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Operating Cost Controls for Life Insurance and Family Takaful Business

Release Date: 22 Dec 2017

Title

Operating Cost Controls for Life Insurance and Family Takaful Business

Issuance Date

29 December 2017

Effective Date

1 January 2018

(Note: The Bank will review this policy document within five years from the date of issuance or the Bank’s last review.)

Summary

The policy document sets out the deregulation of operating cost control limits to allow Licensed Life Insurers and Family Takaful Operators greater flexibility to manage operating expenses commensurate with their business strategies, encourage greater innovation and competition. This will be accompanied by standards to strengthen the professionalism of insurance and takaful intermediaries.

This policy document sets out the following –

  1. the roadmap for the deregulation of operating cost control limits;
  2. expectations on remuneration policies;
  3. requirements relating to the implementation of the balanced scorecard framework;
  4. the disapplication of, and adjustments to, operating cost controls for specific products and intermediaries;
  5. enhancements to and rationalisation of requirements relating to agency structures and related expenses; and
  6. governance and reporting requirements.

Applicability

FSA

IFSA

 

Section in Charge

IDD

Issuing Department

Insurance Development Department

 

Click here to view the policy document.

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