AGENCY AND OTHER DISTRIBUTION CHANNELS

Agency Registration System

The table below shows the number of agency units registered under the General Insurance Agents Registration Regulations (GIARR) as at 31st December 2011 and 2010.

As at 31st December 2011, the number of registered general insurance agents was 35,611 which is an increase of 3.8% compared to 34,322 in 2010.

Analysis of Business by Distribution Channels

Agents Direct Business Channels Insurance Brokers Others Total
2010 7,955.1 m 2,450.0 m 1,884.7 m 615.1 m 12,904.9m
61% 19% 15% 5% 100%
2009 7,079.8 m 2,365.1 m 1,810.2 m 649.9 m 11,905.0m
60% 20% 15% 5% 100%

The percentage of agents earning less than RM5,000 decreased from 19.3 % in 2009 to 14.5% in 2010 whilst the percentage of agents earning above RM100,000 increased from 29.2% in 2009 to 34.2% in 2010.

In terms of quantum, the total remuneration earned by agents increased by 10% to RM937 million in 2010.

Trend in PCEIA Passes

The trend in the percentage of passes of the Pre-Contract Examination for General Insurance Agents (PCEIA) as at 31st December 2011 are as below:-

There were 3,271 candidates who sat for the PCEIA examination – General Insurance Route from January to December 2011 and the overall passing rate was 73%. Degree holders account for the highest percentage of passes at 88%.