Industry profile

Statistics - weaknesses

Data gathering - current process

Initiatives on data gathering and statistics

Industry profile

Statistics - weaknesses

Data gathering - current process

Initiatives on data gathering and statistics

46

2 86

3 4

Life Insurance

Social Insurance Program and Workers Social Security

General Insurance

Insurance Program for Civil Servants and Armed Forces/Police

Reinsurance

3

17

1

22

3

Life Insurance (Full) Life Insurance (Unit)

General Insurance (Full) General Insurance (Unit)

Reinsurance (Unit)

Insurance 141

Reinsurance Broker 23

Insurance Agencies 13

Actuarial Consultant 28

Loss Adjuster 28

Assets Investments

5.49 7.88

10.84 9.35 14.55 2.28

2.77

3.16 3.18

4.27

4.09

5.71

6.75 6.08

9.31

2.07

3.03

3.54 3.63

5.45

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2005 2006 2007 2008 2009

Insurance Program for Civil Servants and Armed Forces/Police

Social Insurance Program and Workers Social Security

General Insurance and reinsurance

Life

Bill

ion U

S $

4.62 6.90

9.74 8.28

13.13 1.60

1.90

2.13 2.19

3.05

3.98

5.56

6.59 5.86

8.97

1.97

2.60

3.02 2.98

4.41

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2005 2006 2007 2008 2009

Insurance Program for Civil Servants and Armed Forces/Police

Social Insurance Program and Workers Social Security

General Insurance and reinsurance

Life

Bill

ion

US

$

0.053

0.074 0.122

0.109

0.222

0.070

0.105

0.160

0.169

0.322

-

0.050

0.100

0.150

0.200

0.250

0.300

0.350

2005 2006 2007 2008 2009

Bil

lio

n U

S $

Investment Asset

2.27 3.05

4.84 4.60

6.43 1.92

2.20

2.35 2.38

2.65

0.24

0.29

0.32 0.40

0.54

0.47

0.63

0.76 0.79

1.46

-

2.00

4.00

6.00

8.00

10.00

12.00

2005 2006 2007 2008 2009 Insurance Program for Civil Servants and Armed Forces/Police

Social Insurance Program and Workers Social Security

General Insurance and reinsurance

Life

Bill

ion

US

$

1.76%

1.67%

1.97%

1.81% 1.86%

22.26

27.64

36.56

35.68

48.02

-

10.00

20.00

30.00

40.00

50.00

60.00

1.50%

1.55%

1.60%

1.65%

1.70%

1.75%

1.80%

1.85%

1.90%

1.95%

2.00%

2005 2006 2007 2008 2009

US

$

Penetration (Gross Premium/GDP) Density (Grosss Premium/population)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008

23.61% 34.09%

32.85% 37.41%

28.33%

18.32%

31.71% 35.06% 33.00%

33.74% 6.99%

12.73% 9.59%

10.49%

14.78% 44.10%

6.61% 7.12% 3.31% 5.76%

2.97%

5.40% 6.42% 5.96% 7.75%

4.00% 9.45% 8.95% 9.84% 9.64%

Property Motor Vehicle Marine & Aviation Energy PA & Health Others

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008

7.23% 7.90% 7.59% 7.31% 9.23%

54.03% 44.39%

39.53% 40.90% 35.26%

8.47%

7.59%

5.87% 4.24% 4.00%

5.18%

3.09%

3.12% 1.46% 1.21%

5.92%

8.97%

7.31% 5.94%

6.88%

19.17% 28.06%

36.33%

38.48% 41.30%

0.00% 0.00% 0.25% 1.67% 2.13%

Term Insurance Endowment Whole Life Anuity Health and PA Investment Link Others

Industry profile

Statistics - weaknesses

Data gathering - current process

Initiatives on data gathering and statistics

Central

Database

Regular

Filing

Insura

nce C

om

pany

Special

Reports

Supervisory

activities:

• Data analysis

• Financial Condition

Monitoring

• Early Warning

• On-Spot

Examination

• Data

verification

-manual

• Data up

load-by

system

Statistics

• Annual Report

•Quarterly report

•MV advisory rate

•etc

Filing in spreadsheet format

Quarterly solvency and operational reports

Annual solvency, operational and audited financial reports

Monthly financial report (for certain companies)

Annual reinsurance treaty reports

Annual motor vehicle (MV) risk and loss profile reports

Data verification

To ensure that data submitted is in correct format

Up load data

By system

Manual entry

Statistics for General Stakeholders Company profile

Numbers of supervised entity

Total Assets, Liabilities, and Equities of Insurance/Re Co.

Overall investment portfolio

Insurance Density and Penetration

Overall Composition of Business

Overall Loss Ratio

Internal Use For Supervisory Activities RBC level

Early Warning Ratio

Market Sensitivity Test Result

Actuarial Projection

Industry Reference Automobile advisory premium rate

OUTPUT

Industry profile

Statistics - weaknesses

Data gathering - current process

Initiatives on data gathering and statistics

Accuracy and Integrity Cross report inconsistencies

Mistakes on mathematical calculation

Relevance Too general operational data

Some data not available

Market segmentation

Geographical distribution

Number of policies issued for general insurance

Number of insureds

Timeliness Annual statistics issued at October

Quarterly report issued 45 days after the end of quarter filings

AREA OF CONCERN

Lack of the quality control in reporting companies

Lack of IT Utilization Data submission

Data verification

Deficiencies in reporting standard

Need for insurance supervisor reorganization Special unit for data collection and maintenance

CAUSES

Industry profile

Statistics - weaknesses

Data gathering - current process

Initiatives on data gathering and statistics

Re-identification of data

needs

Data Accuracy

Data Relevance

Information Timeliness

Re-design filing format and procedures

To revise regulations and adopt international best practices (i.e IAIS Core Principles)

Data Integrity

Early Warning for Prudential Supervision

Market Transparen

cy

Policyholder Protection

Fair Competition

Regular training on reporting preparation Specific certification for reporting officer

Full use of IT for report submission

Moduls are finalized and ready for trial

Distribution of moduls to companies

Utilization of external auditor to check RBC calculation

Reorganization and new recruitment for the Agency

More frequent and/or more detail publiction of company’s information

New rewards and punishment for reporting companies.

SPECIFIC ACTIVITIES (PROJECT)