Exposure Draft on Operating Cost Controls for Life Insurance and Family Takaful BusinessRelease Date: 01 Aug 2019
The Operating Cost Controls for Life Insurance and Family Takaful Business policy document issued on 26 December 2018 (which took effect on 1 January 2019) set out the deregulation of operating cost control limits for Licensed Life Insurers and Family Takaful Operators and standards to strengthen the professionalism of insurance and takaful intermediaries.
This exposure draft sets out the revisions to the Operating Costs Controls for Life Insurance and Family Takaful Business 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.
- existing specifications on the commission limits for financial advisers and brokers in paragraph 11.5 and Schedule 5 of Appendix I. These limits were previously stipulated in the Minimum Guidelines on Appointment of Financial Advisers issued by the Life Insurance Association of Malaysia.
Submission of feedback -
The Bank invites written comments on this exposure draft, including suggestions for particular issues/areas to be clarified or elaborated further and any alternative proposals that the Bank should consider.
To facilitate the Bank’s assessment, please support each comment with a clear rationale and accompanying evidence, as appropriate. In addition to providing general feedback, financial institutions are requested to respond to the specific questions set out in this exposure draft.
Click here to access the Exposure Draft.
Responses must be submitted to the Bank by 30 September 2019 to -
Jabatan Pembangunan Insurans
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
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