Page 110 - TGIA_AnnualReport2014

Report of the Property Insurance Committee

1. National Catastrophe Insurance Fund
As the government has established the National Catastrophe Insurance Fund since March 28, 2012 and a
representative of the Committee has joined in as a member in the Insurance Sub-Committee, due to the Fund’s
performance, some underwriting guidelines have been changed. For instance, in underwriting an industrial or SMEs
risk, if an insurance company charges the premium rate lower than the premium rate of the Fund by more than 50%,
the insurance company can retain that risk on its own. For household underwriting, additional option is provided,
i.e., insureds can choose to insure their risks under the Household Fire Insurance Policy (new version). In addition,
insurance companies can adjust their own retention level annually, as many had already increased their retentions.

2. Revising Insurance Policies and Endorsements Relating to Property Insurance
The Committee revised a number of insurance policies and endorsements to make them fit with current
situation as follows:
2.1 Sanction Limitation and Exclusion Endorsement (Form TOR SOR ROR.001). This endorsement is used
with all types of property insurance policies, except the Household Fire and Catastrophe Insurance
Policy. It has been approved by the Insurance Commissioner since October 3, 2014.
2.2 (Draft) Industrial All Risks Insurance Policy - The Committee revised the Industrial All Risks Insurance
Policy and amended its War and Terrorism exclusion by incorporating the wording from the Terrorism
Exclusion Endorsement (Form FI/IAR 1.69) into the General Exclusions section of the Policy. At the
moments, the amended version has been submitted to Office of Insurance Commission (OIC) for
consideration and will be consequently filed for approval next.
2.3 (Draft) Household Fire Insurance Policy - The Committee developed a Household Fire Insurance Policy
and endorsements thereof to be an option for insureds. The policy and endorsements have already
been submitted to the Insurance Commissioner for approval and a Commissioner Commandment in this
regard is expected to be announced by January 2015.
2.4 (Draft) Endorsements for the Industrial All Risk Insurance Policy (Form FI/IAR) - The Committee has
revised and amended endorsements for the Industrial All Risk Insurance Policy (Form FI/IAR).
Comments from member companies are seek to be inputs for the revision and amendment. The works
are now under the process.

3. Prescribed Rules for Approving Form and Wording, Attachments, Endorsements, and Premium
Rates of Individual Insurance
The Committee, together with OIC, drafted prescribed rules for approving form and wording, attachments,
endorsements, and premium rates of individual insurance. Consequently, the Insurance Commissioner announced
a Commandments No. 9/2014 - Prescribed Rules for Approving Form and Wording, Attachments, Endorsements,
and Premium Rates of Individual Insurance. The Commandment will lessen the red-tape and increase flexibility in
the process of approval, so benefit the business as a whole.

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