BIMB Integrated Annual Report 2019

49 TAKAFUL RISK MANAGEMENT (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 2019 Endowment +10% (i) -1% -20% Mortgage +10% (i) -1% -20% Investment-linked +10% (i) -1% -20% 2018 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 Impact Impact on Change in on gross on net unallocated assumptions liabilities liabilities surplus RM’000 RM’000 RM’000 2019 Mortality/morbidity rate +10% 335,691 207,706 (207,706) Discount rate -1% 251,542 190,790 (190,790) Surrender rate -20% 82,005 42,630 (42,630) 2018 Mortality/morbidity rate +10% 313,451 253,362 (253,362) Discount rate -1% 195,315 186,316 (186,316) Surrender rate -20% 72,957 46,801 (46,801) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 304 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance