Page 329 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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50 TAkAFUL RISk MANAGEMENT (CONTINUED)
(b) General Takaful Fund (continued)
Sensitivities (continued) achieving a leading repute
the summary of changes in key assumptions and the impact to the gross and net claim liabilities, and the operating
surplus, are shown below: |
Group
Impact Impact Impact on
Change in on gross on net operating
assumptions liabilities liabilities surplus Paving the Way for a Sustainable future
RM’000 RM’000 RM’000

2020
fire loss ratio for ay 2020 +10% 21,940 11,858 (11,858)
motor act loss ratio for ay 2020 +10% 6,740 4,062 (4,062)
average unpaid claims +10% 71,965 25,505 (25,505)
average claim frequency +10% 20,465 11,655 (11,655) 323
average claim settlement period Increase by
6 months 44,278 41,940 (41,940)

2019
Fire loss ratio for AY 2019 +10% 26,246 15,471 (15,471)
Motor Act loss ratio for AY 2019 +10% 4,465 2,950 (2,950)
Average unpaid claims +10% 53,072 23,508 (23,508) adhering to the best Governance Practices
Average claim frequency +10% 17,244 10,882 (10,882)
average claim settlement period increase by
6 months 87,928 46,848 (46,848)

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Claims development table
the following tables show the estimate of cumulative incurred claims, including both claims notified and ibnr for each
successive accident year at the end of reporting period, together with cumulative payments to-date.

in setting provisions for claims, takaful malaysia Group gives consideration to the probability and magnitude of future Laying the Foundation for Financial Growth
experience being more adverse than assumed and exercises a degree of caution in setting aside reserves when there is
considerable uncertainty.

in general, the uncertainty associated with the ultimate claims experience in an accident year is greatest when the
accident year is at an early stage of development and the margin necessary to provide the necessary confidence in
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adequacy of provision is relatively at its highest. as claims develop and the ultimate cost of claims becomes more certain,
additional information & disclosure Summary
the relative level of margin maintained should decrease.

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24 th aGm information