With the stated aims of achieving higher levels of insurance and Takaful penetration in Malaysia, increasing the professionalism of intermediaries and enhancing the transparency around the provision of products and services to consumers, on 7 November 2013 Bank Negara Malaysia (BNM) issued a concept paper, Life Insurance and Family Takaful Framework (Framework), for public consultation. This e-Alert summarises the changes proposed by BNM.
A two-phased approach has been suggested, with Phase 1 introducing initiatives (summarized below) that would gradually prepare the industry for further liberalisation (Phase 2). The success of the Phase 1 initiatives will be monitored and measured by BNM against a set of key performance indicators (KPIs) before Phase 2 begins. The Framework does not discuss the likely content of Phase 2.