PIDM outlines key initiatives in Corporate Plan 2015 - 2017

KUALA LUMPUR: The Malaysia Deposit Insurance Corporation (PIDM) yesterday announced its Corporate Plan 2015-2017, which would involve completing a system to support the risk assessment and monitoring of insurer members.
The financial plan for 2015 will support the achievement of PIDM's planned initiatives.
By the end of 2015, PIDM surplus in the deposit insurance funds (DIFs) will amount to RM1.2 billion and the takaful and insurance benefits protection funds (TIPFs) will total RM1.3 billion. The DIFs and TIPFs are accumulated reserves to cover losses that may arise from providing protection to depositors and policy owners respectively.
"For the planning period, our emphasis is on long-term sustainability. We will continue to enhance operational effectiveness by focusing on talent management, development and retention, strengthening relationships with key stakeholders and on advancing financial consumers education," PIDM CEO Jean Pierre Sabourin said in a statement yesterday.
In line with its mandate, among key initiatives outlined in its plan is the completion of a system to support the risk assessment and monitoring of insurer members.
This includes the development of a "rating prediction model" for the takaful and insurance benefits protection system (TIPS) to predict any changes to the member institutions' existing ratings.
In 2015, PIDM will implement a revised differential premium system for banks and continue to develop a Differential Levy System (DLS) framework for takaful operators, targeted for implementation in 2016.
The corporation will continue key initiatives to strengthen its infrastructure and processes to enable it to carry out effective interventions and failure resolutions.
"2015 will be a significant milestone in PIDM's history, as we celebrate our 10th year anniversary. Since 2005, PIDM has implemented a strong organisational foundation including sound corporate governance practices, effective internal controls and risk management, and comprehensive operational policies, practices and systems that serve us well" Sabourin said.
On another note, PIDM is targeting a revenue of RM439 million and operating expenses of RM109 million, which will contribute to a net surplus of RM330 million this year.