Kuala Lumpur, 6 May 2014: Perbadanan Insurans Deposit Malaysia (PIDM) today released its Annual Report 2013 highlighting the successful completion of its key initiatives for the year.
“I am pleased to report that our key initiatives, which were set out in our Corporate Plan 2013-2015, were completed within the Board-approved financial plan,” said Jean Pierre Sabourin, Chief Executive Officer of PIDM.
For the financial year ended 31 December 2013, PIDM recorded total revenues of RM300.6 million, comprising RM245.1 million in premiums, RM56.1 million in investment income, as well as realised losses from the divestment of investment securities of RM0.6 million. Operating expenditures totalled RM82.1 million, which was RM18.9 million or 18.8% below Board-approved budget. As a result, the Corporation’s net surplus for the year totalled RM218.5 million as compared to a budget of RM182.3 million.
As at end of 2013, the Deposit Insurance Funds (DIFs) totalled RM768.3 million, comprising the Conventional Deposit Insurance Fund of RM660.9 million and the Islamic Deposit Insurance Fund of RM107.4 million. The Takaful and Insurance Benefits Protection Funds (TIPFs) stood at RM1,148.2 million comprising the General Insurance Protection Fund of RM1,024.5 million, the Life Insurance Protection Fund of RM104.1 million, the General Takaful Protection Fund of RM6.5 million and the Family Solidarity Takaful Protection Fund of RM13.1 million. The DIFs and TIPFs are accumulated reserves that will be used to cover any losses that may arise from providing protection to depositors and policy owners respectively.
A milestone achieved was the implementation of the differential levy system (DLS) for conventional insurer members, whereby insurer members were assessed according to risks profiles within four levy categories. Previously a flat rate system applied, but with the new system, insurer members falling in the higher risk categories would be incentivised to move into the lower risk categories in order to benefit from more favourable levy rates.
“The first year implementation of the DLS went as planned and total levies assessed in 2013 fell, when compared with the amount of levies collected under the flat rate system. Insurer members also benefitted from a 10% transitional upward adjustment, applicable only for the assessment year 2013,” said Mr Sabourin.
The differential premium systems (DPS) for member banks has been implemented since 2008, whilst the interim DLS framework for takaful operators will be developed in the future.
“Through the DPS and DLS, we provide incentives for member institutions to enhance their risk management practices, in line with PIDM’s statutory mandate to promote sound risk management in the financial system,” added Mr Sabourin.
Other notable achievements for PIDM in 2013 included the receipt of the “Best Annual Report of Non-Listed Organisations” for the fifth consecutive year at the National Annual Corporate Report Awards (NACRA) in respect of its 2012 Annual Report. PIDM was also recognised for its brand building campaign with the receipt of the Order of Merit from the Promotion Marketing Awards of Asia (PMAA) for its 2012 advertising initiatives.
In 2013, the Corporation also continued its efforts to enhance public awareness and understanding among financial consumers about PIDM’s protection systems with the objective of promoting public confidence in the financial system in Malaysia.
“The results of our annual nationwide consumer survey show steady improvement in both PIDM and DIS awareness levels, whilst awareness of TIPS registered a slight drop. Our awareness levels have nevertheless surpassed the targets set for the year in all three areas,” Mr Sabourin said.
Awareness of PIDM increased to 53%, awareness about DIS improved to 46%, while awareness of TIPS was at 32% .
The Annual Report 2013 is available at the PIDM website (www.pidm.gov.my) in four languages – Bahasa Malaysia, English, Chinese and Tamil.
For more information about this press release, kindly contact:
Rozita Ahmad, General Manager, Communications and Public Affairs Division
(Tel: 03-2173 7455; 017-3075130; Email: email@example.com)
Juli Murshidah, Manager, Communications and Public Affairs Division
(Tel: 03-2173 7465; Email: firstname.lastname@example.org)
For further information:
PIDM protects your deposits in the bank as well as your takaful and insurance benefits in the unlikely event of a failure of a member bank or a takaful operator / insurance company.