Professionalism of Insurance and Takaful Agents

Licensed insurers and takaful operators’ (ITOs) agents remain as the key distribution channel for insurance and takaful products. For many financial consumers (customers), agents play a critical role in providing sound advice and recommendations to help customers in choosing suitable products as well as in ensuring timely claims submission. In view of this, agents must behave professionally and with integrity in all their dealings with customers.

The requirements in this policy document are intended to:
(a) require ITOs to ensure that their agents are competent, qualified and act professionally in the best interest of customers at all times; and
(b) improve public confidence in the integrity of ITOs’ agency workforce as a trusted and reliable channel for distribution of insurance and takaful products.

Towards this end, the policy document serves to enhance the professionalism of individual agents and further strengthen safeguards in place to ensure a consistent delivery of improved customer outcomes through the ITOs’ agency channel.

This policy document sets out the requirements that ITOs shall comply with in relation to the recruitment of their agents. This includes requirements relating to the agents’ minimum qualifications, fit and proper criteria, due diligence processes, Continuous Professional Development (CPD) of agents and corrective actions that must be taken by the ITOs in the event of misconduct by agents.

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