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BRUNEI:
The Autoriti Monetari Brunei Darussalam (AMBD) and Brunei Insurance and
Takaful Association (BITA) have this week introduced new guidelines for
the Takaful and insurance sector in Brunei with the aim of ensuring
professionalism within the industry and furthering the sultanate’s
financial sector.
Guidelines
on registration of General Takaful agents, registration of general
agents and fit and proper criteria for key responsible persons in
Takaful and insurance have been issued. The new requirements also call
for all Takaful and insurance agents to be registered with AMBD and
BITA either as sole proprietors for individual agents, or as companies
for corporate agents. Under the new parameters, which will come into
effect from the 1st July, agents will be required to place a
deposit with their principals as a form of minimum capital requirement.
All agents are expected to fully comply with the guidelines by the 1st
January 2015.
As
at September 2013, according to AMBD data, 150,000 Family Takaful plans
and life policies were in force, covering around 38% of Brunei’s total
population. Takaful adoption in Brunei increased in 2013, with Takaful
assets growing by 21% and totaling BN$425 million (US$334.9 million)
accounting for 33% of total insurance assets, whilst conventional
insurance experienced a 1.3% drop according to AMDB figures.
However,
despite the growth of the industry, the financial sector still only
accounts for 3% of Brunei’s GDP, according to Lily Kula, AMBD’s deputy
managing director, speaking at the briefing held to introduce the new
guidelines. “It is hoped that by ensuring professionalism and market
discipline of the Takaful and insurance industries, (this) will
increase public confidence and attract interest of international
players to do business in Brunei.”
The
briefing, held at the Ministry of Finance, was attended by 200 of the
General Takaful agents and general insurance agents that make up the
four Takaful operators, nine insurers, one broker, one adjuster and
over 600 agents of the Brunei’s Takaful and insurance industry. The
newly introduced guidelines were highlighted in July last year, as
future plans for the sector by AMBD along with a program to instill
public awareness of the benefits of Takaful and general insurance
services.
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