BIMB Integrated Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 46. TAKAFUL RISK MANAGEMENT (CONTINUED) (b) General Takaful Fund The General Takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, liabilities and engineering and others. Concentration of General Takaful risk The table below sets out the concentration of General Takaful gross contribution by type of business. GROUP GROSS RETAKAFUL NET NOTE RM’000 RM’000 RM’000 2017 Fire 203,647 (102,129) 101,518 Motor 274,689 (97,331) 177,358 Marine 17,409 (15,234) 2,175 Miscellaneous 91,599 (35,796) 55,803 Gross contribution 22(a)(ii) 587,344 (250,490) 336,854 2016 Fire 192,899 (91,416) 101,483 Motor 219,995 (68,899) 151,096 Marine 10,888 (8,253) 2,635 Miscellaneous 92,869 (32,554) 60,315 Gross contribution 22(a)(ii) 516,651 (201,122) 315,529 Key assumptions The provision for Takaful liabilities is in accordance with the valuation methods set out by BNM in respect of the Guidelines on Valuation Basis for Liabilities of General Takaful Business (BNM/RH/GL 004-21) and Risk-Based Capital Framework for Takaful Operator. The key assumptions underlying the estimation of liabilities is that the Takaful Malaysia Group’s future claims development will follow a similar pattern to past claims development experience, including average claim cost, average claim frequency and business mix for each accident year. Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example, isolated occurrences, changes in market factors such as public attitude to claiming, economic conditions, as well as internal factors such as portfolio mix, underwriting policy, policy conditions and claims handling procedures. Other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign currency rates. 281 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis i t t