The Central Bank of Malaysia (BNM), via an Exposure Draft, proposed requirements with respect to the bancassurance/bancatakaful arrangements, while facilitating the sustainable development of bancassurance/bancatakaful as an effective channel for needs-based sales of insurance and takaful products in Malaysia. The policy requirements in this exposure draft will be applicable to existing and new bancassurance/bancatakaful arrangements, including renewal of bancassurance/bancatakaful agreements, unless otherwise specified. Responses must be submitted to BNM by September 30, 2021.
This exposure draft is applicable to licensed insurers, takaful operators, banks, Islamic banks, investment banks, and prescribed development financial institutions. The requirements in this policy document are intended to:
- Ensure bancassurance/bancatakaful remains as a viable channel that is widely accessible for consumers to purchase insurance and takaful products
- Promote sound market conduct practices that safeguard consumers’ interest through needs-based sales, disclosure and enhanced transparency
- Promote market competitiveness while preserving consumer choice
Comment Due Date: September 30, 2021
Keywords: Asia Pacific, Malaysia, Banking, Insurance, Bancassurance Arrangement, Exposures Draft, Islamic Banking, BNM
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