Introduction of New Products by Insurers and Takaful Operators

The policy document for the Introduction of new products aims to—
(a) improve the time-to-market for licensed insurers and takaful operators to introduce new products or to effect changes to existing products;
(b) promote sound risk management practices in managing and controlling product risks by ensuring the appropriate assessment and mitigation of risks during the product development and marketing stages;
(c) further strengthen the duty of care owed to consumers in ensuring that products developed and marketed are appropriate to the needs, resources and financial capability of target consumer segments; and
(d) ensure adequate and accurate documentation of information on new products in the submission of the Product Documentation (PD) to Bank Negara Malaysia (the Bank).

This policy document sets out the applicable regulatory procedures and the Bank’s expectations regarding the management and control of risks associated with the development, offering and marketing of new insurance or takaful products by licensed insurers and takaful operators. It also addresses the responsibilities of such licensed insurers and takaful operators towards consumers in ensuring that products sold or recommended are suitable, and that consumers are clearly and fully informed of the nature and risks associated with these products.

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