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Insurance Segment

In: Business and Management

Submitted By nazim1402
Words 678
Pages 3
The insurance segment of the bank also expose to certain risks. Furthermore, the risks exposed are more unique and difficult to manage as the industry does not have many players and facilities needed. Below are the risks that associate with the insurance segment to Maybank. 1) Capital and solvency
With the current world economy situation, Maybank is exposed to short and long term prudential risks. The premium from its customer needs to be place and investment in certain product that meet the investment time horizon. The macroeconomic changes affected insurers in different ways. Its can see that where the life sector’s capital levels came under pressure and the non-life sector, where reserve releases continued to support results, cushioning the impact of investment and underwriting losses. The bank will also expose to new requirement policies impose by the regulator that can affect its investment activities. 2) Life insurance segment
In the life sector, the greatest challenges have been for those most exposed to falls in asset values, widening bond spreads and low interest rates. Even though the issues are always highlighted, but still a careful attention is needed for capital management and planning that eyeing on the downturn in the economy. For example monitoring the solvency position, exercise care in the valuation of assets and liabilities with they are appropriately matched by duration. Others that is needed to be highlighted is the guarantees and options must be appropriately valued and stress and scenario testing needs to show to what extent they remain affordable with respect to changes in economic conditions.

3) General insurance segment
The impact of the financial crisis on the general insurance sector is less immediate and less significant. However, in the long run, it will cause significant effect to the sector. For example, the

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