| James Kon |
YUSOF bin Haji Abdul Rahman, the Managing Director of Autoriti Monetari Brunei Darussalam (AMBD), yesterday called on takaful and insurance providers in the country to support further economic growth by ensuring that emerging risks can be mitigated or reduced through specialised protection in the form of cyber, pandemic and disaster risk insurance.
He made the call while he was delivering his remarks as the guest of honour at the 2016 Takaful and Insurance Day held at The Airport Mall under the theme of ‘Securing Brunei Darussalam’s Future with Insurance and Takaful’.
He said that globalisation has made the world accessible to all types of risks that are wide-ranging and unpredictable. “Issues such as demographics dynamics, scarcity of resources, climate change and technology and innovation are global challenges requiring a concerted effort in order for us to secure the future of our next generation,” he said.
“We have recently heard about the devastation that follows in the wake of a natural disaster such as Hurricane Matthew, the impact of Zika virus outbreak on society and the impact of cybercrimes on businesses and government offices. These events have far-reaching consequences and can cost the global economy billions of dollars. In 2015, for example, Lloyds estimated that cyber-attacks cost businesses as much as US$400 billion a year. The World Bank estimates that pandemics can also cost US$800 billion.
“This is where takaful and insurance can provide specialised protection, in the form of cyber insurance, pandemic insurance as well as disaster risk insurance.”
He said, “I believe that our industry has the capacity to play a much bigger role in our society. As new risks emerge, takaful and insurance providers should be able to respond quickly to provide consumers with appropriate and adequate protection in terms of product and services innovation. Demand for insurance and takaful should also be continuously cultivated through continuous awareness programmes such as this. Consumers must be made aware of the capability of the industry to provide financial protection for their loved ones, their property, assets and businesses.”
Yusof bin Haji Abdul Rahman, the Managing Director of Autoriti Monetari Brunei Darussalam, officiating the 2016 Takaful and Insurance Day held at The Airport Mall.
The Managing Director of Autoriti Monetari Brunei Darussalam (C) with Haji Osman bin Haji Mohd Jair (R), the Chairman of the Brunei Insurance and Takaful Association, visiting the Fire and Rescue Department’s exhibition.
Yusof bin Haji Abdul Rahman, the Managing Director of Autoriti Monetari Brunei Darussalam in a group photo with Brunei Insurance and Takaful Association officials. – PHOTOS: JAMES KON
Noting the changing innovations in the business, he said that “advancements represent both an opportunity and a challenge to the industry. In years to come, we believe the industry will undergo a significant transformation that will redesign its operating landscape. Local takaful and insurance companies, in particular, should take advantage of those opportunities and aim to grow on a bigger scale, by venturing into vast business prospects outside Brunei Darussalam. By enhancing the industry’s productivity and positioning the local players in the international and regional markets, I believe the industry can contribute tremendously to achieving the country’s goal to diversify the economy and sustain high growth”.
Meanwhile, Haji Osman bin Haji Mohd Jair, the Chairman of the Brunei Insurance and Takaful Association (BITA), talked about the association’s latest developments in his speech.
He said BITA has organised numerous events this year, including an introduction to Phase II of the IFRS (International Financial Reporting Standard) 4 on September 21, together with the multi-national professional services firm, Deloitte.
On a regional level, he said, “BITA is also involved in the Asean Council of Bureaux and the Asean Council of Insurance meetings in November. Towards the end of this month, BITA with Persatuan Insurance Am Malaysia and General Insurance of Singapore will be discussing on the Motor Claim framework, which is initiated by the Royal Brunei Police Force.”
Haji Osman, who recently attended the 28th East Asian Insurance Congress (EAIC) in Macau, said, “During the congress, there was a Macau declaration with the theme on the future of insurance – customer centricity. The executive board of EAIC, with the chief delegates of the members’ cities, have agreed that there is an urgent need to increase awareness and appreciation of the value of insurance to the individual, to the society and to the economy.”
With technology, social media and startups as the game changer, “they (EAIC members) agree to step up their digital strategy for a wider reach and optimal-cost efficiency in distribution, in a peer-to-peer community. EAIC also stressed the need for increased bilateral and regional cooperation within the members to tackle the priorities in coping with persistent low interest rates, increasing natural disasters, cybercrimes, terrorism, political risks and driverless cars, as well as ageing and runaway health inflation.”
Later, the guest of honour presided over the exhibition for the 2016 Insurance and Takaful Day, which included displays from the Brunei National Road Safety Council, the Ministry of Health and the Fire and Rescue Department, as well as from AMBD and BITA.
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