PIDM's public awareness level on an upward trend
Kuala Lumpur, 8 June 2021:
Perbadanan Insurans Deposit Malaysia (PIDM) reported in its Annual Report 2020
a public awareness level of 72%, above its target for 2020. The Annual Report, themed “Shifting Gears: Driving PIDM’s Readiness” was released today.
“Awareness about PIDM is important so that financial consumers know what is protected by PIDM in a member institution failure, and what is not, before they place their hard-earned money in a bank or buy insurance or takaful benefits. It also safeguards them from scams. It is important for the public to note that protection by PIDM is automatic. Financial consumers do not need to pay anything, contrary to claims by scammers trying to cheat the public into paying money to get PIDM protection for financial products,” said Rafiz Azuan Abdullah, Chief Executive Officer of PIDM.
“We will continue to work on instilling trust and confidence in PIDM, as the public becomes more well-versed. Trust and confidence are necessary so that depositors or insurance policy and takaful certificate owners don’t panic if a member institution fails, as PIDM will protect them in such a situation.”
In 2020, PIDM continued to grow its social media presence on Facebook, and formed strategic partnerships with the United Nations Capital Development Fund (UNCDF) and the Malaysian Association of the Blind (MAB) to improve the financial resilience of certain pockets of society.
PIDM was also able to achieve most of its key focus areas that relate to readiness in spite of challenges in the operating environment.
“PIDM will continue to monitor the environment and work on being in a state of readiness to perform its mandate if called upon to do so. PIDM will also continue to reinforce key messages about its protection systems to help maintain public confidence in the financial system,” said Rafiz.
PIDM has 92 member institutions (42 member banks
and 50 insurer members
). From its assessment in 2020, PIDM’s scope of coverage remains adequate and relevant:
- PIDM fully protects 96% of depositors under the Deposit Insurance System (DIS).
- PIDM also fully protects 99% of life insurance policy and family takaful certificate owners, and 96% of general insurance policy and takaful certificate owners under the Takaful and Insurance Benefits Protection System (TIPS).
PIDM's significant measures and achievements for 2020 include:
- Operational relief measures: PIDM eased the regulatory burdens for member institutions by extending deadlines for regulatory submissions and annual premium and levy payments. This complemented the broader measures undertaken by various regulatory authorities to buffer the impact of the pandemic.
- Crisis readiness: As in previous years, regular simulations took place, and PIDM completed two simulation exercises to test its crisis management and communications readiness. A table-top review on the resolution of takaful operators was conducted, as well as a two-day virtual simulation exercise facilitated by the Toronto Centre (Global Leadership in Financial Supervision).
- Reimbursement options: PIDM commenced the development of an electronic payment infrastructure to increase depositor options in the event of a deposit reimbursement. This is to gain even more efficiencies and improve depositor convenience if PIDM had to make a payout in a member institution liquidation.
- Awareness: PIDM achieved a 72% public awareness level in 2020, exceeding the 65% target. Moving forward, the public awareness campaign for 2021 will focus on building trust and confidence and on providing guidance about sound financial management tips through PIDM’s planned financial resilience campaign.
- Financial literacy for the underserved: PIDM carried out general financial literacy efforts together with its strategic partners. PIDM's partnership with UNCDF and MAB signified the beginnings of work aimed to provide effective delivery of financial education for certain pockets of society and will continue in 2021.
A highlight video
on the PIDM Annual Report 2020 is available.
Communications and Public Affairs Division,
Perbadanan Insurans Deposit Malaysia.