar,SubDivisionHeadofExamDivision,MinistryofFinance,Indonesia

Crisis Preparedness for Senior Insurance (18-22 April 2011)

“The course was very good. It should be extended to a few more days”

Ms.HaySomeale,DepartmentofFinancialIndustry,MinistryofEconomy&Finance,Cambodia

Reinsurance Supervision (24-27 October 2011)

“The course is very interesting and I received a lot of knowledge and views from various speakers from different countries”Ms.SommanaThanhameta,OfficeofInsuranceCommission,Thailand

Capital Adequacy and Solvency Supervision (19-21 September 2011)

“Well organised”

Mr.M.NimalRPerera,PeopleInsuranceLimited,SriLanka

8th ASEAN Insurance Congress (23 November 2011)




BUSINESS DEVELOPMENT

1. STRATEGIC PARTNERSHIP

1.1. OVERVIEW

AsthepreferredinsurancetrainingandeducationinstitutioninMalaysiaandotheremergingmarkets,

ourreputationandcapabilityhavegainedinternationalrecognitionbyinsuranceandnon- insurance

related organisations. In achieving our vision, we have been actively penetrating new markets by

offeringMIIproductsandservices.At thesametime,wehavealso leveragedonstrongbrandnames

of external institutions through collaborations on joint-programmes and products for the insurance

industryinMalaysiaandothercountries.

Thesecollaborationshaveopeneddoorsformarketexpansionsintheinternationalandlocalinsurance

and non-insurance industries. Concurrently, we can leverage on the expertise of these reputable

organisations in providing advanced and enhanced training programmes to the Malaysian insurance

industry.These efforts are in line with our vision and mission in delivering effective human capital

development programmes and supporting the national agenda in promoting Malaysia as the centre

for insurance professional development and education. These efforts are also part of our revenue

strategyinstrengtheningourfinancialposition.

SomeofMII’sstrategicpartnershipsin2011were:

1.1.1. Insmart Company Limited, Vietnam

On 10 March 2011, we signed an Memorandum of Understanding (MoU) with INSMART

Company Limited,Vietnam to mark acollaborative relationship on the initiative to provide MII

professional and technical training programmes in Vietnam. Mrs Khadijah Abdullah and Mr

CheamTeckEng,CEOofINSMARTCompanyLimited,signedtheMoU.

This cooperation will allow a new market expansion for us in the offering of our training

programmesforinsurancestaffandagentsintheSocialistRepublicofVietnam.Thiswillinvolve

MII as the training provider of the programmes while INSMART will render the service as the

marketingpartnerandprovideotherrelatedlocallogisticsandadministrationsupport.

MrCheamTeckEngandMrsKhadijahAbdullahafterthesigningofthenewcollaboration




1.1.2. AGOC International Ltd, UK

We opened up a new opportunity on 22 July 2011 through our cooperation with AGOC

International Ltd, UK.The MoU signed between Mrs Khadijah Abdullah and Mr Abdel Moniem

MohamedAbdelAziz,ManagingDirectorofAGOCInternationalLtdwillprovideanewplatform

for MII in offering programmes such as MII certifications, MII specialised courses and MII

examinationsinSaudiArabia.

MrAbdelMoniemMohamedAbdelAzizwithMrsKhadijahAbdullahafterthesigningceremony

1.1.3. Inspire Global Pte Ltd, Singapore

On16August2011,wesignedanMoUwithInspireGlobalPteLtd,Singapore.TheMoU,signed

betweenMrsKhadijahAbdullahandDrMichealTeo,DirectorofInspireGlobalPteLtd,launched

apartnershipbetweenthetwoorganisationsinprovidingadvancedinsurancetechnicaltraining

programmesinMalaysia.

DrMichealTeoandMrsKhadijahAbdullahduringthesigningceremony




2. CORPORATE BRANDING

2.1. OVERVIEW

We have optimised our limited resources to promote the Institute as well as to source for resources

frompotentialpartnersandcustomersinselectedpotentialmarketsaroundtheglobe.

To support this objective, we conducted several activities such as participating in local and

international insurance-related events, meeting with international insurance bodies, developing MII

corporate branding collaterals (INSURANCE magazine, corporate gifts, brochures, display panels) and

gainingexposurethroughlocalandinternationalmediaandpublications.

2.2. PARTICIPATION IN LOCAL AND INTERNATIONAL INSURANCE-RELATED EVENTS

In2011,weparticipatedin2internationaland4localinsurance-relatedeventsbysettingupexhibition

boothstopromoteMIIproductsandservicestopotentialcustomers.

List of Events Participated in 2011:

No. Events Dates Venues

1 AIFInternationalSymposium2011

(International)

7-8April2011 HiltonHotel,KualaLumpur

2 23rdPruLiaAnnualGeneralMeeting

andConvention2011

23May2011 SunwayConventionCentre,

Selangor

3 MFPCGraduationCeremony 28May2011 PutraWorldTradeCentre,

KualaLumpur

4 33rdMegaConvention2011and

8thNationalAKARDAwardDinner

5-7July2011 GentingInternational

ConventionCentre,Pahang

5 TheTakafulRendezvous2011

(International)

6-7October2011 IstanaHotel,KualaLumpur

6 AATBDash2012 17December2011 EmpireHotelSubang,

Selangor

2.3. MEETINGS WITH INTERNATIONAL INSURANCE BODIES

2011 also saw us meeting with a number of international insurance bodies in and outside of MII to

discuss potential business opportunities, new programmes development and prospective market

expansions. Besides introducing MII to the international market, these meetings strengthened and

developed further business relationships with reputable foreign organisations. These efforts have

helpedustogainaccesstoabiggerpoolofresourcesthatcanaddvaluetoouractivities.




2.4. DEVELOPMENT OF INSURANCE MAGAZINE

2011 was the third year of publication of INSURANCE Magazine as part of our mandate to promote

insurance-relatedknowledgeandinformation.

During the year, we developed another 4 issues of INSURANCE, issue 7 to issue 10, which discussed

varioustopics,issuesandupdatesrelatedtoinsuranceandtakaful.ThemagazineissoldatRM12,with

aspecial25%discount(RM10acopy)uponsubscriptionwhichisavailablefor1or2years.

StartingJanuary2012, INSURANCEwill bepublishedon abi-monthlybasis to cater for the increasing

demandofINSURANCEreadersformorefrequentupdatesandknowledgeininsuranceandtakaful.The

magazine now comes with an improved concept and with an increase in the number of informative

articlesandcolumns.

Issue7 Issue8 Issue9 Issue10

3. CAPACITY BUILDING INITIATIVES

Our role in developing insurance professionals is becoming more significant in tandem with the continued

drivetomovethe industrytowardsglobalstandards.Withthisrecognition,BNMandthe insurance industry

havecommittedtoallocatefundsknownastheCapacityBuildingFundtosupportusinfacilitatingcapacity

developmentprojectsindentifiedasCapacityBuildingInitiativesindrivingtheindustry’sfutureperformance

andcompetitiveness.

Capacity Building Initiatives will ensure MII’s relevance, especially in providing solid and robust insurance

educationsolutionstodevelopskillsandknowledgewithintheindustry.

BNMandSCestablishedtheAIFtoaugmenthumancapitaldevelopmentinthefinancialservicesindustry.To

achievethisgoal,AIFworkscloselywithall the4 institutesunderBNMandSC,namelyMII, IBBM, IBFIMand

theSecuritiesIndustryDevelopmentCorporation(SIDC).AIFalsoprovidesaplatformtoleadthecoordinated

initiativesandtoleveragethestrengthofcurrentavailableresourcesinordertomaximisethecapabilitiesand

topushtheInstitutestoworldclassstandard.




In 2011, under these Capacity Building Initiatives, we continued to focus our resources in running and

managing the approved projects to ensure that activities were carried out as planned to meet the desired

results and deliverables. All these projects were properly planned with engagement of the industry and

went through the required approval of the Capacity Building Projects - Joint Steering Committee (CBP-JSC)

toensurethatalltheprojectswillbenefittheindustrydirectlyorindirectly.CBP-JSCisadedicatedcommittee

mandatedbytheMIIBoardofDirectorstoselect,appointandapproveallprojectsrelatedtoCBP,consisting

of12membersthatrepresentthefollowingbodies:

l 3representativesfromPIAM

l 3representativesfromLIAM

l 2representativesfromMITBA

l 1representativefromAIF

l 1representativefromBNM

l 2representativesfromMII

Status of Approved MII Projects as at December 2011:

No. Projects Project Status1 CompetencyFrameworkDevelopment Completed

2 ExternalAdvisoryCouncil(EAC) Planin2012

3 DevelopmentofStudyTextsfortheDMIIandtheAMIIProgrammes Planin2012

4 DevelopmentofProfessionalQualificationsProgrammes Inprogress

5 DevelopmentofTechnicalTrainingProgrammes Inprogress

6 SubsidisedCourses Inprogress

7 CIIAccreditation Planin2012

8 IntegratedLearningManagementSystem(ILMS) Inprogress

9 OnlineLearningContent Planin2012

10 E-Learning@MII Planin2012

11 ITInfrastructure–DataCentreProject Completed

12 ITInfrastructure–AccountingSystem Completed

13 ResearchandResourceCentre-PurchaseofBooks/Materials Inprogress

14 ResearchandResourceCentre-LibraryManagementSystem Inprogress

15 ResearchandResourceCentre-PurchaseofAudioVisualMaterials Planin2012

16 ResearchandResourceCentre-PurchaseofElectronicDatabase Planin2012

17 ResearchandResourceCentre-PurchaseofLibraryEquipment Planin2012

18 Research and Resource Centre -Library Management System IT Backup

Solution/InternetLine

Planin2012

19 ResearchandPublicationCentre-InsuranceandTakafulJournal(INTAJ) Inprogress

20 InternalFacultyandSupportFacilities Inprogress

21 CorporateBrandingandValueAddedPartnership Inprogress

22 MIICityCentre Completed




Belowaresomeofthenotablehighlightsoftheprojects:

3.1. LAUNCH OF THE COMPETENCY FRAMEWORK FOR THE MALAYSIAN INSURANCE AND TAKAFUL INDUSTRY (CF-MITI)

28 March 2011 saw the launch of the Competency Framework for the Malaysian Insurance and

Takaful Industry (CF-MITI) at the Ritz Carlton Hotel, Kuala Lumpur. Mr Ahmad Hizzad Baharuddin, ex-

MII EXCO Chairman and Mrs Khadijah Abdullah launched the framework.The event was witnessed

by representatives from LIMRA/LOMA, USA, and ANZIIF, Australia, with 150 Malaysian insurance and

takafulindustrypartners.

MrAhmadHizzad(secondfromleft);MrClimPachecofromANZIIF(farleft);MrsKhadijahAbdullah

(thirdfromleft);andMrGaryAluisefromLIMRAandLOMAGlobal(farright)attheCF-MITIlaunch

3.1.1. Overview

TheCF-MITI isoneoftheidentifiedprojectsundertheCapacityBuildingInitiative. Theproject

servestheobjectivetohaveacompletesetofCompetencyFrameworkformajorkeyjobprofiles

in the context of the Malaysian insurance and takaful industry. Distributed to the industry in

December2010,CF-MITIwillbetheultimateguidelinesforperformancestandards intechnical

andbehaviouralareasfortheinsuranceandtakafulindustryinMalaysia.

6jobfamilieswereidentifiedandstudiedduringtheprocesswhichstartedinDecember2009:

a) ManagementandSales

b) CustomerService

c) Claims

d) Underwriting

e) Compliance

f ) InsuranceBroking




CF-MITIwasdevelopedtogetherwithotherreputable internationalplayers,LIMRA/LOMA,USA,

and ANZIIF, Australia, with full support from BNM and the Malaysian insurance industry.The

competencies were mapped against the existing framework by LIMRA/LOMA who is strong in

the life section and ANZIIF who is strong in the general section to ensure its alignment with

globalinsuranceindustrystandards.

3.2. PRODUCT DEVELOPMENT

3.2.1. Upgrading of Professional Programmes

Thefollowingprogrammeswerereviewedin2011toensuretheirupdatedrelevance:

i. BasicCertificationCourseinInsuranceLossAdjusting(BCCILA)

ii. BasicCertificateCourseinInsuranceandTakafulBroking(BCCITB)

iii. BasicAgencyManagementCourse(BAMC)

3.2.2. Subsidised Courses

In2011,theassociationsapprovedthelistingof3programmesasSubsidisedCourses,forwhich

participantswouldenjoysignificantsubsidyandjointheprogrammeatdiscountedrate.

The3programmesentitledforthesubsidyare:

Programme 1 Programme 2 Programme 3

Programme RegionalOfficers

School(ROS)

LeadingaHigh

PerformanceTeam

CertificationinRisk

Management

Programme Developer

LIMRA/LOMA ICLIF IRM

Date 13-17June2011 23-25May2011 June–October2011

Target Audience BranchManagers/

RegionalManagers

inchargeoffield

salesdevelopment

Supervisors/

TeamLeaderswith

lessthan3yearsof

teammanagement

experience

Anyonewithan

interestinrisk

management.

Noentry

requirements.

Duration 4½days(residential) 3days 10days(spread

over6months)

Fee per person (RM) 5,000 5,000 8,500

Fee after 50% Subsidy (RM)

2,500 2,500 4,250




BelowisthesummaryofthefundutilisationforSubsidisedCoursesin2011:

Courses

ActualFee

(RM)

Fee after 50%

Subsidy(RM)

PIAM(RM)

LIAM(RM)

MITBA(RM)

TotalNo. of

Participants

Total Amount Utilised

(RM)

RegionalOfficers

School(ROS)

5,000 2,500 – 35,000 – 14 35,000

LeadingaHigh

Performance

Team

5,000 2,500 17,500

(7participants)

7,500

(3participants)

5,000

(2participants)

12 30,000

Certificationin

RiskManagement

(CIRM)

8,500 4,250 38,250 – – 9 38,250

TOTAL 55,750 42,500 5,000 35 103,250

3.2.3. Development of Technical Training Courses

3.2.3.1. Insurance Claims Forum with Judges of Malaysia

The Insurance Claims Forum with Judges of Malaysia was successfully conducted

at Prince Hotel, Kuala Lumpur, from 15 -16 October 2011. The objectives of the

programmearetoprovidejudgeswithan:

i. understanding as to how insurers decide on mandates in awarding claims

settlementsandthebasisofinsurer’scomputations;

ii. awarenessofinstancesoffraudulentclaims;

iii. understanding of the insurance contract and the legal principles governing

insurancecontracts.

57 judges in Malaysia including the top 4 judges i.e.The Chief Justice,The President

of theCourtofAppeal,TheChiefJudgeofMalaya,andTheChiefJudgeofSabahand

Sarawakattendedthe forum. TheForumbroughttogether13 leading local insurance

practitioners and legal advisors as speakers and panellists to discuss legal and claims

issuesintheinsuranceindustry.




ForumparticipantswithMrsKhadijahAbdullah

Thejudgesattendingtheforum




3.2.3.2. Talk on Business Continuity Management in Jakarta

MII and the Disaster Recovery Institute Malaysia (DRI Malaysia) organised a Talk on

Business Continuity Management at Redtop Hotel, Jakarta, on 25 November 2011. In

line with the MoU signed between MII and DRI, this activity was planned to market

theBusinessContinuityManagement(BCM)programmeforthe2012intakeinJakarta.

ThetalkemphasisedtheimportanceofproperBCMtoorganisationsinordertoensure

theirresiliencyintimesofbusinessdisruptions.

MrWahid Ali Mohd Khalil, Chief Internal Auditor of Bank Islam Malaysia, led the talk

which drew 50 participants from various industries like insurance, banking and IT.

Ahli Assosiasi Manajemen Asuransi Indonesia (AAMAI) gave its recognition to the talk

and awarded participants from the insurance industry 15 Continuing Professional

Development(CPD)points.

MrWahidAliMohdKhaliladdressingtheparticipants

4. RECOGNITION

We have been extremely privileged to receive various recognitions from reputable local and international

insurance-relatedinstitutions.Thisisastrongtestimonythatourrolesandresponsibilitiesarehighlyregarded

bytheinsurancefraternityworldwide.




4.1. AWARD OF HONORARY LIFE MEMBERSHIP OF THE INSTITUTE OF RISK MANAGEMENT, UK, TO MII CEO

Mrs Khadijah Abdullah received an Honorary Life Member award from The Institute of Risk

Management (IRM), UK, in March 2011. This award is bestowed to individuals who have played a

significant role over the years in the field of risk management, and through their endeavours, have

madeanextraordinarycontributiontotheindustry.

MrsKhadijahAbdullahreceivingtheawardfromtheChairmanofIRM,MrAlexHindson




STAFF TRAINING AND DEVELOPMENT

1. OVERVIEW

Werecogniseouremployeesasourmost importantresourcesandarecommittedtoconsistentlyupgrading

their competencies and skills through training and development such as on-the-job-training and coaching,

external courses, internal sharing sessions conducted by management staff, job rotation and further

educationthroughsponsorshipsandstudyloans.

Asanongoingeffort indevelopinghumancapital, the learningneedsofthestaffarecarefullyplanned.The

objectiveistodeterminetheappropriatetrainingprogrammesforthestafftofurtherstrengthenandfurther

expandtheirknowledgeandskills.Theseeffortswillbeacatalystinpursuingthemandatesentrustedtous.

In 2011, our staff participated in 42 short courses and seminars in their respective areas ranging from

technical programmes, finance, customer service, communication, project management, risk management,

performance management, sales training to supervisory and leadership development.These programmes

wereconductedinternallyandexternallybylocalandoverseastrainingprovidersandinstitutions.

2. IN-HOUSE TRAINING

In2011,weconducted4 in-house trainingprogrammes facilitatedbyourCEOandexternal trainers.The in-

housetrainingwasheldatMIIHeadquarters,DamansaraHeights,KualaLumpur.

In-house Training for Staff Conducted in 2011:

No. Category Date Programme

No. ofEmployees Attending

1 Executiveand

ManagementStaff

29–30March2011

9-10April2011

EffectiveSupervision

(splitintotwogroups)

52

2 Non-ExecutiveStaff 2–3April2011 EmployeeDevelopment

Workshop

34

3 Executiveand

ManagementStaff

5October2011 BreakingTheSales

Barriers

25

4 Executiveand

Non-ExecutiveStaff

10–13October2011 SessionwithCEOon

‘ProfessionalExcellence’

78




29-30March2011,EffectiveSupervisionTrainingatMIIHeadquarters,KualaLumpur

3. EXTERNAL TRAINING (LOCAL)

Throughout the year, 51 staff attended 34 courses conducted locally by external training providers. 5 non-

executivestaffparticipatedin4courses,29executivesparticipatedin21coursesandtheentiremanagement

staff participated in 11 courses covering topics such as Basic Introduction to Insurance, Certificate in

Insurance, Accounting, Auditing, IT, Financial Planning, Business Writing Skills, Risk Management, Project

ManagementandCustomerService.

External Training (Local) for Staff Conducted in 2011:

Month Programme Non-Executive ExecutiveManager &

Above

January

BasicIntroductiontoInsurance 2

CoreCompetenciestoContinuously

ImprovePerformanceatWork2

LowerYourStorageManagementCost 1

u-library–ExtendingBeyond

TraditionalBoundaries1

February Wasiat 2

March

TheDynamicCallCentre 1

FortinetTrainingCourseFT-02201 2

CertifiedDataCentreSpecialist 1

CertificateinMII 1 4

April

SpecialExecutiveAcceleratedRFP 2

ITTechnicianCertificationCourse 1

HassleFreewithMicrosoftCloud

Solutions1 1

InternationalNewspaperConference 1

Cont’d




Month Programme Non-Executive ExecutiveManager &

Above

May DevelopingWindowsCommunications

FoundationSolutionswithMicrosoft

Visual

1

DevelopingHPPro-curveSwitches 1

DevelopingWebApplicationswith

MicrosoftVisualStudio2010

1

MicrosoftExchangeMaintenance 1

June DevelopingDataAccessSolutions 1

HowtoWriteMinutesofMeetings 3

BusinessContinuityManagementTalk 4

July DevelopingWebApplicationswith

MicrosoftVisualStudio2010

1

ProjectFeasibilityStudies 1

InsightfulITManagementGuidance

andImplementationofBestPractices

1

EnglishLanguageClinic 1

CriticalDocumentationinHR

Management

1

August AnIntroductiontoKeyPerformance

Indicators&KeyResultAreas

1

September CertifiedDataCentreProfessionals 1

TheSecretaryinManagementToday 1

October TrainingofTrainersKnowledge

ManagementImplementation

2

November MIA-AFAConference 2

AccessProductWorkshopandUser

GroupMeeting

1

HackerHaltedAsiaPacificInternational

Conference

1

December e-LearningCourseonKnowledge

ManagementforServiceSector

1

SettingDepartmentalandInter

DepartmentalKPIs

1




4. EXTERNAL TRAINING (SPONSORED)

In 2011, 7 managerial staff attended the Leadership Development Programme organised by The Iclif

Leadership and Governance Centre. This training programme was partially sponsored by Iclif and was

conductedin3separatelocations,KualaLumpur,MelakaandKotaKinabalu,Sabah.

External Training (Sponsored) in 2011:

No. Date Programme VenueManager & Above

1 3–8April2011 LeadershipDevelopment

Programme–LeadingManagers

Melaka

1

2 18–20April2011 LeadershipDevelopment

Programme–LeadingaHigh

PerformingTeam

KotaKinabalu,

Sabah 3

3 23–25May2011 LeadershipDevelopment

Programme–LeadingaHigh

PerformingTeam

ICLIF’sOffice,

KualaLumpur 3

5. EXTERNAL TRAINING (OVERSEAS)

1managerattendedaseminarorganisedbyTaiwanInsuranceInstituteinTaipei,Taiwan.

Date Programme

VenueManager & Above

22–23September2011 ConferenceonERMinInsurance

Industry–DevelopmentandTrends

Taipei,Taiwan 1

6. INTERNAL SHARING (BY MANAGEMENT TEAM)

As part of our continuous efforts in encouraging life-long learning and knowledge enhancement for the

staff force, 16 managers and senior managers took the initiative to share their knowledge of various topics

ranging from Motivation,Technology, Self-Conduct, Occupational Safety, Fire Insurance and Organisational

Effectiveness to Cultivating Workforce Synergy with the staff force. The sessions were conducted every

quarterlyonSaturday.Thisprogrammereflectsoneofourcorevalues,Learning.

7. INDUSTRY AND EXTERNAL SUPPORT

We continued to receive good support from AIF that organised a number of training courses as part of the

ongoing initiative in the development of human capital.This initiative benefited many individuals in the

enhancementoftheirknowledgeandcapacities,drivingthemtocontributeoptimallyandefficiently.




Thefollowing3trainingcourseswereattendedbyseveralMIIstaffmembers:-

Organisation Date Topic Shared

AsianInstituteofFinance(AIF)

7-8April2011 TalentDevelopment–TheNewParadigm

14-15September2011Developing An Effective Capacity Building

ProjectPlan

18–20October2011 TrainTheTrainer

The supportive climate from our partners enabled us to gain insights into new knowledge and further

driveourongoingefforts to instil thevalueofhumancapitaldevelopment forcontinuous improvement for

enhancedperformance.

8. STAFF SPONSORSHIP PROGRAMME

The staff sponsorship programme aims to develop the capabilities and expand the knowledge pool of our

staff force through the acquisition of insurance qualification. A dedicated budget is set aside every year to

encouragestafftopursuequalificationsapprovedunderthesponsorshipscheme.Eachqualificationislimited

to2staffforeachintakewith60%ofthecoursefeefullysponsoredbyMIIand40%bythestaffthemselves.

The 3 approved sponsorship programmes are DMII, AMII and RFP. In 2011, 3 staff participated in the

sponsorshipprogrammes,detailsofwhichareasfollows:-

Staff Sponsorship Programmes in 2011:

No. Approved Programme Position No. of Staff Sponsored

1 DiplomaofTheMalaysianInsuranceInstitute(DMII) Executive –

2 AssociateshipofTheMalaysianInsuranceInstitute

(AMII)

Executive 1

3 RegisteredFinancialPlanner(RFP) Manager 2




INFORMATION TECHNOLOGY

1. OVERVIEW

WedevelopedanITroadmapasastrategytosupportMIIbusinessplans.Theroadmapwascarefullyplanned

and the stages of implementation will continue to be put in place, with the more critical areas being given

immediatefocusandpriority.Thefocusfor2011wastoexpandandenhancethetechnologysystemsoasto

improveefficiencyintheoperationalandproceduralprocessesofourbusinessandnon-businessactivities.

The5keyinitiativesdevelopedin2011were:

1.1. CODA ACCOUNTING SYSTEM

OurAccountsDepartmenthadbeenfacingchallengeswiththeoldaccountingsystemasitwasbased

moreonabookkeepingsystem.Assuch,in2011,weinitiatedthereplacementoftheoldaccounting

system with the CODA Accounting System which was successfully deployed in September 2011.The

new Accounting System enables us to automate a number of processes, including e-payment to

suppliers,integrationwithotherfront-endsystems,andfinancialanalysisreporting.

CODALoginPage




1.2. MII DATA CENTRE LAUNCH

On 26 January 2011, we officially launched the MII Data Centre (MDC) located at Menara Park, Jalan

Yap Kwan Seng, Ampang, Selangor. The MII Data Centre aims to become the backbone supporting

all our current business operations and future businesses.The Data Centre has been equipped with

greentechnologyandanalertmanagementsystemandisintegraltosafeguardthecriticaldatastored.

With the high end uninterruptible power supply (UPS) and generator set installed, it also manages

unavoidablecircumstanceslikeservicedowntimeduetounexpectedpowerfailureorelectricalsurge.

Mr Lee Thim Fook (Ex-AMLA Chairman and ex-MII Director); Y.Bhg. Dato’ Haji Syed Moheeb Syed

Kamarulzaman (President of MTA and MII Director); Mr John Atherton (Business Vice-President, IT

Business Malaysia, APC by Schneider Electric); Mrs Khadijah Abdullah; Mr Ahmad Hizzad Baharuddin

(Ex-MIIEXCOChairman);andMrAlexFoongSooHah(MIIDirector)

MrsKhadijahAbdullahandMrJohnAthertonafterthesigningoftheofficiationplaque




1.3. RENTAL OF DESKTOP PCs FOR MII CITY CENTRE

In 2011, we rented 74 desktop PCs for the Examination Lab, MII Knowledge Centre and the training

classrooms at the MII City Centre Kuala Lumpur. The rental contract service includes maintenance

servicesandPCreplacement,enablingsavingsofITresourcesfordesktopPCmaintenance.

WiththisdesktopPCrentalexercise,webenefitedthrough:

i. Predictableexpensesandminimalupfrontexpenses

ii. AreductioninmaintenanceandrepairingcostsfordesktopPCs

iii. TheacquisitionofnewdesktopPCswithbetterandthelatestcomputertechnology

iv. Reliableandimprovedcomputerfacilitiestoservecustomers

v. TechnicalsupportavailabilityforPCtroubleshooting

vi. Nodisposableassetascomputerslosevalueastheyage

1.4. MII BUILDING ACCESS

We enhanced and tightened building security by upgrading our centralised CCTV services and door

accessat3branches,namelyMIIHeadquarters,MIIDataCentreandMIICityCentre.TheCCTVsystem

wasupgradedtoabiggerstorageandnowenableswebaccessthroughLAN.Theupgradehasenabled

theHumanResourceDepartment tohavecentralmonitoringby recordingphysicalmovement inside

andoutsideofthepremises.

The new door access system provides a real-time connection for attendants via a web system which

allowstheHumanResourceDepartmenttomonitorremotelyandmoreefficiently.

CCTVview




1.5. NEW SYSTEMS

Duringtheyear,wealsoimplementedE-leave,E-payslipsandE-claimssystems(e-P2P)forourinternal

staff force.The systems are now improved and have reduced manual processes and increased staff

productivity.

eP2Phomepage

Inaddition,wedeployedEnterpriseRiskManagement (ERM)systemstocapture identifiedriskaction

plans.The system allows the risk owner and risk co-owners to update the status of the action’s plan

and monitor the progress of actions taken. It also allows higher level authority to monitor MII’s risks

statisticsatanypointintime.

ERM.netLoginPage

FInAnCIAL StAteMentS

AnnUAL RePoRt 2011

Directors’Report 108

IndependentAuditors’Report 111

StatementsofComprehensiveIncome 113

StatementsofFinancialPosition 114

StatementsofChangesinEquity 116

StatementsofCashFlows 117

NotestotheFinancialStatements 119

StatementbyDirectors 144

DeclarationbytheofficerprimarilyresponsibleforthefinancialmanagementoftheInstitute 144



DIRECTORS’ REPORT

ThedirectorsofTHE MALAYSIAN INSURANCE INSTITUTE (“theInstitute”)havepleasureinsubmittingtheirreport

andtheauditedfinancialstatementsoftheGroupandoftheInstitutefortheyearendedDecember31,2011.

PRINCIPAL ACTIVITIES

TheInstituteisengagedintheprovisionandpromotionof insuranceeducation,trainingandresearchin insurance

and related disciplines.The Institute is the sole examining body for professional insurance examinations in the

countryleadingtotheawardoftheAssociateshipoftheInstitute.Itisalsoasocietyofinsuranceprofessionals.The

Instituteisaffiliatedtootherinsuranceexamininginstitutesinternationallyandworkscloselywithlocal institutions

ofhigherlearninginpromotingthedevelopmentofinsuranceeducationinMalaysia.

ThesubsidiarycompanywasincorporatedonSeptember3,1999andhasnotcommencedoperationsincethedate

ofincorporation.

TherehavebeennosignificantchangesinthenatureoftheactivitiesoftheInstituteandofitssubsidiarycompany

duringthefinancialyear.

RESULTS OF OPERATIONS

TheresultsoftheGroupandoftheInstituteforthefinancialyearareasfollows:

The Group The InstituteRM RM

Surplusbeforetax 3,435,428 3,432,731

Incometaxexpense (1,488,681) (1,487,321)

Surplusfortheyear 1,946,747 1,945,410

In theopinionof thedirectors, theresultsofoperationsof theGroupandof the Instituteduringthefinancialyear

havenotbeensubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year other than those

disclosedinthefinancialstatements.

OTHER STATUTORY INFORMATION

Before the statements of comprehensive income and statements of financial position of the Group and of the

Instituteweremadeout,thedirectorstookreasonablesteps:

(a) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingof

allowancefordoubtfuldebts,andhavesatisfiedthemselvesthatnobaddebtsneedtobewrittenoffandthat

noallowancefordoubtfuldebtsisrequired;and

(b) toensurethatanycurrentassetswhichwereunlikelytorealisetheirbookvaluesintheordinarycourseofthe

businesshavebeenwrittendowntotheirestimatedrealisablevalues.



DIRECTORS’ REPORT (cont’d)

At the date of this report, the directors are not aware of any circumstances:

(a) which would require the writing off of bad debts or the setting up of an allowance for doubtful debts in the

fi nancial statements of the Group and of the Institute; or

(b) which would render the values attributed to current assets in the fi nancial statements of the Group and of

the Institute misleading; or

(c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the

Group and of the Institute misleading or inappropriate; or

(d) not otherwise dealt with in this report or fi nancial statements which would render any amount stated in the

fi nancial statements of the Group and of the Institute misleading.

At the date of this report, there does not exist:

(a) any charge on the assets of the Group and of the Institute which has arisen since the end of the fi nancial year

which secures the liabilities of any other person; and

(b) any contingent liability of the Group and of the Institute which has arisen since the end of the fi nancial year.

No contingent or other liability has become enforceable, or is likely to become enforceable within the period of

twelve months after the end of the fi nancial year which, in the opinion of the directors, will or may substantially

aff ect the ability of the Group and of the Institute to meet their obligations as and when they fall due.

In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in the

interval between the end of the fi nancial year and the date of this report which is likely to aff ect substantially the

results of the Group and of the Institute for the succeeding fi nancial year in which this report is made.

DIRECTORS

The following directors served on the Board of the Institute since the date of the last report:

Encik Hashim bin Harun

Encik Foong Soo Hah

Y.Bhg. Dato’ Low Heong Chow @ Loh Heong Chow

Y.Bhg. Dato’ Hj. Syed Moheeb Bin Syed Kamarulzaman

Y.Bhg. Dato Koh Yaw Hui

Encik Low Choon Hoong

Encik Shaik Abdul Rasheed bin Abdul Ghaff our (appointed on 29.6.2011)

Encik K. Logan A/L K.A Ratnam (appointed on 8.8.2011)

Encik Kwo Shih Kang (appointed on 14.2.2012)

Y.Bhg. Datuk Lakshmanan Meyyappan (resigned on 29.6.2011)

Encik Ahmad Hizzad Bin Baharuddin (resigned on 29.6.2011)

Encik Md Adnan bin Md Zain (resigned on 29.6.2011)

Encik Lee Thim Fook (resigned on 8.8.2011)

Encik Mohd Din bin Merican (appointed on 29.6.2011, resigned on 14.2.2012)



DIRECTORS’ REPORT (cont’d)

DIRECTORS’ BENEFITS

Since the end of the previous fi nancial year, none of the directors of the Institute has received or become entitled

to receive any benefi t by reason of a contract made by the Institute with a fi rm of which he is a member, or with a

company in which he has a substantial fi nancial interest.

During and at the end of the fi nancial year, no arrangement subsisted to which the Institute was a party whereby

the directors of the Institute might acquire benefi ts by means of the acquisition of shares in, or debentures of, the

Institute or any other body corporate.

AUDITORS

The auditors, Messrs. Deloitte KassimChan, have indicated their willingness to continue in offi ce.

Signed on behalf of the Board

in accordance with a resolution of the Directors,

Signed

HASHIM BIN HARUN

(DIRECTOR)

Signed

FOONG SOO HAH

(DIRECTOR)

Kuala Lumpur

May 7, 2012



To the Members of THE MALAYSIAN INSURANCE INSTITUTE(Incorporated in Malaysia)

INDEPENDENT AUDITORS’ REPORT

Report on the Financial Statements

We have audited the financial statements of THE MALAYSIAN INSURANCE INSTITUTE, which comprise the

statements of fi nancial position of the Group and of the Institute as of December 31, 2011 and the statements

of comprehensive income, statements of changes in equity and statements of cash fl ows of the Group and of

the Institute for the year then ended, and a summary of signifi cant accounting policies and other explanatory

information, as set out on pages 113 to 143.

Directors’ Responsibility for the Financial Statements

The directors of the Institute are responsible for the preparation of fi nancial statements that give a true and fair view

in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia and for such internal

control as the directors determine is necessary to enable the preparation of fi nancial statements that are free from

material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit

in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are

free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

fi nancial statements. The procedures selected depend on the auditors’ judgement, including the assessment of

the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk

assessments, the auditors consider internal control relevant to the entity’s preparation of the fi nancial statements

that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made

by the directors, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence that we have obtained is suffi cient and appropriate to provide a basis for our

audit opinion.

Opinion

In our opinion, the fi nancial statements have been properly drawn up in accordance with Financial Reporting

Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the fi nancial position of the

Group and of the Institute as of December 31, 2011 and the fi nancial performance and cash fl ows of the Group and

of the Institute for the year then ended.



INDEPENDENT AUDITORS’ REPORT (cont’d)To the Members of THE MALAYSIAN INSURANCE INSTITUTE(Incorporated in Malaysia)

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that:

(a) in our opinion, the accounting and other records and the registers required by the Act to be kept by the

Institute and by the subsidiary company have been properly kept in accordance with the provisions of the

Act;

(b) we are satisfi ed that the accounts of the subsidiary company that have been consolidated with the fi nancial

statements of the Institute are in form and content appropriate and proper for the purpose of the preparation

of the fi nancial statements of the Group, and we have received satisfactory information and explanations as

required by us for these purposes; and

(c) our auditors’ report on the accounts of the subsidiary company was not subject to any qualifi cation and did

not include any adverse comment made under Section 174(3) of the Act.

Other Matters

This report is made solely to the members of the Institute, as a body, in accordance with Section 174 of the

Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility towards any other

person for the contents of this report.

Signed

DELOITTE KASSIMCHAN

AF 0080

Chartered Accountants

Signed

KEK AH FONG

Partner - 1880/4/14 (J)

Chartered Accountant

May 7, 2012



For the Year Ended December 31, 2011

STATEMENTS OF COMPREHENSIVE INCOME

The Group The Institute

Note 2011 2010 2011 2010

RM RM RM RM

Revenue 6 17,672,941 15,225,424 17,672,941 15,225,424

Other income 7 647,893 598,050 641,181 592,291

Employee benefi ts expense 7 (6,568,247) (5,666,805) (6,568,247) (5,666,805)

Depreciation of property, plant and

equipment 9 (721,370) (1,267,607) (721,370) (1,267,607)

Amortisation of prepaid lease

payments 10 (65,038) (65,039) (65,038) (65,039)

Interest on zero coupon bonds 22 (463,464) (444,629) (463,464) (444,629)

Other expenses 7 (7,067,287) (6,743,473) (7,063,272) (6,739,686)

Surplus before tax 3,435,428 1,635,921 3,432,731 1,633,949

Income tax expense 8 (1,488,681) (561,142) (1,487,321) (559,942)

Surplus for the year 1,946,747 1,074,779 1,945,410 1,074,007

Other comprehensive income, net of tax – – – –

Total comprehensive income for the year 1,946,747 1,074,779 1,945,410 1,074,007

The accompanying Notes form an integral part of the Financial Statements.



STATEMENTS OF FINANCIAL POSITIONAs of December 31, 2011


Note 2011 2010 2011 2010

RM RM RM RM

ASSETS

Non-Current Assets

Property, plant and equipment 9 10,552,661 11,140,599 10,552,661 11,140,599

Prepaid lease payments 10 3,999,890 4,064,928 3,999,890 4,064,928

Investment in subsidiary company 11 – – 200,002 200,002

Fixed deposits 12 3,953,535 3,346,328 3,953,535 3,346,328

Total Non-Current Assets 18,506,086 18,551,855 18,706,088 18,751,857

Current Assets

Inventories 13 175,615 201,375 175,615 201,375

Trade receivables 14 579,248 233,982 579,248 233,982

Other receivables and prepaid expenses 15 1,100,955 642,461 1,100,832 642,015

Tax recoverable – 11,955 – 11,955

Amount due from subsidiary company 16 – – 38,206 32,851

Bumiputra Training Fund 17 – 7,550 – 7,550

Capacity Building Fund 18 598,436 1,001,585 598,436 1,001,585

ASEAN Insurance Training Fund 19 – 181,667 – 181,667

Fixed deposits 12 18,854,009 16,759,317 18,615,717 16,521,025

Cash and bank balances 3,017,008 1,315,784 3,000,862 1,306,653

Total Current Assets 24,325,271 20,355,676 24,108,916 20,140,658

Total Assets 42,831,357 38,907,531 42,815,004 38,892,515



As of December 31, 2011

STATEMENTS OF FINANCIAL POSITION (cont’d)


Note 2011 2010 2011 2010

RM RM RM RM

RESERVES AND LIABILITIES

General reserves 20 6,673,042 6,673,042 6,673,042 6,673,042

Surplus 17,794,054 15,847,307 17,778,701 15,833,291

Accumulated Fund 24,467,096 22,520,349 24,451,743 22,506,333

Liabilities

Non-Current and Deferred Liabilities

Deferred tax liabilities 21 3,166,000 1,837,000 3,166,000 1,837,000

Zero coupon bonds - Secured 22 11,404,530 10,941,066 11,404,530 10,941,066

Total Non-Current and Deferred Liabilities 14,570,530 12,778,066 14,570,530 12,778,066

Current Liabilities

Trade payables 23 560,314 217,193 560,314 217,193

Other payables and accrued expenses 23 3,109,446 3,391,923 3,108,446 3,390,923

Tax liabilitiy 123,971 – 123,971 –

Total Current Liabilities 3,793,731 3,609,116 3,792,731 3,608,116

Total Liabilities 18,364,261 16,387,182 18,363,261 16,386,182

Total Reserves and Liabilities 42,831,357 38,907,531 42,815,004 38,892,515




STATEMENTS OF CHANGES IN EQUITYFor the Year Ended December 31, 2011

The Group General

Reserves Surplus Total

RM RM RM

As of January 1, 2010 6,673,042 14,772,528 21,445,570

Surplus for the year – 1,074,779 1,074,779

Other comprehensive income for the year – – –

Total comprehensive income for the year – 1,074,779 1,074,779

As of December 31, 2010 6,673,042 15,847,307 22,520,349

As of January 1, 2011 6,673,042 15,847,307 22,520,349




As of December 31, 2011 6,673,042 17,794,054 24,467,096

The Institute General

Reserves Surplus Total

RM RM RM

As of January 1, 2010 6,673,042 14,759,284 21,432,326




As of December 31, 2010 6,673,042 15,833,291 22,506,333

As of January 1, 2011 6,673,042 15,833,291 22,506,333




As of December 31, 2011 6,673,042 17,778,701 24,451,743




For the Year Ended December 31, 2011

STATEMENTS OF CASH FLOWS


2011 2010 2011 2010

RM RM RM RM

CASH FLOWS FROM/(USED IN)

OPERATING ACTIVITIES


Adjustments for:

Depreciation of property, plant and

equipment 721,370 1,267,607 721,370 1,267,607

Interest on zero coupon bonds 463,464 444,629 463,464 444,629

Amortisation of prepaid lease payments 65,038 65,039 65,038 65,039

Over utilisation of ASEAN Insurance

Training Fund written off 5,000 – 5,000 –

Property, plant and equipment written off 3,884 – 3,884 –

Interest income (548,193) (404,264) (541,481) (398,505)

Unrealised foreign exchange (gain)/loss (18,123) 53,221 (18,123) 53,221

Gain on disposal of property, plant and

equipment – (3,769) – (3,769)

Operating Profi t Before Working Capital

Changes 4,127,868 3,058,384 4,131,883 3,062,171

(Increase)/Decrease in:

Inventories 25,760 (46,029) 25,760 (46,029)

Trade receivables (345,266) 281,502 (345,266) 281,502

Other receivables and prepaid expenses (442,571) 111,798 (442,571) 111,799

Amount due from subsidiary company – – (5,355) 10,460

Trade payables 343,121 89,163 343,121 89,163

Other payables and accrued expenses (282,477) 818,497 (282,477) 818,647

Cash Generated From Operations 3,426,435 4,313,315 3,425,095 4,327,713

Income tax paid (23,755) (95,758) (22,395) (94,942)

Net Cash From Operating Activities 3,402,680 4,217,557 3,402,700 4,232,771



STATEMENTS OF CASH FLOWS (cont’d)For the Year Ended December 31, 2011


Note 2011 2010 2011 2010

RM RM RM RM

CASH FLOWS FROM / (USED IN)

INVESTING ACTIVITIES

Interest received 532,270 393,440 525,235 387,847

Proceeds from disposal of property, plant

and equipment – 6,170 – 6,170

Placement of fi xed deposits (607,207) (578,472) (607,207) (578,472)

Additions to property, plant and equipment (137,316) (645,674) (137,316) (645,674)

Net Cash Used In Investing Activities (212,253) (824,536) (219,288) (830,129)

Bumiputra Training Fund received 563,227 1,170,940 563,227 1,170,940

Utilisation of Bumiputra Training Fund (555,677) (637,895) (555,677) (637,895)

Utilisation of ASEAN Insurance Training Fund – – – –

ASEAN Insurance Training Fund received 176,667 15,000 176,667 15,000

Capacity Building Fund received 3,687,800 4,179,081 3,687,800 4,179,081

Utilisation of Capacity Building Fund (3,284,651) (5,180,666) (3,284,651) (5,180,666)

Net Cash From/(Used In) Financing Activities 587,366 (453,540) 587,366 (453,540)

NET INCREASE IN CASH AND CASH

EQUIVALENTS 3,777,793 2,939,481 3,770,778 2,949,102

CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR 18,075,101 15,188,841 17,827,678 14,931,797

Eff ect of foreign exchange rate changes 18,123 (53,221) 18,123 (53,221)

CASH AND CASH EQUIVALENTS AT

END OF YEAR 24 21,871,017 18,075,101 21,616,579 17,827,678




NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL INFORMATION

The Institute is a private company limited by guarantee, incorporated and domiciled in Malaysia.

The Institute is engaged in the provision and promotion of insurance education, training and research

in insurance and related disciplines. The Institute is the sole examining body for professional insurance

examinations in the country leading to the award of the Associateship of the Institute. It is also a society of

insurance professionals. The Institute is affi liated to other insurance examining institutes internationally and

works closely with local institutions of higher learning in promoting the development of insurance education

in Malaysia.

The subsidiary company was incorporated on September 3, 1999 and has not commenced operations since

the date of incorporation.

There have been no signifi cant changes in the nature of the activities of the Institute and of its subsidiary

company during the fi nancial year.

The principal place of business and registered offi ce of the Institute is located at No.5, Jalan Sri Semantan 1,

Damansara Heights, 50490 Kuala Lumpur, Malaysia.

The fi nancial statements of the Group and of the Institute have been authorised by the Board of Directors for

issuance on May 7, 2012.

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The fi nancial statements of the Group and of the Institute have been prepared in accordance with the

provisions of the Companies Act, 1965 and Financial Reporting Standards in Malaysia.

Adoption of New and Revised Financial Reporting Standards

In the current fi nancial year, the Group and the Institute have adopted all the new and revised Standards and

IC Interpretations (“IC Int.”) issued by the Malaysian Accounting Standards Board (“MASB”) that are eff ective

for annual periods beginning on or after January 1, 2011 as follows:

FRS 1 First-time adoption of Financial Reporting Standards (revised)

FRS 1 First-time adoption of Financial Reporting Standards (Amendments relating to limited

exemption from Comparative FRS 7 Disclosures for First-time Adopters)

FRS 1 First-time adoption of Financial Reporting Standards (Amendments relating to additional

exemptions for fi rst-time adopters)

FRS 2 Share-based Payment (Amendments relating to group-cash settled share-based payment

transactions)

FRS 2 Share-based Payment (Amendments relating to scope of FRS 2 and revised FRS 3)

FRS 3 Business Combinations (revised)

FRS 5 Non-current Assets held for Sale and Discontinued Operations (Amendments relating to plan to

sell controlling interest in a subsidiary)



NOTES TO THE FINANCIAL STATEMENTS (cont’d)

FRS 7 Financial Instruments: Disclosures (Amendments relating to improving disclosures about

fi nancial instruments)

FRS 127 Consolidated and Separate Financial Statements (revised)

FRS 132 Financial Instruments: Disclosures (Amendments relating to classifi cation of rights issue)

FRS 138 Intangible Assets (Amendments relating to additional consequential amendments arising from

revised FRS 3)

Improvements to FRSs 2010

IC Int. 4 Determining whether an Arrangement contains a Lease

IC Int. 9 Reassessment of Embedded Derivatives (Amendments relating to additional consequential

amendments arising from revised FRS 3)

IC Int. 12 Service Concession Arrangements

IC Int. 16 Hedges of a Net Investment in a Foreign Operation

IC Int. 17 Distributions of Non-cash Assets to Owners

IC Int. 18 Transfers of Assets from Customers

The adoption of these new and revised Standards and IC Interpretations have not aff ected the amounts

reported on the fi nancial statements of the Institute except for the following:

FRS 127 Consolidated and Separate Financial Statements (revised)

The application of FRS 127 (revised in 2010) has resulted in changes in the Group’s accounting policies for

changes in ownership interests in subsidiary company.

Specifically, the revised Standard has affected the Group’s accounting policies regarding changes in

ownership interests in its subsidiaries that do not result in loss of control. In prior years, in the absence of

specifi c requirements in FRSs, increases in interests in existing subsidiary company were treated in the same

manner as the acquisition of subsidiary company, with goodwill or a bargain purchase gain being recognised

when appropriate; for decreases in interests in existing subsidiary company that did not involve a loss

of control, the diff erence between the consideration received and the adjustment to the non-controlling

interests was recognised in profi t or loss. Under FRS 127 (revised in 2010), all such increases or decreases are

dealt with in equity, with no impact on goodwill or profi t or loss.

When control of a subsidiary company is lost as a result of a transaction, event or other circumstance, the

revised Standard requires that the Group derecognise all assets, liabilities and non-controlling interests at

their carrying amount and to recognise the fair value of the consideration received. Any retained interest in

the former subsidiary company is recognised at its fair value at the date control is lost. The resulting diff erence

is recognised as a gain or loss in profi t or loss.

Malaysian Financial Reporting Standards Framework (MFRS Framework)

On November 19, 2011, the MASB issued a new MASB approved accounting framework, the Malaysian

Financial Reporting Standards Framework (MFRS Framework), in conjunction with its planned convergence

of FRSs with International Financial Reporting Standards (IFRS) as issued by the International Accounting

Standards Board on January 1, 2012.




The MFRS Framework is a fully IFRS-compliant framework, equivalent to IFRSs which is mandatory for

adoption by all Entities Other than Private Entities for annual periods beginning on or after January 1, 2012,

with the exception of Transitioning Entities. Transitioning Entities, being entities which are subject to the

application of MFRS 141 Agriculture and/or IC Interpretation 15 Agreements for the Construction of Real Estate

and are given an option to defer adoption of the MFRS Framework for an additional one year. Transitioning

Entities also includes those entities that consolidates, equity accounts or proportionately consolidates an

entity that has chosen to continue to apply the FRS Framework for annual periods beginning on or after

January 1, 2012.

Accordingly, the Group and the Institute which are not Transitioning Entities will be required to apply MFRS

1 First-time Adoption of Malaysian Financial Reporting Standards (MFRS 1) in their fi nancial statements for the

fi nancial year ending December 31, 2012, being the fi rst set of fi nancial statements prepared in accordance

with the new MFRS Framework. Further, an explicit and unreserved statement of compliance with IFRSs will

be made in these fi nancial statements.

The Group and the Institute are currently assessing the impact of adoption of MFRS 1, including identifi cation

of the diff erences in existing accounting policies as compared to the new MFRSs and the use of optional

exemptions as provided for in MFRS 1. As at the date of authorisation of issue of the fi nancial statements,

accounting policy decisions or elections have not been fi nalised. Thus, the impact of adopting the new MFRS

Framework on the Group’s and Institute’s fi rst set of fi nancial statements prepared in accordance with the

MFRS Framework cannot be determined and estimated reliably until the process is complete.

3. FINANCIAL AND CAPITAL RISK MANAGEMENT POLICIES

The Group’s and the Institute’s fi nancial risk management policies seek to ensure that adequate fi nancial

resources are available for the development of the Group’s and of the Institute’s business whilst managing

their risks. The Group and the Institute operate within guidelines that are approved by the Board, and the

Group’s and the Institute’s policy is not to engage in speculative transactions.

The main areas of fi nancial risks faced by the Group and the Institute and the policies in respect of the major

areas of treasury activities are set out as follows:

(a) Foreign currency risk

The Group and the Institute are exposed to foreign currency risk as a result of its normal operating

activities, where the currency denomination diff ers from the local currency, Ringgit Malaysia (RM). The

Group’s and the Institute’s policy is to minimise the exposure to foreign currency risk by monitoring

and approving requisitions which involves foreign currencies. No sensitivity analysis is prepared as

the Group and the Institute do not expect any material eff ect on the Group’s and the Institute’s profi t

net of tax and equity arising from the eff ect of reasonably possible changes to exchange rates on the

foreign currency denominated monetary assets and monetary liabilities at the end of the reporting

period as the balances are immaterial. The Group did not engage in any transactions involving fi nancial

derivative instruments during the fi nancial year.




(b) Credit risk

The credit risk is controlled by not granting any credit to individuals and companies with the exception

of entities within the insurance industry, approved fi nancial institutions, approved universities and

government bodies.

The maximum credit risk associated with recognised fi nancial assets is the carrying amount shown in

the statements of fi nancial position.

The Group and the Institute has no signifi cant concentration of credit risk with any single counterparty.

(c) Liquidity and cash fl ow risks

The Group and the Institute seek to achieve a balance between certainty of funding even in diffi cult

times for the markets of the Group and the Institute and a fl exible, cost-eff ective borrowing structure.

This is to ensure that at the minimum, all projected net borrowing needs are covered by committed

facilities. Also, the objective for debt maturity is to ensure that the amount of debts maturing in any

one year is not beyond the Group’s and the Institute’s means to repay and refi nance.

The maturity analysis and the eff ective weighted average interest rates for the class of fi nancial asset is

as follows:

Less than

1 year

RM

1 to 5

years

RM

Total

RM

Eff ective

interest rate

during the

year

The Group

2011

Financial assets

Fixed deposits 18,854,009 3,953,535 22,807,544 1.90% - 3.30%

2010

Financial assets

Fixed deposits 16,759,317 3,346,328 20,105,645 1.90% - 3.20%

The Institute

2011

Financial assets

Fixed deposits 18,615,717 3,953,535 22,569,252 1.90% - 3.30%

2010

Financial assets

Fixed deposits 16,521,025 3,346,328 19,867,353 1.90% - 3.20%




The fi nancial liabilities of the Group and the Institute are repayable within one year other than the zero

coupon bonds which are redeemable in 2022.

No sensitivity analysis is prepared as the Group and the Institute do not expect any material eff ect on

the Group’s and the Institute’s profi t net of tax and equity arising from the eff ect of reasonably possible

changes to interest rates on interest bearing fi nancial instruments at the end of the reporting period.

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns,

through regular reviews of the capital structure.

The capital structure of the Group consists of net debts (zero coupon bonds as disclosed in Note 22 off set by

cash and cash equivalents as disclosed in Note 24) and reserves and surplus as disclosed in the statements of

changes in equity.

The Group is not subject to any externally imposed capital requirements.

4. SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The fi nancial statements of the Group and the Institute have been prepared under the historical cost

convention, unless otherwise indicated in the accounting policies stated below.

Basis of Consolidation

The consolidated fi nancial statements incorporate the fi nancial statements of the Institute and the subsidiary

company mentioned in Note 11 controlled by the Institute. Control is achieved when the Institute has the

power to govern the fi nancial and operating policies of an entity so as to obtain benefi ts from its activities.

Control is presumed to exist when the Group owns, directly or indirectly through subsidiary company, more

than half of the voting power of the entity.

The results of subsidiary companies acquired or disposed of during the fi nancial year are included in the

consolidated statement of comprehensive income from the eff ective date of acquisition or up to the eff ective

date of disposal, as appropriate.

Changes in the Group’s interests in subsidiary company that do not result in a loss of control are accounted

for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are

adjusted to refl ect the changes in their relative interests in the subsidiary company. Any diff erence between

the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or

received is recognised directly in equity and attributed to owners of the Company.




When the Group loses control of a subsidiary company, the profi t or loss on disposal is calculated as the

diff erence between (i) the aggregate of the fair value of the consideration received and the fair value of any

retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of

the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive

income in relation to the subsidiary company are accounted for (i.e. reclassifi ed to profi t or loss or transferred

directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities

were disposed of. The fair value of any investment retained in the former subsidiary at the date when control

is lost is regarded as the fair value on initial recognition for subsequent accounting under FRS 139 Financial

Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment

in an associate or jointly controlled entity.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Business Combinations

The acquisition of subsidiary companies is accounted for using the purchase method. The cost of the

acquisition is measured at the aggregate of the fair values, at the date of exchange of assets given, liabilities

incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree,

plus any costs directly attributable to the business combination. The acquiree’s identifi able assets, liabilities

and contingent liabilities that meet the conditions for recognition under FRS 3 Business Combinations are

recognised at their fair values at the acquisition date.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of

the cost of the business combination over the Group’s interest in the net fair value of the identifi able assets,

liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value

of the acquiree’s identifi able assets, liabilities and contingent liabilities exceeds the cost of the business

combination, the excess is recognised immediately in the profi t or loss.

The interest of non-controlling interests in the acquiree is initially measured at the minority’s proportion of

the net fair value of the assets, liabilities and contingent liabilities recognised.

Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents amounts

receivable for goods and services provided in the normal course of business, net of returns and trade

discounts after eliminating sales within the Group.

Revenue consists of seminar and course fees, membership fees, examination fees and sale of books. Fees

revenue is accounted for on an accrual basis.

Revenue from sale of books is accounted for when the risks and rewards of ownership have passed.

Foreign Currency

The individual fi nancial statements of each group entity are presented in the currency of the primary

economic environment in which the entity operates (its functional currency). For the purpose of the

consolidated fi nancial statements, the results and fi nancial position of each group entity are expressed in

Ringgit Malaysia (“RM”) which is the functional currency of the Institute and the presentation currency for the

consolidated fi nancial statements.




In preparing the fi nancial statements of each group entity, transactions in currencies other than the functional

currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at

the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign

currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-

monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange diff erences arising on the settlement of monetary items, and on the retranslation of monetary

items are included in the profi t or loss for the period. Exchange diff erences arising on the retranslation of

non-monetary items carried at fair value are included in the profi t or loss for the period except for diff erences

arising on the retranslation of non-monetary items in respect of which gains and losses are recognised in

other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is

also recognised in other comprehensive income.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profi t for the year, calculated using tax rates that have been

enacted or substantively enacted by the end of the reporting period. Current tax for current and prior periods

is recognised as a liability (or asset) to the extent that it is unpaid (or recoverable).

Deferred tax is provided for, using the “liability” method, on temporary diff erences at the end of the reporting

period between the tax bases of assets and liabilities and their carrying amounts in the fi nancial statements.

In principle, deferred tax liabilities are recognised for all taxable temporary diff erences and deferred tax assets

are recognised for all deductible temporary diff erences, unused tax losses and unused tax credits to the

extent that it is probable that future taxable profi t will be available against which the deductible temporary

diff erences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the

temporary diff erence arises from goodwill or from the initial recognition of an asset or liability in a transaction

which is not a business combination and at the time of the transaction, aff ects neither the accounting profi t

nor taxable profi t.

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised

or the liability settled, based on tax rates that have been enacted or substantively enacted by the end of the

reporting period. Deferred tax is recognised in profi t or loss, except when it arises from a transaction which is

recognised outside profi t or loss (whether in other comprehensive income or directly in equity), in which case

the deferred tax is also recognised outside profi t or loss, or when it arises from a business combination that is

an acquisition, in which case the deferred tax is included in the resulting goodwill.

The carrying amount of deferred tax assets, if any, is reviewed at the end of each reporting period and

reduced to the extent that it is no longer probable that suffi cient future taxable profi t will be available to

allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to off set current

tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation

authority and the Group and the Institute intend to settle its current tax assets and liabilities on a net basis.




Employee Benefi ts

(i) Short-term benefi ts

Wages, salaries, bonuses and social security contributions are recognised as an expense in the period

in which the associated services are rendered by employees. Short-term accumulating compensated

absences such as paid annual leave are recognised when services are rendered by employees that

increase their entitlement to future compensated absences, and short-term non-accumulating

compensated absences such as sick leave are recognised when the absences occur.

(ii) Defi ned contribution plans

The Group and the Institute are required by law to make monthly contributions to the Employees

Provident Fund (“EPF”), a statutory defi ned contribution plan for all their eligible employees based on

certain prescribed rates of the employees’ applicable remuneration. Contributions are charged to profi t

or loss in the period in which they relate. Once the contributions have been paid, the Group and the

Institute have no further payment obligations.

Impairment of Assets

At the end of each reporting period, the Group reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suff ered an impairment loss. If any such

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the

impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,

the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value-in-use. In assessing value-in-use,

the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate that

refl ects current market assessment of the time value of money and the risks specifi c to the asset for which the

estimates of future cash fl ows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An

impairment loss is recognised immediately in profi t or loss.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit)

is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount

does not exceed the carrying amount that would have been determined had no impairment loss been

recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised

immediately in profi t or loss.




Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment loss.

Depreciation of property, plant and equipment, except for system under development and work-in-progress

which are not depreciated, are computed on the straight-line method at the following annual rates based on

the estimated useful lives of the various property, plant and equipment:

Leasehold building 2%

Furniture and fi ttings, audio visual and offi ce equipment 10% - 33.33%

Motor vehicles 20%

Computers and peripherals 20% - 33.33%

Renovation 20% - 33.33%

At the end of each reporting period, the residual values, useful lives and depreciation method of the property,

plant and equipment are reviewed, and the eff ects of any changes are recognised prospectively.

A gain or loss arising from the disposal of an asset is determined as the diff erence between the net disposal

proceeds and the carrying amount of the asset, and is recognised in profi t or loss.

Leasing

Leases are classifi ed as fi nance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessee. All other leases are classifi ed as operating leases.

Rentals payable under operating leases are charged to profi t or loss on a straight-line basis over the term of

the relevant lease. Benefi ts received and receivable as an incentive to enter into an operating lease are also

spread on a straight-line basis over the lease term. However, contingent rentals arising from operating leases

are recognised as an expense in the periods in which they are incurred.

Investment in Subsidiary Company

Investment in subsidiary company, which is eliminated on consolidation, held on long term basis is stated at

cost less any impairment losses in the Institute’s fi nancial statements.

Prepaid Lease Payments

Lease of land where title is not expected to pass to the lessee at the end of the lease term is classifi ed as

operating leases as land normally has an indefi nite useful life. The upfront payments made on entering into or

acquiring a leasehold land that is an operating lease represents prepaid lease payments which are amortised

on a straight line basis over the lease term.

Inventories

Inventories are valued at the lower of cost and net realisable value. Inventories include books, publications,

administrative stationery and other related items.

In arriving at net realisable value, due allowance is made for obsolete and slow moving inventories.




Provisions

Provisions are made when the Group and the Institute have a present legal or constructive obligation as a

result of past events, when it is probable that an outfl ow of resources will be required to settle the obligation,

and when a reliable estimate of the amount can be made.

Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at

the end of each reporting period, and are discounted to a present value where the eff ect is material.

At the end of each reporting period, provisions are revised by the directors and adjusted to refl ect the current

best estimate. Provisions are reversed if it is no longer probable that the Group and the Institute will be

required to settle the obligation.

Financial Instruments

Financial assets and fi nancial liabilities are recognised in the statements of fi nancial position when, and only

when, the Group and the Institute become a party to the contractual provisions of the fi nancial instruments.

(i) Financial Assets

Trade and other receivables, cash and cash equivalents, training funds and amount due from subsidiary

company are measured at initial recognition at fair value, and are subsequently measured at amortised

cost using the eff ective interest method less impairment losses, if any. Interest income is recognised

by using the eff ective interest rate, except for short-term receivables where the recognition of interest

would be immaterial.

The eff ective interest method is a method of calculating the amortised cost of a fi nancial asset and of

allocating interest income over the relevant period. The eff ective interest rate is the rate that exactly

discounts estimated future cash receipts through the expected life of the fi nancial asset, or (where

appropriate) a shorter period, to the net carrying amount on initial recognition.

Impairment of fi nancial assets

Trade receivables are assessed for indicators of impairment at the end of each reporting period. Trade

receivables are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the trade receivables, the estimated future cash fl ows of the

trade receivables have been impacted.

For trade receivables, objective evidence of impairment could include:

Signifi cant fi nancial diffi culty of the customers; or

Default or delinquency in interest or principal payments; or

It becoming probable that the customers will enter bankruptcy or fi nancial re-organisation.

Trade receivables that are assessed not to be impaired individually are subsequently assessed for

impairment on a collective basis. Objective evidence of impairment for a portfolio of trade receivables

could include the Group’s and the Institute’s past experience of collecting payments, an increase in

the number of delayed payments in the portfolio, as well as observable changes in national or local

economic conditions that correlate with default on receivables.




The carrying amount of the trade receivables is reduced by the impairment loss through the use of

an allowance account. When a trade receivable is considered uncollectible, it is written off against the

allowance account. Subsequent recoveries of amounts previously written off are credited against the

allowance account. Changes in the carrying amount of the allowance account are recognised in the

profi t or loss.

The amount of impairment loss recognised is the diff erence between the asset’s carrying amount and

the present value of estimated future cash fl ows, discounted at the fi nancial asset’s original eff ective

interest rate.

Derecognition of fi nancial assets

Financial assets are derecognised when the contractual right to receive cash fl ows from the asset

has expired. On derecognition of a fi nancial asset in its entirety, the diff erence between the carrying

amount and the sum of the consideration received and any cumulative gain or loss that had been

recognised in other comprehensive income is recognised in profi t or loss.

(ii) Financial liabilities and equity instruments

Classifi cation as debt or equity

Financial liabilities and equity instruments are classifi ed according to the substance of the contractual

arrangements entered into and the defi nitions of a fi nancial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after

deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct

issue costs. Ordinary shares are equity instruments.

Ordinary shares are recorded at the proceeds received, net of directly attributable transactions costs.

Dividends on ordinary shares are recognised in equity in the period in which they are declared.

Payables and debt instruments

Payables, accrued expenses and debt instruments such as bonds are initially measured at fair value.

These fi nancial liabilities are subsequently measured at amortised cost using the eff ective interest

method, with interest expense recognised on an eff ective yield basis.

Eff ective interest method

The eff ective interest method is a method of calculating the amortised cost of a fi nancial liability and

of allocating interest expense over the relevant period. The eff ective interest rate is the rate that exactly

discounts estimated future cash payments through the expected life of the fi nancial liability, or (where

appropriate) a shorter period, to the net carrying amount on initial recognition.




Derecognition of fi nancial liabilities

The Group and the Institute derecognises fi nancial liabilities when, and only when, the Group’s and the

Institute’s obligations are discharged, cancelled or they expire.

Cash and Cash Equivalents

The Group and the Institute adopt the indirect method in the preparation of the statements of cash fl ows.

Cash equivalents are short-term, highly liquid investments and are readily convertible to cash with

insignifi cant risk of changes in value.

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(i) Critical judgements in applying the Group’s and the Institute’s accounting policies

In the process of applying the Group’s and the Institute’s accounting policies, which are described in

Note 4 above, management is of the opinion that there are no instances of application of judgement

which are expected to have a signifi cant eff ect on the amounts recognised in the fi nancial statements.

(ii) Key sources of estimation uncertainty

Management believes that there are no key assumptions made (other than that involving estimation

for allowance for obsolete inventories below) concerning the future, and other key sources of

estimation uncertainty at the end of the reporting period that have a signifi cant risk of causing a

material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year:

Allowance for obsolete inventories

At the end of each reporting period, the management has carried out a review of inventories on

a product-by-product and on an aging basis and has made allowance for obsolete inventories.

Management estimates the net realisable value for such inventory items based primarily on the

current market condition.

6. REVENUE

The Group and

The Institute

2011 2010

RM RM

Fees received 17,176,776 14,675,965

Sale of books 496,165 549,459

17,672,941 15,225,424




7. OTHER INCOME/(EXPENSES) AND EMPLOYEE BENEFITS EXPENSE

Included in other income/(expenses) are the following:


2011 2010 2011 2010

RM RM RM RM

Interest income from fi xed deposits 548,193 404,264 541,481 398,505

Gain/(Loss) on foreign exchange:

Unrealised 18,123 (53,221) 18,123 (53,221)

Realised (32,600) 6,502 (32,600) 6,502

Gain on disposal of property, plant and

equipment – 3,769 – 3,769

Rental of venue and offi ce premises (642,624) (648,281) (642,624) (611,817)

Rental of equipment (235,891) (51,596) (235,891) (51,596)

Auditors’ remuneration:

Current year (34,000) (31,000) (33,000) (30,000)

Underprovision in prior year (3,000) – (3,000) –

Over utilisation of ASEAN Insurance Training

Fund written off (Note 19) (5,000) – (5,000) –

Property, plant and equipment written off (3,884) – (3,884) –

Employee benefi ts expense include salaries, contributions to EPF and all other staff related expenses. During

the fi nancial year, contributions of EPF made by the Group and by the Institute amounted to RM745,281

(RM662,909 in 2010).

8. INCOME TAX EXPENSE


2011 2010 2011 2010

RM RM RM RM

Estimated tax payable:

Current tax 156,809 101,200 155,449 100,000

Deferred tax (Note 21) 1,121,000 460,000 1,121,000 460,000

1,277,809 561,200 1,276,449 560,000

Under/(Over)provision in prior years:

Current tax 2,872 (58) 2,872 (58)

Deferred tax (Note 21) 208,000 – 208,000 –

1,488,681 561,142 1,487,321 559,942




A numerical reconciliation of income tax expense applicable to the surplus before tax at the statutory income

tax rate to income tax expense at the eff ective tax rate of the Group and of the Institute is as follows:


2011 2010 2011 2010

RM RM RM RM


Tax of RM14,325 for the fi rst RM100,000

(RM53,325 in 2010 for the fi rst RM250,000)

of chargeable income and the remaining at

26% (2010: 26%) 880,835 413,152 880,835 413,152

Tax at statutory rate at 20% 539 394 – –

Tax eff ects of:

Expenses not deductible for tax purposes 665,814 215,251 664,993 214,445

Non-taxable items (269,379) (67,597) (269,379) (67,597)

Under/(Over)provision in prior years:

Current tax 2,872 (58) 2,872 (58)

Deferred tax 208,000 – 208,000 –

Tax expense for the year 1,488,681 561,142 1,487,321 559,942




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The following assets were acquired using the Capacity Building Fund (Note 18) during the current year:

The Group and

the Institute

Furniture

and fi ttings,

audio visual

and offi ce

equipment

Motor

vehicles

Computers

and

peripherals Renovation Total

RM RM RM RM RM

2011

Cost – 99,435 1,161,544 14,400 1,275,379

Fund received – (99,435) (1,161,544) (14,400) (1,275,379)

Net book value – – – – –

2010

Cost 50,173 – 2,224,161 163,899 2,438,233

Fund received (50,173) – (2,224,161) (163,899) (2,438,233)

Net book value – – – – –

The leasehold building has been charged as a security for the Zero coupon bonds as disclosed in Note 22.

Included in property, plant and equipment of the Group and of the Institute are fully depreciated assets

which are still in use, with costs totalling RM4,789,556 (RM4,999,318 in 2010)

10. PREPAID LEASE PAYMENTS

The Group and

The Institute

2011 2010

RM RM

Cost

At beginning and end of year 5,662,342 5,662,342

Accumulated Amortisation

At beginning of year 1,597,414 1,532,375

Amortisation for the year 65,038 65,039

At end of year 1,662,452 1,597,414

Carrying amount 3,999,890 4,064,928

The unexpired portion of the said leasehold land as of December 31, 2011 is 61 years (62 years in 2010).

The leasehold land has been charged as a security for the Zero coupon bonds as disclosed in Note 22.




11. INVESTMENT IN SUBSIDIARY COMPANY

The Institute

2011 2010

RM RM

Unquoted shares, at cost 200,002 200,002

The details of subsidiary company incorporated in Malaysia are as follows:

Name of Institute

Eff ective

equity interest Principal activity

2011 2010

% %

M.I.I. Academy Sdn. Bhd. 100 100 Dormant

The establishment of M.I.I. Academy Sdn. Bhd. is a requirement under Section 12 of Akta IPTS 1996.

12. FIXED DEPOSITS


2011 2010 2011 2010

RM RM RM RM

Short-term:

Deposit placed with licensed bank 18,854,009 16,759,317 18,615,717 16,521,025

Long-term:

Deposit placed with licensed bank 3,953,535 3,346,328 3,953,535 3,346,328

22,807,544 20,105,645 22,569,252 19,867,353

The long-term fi xed deposit of the Group and of the Institute placed with a licensed bank amounting to

RM3,953,535 (RM3,346,328 in 2010) is deposited for the purpose of redemption of the Zero coupon bonds as

disclosed in Note 22.




13. INVENTORIES

The Group and

The Institute

2011 2010

RM RM Bookshop books 143,818 160,956

Administration stationeries 24,016 27,012

Computer stationeries 7,781 13,407

175,615 201,375

During the fi nancial year, obsolete inventories amounting to RM Nil (RM42,089 in 2010) were written off

against allowance for obsolete inventories.

14. TRADE RECEIVABLES

Trade receivables comprise amounts receivable from customers for academic and training courses conducted.

These are non-interest bearing and recognised at their original invoice amounts which represent their fair

values on initial recognition. In general, the Group practices no credit to its customers. However, the Group

allows credit to customers which are insurance companies with good track record with the Group.

The Group’s historical experience in collection of trade receivables and other receivables (as disclosed in

Note 15) falls within the recorded allowances and management believes that there is no additional credit risk

inherent in the Group’s trade and other receivables.

Trade receivables as disclosed include amounts (see below for aged analysis) that are past due at the end of

the reporting period but against which the Group has not recognised an allowance for doubtful receivables

because there has not been a signifi cant change in credit quality and the amounts are still considered

recoverable.

In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of

the trade receivable from the date credit was initially granted up to the end of the reporting period.

Ageing of past due but not impaired

The Group and

The Institute

2011 2010

RM RM

1-30 days 111,449 92,089

31-60 days 210,327 37,497

61-90 days 34,690 62,450

>90 days 222,782 41,946

Total 579,248 233,982




15. OTHER RECEIVABLES AND PREPAID EXPENSES


2011 2010 2011 2010

RM RM RM RM

Prepaid expenses 435,370 124,246 435,370 124,246

Other receivables 293,000 179,427 293,000 179,427

Refundable deposits 227,822 209,948 227,822 209,948

Interest receivable 144,763 128,840 144,640 128,394

1,100,955 642,461 1,100,832 642,015

Included in other receivables of the Group and of the Institute is an amount of RM189,030 (RM57,405 in 2010)

representing amount owing by the ASEAN Insurance Training and Research Institute. This amount arose

mainly from expenses paid on behalf, is unsecured, interest-free and repayable on demand.

16. AMOUNT DUE FROM SUBSIDIARY COMPANY

Amount due from subsidiary company, which arose mainly from unsecured advances, is interest-free and

repayable on demand.

17. BUMIPUTRA TRAINING FUND

The Group and

The Institute

2011 2010

RM RM

At beginning of year 7,550 540,595

Payment of subsidies for bumiputra life insurance agents 555,677 637,895

Subsidy received (563,227) (1,170,940)

At end of year – 7,550

The Bumiputra Training Fund (“BTF”) was set up with the objective of assisting the development of the

bumiputra life insurance agents and staff in Malaysia.

The contributions are collected by Life Insurance Association of Malaysia (“LIAM”) from the various life

insurance companies. Eligible bumiputra life agents and staff would utilise this fund to subsidise the course

fees for approved programmes conducted by the Institute. The basis of subsidy depends on the programme

and it is determined and approved by LIAM.

The balance as of the end of the reporting period is due from LIAM due to actual amount advanced by the

Institute exceeding funds received.




18. CAPACITY BUILDING FUND

The Group and

The Institute

2011 2010

RM RM

At beginning of year 1,001,585 –

Payments/Activities 3,284,651 5,180,666

Fund received (3,687,800) (4,179,081)

At end of year 598,436 1,001,585

Following the idea of having a permanent funding mechanism from the industry, Bank Negara Malaysia

initiated the move to set up a capacity building fund to be jointly funded by Bank Negara Malaysia and the

insurance industry. The basis of the contribution is that Bank Negara Malaysia will match ringgit-for-ringgit

the contribution by the insurance industry. The funds will be channelled through the Board of Trustees of

Asian Institute of Finance which will disburse the necessary funds for any approved projects. The balance at

year end of RM598,436 (2010: RM1,001,585) is pending reimbursement by the fund. The fund was also utilised

to acquire assets as disclosed in Note 9.

19. ASEAN INSURANCE TRAINING FUND

The Group and

The Institute

2011 2010

RM RM

At beginning of year 181,667 196,667

Overutilisation of fund written off (5,000) –

Fund received (176,667) (15,000)

At end of year – 181,667

The ASEAN Insurance Training Fund (“AITF”) was set up with the objective to promote the development of

insurance expertise in ASEAN. The fund is used to develop the Institute into a regional training centre and

to provide fi nancial assistance through scholarships to ASEAN insurance personnel who wish to pursue

insurance courses conducted by the Institute.

The fund was established in 1997 with an initial funding of RM300,000. The Institute received the balance of

RM 181,667 during the current year which represents part of the fourth and fi nal instalment of RM300,000.




20. GENERAL RESERVES

General reserves consist of:

The Group and

The Institute

2011 2010

RM RM

Building and renovation fund 157,037 157,037

Scholarship fund 85,646 85,646

Institute Insurans Malaysia (IIM) fund 122,171 122,171

General reserves 6,308,188 6,308,188

6,673,042 6,673,042

General reserves arose mainly from contributions by insurance companies, brokers, agents and adjusters and

the surplus arising on the disposal of a subsidiary company in prior years.

21. DEFERRED TAX LIABILITIES

The Group and

The Institute

2011 2010

RM RM

At beginning of year 1,837,000 1,377,000

Charge/(Credit) to profi t or loss for the year (Note 8):

Property, plant and equipment (468,000) (68,000)

Capacity Building Fund 155,000 –

Cash and bank balances 5,000 –

Inventories – 11,000

Other receivables 95,000 (89,000)

Unabsorbed capital allowances 1,542,000 606,000

1,329,000 460,000

At end of year 3,166,000 1,837,000




The Group and

The Institute

Deferred Tax

Liabilities/(Assets)

2011 2010

RM RM

Tax eff ects of:

Taxable/(Deductible) temporary diff erences arising from:

Property, plant and equipment 2,968,000 3,436,000

Capacity Building Fund 155,000 –

Other receivables 38,000 –

Cash and bank balances 5,000 –

Deferred tax liabilities (before off setting) 3,166,000 3,436,000

Deductible temporary diff erences arising from other receivables – (57,000)

Unabsorbed capital allowances – (1,542,000)

Deferred tax assets – (1,599,000)

Deferred tax liabilities recognised (after off setting) 3,166,000 1,837,000

The unabsorbed capital allowances of approximately RM Nil (RM5,930,000 in 2010) are subject to the

agreement by the tax authorities.

22. ZERO COUPON BONDS - SECURED

The Group and

The Institute

2011 2010

RM RM

Zero coupon bonds 18,000,000 18,000,000

Less: Accumulated amortisation

At beginning of year (7,058,934) (7,503,563)

Interest charged to profi t or loss 463,464 444,629

At end of year (6,595,470) (7,058,934)

Amortised cost 11,404,530 10,941,066

The bonds are secured by way of a fi xed charge over the building purchased and a fl oating charge over the

assets of the Institute.

These bonds carry a 30 year maturity period which is subject to early redemption by the Institute. The

directors of the Institute do not expect to undertake an early redemption of these bonds.

Date of redemption of the bonds is December 1, 2022.




The bonds are measured at amortised cost. The interest expense is calculated by applying an eff ective interest

rate of 4.2% (2010: 4.2%).

23. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES

Trade and other payables comprise amounts outstanding for trade purchases and ongoing costs. These

payables are non-interest bearing and the credit period granted to the Group and the Institute for trade

purchases ranges from 30 days to 90 days (30 days to 90 days in 2010).

Other payables and accrued expenses consist of the following:


2011 2010 2011 2010

RM RM RM RM

Deferred income 1,030,992 1,255,787 1,030,992 1,255,787

Other payables 487,305 884,906 487,305 884,906

Accrued expenses 1,591,149 1,251,230 1,590,149 1,250,230

3,109,446 3,391,923 3,108,446 3,390,923

Included in other payables of the Group and of the Institute is RM3,970 (RM3,970 in 2010) representing

registration fees collected on behalf of the Malaysian Financial Planning Council (“MFPC”), an association in

which a director of the Institute and key management personnel of the Institute form part of MFPC’s council/

committee members.

24. CASH AND CASH EQUIVALENTS


2011 2010 2011 2010

RM RM RM RM

Cash and bank balances 3,017,008 1,315,784 3,000,862 1,306,653

Fixed deposits (Note 12) 18,854,009 16,759,317 18,615,717 16,521,025

21,871,017 18,075,101 21,616,579 17,827,678




25. CAPITAL COMMITMENTS

As of the end of the fi nancial year, the Group and the Institute have the following capital commitments in

respect of property, plant and equipment:

The Group and

The Institute

2011 2010

RM RM

Approved but not contracted for 1,129,000 849,500

26. RENTAL COMMITMENT

As of the end of the fi nancial year, the Group and the Institute have the following rental commitment in

respect of offi ce premises and equipment:

Future Minimum

Lease Payments

2011 2010

RM RM

Financial years ending December 31,

2011 – 445,890

2012 523,106 442,770

2013 570,903 242,985

2014 320,669 43,200

2015 onwards 69,683 3,600

1,484,361 1,174,845

27. RELATED PARTY DISCLOSURES

Compensation of key management personnel

The compensation of key management personnel which comprises key members of senior management of

the Group during the fi nancial year are as follows:

The Group and

The Institute

2011 2010

RM RM

Short-term employee benefi ts 1,122,535 890,655

Contributions to EPF 174,308 138,255

1,296,843 1,028,910




28. FINANCIAL INSTRUMENTS

Categories of fi nancial instruments


2011 2010 2011 2010

RM RM RM RM

Financial assets

Cash and cash equivalents (Note 24) 21,871,017 18,075,101 21,616,579 17,827,678

Trade receivables 579,248 233,982 579,248 233,982

Other receivables (Note 15) 437,763 308,267 437,640 307,821

Refundable deposits (Note 15) 227,822 209,948 227,822 209,948

Amount due from subsidiary company – – 38,206 32,851

Bumiputra Training Fund – 7,550 – 7,550

Capacity Building Fund 598,436 1,001,585 598,436 1,001,585

ASEAN Insurance Training Fund – 181,667 – 181,667

Loans and receivables 1,843,269 1,942,999 1,881,352 1,975,404

Financial liabilities

Trade payables 560,314 217,193 560,314 217,193

Other payables (Note 23) 487,305 884,906 487,305 884,906

Accrued expenses (Note 23) 1,591,149 1,251,230 1,590,149 1,250,230

Zero coupon bonds 11,404,530 10,941,066 11,404,530 10,941,066

Amortised cost 14,043,298 13,294,395 14,042,298 13,293,395

Fair values

The carrying amounts of all fi nancial assets and liabilities of the Group and of the Institute at the end of the

reporting period approximate their fair values except for the following fi nancial liability:

2011 2010

Carrying

Value

Fair

Value

Carrying

Value

Fair

Value

RM RM RM RM

The Group and The Institute

Zero coupon bonds (Note 22) 11,404,530 12,041,839 10,941,066 10,943,586

The above fair value is estimated based on Level 2 fair value measurement using discounted cash fl ow

analysis based on current borrowing rates for similar type of borrowing arrangement.



STATEMENT BY DIRECTORS

The directors of THE MALAYSIAN INSURANCE INSTITUTE state that, in their opinion, the accompanying fi nancial

statements are drawn up in accordance with the provisions of the Companies Act, 1965 and Financial Reporting

Standards in Malaysia so as to give a true and fair view of the state of aff airs of the Group and of the Institute as of

December 31, 2011 and of the fi nancial performance and the cash fl ows of the Group and of the Institute for the

year ended on that date.

Signed in accordance with a resolution

of the Directors,

Signed Signed

HASHIM BIN HARUN FOONG SOO HAH

(DIRECTOR) (DIRECTOR)

Kuala Lumpur,

May 7, 2012

DECLARATION BY THE OFFICER PRIMARILY

RESPONSIBLE FOR THE FINANCIAL MANAGEMENT OF

THE INSTITUTE

I, KHADIJAH ABDULLAH, the Officer primarily responsible for the financial management of THE MALAYSIAN

INSURANCE INSTITUTE, do solemnly and sincerely declare that the accompanying fi nancial statements are, in my

opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of

the provisions of the Statutory Declarations Act, 1960.

Signed

KHADIJAH ABDULLAH

Subscribed and solemnly declared by the

abovenamed KHADIJAH ABDULLAH

at KUALA LUMPUR this 7th day of May,

2012.

Before me,

Signed

COMMISSIONER FOR OATHS

Attested



PROXY FORM

THE MALAYSIAN INSURANCE INSTITUTE

34TH ANNUAL GENERAL MEETING

I, Membership No.: of

a member of

The Malaysian Insurance Institute, hereby appoint individual member,

Membership No.: of failing

him/her, also an individual member, (Membership

No.: ) of to attend and

vote on my behalf at the 34th Annual General Meeting of the Institute to be held on Friday, 29 June 2012 at

9:00 a.m. and at any adjournment thereof. My proxy is to vote as indicated below:

(Please indicate with an “x” in the space provided on how you wish your vote to be cast.)

Ordinary resolution For Against

1. To elect Directors in accordance with Article 72(1)(b) of the Institute’s

Articles of Association.

2. To re-appoint Messrs Deloitte KassimChan as the auditors of the Institute.

Dated this day of 2012.

Signature of individual member

Note:-

a) A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend and vote in his stead.

b) A proxy shall be an individual member of the Institute. No proxy shall be a proxy for more than two (2) individual members.

c) The instrument appointing a proxy under which it is signed thereof shall be deposited at the Registered Offi ce of the Institute, No.

5 Jalan Sri Semantan Satu, Damansara Heights, 50490 Kuala Lumpur, not less than forty eight (48) hours before the time appointed

for holding the meeting.



ACCREDITED REPRESENTATIVE FORM

THE MALAYSIAN INSURANCE INSTITUTE

34TH ANNUAL GENERAL MEETING

We, Membership No.: of

an institutional member of

The Malaysian Insurance Institute, hereby appoint individual

member, Membership No.: of

failing him/her, also

an individual member, (Membership No.: ) of

to attend and vote on our behalf at the

34th Annual General Meeting of the Institute to be held on Friday, 29 June 2012 at 9:00 a.m. and at any

adjournment thereof. Our nominee is to vote as indicated below:

(Please indicate with an “x” in the space provided on how you wish your vote to be cast.)

Ordinary resolution For Against

1. To elect Directors in accordance with Article 72(1)(b) of the Institute’s

Articles of Association.

2. To re-appoint Messrs Deloitte KassimChan as the auditors of the Institute.

In witness whereof the Rubber Stamp of the Company is affi xed on this day of 2012.

Signature & rubber stamp

Note:-

a) A member entitled to attend and vote at this meeting is entitled to appoint an accredited representative to attend and vote in his stead.

b) An accredited representative shall be an individual member of the Institute.

c) The instrument appointing an accredited representative shall be in writing under the seal of the institutional member.

d) The instrument appointing an accredited representative and the power of attorney or other authority (if any) under which it is signed or notarially certifi ed thereof shall be deposited at the Registered Offi ce of the Institute, No. 5 Jalan Sri Semantan Satu, Damansara Heights, 50490 Kuala Lumpur, not less than forty eight (48) hours before the time appointed for holding the meeting.

Stamp

M I I A n n u a l R e p o r t 2 0 1 1

2011annual report

(35445-H)

MII City Centre @ Maju Junction MallS17-S28, 2nd Floor, (below the food court)

Maju Junction Mall

1001, Jalan Sultan Ismail,

50250 Kuala Lumpur, Malaysia

HEADQUARTERS:No. 5, Jalan Sri Semantan Satu,

Damansara Heights, 50490

Kuala Lumpur, Malaysia

Tel : +603 2087 8882 / 8883

Fax : +603 2093 7885

Email : [email protected]

Website : www.insurance.com.my

Tel : +603 2087 8882 / 8883

MII Annual Report 2011 - MII Institutional Repository

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