Page 58 - LIAM Annual Report 2021

Life insurance association of MaLaysia 56

REPoRt oF thE managEmEnt committEE

national association oF malaysian LIAM had also consulted with NAMLIFA on the drafting
liFE insuRancE and Family takaFul of best practices in evaluating Customer Fact Find (CFF)
advisoRs forms completed by insurance intermediaries and received
invaluable feedback from them.
LIAM has maintained a good working relationship with the
National Association of Malaysian Life Insurance and Family
Takaful Advisors (NAMLIFA) over the years and 2021 was
no exception. LIAM consulted with the NAMLIFA National
Council on the drafting of the best practices for raising the
professional standards of insurance advisors. The professional
standards specifies that a professional insurance advisor
should be customer centred, hold high standards of integrity
and ethics, always act in the best interest of the customer,
commitment to ongoing service to review customers’ needs
timely and professionally, invest time on a path of continuous
professional development and also seek recognized
professional designations so as to advertise their professional
qualifications, among others.

The industry proposes for insurance advisors to be certified
either by passing the examination for the Malaysian Financial
Planning Council (MFPC) Registered Financial Planner Module
2 in Risk Management and Insurance Planning, or, the NAMLIFA
Module LP101 of the Fellow of the Certified Life Practitioner
(FCLP), Personal Insurance: Principles and Marketing, of which
NAMLIFA were supportive of.

PERBadanan insuRans dEPosit malaysia

PIDM conducted a briefing on 10 March 2021 on the “DLS Validation Program Guidelines” and the “Enhancements to the Scope
and Limits of Protection for the Takaful and Insurance Benefits Protection System (TIPS)” to its insurer members. The new
guidelines were issued on 10 February 2021.

One of the major relaxations given by PIDM is that there is no requirement for insurers to appoint an external auditor to validate
the levy information. The TIPS enhanced scope and limits of protection came into effect on 1 January 2021.

Meanwhile, at the engagement session between PIDM and LIAM on 13 April 2021, the industry was briefed on the proposed
enhancements to the Differential Levy Systems (DLS) Framework and the Guidelines on Validation Programme: Differential Levy
systems and Levies Calculation.

Under this enhancement, the regulatory burden on insurers was reduced. The data submission process has been simplified with
the removal of external auditors. This new validation programme will be implemented with effect from year of assessment 2021,
with a one-year transition period.