Proposed Revisions to Policy Document on Operating Cost Controls for Life Insurance and Family Takaful Business
02 August 2019
Bank Negara Malaysia is seeking feedback on the exposure draft of a policy document, Operating Cost Controls for Life Insurance and Family Takaful Business dated 31 July 2019
(‘Proposed Policy Document’).
The Proposed Policy Document, which applies to licensed insurers carrying on life business and licensed takaful operators carrying on family takaful business, is intended to come into effect on 1 January 2020
and will supersede the policy document on Operating Cost Controls for Life Insurance and Family Takaful Business issued on 26 December 2018 (‘Existing Policy Document’).
The Proposed Policy Document sets out revisions to the Existing Policy Document to incorporate –
- operational details of the balanced scorecard (BSC) framework for bancassurance partners as specified in paragraph 10 and Schedule 2 of Appendix II of the Proposed Policy Document; and
- existing specifications on the commission limits for financial advisers and brokers in paragraph 11.5 and Schedule 5 of Appendix I of the Proposed Policy Document, which are stipulated in the Minimum Guidelines on Appointment of Financial Advisers issued by the Life Insurance Association of Malaysia.
The deadline for submission of feedback is 30 September 2019.