Policy Document on Operating Cost Controls for Life Insurance and Family Takaful BusinessRelease Date: 24 Dec 2019
Bank Negara Malaysia has issued the policy document on Operating Cost Controls for Life Insurance and Family Takaful Business on 24 December 2019.
The policy document sets out the roadmap for 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 revised policy document which comes into effect on 1 January 2020 incorporates:
- Operational details of the balanced scorecard (BSC) framework for bancassurance partners as specified in paragraph 10 and Schedule 2 of Appendix II;
- The revised BSC framework for Agents as specified in Schedule 1 of Appendix I; and
- 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.
© Bank Negara Malaysia, 2020. All rights reserved.