On 30 June 2022, Bank Negara Malaysia issued a policy document on bancassurance and bancatakaful.
The policy document will come into effect on 1 January 2023 (except paragraphs 9.12 to 9.14, which will come into immediate effect on the date of issuance of this policy document). The policy document supersedes:
- the Guidelines on Bancassurance and the Guidelines on Bancatakaful, both issued on 17 June 2010; and
- the Circular on Marketing of Bancassurance and Bancatakaful Products, issued on 24 December 2008.
The policy document is applicable to financial service providers that are:
- licensed insurers, licensed banks and licensed investment banks under the Financial Services Act 2013;
- licensed takaful operators and licensed Islamic banks under the Islamic Financial Services Act 2013; and
- prescribed institutions under the Development Financial Institutions Act 2002.
The policy document sets out the requirements and guidance for bancassurance and bancatakaful arrangements. The policy document serves to:
- ensure bancassurance and 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; and
- promote market competitiveness and preserve consumer choice.
The requirements under the policy document are now extended to bancassurance and bancatakaful partners, where relevant.
The policy requirements will apply to both existing and new bancassurance and bancatakaful arrangements, including renewals of such agreements, unless otherwise specified.
For further information on this topic please contact Pamela Kung at Shearn Delamore & Co by telephone (+60 3 2027 2911) or email ([email protected]). The Shearn Delamore & Co website can be accessed at www.shearndelamore.com.