BIMB Integrated Annual Report 2017

46. TAKAFUL RISK MANAGEMENT (CONTINUED) (a) Family Takaful Fund (continued) Sensitivities A summary of key assumptions used for sensitivity analysis is as below: GROUP MORTALITY AND MORBIDITY DISCOUNT SURRENDER RATES RATE RATE 2017 Endowment +10% (i) -1% -20% Mortgage +10% (i) -1% -20% Investment-linked +10% (i) -1% -20% 2016 Endowment +10% (i) -1% -20% Mortgage +10% (i) -1% -20% Investment-linked +10% (i) -1% -20% (i) 10% Industry mortality and morbidity experience tables M8388 and M9903 The analysis below is performed for reasonable possible movements in each of the key assumptions, with all other assumptions held constant, showing the impact on gross and net liabilities, and unallocated surplus. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities. However, in order to demonstrate the impact arising from changes in assumptions, these assumptions had to be changed on an individual basis. It should also be noted that movement in these assumptions are non-linear. Sensitivity information will also vary according to the current economic assumptions. GROUP IMPACT ON IMPACT ON IMPACT ON CHANGE IN GROSS NET UNALLOCATED ASSUMPTIONS LIABILITIES LIABILITIES SURPLUS RM’000 RM’000 RM’000 2017 Mortality/morbidity rate +10% 267,895 208,142 (208,142) Discount rate -1% 175,447 182,436 (182,436) Surrender rate -20% 72,319 47,186 (47,186) 2016 Mortality/morbidity rate +10% 245,375 181,556 (181,556) Discount rate -1% 202,533 164,157 (164,157) Surrender rate -20% 69,457 34,312 (34,312) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 280 BIMB HOLDINGS BERHAD Integrated Annual Report 2017