Operating Cost Controls for Life Insurance and Family Takaful Business

As outlined in the Life Insurance and Family Takaful Framework issued on 23 November 2015, the Bank continues to implement reforms for the gradual removal of operating cost control limits for life insurance and family takaful business.

The deregulation of operating cost control limits will provide licensed persons with greater flexibility to manage operating expenses in line with their business strategies, while encouraging greater innovation and competition. This will be supported by standards aimed at strengthening the professionalism of insurance and takaful intermediaries.

This policy document sets out the following:
(a) the roadmap for the deregulation of operating cost control limits;
(b) expectations on remuneration policies implemented by a licensed person for intermediaries;
(c) requirements relating to the implementation of the balanced scorecard framework (BSC Framework);
(d) the disapplication of, and adjustments to, operating cost controls for specific products and intermediaries;
(e) enhancements to and rationalisation of requirements relating to agency structures and related expenses; and
(f) governance and reporting requirements.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking