BNM policy document important to ensure highest professionalism among Takaful agents

BNM policy document important to ensure highest professionalism among Takaful agents

PUTRAJAYA: The Policy Document on Professionalism of Insurance and Takaful Agents announced by Bank Negara Malaysia (BNM) and to be enforced in January next year, is important to ensure the level of professionalism of takaful agents remains the best.

AIA Public Takaful Bhd Strategy and Distribution Management associate director Sharizad Ghouse said this policy document was in line with the goal of improving the performance of takaful insurance agents with the principle of prioritising customer welfare.

“This is to ensure that we have the right agents in the field to protect our customers. I feel this policy document (Professionalism of Insurance and Takaful Agents) is important for the takaful industry,“ she said.

Sharizad said this during a panel discussion session entitled ‘Elevate and Excel: Unleashing the Power of Takaful Agents Professionalism’ at the Takaful Leaders and Agents Summit 2023 (TLAS 2023) at the Putrajaya International Convention Centre here today.

TLAS 2023, organised by the Malaysian Takaful Association (MTA), which was held for the first time aims to reveal the potential of agency leaders and managers, as well as takaful agents in strengthening the takaful industry in line with BNM’s goals through the Financial Sector Blueprint (2022-2026).

The conference, attended by 700 participants, was also participated by senior management of takaful operators as well as Islamic finance industry experts in Malaysia.

Takaful Ikhlas Family Bhd president and chief executive officer Muhammad Fikri Mohamad Rawi also said the policy document is needed as it highlights aspects of producing more professional takaful agents.

However, he believes there are several matters in this policy that need to be relooked especially involving training, certification and other requirements for takaful agents.

“Because people (these agents) will have to invest a lot in training, certification as well as some other requirements which may not be necessary (since they already have the qualifications and expertise). This is something that we have to deal with the regulators. But generally, I think the policy is good,“ he added.

Meanwhile, Chartered Institute of Islamic Finance Professionals president Datuk Syed Moheeb Syed Kamarulzaman views the objectives of the policy, which touches on the aspect of improving skills and identifying ethics, integrity and morality issues, need to be prioritised by takaful agents.

He said this is in line with Islamic characteristics that are practised including transparency, trust and wisdom.

According to the BNM official website, the document is to set requirements for licensed insurers and takaful operators (ITOs) to promote high standards of conduct and professionalism for their insurance and takaful agents.

The policy document includes requirements related to the recruitment of insurance and takaful agents, minimum qualifications, appropriate and reasonable criteria, as well as the due diligence process to be carried out by the ITOs when appointing new agents and dealing with non-compliant agents. – Bernama

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