SPECIFICATIONS PURSUANT TO SECTIONS 123 AND 143 OF THE FINANCIAL SERVICES ACT 2013 (“FSA”) AND SECTIONS 135 AND 155 OF ISLAMIC FINANCIAL SERVICES ACT 2013 (“IFSA”) RELATING TO DISCLOSURE REQUIREMENTS FOR INSURANCE AND TAKAFUL PRODUCTS DISTRIBUTED VIA NON-DIRECT DIGITAL PLATFORMS

 Pleased be informed that pursuant to section 123(1) of the FSA and section 135(1) of the IFSA, Bank Negara Malaysia (the BANK) hereby specified the following standards to ensure that insurance company are fair, responsible, transparent, and professional in all dealings with financial consumers when marketing or selling insurance products through their intermediaries and by any other means.  In this regard, an insurance company that markets or sells insurance and products through *non-direct digital platforms is required to take the following measures which are intended, among others, to address the gaps observed by the Bank in relation to the marketing and sale of insurance by the insurance company through non-direct digital platforms:

  1. to ensure clear and prominent disclosure of the key information on the digital platforms of its intermediaries is made, including the following:
    1. name of insurance company, relationship between the intermediary and the insurer, and the level of services offered to consumers;
    2. statement that consumers have an option to purchase similar product that provides a rebate on commission or is commission-free if purchased directly from the insurance company direct distribution channels, such as insurance company own website or physical branches, prior to proceeding with final confirmation of purchase;
    3. detailed breakdown of premium amount, remuneration payable to the intermediary, as well as relevant fees and charges to be paid by consumers on the final confirmation purchase page prior to payment (i.e. not via a link to another document); and
    4. free-look period and premium refund policy (where applicable) immediately after payment (i.e. not via a link to another document);
  2. to ensure intermediaries and any related parties are prohibited from marking-up premium by insurance company or imposing any additional fees and charges to consumers on digital platforms; and
  3. to establish appropriate policies, procedures and mechanisms to ensure effective monitoring and handling of consumer complaints received by type of intermediaries.

The standards specified above shall come into force with effect from 2nd May 2024.

* non-direct digital platforms – do not include any digital platforms, whether developed as the insurance company proprietary system or outsourced to third party vendors to administer on behalf of the insurance company, whereby consumers purchase the products directly from the insurance company

All business partners are to adhere strictly to these guidelines and to contact your Business Development personnel if you are operating any non-direct digital platforms that are promoting Progressive Insurance Bhd products.