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10 Important Things About Act Insurance 1996 - Coggle Diagram
10 Important Things About
Act Insurance 1996
Regulatory Authority
Bank Negara Malaysia (BNM) oversees insurance industry regulation.
BNM issues licenses and enforces compliance with regulations.
Capital Adequacy
Insurance companies must maintain minimum capital levels to ensure financial stability.
Capital requirements are determined based on risk exposure and business scale.
Investment Regulations
Regulations govern the types and limits of investments insurers can make.
Investments must be prudent and diversified to minimize risks.
Policyholder Protection
Insurers must disclose policy terms and conditions clearly to policyholders.
Fair treatment of policyholders is mandated throughout the insurance process.
Solvency Requirements
Solvency margins ensure insurers have sufficient funds to meet obligations.
Regular solvency assessments are conducted by BNM.
Insurance Products and Practices
Underwriting standards ensure risks are assessed accurately.
Premium rates must be fair and actuarially sound.
Insurance Intermediaries
Agents and brokers must meet competency and conduct standards.
Intermediaries act as representatives between insurers and policyholders.
Supervision and Enforcement
BNM conducts regular inspections and audits of insurers and intermediaries.
Enforcement actions may include fines, license suspension, or revocation for non-compliance.
Amendments and Updates
The Insurance Act 1996 is periodically reviewed and updated to align with industry developments.
Amendments may address emerging risks, technological advancements, and regulatory gaps.
Licensing Requirements
Licenses are granted based on financial stability and compliance with regulatory standards.
Insurance companies, agents, and brokers must obtain licenses from BNM.