Liberalisasi Berperingkat
Consumers will now be able to enjoy a wider choice of motor takaful products at competitive prices as liberalisation encourages innovation and competition among insurers and takaful operators.
Soalan Lazim (FAQ) tentang Liberalisasi Tarif Kenderaan Bermotor
Tariffs are sets of fixed price list created under insurance acts to streamline and control premium charges and policy wordings. The tariffs by virtue of regulatory guideline are also made applicable to takaful.
Examples of these are Motor and Fire insurance/takaful policies. When premiums/takaful contributions are tariffed, insurance companies/takaful operators are not allowed to vary the prices chargeable/contribution amount required on the insurance policy/takaful certificates.
Apabila anda menyertai pelan Takaful Am, anda akan dilindungi apabila berlaku sesuatu terhadap barangan yang dilindungi. Sebagai contoh, jika anda mengambil bahagian dalam Takaful Am untuk rumah anda dan ia musnah akibat ribut, perlindungan Takaful akan meliputi kos memperbaiki rumah anda selagi bayaran yuran Takaful dibuat secara teratur.
Sebagai pengguna yang bijak, anda perlu mencari dan membandingkan harga dari pelbagai syarikat Takaful.
Liberalisasi tarif insurans/takaful kenderaan bermotor bermaksud harga produk insurans/takaful kenderaan bermotor tidak lagi ditentukan berdasarkan Tarif Kenderaan Bermotor (senarai harga tetap). Penentuan harga akan dibuat oleh syarikat insurans dan takaful masing-masing.
Pengguna akan dapat menikmati lebih banyak pilihan produk insurans/takaful kenderaan bermotor pada harga yang lebih berdaya saing, kerana liberalisasi menggalakkan inovasi dan persaingan di kalangan syarikat insurans dan takaful. Syarikat insurans dan takaful menetapkan premium/menentukan sumbangan takaful yang selari dengan faktor risiko yang lebih meluas bagi sekumpulan pemegang polisi/pemegang sijil yang dilindungi; dan juga memasarkan produk baru yang tidak ditakrifkan di bawah tarif.
Premium insurans/sumbangan takaful dikira berdasarkan jumlah insurans/perlindungan dan model kenderaan. Selain itu, syarikat insurans/takaful dibenarkan mengenakan caj premium/sumbangan takaful yang terhad berdasarkan umur pemandu dan bilangan kemalangan yang direkodkan. Bergantung kepada rekod tuntutan pemandu, jumlah premium/takaful yang perlu dibayar akan disesuaikan dengan diskaun (Diskaun Tanpa Tuntutan atau NCD).
Secara umumnya, pemandu dengan rekod pemanduan yang baik boleh menikmati peratusan NCD yang lebih tinggi sehingga 55%.
Namun, pemandu mungkin menerima sebut harga yang berbeza dari syarikat insurans/takaful yang berbeza disebabkan faktor lain yang dinyatakan di atas.
Sejajar dengan hala tuju Malaysia ke arah negara maju, pasaran insurans dan takaful dibuka untuk membolehkan pendekatan yang saksama dalam menentukan premium atau sumbangan takaful.
Risiko yang baik patut mendapat pulangan dan risiko yang buruk patut dikenal pasti. Ini bermakna pemandu yang baik patut membayar premium atau sumbangan takaful yang lebih rendah berbanding dengan pemandu lain yang tergolong dan lebih cenderung untuk mengalami risiko kemalangan. Selain itu, insentif perlu diberikan kepada pemandu yang dianggap berisiko tinggi untuk menjadi lebih baik dan diberi ganjaran dengan pengurangan premium atau sumbangan takaful.
Peringkat pertama Liberalisasi Tarif Motor dan Kebakaran diperkenalkan pada 1 Julai 2016. Semasa peringkat awal ini, syarikat insurans dan pengendali takaful diberikan fleksibiliti untuk menawarkan produk motor baharu dan perlindungan tambahan yang tidak ditakrifkan di bawah tarif sedia ada.
Mulai 1 Julai 2017, kadar premium atau sumbangan takaful bagi produk Motor Komprehensif dan Motor Pihak Ketiga Kebakaran dan Kecurian akan diliberasasikan di mana penentuan harga premium atau sumbangan takaful akan ditentukan oleh syarikat insurans dan pengendali takaful individu. Senarai syarikat ahli Persatuan Takaful Malaysia yang kini menawarkan produk takaful motor:
Bagaimanapun, kadar premium/sumbangan takaful untuk produk Pihak Ketiga Kenderaan Bermotor akan terus tertakluk kepada kadar tarif. Produk dan perlindungan kenderaan bermotor yang sedia ada adalah:
Liberalisasi dan pasaran terbuka dikaitkan dengan negara-negara maju. Perjalanan ini boleh dimudiki atau dibiarkan mengikut kekuatan pasaran.
Untuk pengguna, manfaatnya termasuk:
- Peningkatan kualiti perkhidmatan dan pelbagai produk pada harga yang kompetitif berikutan persaingan hebat di antara syarikat insurans dan takaful;
- Ketersediaan produk baru dengan ciri-ciri yang berbeza yang membolehkan pengguna dan perniagaan mendapatkan perlindungan yang paling sesuai dengan keperluan insurans/takaful mereka.
- Memandangkan ciri keselamatan akan menjadi salah satu faktor yang akan menentukan premium / sumbangan takaful, pemandu akan mendapat insentif untuk membudayakan tabiat pemanduan selamat yang akan memberi manfaat kepada mereka dan orang awam.
- Harga kompetitif yang akan ditawarkan oleh syarikat insurans dan takaful membolehkan pengguna mendapat manfaat dan boleh memilih daripada pelbagai tawaran terbaik yang sesuai dengan keperluan mereka.
- Saluran pengagihan baru seperti saluran dalam talian yang kos efektif akan membolehkan pengguna membeli perlindungan insurans dengan cara yang paling mudah.
Ya, anda layak untuk mendapat pelepasan cukai apabila anda menyertai rancangan Takaful Keluarga. Pengendali Takaful anda akan mengeluarkan penyata sumbangan tahunan untuk menyokong pengembalian cukai pendapatan anda ke Lembaga Hasil Dalam Negeri.
Bagi pengguna, dijangka akan ada lebih banyak pilihan dan opsyen produk kenderaan motor dan kebakaran yang tersedia untuk dibeli, di mana produk ditawarkan akan lebih sesuai dengan keperluan individu berkenaan.
Untuk kumpulan berisiko rendah, premium/sumbangan takaful dijangka lebih rendah. Sebaliknya, untuk kumpulan berisiko tinggi, premium/sumbangan yang dikenakan dijangka lebih tinggi tetapi ini boleh diseimbangkan melalui faktor pengurangan risiko yang diambil oleh pemegang polisi/sijil, seperti tabiat pemanduan yang lebih selamat untuk mengurangkan kemalangan, pemasangan telematik kereta atau peranti anti-kecurian yang disahkan bagi membantu mengurangkan kecurian kereta.
Berkuat kuasa pada 1 Julai 2017, dalam persekitaran liberalisasi, lebih banyak faktor risiko akan diambil kira semasa menentukan premium/sumbangan takaful. Premium boleh dipengaruhi oleh faktor-faktor lain selain daripada jumlah perlindungan, kapasiti kubik enjin kenderaan, usia kenderaan dan usia pemandu.
Faktor-faktor ini boleh terdiri daripada keselamatan dan ciri keselamatan kenderaan, tempoh kenderaan berada di jalan raya, lokasi geografi kenderaan (di kawasan dengan kejadian kecurian yang lebih tinggi) dan kesalahan lalu lintas yang direkodkan. Faktor-faktor ini akan menentukan kumpulan profil risiko pemegang polisi/sijil yang akan menentukan premium/sumbangan takaful.
Harga polisi motor akan berbeza antara syarikat insurans/pengendali takaful berlainan kerana syarikat insurans dan pengendali takaful masing-masing mempunyai cara yang berbeza dalam menentukan kumpulan profil risiko.
Struktur NCD akan kekal tidak berubah dan boleh dipindahkan dari sebuah syarikat insurans atau pengendali takaful kepada yang lain. Anda berhak menerima kelayakan NCD yang sama.
Produk Insurans/Takaful Pihak Ketiga Kenderaan Bermotor masih tersedia untuk pengguna yang ingin membeli perlindungan insurans/takaful asas pada kadar tarif.
Anda dinasihatkan untuk sentiasa menyemak dengan syarikat insurans atau pengendali takaful atau ejen tentang produk baru dan perlindungan tambahan yang diperkenalkan.
Kaji pasaran sebelum membuat keputusan termaklum pembelian dengan mendapatkan sebut harga yang berbeza sama ada dengan menghubungi ejen, syarikat insurans atau pengendali takaful melalui pusat panggilan atau saluran dalam talian mereka.
Ini akan berbeza dari sebuah syarikat insurans ke syarikat insurans yang lain dan juga dari sebuah pengendali takaful kepada pengendali takaful yang lain. Pengguna perlu mengkaji insurans/takaful kenderaan bermotor yang paling sesuai mengikut keperluan mereka.
Saluran pengagihan dalam talian baharu yang kos-efektif membolehkan perlindungan insurans/takaful dibeli secara paling mudah oleh pengguna.
Kami menjangka akan ada perkembangan pada platform dalam talian IT yang boleh memberikan perbandingan harga berserta ciri-ciri yang berbeza dengan cepat yang membolehkan pengguna membuat keputusan termaklum.
Syarikat-syarikat insurans dan pengendali takaful di Malaysia dikawal selia secara ketat oleh BNM dan mempunyai langkah-langkah dan garis panduan yang mencukupi dalam memastikan penajaan jamin berhemah dan pasaran yang kukuh. Salah satu tujuan dasar BNM adalah untuk menyederhanakan peningkatan persaingan dan produk inovasi untuk memastikan industri dan pengguna akan dapat menyesuaikan diri secara mampan dan beransur-ansur.
Selain itu, liberalisasi berperingkat adalah kesinambungan daripada Rangka Kerja Perlindungan Motor Baharu. Perbincangan tentang Liberalisasi Berperingkat antara industri dan BNM telah berlangsung sejak 2013. Pelbagai langkah telah diambil pada peringkat syarikat dengan masa tunggu disediakan untuk membolehkan kesemua penanggung insurans dan pengendali takaful membina keupayaan dalamannya dan merangka aktiviti pemasaran mereka berdasarkan model perniagaan mereka. Di samping itu, Liberalisasi Berperingkat bagi Tarif Motor dan Kebakaran akan dilaksanakan secara berperingkat, yang akan memberi masa bagi industri untuk menyesuaikan diri dalam persekitaran operasi baharu.
Walau bagaimanapun, dalam menjangkakan harga tidak mapan yang teruk, pengawal selia turut mengadakan proses liberalisasi secara berperingkat dan syarikat insurans serta pengendali takaful perlu mendapatkan kelulusan terlebih dahulu sekiranya mereka ingin meletakkan harga secara agresif. Selain itu, Rangka Kerja Modal Berasaskan Risiko akan memastikan syarikat mempunyai dana yang mencukupi.
Walaupun pengguna ada kebebasan untuk membuat keputusan, mereka masih boleh mendapatkan khidmat nasihat daripada ejen insurans/takaful yang pernah berunding dengan mereka sebelum ini untuk menjawab semua kebimbangan tentang insurans/takaful. Mereka juga boleh menghubungi syarikat secara langsung dan membuat keputusan sendiri mengenai polisi/penjaminan yang ingin dibeli mereka.
Produk-produk baru yang ditawarkan akan ditentukan oleh kekukuhan pasaran. Syarikat insurans kini dibenarkan untuk menjadi lebih inovatif dan menyediakan produk yang lebih baik untuk melindungi pengguna. Oleh itu, kita boleh menjangkakan beberapa produk yang menarik di pasaran. Industri insurans dan takaful telah bekerjasama rapat dengan pengawal selia berhubung persiapan untuk liberalisasi dan peralihan baru ini yang telah dirancang dengan baik di bawah arahan BNM.
Profil risiko ialah analisis sama ada sekumpulan pengguna mempunyai risiko tinggi atau rendah, berdasarkan faktor-faktor tertentu. Setiap syarikat insurans/takaful dijangka akan berpandukan faktor risiko yang telah dikenal pasti.
Dengan liberalisasi, tidak akan ada lagi kadar premium/takaful yang tetap berdasarkan model, umur dan kapasiti kubik enjin kenderaan yang akan dilindungi/diinsuranskan.
Premium/takaful akan dikenakan berdasarkan profil risiko orang yang diinsuranskan, contohnya tabiat memandu, sejarah tuntutan, dan lain-lain. Melalui penilaian yang subjektif ini, terdapat perbezaan dalam kadar premium/takaful di antara syarikat insurans/takaful.
Pengguna perlu membuat perbandingan dan memilih perlindungan insurans/takaful yang paling sesuai dengan keperluan mereka pada harga yang kompetitif.
Sumbangan premium/takaful akan dipengaruhi oleh sejarah tuntutan dan tabiat memandu orang yang diinsuranskan. Namun, peringkat pertama liberalisasi merangkumi perlindungan Komprehensif dan perlindungan Pihak Ketiga Kebakaran dan Kecurian, yang pada dasarnya dibeli oleh pemilik kereta peribadi dan kenderaan pacuan empat roda yang lain.
PIAM dan MTA komited untuk mempromosi tabiat pemanduan yang selamat dan semua pengguna jalan raya perlulah mempunyai kesedaran untuk mengamalkan tabiat memandu yang baik, bukan hanya sekadar untuk menikmati premium yang lebih rendah tetapi juga untuk keselamatan mereka sendiri.
Maklumat terkini akan dipaparkan di laman web syarikat insurans dan persatuan takaful masing-masing. Selain itu, pengguna boleh menghubungi yang berikut:
Persatuan Insurans Am Malaysia (PIAM)
www.piam.org.my
pic@piam.org.my
Tel: 03-2274 7399
Malaysian Takaful Association (MTA)
www.malaysiantakaful.com.my
mtasecretariat@malaysiantakaful.com.my
Tel: 03-2031 8160
Top 10 Things That You Should Know About The Implementation of Phased Liberalisation of Motor And Fire Tariffs
Kuala Lumpur, 15 July 2016 (updated 31 Mar 2017)
Motor and Fire insurance are mandatory insurance protection and accounts for close to two-thirds, i.e. 66% of the total general insurance market in 2015.
For the past three decades, the premiums which insurance companies can charge consumers have been regulated by a tariff structure. For motor insurance, this has resulted in a growing gap between premiums collected and claims paid out by the insurers. This has led to the Motor Third Party business becoming unsustainable.
To ensure that motor insurance cover continue to be made available and accessible to motorists, The New Motor Cover Framework (the Framework) was implemented in 2012 and saw four rounds of gradual upward adjustments from 2012 to 2015. The Framework also paves the way for phased liberalization of Motor Tariff in 2016. On the other hand, the Fire Tariff was revised three times from 1992 to 2000.
In March 2016, Bank Negara Malaysia announced the Phased Liberalisation of the Motor and Fire Tariffs before transitioning to a fully liberalized market
Here are top ten things that you should know when purchasing or renewing your new Motor and Fire insurance coverage starting 1 July 2016.
Tariffs are fixed price lists that determine the premium rates which insurance companies can charge consumers for insurance products sold by them.
Examples of these are Motor and Fire insurance policies. When premiums are tariffed, insurance companies are not allowed to vary the prices chargeable on an insurance policy.
Liberalisation of the tariff means removing the tariff structure or freeing up the fixed premium rates so that insurance companies are able to charge premiums that commensurate or correspond to the risk profile group of the consumers.
This also implies that different insurance companies can charge different rates for the same risk profile group based on their business risks models and strategies.
The liberalisation of the tariffs is a continuation of the Framework established in paving the way for the pricing of motor and fire insurance protection which is more reflective of risks profile group of the consumers.
The Phased Liberalisation of the Motor and Fire Tariffs provides for the removal of tariffs through a phased approach.
In this new environment, the insurance and takaful industry will have the flexibility to offer motor and fire products with new features at market-based pricing which is based on the risk profile groups of the policyholders.
The Phased Liberalisation of the Motor and Fire Tariffs will be implemented in a phased approach to allow time for consumers and industry to adjust to the new operating environment.
In the first phase, starting 1 July 2016, insurers will progressively offer new products to the consumers at market rates. Existing Motor
Third Party product and Motor Comprehensive and Motor Third Party Fire and Theft product will continue to be made available.
A year later, premium rates for Motor Comprehensive and Motor Third Party Fire and Theft product will be liberalised.
In parallel, a more gradual upward adjustment similar in quantum to the adjustments of tariff made from 2012 to 2015 under the Framework will be made for some vehicle classes under Motor Third Party cover which remain substantially under-priced (for every ringgit of premium received, insurers and takaful operators are paying between RM1.30 to RM3.00 in claims). This is to avoid sharp upward premium rates adjustments if this class of coverage is immediately liberalised.
To allow insurers time to rebalance their portfolios gradually, premium rates for Fire class will continue to be regulated under the tariff with gradual downward adjustments until a review is made in 2019.
The progress of liberalisation will be reviewed in 2019 with an assessment of the impact on consumers and industry before full liberalisation takes place.
- Adoption of risk-based pricing will allow premiums to be priced according to differentiated risk profile groups of the consumers.
- Competition will encourage insurers to innovate and offer a wider range of motor and fire products to cater for different consumer needs and preferences.
- This will also allow insurers to innovate and to improve operational efficiencies as well as enhancing customer’s experience such as simpler and easier ways to purchase insurance or to make claims.
- Increase professionalism among agents to provide quality advice to consumers.
- In conclusions, consumers with will not only benefit from having greater product choice, higher service level and improved accessibility of coverage but to benefit from vary coverage limits which is customised to match individual risk profiles.
As a consumer, you can expect a wider range of motor and fire insurance products to cater for your lifestyle needs, along with preferred channels to purchase Motor and Fire insurance protection and higher quality of services provided by agents.
Premium charged on products will also vary from one insurance company to another based on their business risks models and strategies.
Over time, it is expected that premium rates for both motor and fire insurance will adjust and align to the underlying risk, thus allowing vehicle owners and property owners with low risk profiles to be charged lower premium rates.
Motor and Fire insurance are mandatory insurance protection. Due to the nature of how these insurance are bought, in general, consumers lacks the understanding and awareness on motor and fire insurance coverage.
Consumers should ensure that his/her risks are adequately protected. Price should not be the determining factor when purchasing an insurance protection. Customer service standards, claims handling and the track record of insurers are some of the important considerations. It is important for consumers to shop around and compare for appropriate covers and premium rates, and this should be done early before your policy expires.
Discussions on liberalisation between the industry and Bank Negara Malaysia had taken place since 2013. Various measures have been taken at individual company level with lead time provided to allow all insurers to build internal capabilities and formulate their marketing activities based on their business models.
In addition, the Liberalisation of the Motor and Fire Tariffs will be implemented in a phased approach which will allow time for industry to adjust to the new operating environment.
For further information on the Phased Liberalisation of the Motor and Fire Tariffs and its development, members of the public should access the PIAM website at www.piam.org.my
How Will I Be Assessed and What is Risk Profiling?
Risk profiling is an assessment of a risk to be insured in the event of an accident happening or a claim being made from that insured/person covered risk. This assessment will result in what insurers/takaful operator would charge for that risk.
In motor insurance/takaful, various parameters are used for the assessment of a risk. However, each of these parameters may apply differently to an insured’s/person covered risk. As such, the parameters listed below are subjective and will be based on the Underwriting Guidelines adopted by the respective insurance company.
Some of the parameters that can be used by an insurance company and takaful operator in assessing the risk profile of an insured/person covered could be as follows:
- Age of the vehicle – It will become obvious that an older car will be subjected to more wear and tear, and the mileage run/used will mean that it will be prone to more repairs, breakdowns and worst still, parts failures, which may result in an accident or even fatality.
- Age of the driver – It is an acceptable fact that a younger driver will be more prone to accidents because of inexperience and youthful vigour. Statistics have shown most serious accidents were recorded by motorists aged between 17 and 23 years.
Likewise, much older motorists also have higher perceived risk because age causes a slowdown in reflexes and have intentions to drive extra cautiously or slower (thus being a hazard on the road). Health issues and illnesses like Dementia, heart problems and Parkinson’s disease have also caused accidents.
- Gender of the driver – There are many studies conducted in developed countries that have proven that females make better drivers than males. They are more patient and less reckless behind the wheel, thus resulting in safer driving habits. In the UK, men pay more than women for a similar motor insurance policy.
- Driver’s claims record – A motorist, who is constantly involved/causing accidents and making insurance/takaful claims, is obviously a high risk case and will have to endure a higher motor premium/takaful contribution.
Benefits of Motor Insurance/Takaful Liberalisation for Consumers
Motor insurance/takaful is a compulsory cover by law which vehicle owners are required to purchase to renew their road tax. However, motor insurance/takaful is not solely to allow you to renew your vehicle road tax but also provides you compensation in the event you meet with an accident and also pays for claims submitted by a third party against you in the event you cause bodily injury or property damage to this third party.
Motor insurance/takaful is currently under a tariff which sets premiums/takaful contributions that insurance companies and takaful operators can charge. The motor tariff is regulated and supervised by Bank Negara Malaysia, the regulator of the insurance and takaful industry.
With the phased liberalisation of the motor tariff on 1 July 2017, insurance companies and takaful operators will be given some freedom to price the premiums/takaful contributions. This phased liberalisation will begin for Comprehensive and Third Party Fire and Theft classes. Premiums/takaful contributions to be charged for these classes will be based on the risk profiles of the vehicle owners or the vehicle itself. This will result in an open market with competitive pricing. Consumers will have the freedom to shop around for the best prices based on their individual insurance/takaful needs.
On this point, it should be noted that cheaper premiums/takaful contributions does not mean the best solutions. Consumers must compare the coverage they are given to ensure their risks are fully covered or insured/covered. Thus, consumers will be empowered to make their own choices and have the power to decide on what they want and need. Insurance companies and takaful operators will also be allowed to offer additional products attached to the Motor policies/takaful certificates for consumers to pick and choose what they want from the array of new products.
If you are a careful driver, under the tariffed environment, you may have been paying a premium/takaful contribution which is higher than your risk profile. Under the liberalised environment, if your risk profile is good, you will be able to enjoy lower premiums/takaful contributions. While this is subject to the assessment of your insurance company and takaful operator, fairer pricing will benefit consumers.
What to Consider When Buying Motor Insurance/Takaful
In a liberalised environment, consumers have the power to make informed decisions on their personal motor insurance/takaful needs. Motorists will have to start taking an active interest to source for fair premium/takaful contribution pricing based on their risk profiles. Do not always go for the cheapest because it might not have the best insurance/takaful coverage. Find the company or policy/cover that best suits your needs and budget.
Many avenues will exist for the consumer:
- Consult agents of various insurance and takaful companies and see what products are offered.
- Visit as many insurance company/takaful operator websites and look for what is offered for motor insurance/takaful online.
- Walk into any insurance/takaful company/branch and enquire on motor insurance/takaful offered. Speak to the customer service personnel and compare the different products offered.
- Read the fine print in motor insurance policies/takaful certificates and ask relevant questions that would ensure you understand what you want.
- Check specialised online insurance/takaful channels which offer motor insurance/takaful products from different companies and make comparisons for price, service, product add-ons and accident claims recovery.
What is the Difference Between Liberalised and Tariffed Markets?
In a tariffed environment, all motor insurance premiums and motor takaful contributions are regulated/controlled and insurance companies and takaful operators have to follow the prices set in this tariff when offering products. Under a tariffed environment, prices will be the same irrespective which company or takaful operator offers the product. Premiums/takaful contributions are based only on 2 main criteria – engine capacity and sum insured/covered (value of the car).
In a de-tariffed or liberalised environment, all motor insurance premiums and motor takaful contributions will be assessed using a risk assessment method. This simply means lower risk motorists will pay lesser premiums compared to higher risk motorists.
- How do we classify high risk motorists? Basically, it is based on:
- Driving Style – a reckless and impatient driver is more prone to accidents.
- Driving Habit – a motorist with a high number of traffic summonses, will also be responsible and prone to more accidents.
- Accident Prone – if you make regular insurance/takaful claims for car repairs, you are deemed an irresponsible driver.
- In a liberalised environment, good and careful drivers will no longer be subsiding the costs of bad or reckless drivers.
Industry Effects of De-Tariffication/ Liberalisation. How Will The Insurers and Takaful Operators Be Affected?
The insurance/takaful industry in Malaysia, like other financial sectors, is highly regulated and comes under the supervision of Bank Negara Malaysia.
Prior to the introduction of liberalisation, several governance and solvency measures had been introduced to ensure insurance companies and takaful operators are financially strong.
The Risk Based Capital Framework which was introduced, ensured that companies’ reserves are in line with the risks underwritten by them. If the company is selective in insuring large accounts with high risk profiles, it has to make sure that its capital is adequate to meet its liabilities in the event there is a loss from this account.
With the freedom to introduce innovative products, consumers will have better choices and insurance companies/takaful operators will be able to meet their customers’ needs as a one-stop centre, if they choose so.
Insurance companies and takaful operators are also required to be more efficient as in this competitive environment, this will be one of the measures that the consumers will look at, i.e. how efficiently they are serviced when they want to buy a product or when they have a claim.
For better and more efficient services, insurers and takaful operators are likely to use online platforms to market their products. Consumers will be able to purchase their insurance policies/takaful cover at the click of a button. However, this does not mean that the conventional marketing channel using agents will diminish. There are segments of the public who prefer and are comfortable to deal with insurance companies/takaful operators through their agents. Agents have a wealth of knowledge on products sold by them and are able to advise consumers. The strong relationship they have developed with their agents over time will also work in their best interests.
Malay 
English 
