Bank Negara to raise standards of insurance and takaful agents

Bank Negara Malaysia (‘BNM’) has sought feedback on the proposed requirements in an exposure draft of the Policy Document on Professionalism of Insurance and Takaful Agents (‘Policy Document’) issued on 27 April 2022.
When issued, the Policy Document will apply to licensed insurers and takaful operators (excluding reinsurers and retakaful operators) (‘ITO’) and their existing and new insurance and takaful agents (‘agents’) who are involved in the distribution of insurance or takaful products to customers.
The Policy Document sets out the requirements on the ITOs in promoting high standards of conduct and professionalism of their agents, including the requirements pertaining to the following: 
  • recruitment and appointment of agents;
  • minimum qualifications of agents;
  • fit and proper criteria;
  • treatment of agents who fail to meet the fit and proper criteria;
  • due diligence processes;
  • continuous professional development; and
  • corrective actions to be taken in the event of misconduct by agents. 
When issued, the Policy Document will supersede the Specification Letters on Referred Listing on Agents issued on 8 July 2020 and 28 December 2021.
The deadline for submitting responses to BNM on the proposed requirements and the specific questions set out in the draft of the Policy Document is 31 May 2022.
Alert prepared by Angela Hii (Associate) of the Corporate Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact