1. TAPPING THE OPPORTUNITIES OF HAVING A FLAG REINSURANCE COMPANY TOWARDS ASEAN ECONOMIC COMMUNITY 2015 1

2. INTRODUCTION TO ASEAN ECONOMIC COMMUNITY (AEC) 2015 BLUEPRINT 2

3. Source: ASEAN Secretariat AEC 2015 BLUEPRINT 3 Was declared by the ASEAN Leaders in November 2007 in Singapore. Outlines the necessary measures and actions to establish ASEAN as an economic community with four characteristics: a)a single market and production base, b)a highly competitive economic region, c)a region of equitable equitable economic development, d)a region fully integrated into the global economy. Utilizes a four-phase approach (2008-09, 2010-11, 2012-13, and 2014- 15) with specific measures/activities to be fulfilled at each phase. Is made up of strategic schedule which includes key milestones for a comprehensive and deeper economic integration by 2015.

4. . 4 Source: ASEAN Secretariat

5. . 5 Strategic Approach Priority Actions 2008-20092010-20112012-20132014-2015 Financial Services Sector Develop the list of “pre-agreed flexibilities” that can be maintained by each member country for the sub- sectors identified for liberalisation by 2015 Agree on the list of “pre-agreed flexibilities” that can be maintained by each member country for the sub- sectors identified for liberalisation by 2015 Develop the list of “pre-agreed flexibilities” that can be maintained by each member country from 2020 Substantially remove restrictions for the Insurance, Banking and Capital Market sub-sectors by 2015 as identified by member countries in Annex 1. By 2017, agree on the list of “pre-agreed flexibilities” that can be maintained by each member country from 2020 Substantially remove restrictions on trade in services for all remaining sectors by 2020. FINANCIAL SERVICES IN AEC 2015 BLUEPRINT Source: ASEAN Secretariat

6. SectorSub-sectorsMember Countries InsuranceDirect Life InsuranceIndonesia, Philippines Direct Non-life InsuranceBrunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore and Viet Nam Reinsurance and RetrocessionBrunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore and Viet Nam Insurance IntermediationCambodia, Indonesia, Malaysia, Philippines, Singapore and Viet Nam Services Auxiliary to InsuranceBrunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore and Viet Nam ANNEX 1: FINANCIAL SERVICES SUB-SECTORS IDENTIFIED FOR LIBERALISATION BY 2015 Source: ASEAN Secretariat

7. Opportunities - Rising population - Higher incomes - Increasing urbanization - Enhanced consumer awareness - Expanding trade network Challenges - Stringent licensing procedures - Tighter restrictions on foreign equity - Limited underwriting capacity - Underdeveloped capital markets - Rising incidence of natural calamities OPPORTUNITIES AND CHALLENGES IN AEC 2015 Source: ASEAN Secretariat

8. Regional Economic Performance  Growth expand by 4.6% in 2014  Expect to reach 5.3% in 2015  Insurance penetration is 3.4% of GDP (compared to 7.8% in EU)  Public policies support development of innovative products and micro insurance Regional Insurance Outlook ECONOMIC & INSURANCE OUTLOOK Source: ASEAN Secretariat

9. . 9 INDONESIA’S INSURANCE OUTLOOK 20112012 0.6% 0.5% General Insurance Penetration Rate

10. 10 BIG REINSURERS IN THE WORLD Munich Re Swiss Re Hannover Re Berkshire Hathaway Inc. Lyodd’s of London SCOR Partner Re Assets: 215,785 Premium: 31,723 Source: Fitch Rating 2014 based on 2012’s performance (in USD Million) Assets: 22,980 Premium: 4,718 Assets: 69,548 Premium: 17,471 Assets: 124,904 Premium:40,786 Assets: 327,820 Premium: 65,941 Assets: 427,452 Premium:34,545 Assets: 41,352 Premium: N/A

11. 11 REINSURERS IN ASEAN Thai Reinsurance Public Assets: 910,993 Premium: 409,881 The National Reinsurance Corp. of the Philippines Assets: 865,382 Premium: 170,967 ACR Malaysia Malaysian Reinsurance Bhd Assets: 346,999 Premium: 102,701 Thaire Life Assurance Assets: 55,603 Premium: 42,314 Assets: 325,932,582 Premium:57,168,184 (Based on Y2013 in USD Thousand) Source: - www.asiacapital.com.my- www.thairelife.co.th -www.asiacapital.com.mywww.thairelife.co.th - www.malaysian-re.com.my - www.malaysian-re.com.my - www.thaire.co.thwww.thaire.co.th - www.nrcp.com.pkwww.nrcp.com.pk

12. 12 REINSURERS IN INDONESIA Rp 8 Trillion or USD 655.737.700,- Potential Revenue In 2013 Gigantic Reinsurer In Indonesia NasRe ASEI RUI Shareholders: Taspen, Jamkrindo, Jasa Raharja Conversion Rate of 1 USD = Rp12.200,-

13. an AIC – ANDREWS (ASEAN Natural Disaster Research Works Sharing) initiative, fully supported by Catalytics. CARMA is a web portal contains collection of articles on Catastrophe and Risk Management in ASEAN, where you will be able to upload research, search and review articles. 13

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