Bank Negara Malaysia, on 9 January 2014 completed its initial public consultation on the proposed concept paper on life insurance and family takaful framework. The concept paper outlines the proposal to support the long-term development of the life insurance and family takaful industry in Malaysia which encompass areas including provision of operational flexibility, diversification in delivery channels and strengthening market conduct. During the two-month consultation period, a total of 254 respondents had submitted feedback online and through letters to Bank Negara Malaysia. Various representations were observed ranging from members of the public, individual intermediaries, consumer associations and industry associations of life insurers, takaful operators, agency force and financial advisers.

Feedback was received in most key areas namely flexibility in operational structure of life insurers and family takaful business including intermediaries’ remuneration, and improvements in the effectiveness of multifaceted delivery channels. In the area of strengthening market conduct, feedback was received on the proposed balanced scorecard framework to improve the professionalism of intermediaries, establishment of an online product aggregator to facilitate comparison of pure protection products as well as enhanced disclosure requirements to facilitate consumers in making informed decisions.

Bank Negara Malaysia would like to thank all parties who have contributed their views and proposals during this consultation period. All feedback are being taken into consideration and further engagements with stakeholders will be undertaken in the course of finalising the overall framework to ensure that the life insurance and takaful industry continues to enhance its value proposition and remain relevant to prevailing market environment.