Conduct issues are viewed seriously by the Bank and we are fully committed to the responsibility entrusted to the Bank to effectively enforce regulatory requirements on fair conduct towards consumers. The Financial Services Act provides the Bank with explicit and expanded enforcement powers which include monetary and non-monetary actions. In addition to private and public reprimand as well as direction to make restitution to aggrieved parties. As a result of supervisory interventions by the Bank, more than RM30 million in premiums were refunded to the affected policyholders due to mis-selling practices in the sale of life insurance products in the past. 4  BIS central bankers’ speeches  The Bank had also directed insurers to refund the premiums in more than 700,000 cases involving the forced purchase of personal accident policies. In addition, insurers have been directed to modify or withdraw misleading advertisements, make call backs to consumers to confirm the products purchased without adhering to proper disclosure practices, as well as strengthen internal controls over sales and marketing practices with respect to bancassurance products. The enforcement measures undertaken signals the Bank’s low level of tolerance for misconduct. It also serves to remind the industry of the Bank’s expectation for common complaints and grouses against the industry such as delay in claim settlement and mis selling practices by agents to be completely eliminated or at the very least reduced significantly. Conclusion The period ahead for the Asia Pacific region presents new risks, challenges and opportunities for the insurance and takaful industries.
Muhammad bin Ibrahim: Beyond borders – bridging new horizons in Asia Pacific Speech by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the 5th Malaysia Insurance Summit “Beyond Borders: Bridging New Horizons in Asia Pacific”, Kuala Lumpur, 7 October 2015. *  *  *  I am delighted to join you today at the 2015 Malaysia Insurance Summit themed “Beyond Borders: Bridging New Horizons in Asia Pacific”. I understand that this is the fifth year the Malaysian Insurance Institute has organised this event which brings together insurance and takaful professionals from around the region and beyond to discuss key developments in the industry. Prospects of the Asia Pacific region The world is undergoing rapid structural changes amidst a rapidly evolving Asia Pacific as an important centre of growth. The International Monetary Fund has projected a growth of 5.6 per cent for the Asia and Pacific region in 2015 and 5.5 per cent in 2016, with the region expected to remain the global growth leader over the medium term. Growth is primarily driven by domestic demand of Asia’s 4.3 billion inhabitants who account for 60 per cent of the world’s population. The region is also expected to be the strong driver of world insurance growth, with its share of the global insurance market likely to rise to 40 per cent in the next five years.