Insurers, Takaful Operators on Strong Footing

New Straits Times: MALAYSIA'S insurance and takaful industry players have continued to reinforce their institutional capacity and financial soundness amid the challenging global economic environment, Bank Negara Malaysia said yesterday.
As a result, they remain ready to implement the Risk Based Capital framework effective January 1 2009 to have strong capital buffer and further strengthen the resilience and robustness of their risk management capability, the central bank said.

Bank Negara yesterday held a dialogue with leaders of the insurance and takaful industries to discuss developments in the economy and related issues.

In a statement, the bank said the meeting discussed the importance of being vigilant against fraudulent claims and potential fraud.

"In this regard, the meeting agreed for greater exchange of information and consultation between the industry and Bank Negara on emerging trends and developments that may affect the sector," it said.

As part of the pre-emptive measures to maintain stability of the financial system, Bank Negara has made available liquidity financing to insurance companies and takaful operators regulated and supervised by the central bank.

"Bank Negara Malaysia highlighted the importance of responsible behaviour by insurers and takaful operators as well as their agents in their dealings with customers. The dialogue also discussed on various initiatives to further strengthen the resilience of the industry, moving forward," it added.