a. Reg­is­tered Fi­nan­cial Plan­ner (RFP)

Insurance - - FEATURE -

The RFP is the first Malaysian-based fi­nan­cial plan­ning qual­i­fi­ca­tion jointly de­vel­oped by LIAM, MII and NAM­LIFA to equip agents with fi­nan­cial plan­ning knowl­edge, skills and com­pe­tency to cope with con­sumer de­mand as well as com­pe­ti­tion among other fi­nan­cial ser­vices providers such as banks and unit trust com­pa­nies. LIAM, MII and NAM­LIFA founded the Malaysian Fi­nan­cial Plan­ning Coun­cil (MFPC) in May 2003 to over­see the devel­op­ment of RFP pro­gramme. Upon suc­cess­ful com­ple­tion of the pro­gramme and hav­ing ful­filled the re­quire­ment set by MFPC, the can­di­dates would be con­ferred the RFP des­ig­na­tion that would al­low them to prac­tice as ac­cred­ited fi­nan­cial plan­ners.

Ef­fec­tive 1 Jan­uary 2005, agents are re­quired to at­tend mod­ule 1 and mod­ule 2 of the RFP, a part of the train­ing un­der the Con­tin­u­ous Pro­fes­sional Devel­op­ment (CPD). i) con­sumer-re­lated is­sues and im­pli­ca­tions are in­cor­po­rated within the prod­uct devel­op­ment and au­tho­riza­tion stages; ii) ad­e­quate and ef­fec­tive mea­sures for re­solv­ing and mon­i­tor­ing cus­tomer com­plaints are es­tab­lished; b. Treat Cus­tomers Fairly The Treat Cus­tomers Fairly (TCF) frame­work was fi­nal­ized and in­tro­duced by LIAM in Jan­uary 2012.

“With the ris­ing in­flu­ence and us­age of mo­bile phones and the in­ter­net, there is a need to ex­plore pos­si­bil­i­ties of adding th­ese to a com­pany’s multi-chan­nel dis­tri­bu­tion for in­sur­ance.

iii) cus­tomers are fully in­formed through wel­come calls, prod­uct dis­clo­sure sheet and the Cus­tomer Fact-Find process; The TCF stan­dards is part of the re­quire­ment stip­u­lated in the guide­lines on In­tro­duc­tion of New Prod­ucts for In­sur­ance Com­pa­nies is­sued by BNM and en­forced on 1 July 2009. iv) prod­ucts are sold based on cus­tomer’s suit­abil­ity and risk ap­petite; v) agents and staff are well qual­i­fied and prop­erly trained; To en­sure that there is har­mo­niza­tion of prac­tices within the in­dus­try, LIAM has for­mu­lated the min­i­mum stan­dards for the TCF frame­work as fol­lows: vi) the com­mis­sion struc­ture is not ex­ces­sively biased to­wards high rev­enue gen­er­at­ing prod­ucts;

vii) cus­tomer in­for­ma­tion is ad­e­quately safe­guarded. In tan­dem with the changes and de­vel­op­ments in the dis­tri­bu­tion sys­tem, the RRI was re­vised in 2005 and fur­ther changes were made in 2011. On mat­ters re­lated to claims, mem­ber com­pa­nies have been urged to mon­i­tor claim re­jec­tion rates in their ef­forts to im­prove fu­ture cus­tomers’ un­der­stand­ing about prod­uct fea­tures, benefits and ex­clu­sions and to set up an in­de­pen­dent claims com­mit­tee to re­view cases which have been re­ferred by the claims manager. Un­der the newly re­vised RRI which was im­ple­mented with ef­fect from 1 Jan­uary 2012, all Third Party Call Cen­ters/Tele­mar­ket­ing Com­pa­nies are re­quired to be reg­is­tered with LIAM and the team lead­ers have to pass the PCEIA and for those who sell in­vest­ment-linked prod­ucts, are re­quired to pass the Cer­tifi­cate Ex­am­i­na­tion in In­vest­ment-Linked Life In­sur­ance (CEILLI). c. Rules on Reg­is­tra­tion of In­ter­me­di­aries The com­pre­hen­sive set of Rules on the Reg­is­tra­tion of In­ter­me­di­aries cov­er­ing the agency force and other dis­tri­bu­tion chan­nels was in­tro­duced in Au­gust 1999.

“Mov­ing into the next decade, the role of LIAM would be more im­por­tant in the facets lead­ings up to the lib­er­al­i­sa­tion of the fi­nan­cial ser­vices sec­tor.

d. Guide­lines on Min­i­mum Qual­i­ta­tive Cri­te­ria for Life Agency Force The reg­is­tra­tions are cat­e­gorised broadly un­der in­di­vid­ual in­ter­me­di­aries and cor­po­rate bod­ies. In­di­vid­ual in­ter­me­di­aries re­fer to life in­sur­ance agents and em­ploy­ees of fi­nan­cial in­sti­tu­tions. Cor­po­rate bod­ies re­fer to com­pa­nies ap­pointed by life in­sur­ers to so­licit and dis­trib­ute life in­sur­ance prod­ucts and th­ese in­clude Agency Leader Cor­po­ra­tions and Cor­po­rate Agents. The Guide­lines on Min­i­mum Qual­i­ta­tive Cri­te­ria (MQC) for the Life Agency force was in­tro­duced in 1999 to en­hance the qual­ity of the agency force by im­pos­ing min­i­mum in­dus­try stan­dards on the re­cruit­ment of agents, train­ing re­quire­ments, pro­duc­tion re­quire­ments, pro­mo­tion cri­te­ria and per­sis­tency ra­tio. The guide­lines have been re­vised sev­eral times over the years in tan­dem with the progress and de­mands in the in­dus­try. In the last re­vi­sion where the changes were in­tro­duced in Jan­uary 2011, the num­ber of re­quired hours of train­ing was in­creased and the cri­te­ria Each cat­e­gory of in­ter­me­di­aries is sub­ject to strict reg­is­tra­tion re­quire­ments such as a pass in the Pre-Con­tract Ex­am­i­na­tion for In­sur­ance Agents (PCEIA) and min­i­mum paid-up cap­i­tal.

for pro­mo­tion and main­te­nance of con­tracts of agents, su­per­vi­sors and man­agers were fine-tuned. e. In­ter-Com­pany Guide­lines on Re­place­ment of Pol­icy The in­dus­try guide­lines to deal with ex­ter­nal re­place­ment of pol­icy (ROP) was in­tro­duced in Jan­uary 2011. The ob­jec­tives of this guide­line are to de­velop a com­mon un­der­stand­ing and es­tab­lish a de­ci­sive pro­ce­dure in deal­ing with ex­ter­nal ROP; to de­ter un­war­ranted ROP that may tar­nish the best prac­tices of life in­sur­ance com­pa­nies and to main­tain the trust that pol­i­cy­hold­ers place on life in­sur­ers know­ing that the in­sur­ers will con­duct their busi­ness eth­i­cally and with in­tegrity. Un­der this set of guide­lines, a com­pany may lodge a com­plaint on ROP when there is a pur­chase of a life in­sur­ance pol­icy within 12 months be­fore or af­ter an ex­ist­ing life pol­icy has lapsed, sur­ren­dered, par­tially sur­ren­dered or for­feited. Hence, mem­ber com­pa­nies are re­quired to adopt strin­gent mea­sures to de­ter ROP and put in place an ef­fec­tive track­ing mech­a­nism to de­tect the num­ber of ROP cases. The track­ing should be 12 months be­fore and 12 months af­ter the agent leaves the pre­vi­ous com­pany.

f. Code of Ethics and Con­duct LIAM has in­tro­duced a set of Code of Ethics and Con­duct for the in­dus­try in April 1990. The Code was sub­se­quently re­vised in May 1999 fol­low­ing the im­ple­men­ta­tion of the In­sur­ance Act 1996. The Code is ap­pli­ca­ble to all di­rec­tors (ex­ec­u­tive and non-ex­ec­u­tive), em­ploy­ees and in­ter­me­di­aries. It aims to pro­mote and main­tain the high­est de­gree of stan­dards and in­tegrity among em­ploy­ees and in­ter­me­di­aries in the life in­sur­ance in­dus­try. The Code com­prised of 3 parts i.e. Guide­lines on the Code of Con­duct, Code of Ethics and Con­duct for Life In­sur­ance Sell­ing and State­ment of Life In­sur­ance Prac­tice. Com­pa­nies are re­quired to sub­mit a quar­terly re­port to BNM on breaches ob­served dur­ing ev­ery quar­ter of the year and the cor­rec­tive or puni­tive ac­tions that were taken. Cases of fraud are to be re­ported to BNM and the po­lice.

QAs one of the key fi­nan­cial pil­lars of Malaysia’s fi­nan­cial sys­tem, what makes LIAM a sta­ble or­gan­i­sa­tion? Our mem­ber com­pa­nies share a com­mon ob­jec­tive of po­si­tion­ing the life in­sur­ance in­dus­try as a ma­jor fi­nan­cial ser­vice provider in the eco­nomic devel­op­ment of the coun­try. The strength of the As­so­ci­a­tion is at­trib­uted by the sol­i­dar­ity of our mem­ber com­pa­nies.

Mov­ing into the next decade, the role of the LIAM would be more im­por­tant in the facets lead­ings up to the lib­er­al­i­sa­tion of the fi­nan­cial ser­vices sec­tor. As­so­ci­a­tions (FOMCA) and par­tic­i­pate in their ac­tiv­i­ties to pro­mote fi­nan­cial lit­er­acy among Malaysians.

QCan you elab­o­rate the role of In­surans Hayat Cares? The Asean Eco­nomic Com­mu­nity (AEC) blue­print that will be fi­nalised by end of De­cem­ber 2015 will present a host of chal­lenges and op­por­tu­ni­ties for the in­sur­ance mar­ket in ASEAN. Trade as­so­ci­a­tions such as LIAM will have to play an im­por­tant role to voice its opin­ion and rec­om­men­da­tions to in­flu­ence the pol­icy de­ci­sion mak­ing process. Car­ing for the com­mu­nity and in­sur­ing the na­tion would be our ul­ti­mate ac­com­plish­ment as Malaysia moves into a high in­come na­tion by year 2020. Over the last 40 years, apart from be­ing a lead­ing in­sur­ance as­so­ci­a­tion in the coun­try, LIAM also plays its part in giv­ing back to the com­mu­nity via its Life In­sur­ance Day. It started back in 1991, where LIAM con­trib­uted to the un­der­priv­i­leged and the needy in dif­fer­ent parts of the com­mu­nity. Since then, this project has been cel­e­brated on a yearly ba­sis with a myr­iad of ac­tiv­i­ties rang­ing from blood do­na­tion, con­tri­bu­tions to or­phan­ages, old folk homes, pae­di­atric wards and out­ward bound ac­tiv­i­ties for teenagers.

“LIAM is a mem­ber of the Asean In­sur­ance Coun­cil (AIC) since its in­cep­tion in 1978 and to date, the AIC has gained sig­nif­i­cant recog­ni­tion by ASEAN reg­u­la­tors as a pro­fes­sional body rep­re­sent­ing the in­ter­ests of in­sur­ance play­ers in this re­gion.

LIAM is a mem­ber of the Asean In­sur­ance Coun­cil (AIC) since its in­cep­tion in 1978 and to date, the AIC has gained sig­nif­i­cant recog­ni­tion by ASEAN reg­u­la­tors as a pro­fes­sional body rep­re­sent­ing the in­ter­ests of in­sur­ance play­ers in this re­gion. At the do­mes­tic level, LIAM will con­tinue to play an in­te­gral role to en­gage the reg­u­la­tors and var­i­ous stake­hold­ers such as the agency bod­ies and con­sumer groups. We be­lieve it is im­por­tant to strike a bal­ance in any ef­fort to pro­mote the devel­op­ment of the life in­sur­ance busi­ness. Dif­fer­ent stake­hold­ers would nat­u­rally have their own in­ter­ests and th­ese should be aligned and strate­gized to cre­ate a win-win for­mula. LIAM strives to con­tinue its noble ef­forts by bring­ing its com­mu­nity ser­vice pro­grammes to the next level through the In­surans Hayat Cares plat­form which was launched in con­junc­tion with LIAM’s 40th An­niver­sary this year. Over the years, LIAM has built a good work­ing re­la­tion­ship with the au­thor­i­ties par­tic­u­larly the Cen­tral Bank of Malaysia. In ad­di­tion, we have pe­ri­od­i­cal meet­ings with the Na­tional As­so­ci­a­tion of Malaysian Life In­sur­ance Field force and Ad­vis­ers (NAM­LIFA), the body that rep­re­sents the life in­sur­ance agents, to dis­cuss mat­ters con­cern­ing the agency force. LIAM had also en­gaged with the Fed­er­a­tion of Malaysia Con­sumer In­surans Hayat Cares is cre­ated to meet the ob­jec­tive of the As­so­ci­a­tion to be more ef­fec­tive in en­gag­ing with the com­mu­nity on an on­go­ing ba­sis. We be­lieve the spirit of car­ing and shar­ing should be an in­te­gral part of the life in­sur­ance busi­ness and we should spread the mes­sage of love all year round. Some of the ac­tiv­i­ties that have been or­gan­ised/be­ing planned are:

On 21 Au­gust 2014, LIAM hosted a com­mu­nity ser­vice pro­gram for about 100 un­der­priv­i­leged chil­dren from two homes namely As­rama Darul Falah (ASDAF) and SHEL­TER Home. LIAM’s rep­re­sen­ta­tives took time off their busy sched­ule to spend a day with th­ese chil­dren from dif­fer­ent eth­nic groups and re­li­gions. Ac­tiv­i­ties such as Money Crossword, Road Safety Puz­zle and Fi­nan­cial Lit­er­acy Quiz were or­ga­nized to add more ex­cite­ment to this event. Prepa­ra­tions are un­der­way to or­gan­ise a fes­tive visit to Can­cer Unit (Pae­di­atric Ward) of Hos­pi­tal Kuala Lumpur in Fe­bru­ary 2015 and a na­tion­wide Blood Do­na­tion cam­paign through­out all the 13 states in Malaysia in Au­gust 2015.

QDo you have any words on this sig­nif­i­cant mile­stone? This is a very spe­cial mile­stone for all of us as we cel­e­brate our 40 years of achieve­ments. LIAM went through thick and thin, adapt­ing to reg­u­la­tory changes and un­der­go­ing trans­for­ma­tion process along the way. To­day, LIAM is stand­ing tall and has be­come a key fi­nan­cial pil­lar of Malaysia’s fi­nan­cial sys­tem LIAM is col­lab­o­rat­ing with Can­cer Re­search Ini­tia­tives Foun­da­tion (CARIF), a non-profit or­ga­ni­za­tion on can­cer re­search, to em­bark on an aware­ness pro­gramme on Can­cer. Through this col­lab­o­ra­tion, we hope to share our ex­pe­ri­ences in ed­u­cat­ing the com­mu­nity to be aware of Can­cer and pro­mote can­cer ed­u­ca­tion to the young gen­er­a­tion. The “Be Frank” book­lets printed for both male and fe­male fea­tur­ing top 5 can­cers in the coun­try and high­light­ing the steps that one has to take to re­duce the risks of can­cer. Tes­ti­monies of can­cer sur­vivors are also shared in the book­lets to in­spire and en­cour­age read­ers to con­tinue to live a whole­some life of hope. LIAM will be dis­tribut­ing 50,000 book­lets in multi lan­guages to the gen­eral public.

“The young lead­ers must share the same pas­sion, vi­sion and core val­ues car­ried by the past in­dus­try lead­ers which will even­tu­ally help to achieve Gov­ern­ment’s as­pi­ra­tion.

Thanks to the con­tin­u­ous sup­port from the in­dus­try reg­u­la­tors, mem­ber com­pa­nies and stake­hold­ers who have given a lot of time, guid­ance and ad­vice in our han­dling of chal­lenges and is­sues fac­ing the life in­sur­ance in­dus­try. While though we can stand proud to the many ac­com­plish­ments we have recorded, we will con­tinue to work to­wards the Gov­ern­ment’s as­pi­ra­tion to en­sure that at least 75% of the has life in­sur­ance or taka­ful pro­tec­tion by year 2020. The young lead­ers must share the same pas­sion, vi­sion and core val­ues car­ried by the past in­dus­try lead­ers which will even­tu­ally help to achieve Gov­ern­ment’s as­pi­ra­tion.

rakyat In aid of can­cer re­search in Malaysia, LIAM sent a team of 390 run­ners from 11 mem­ber com­pa­nies to par­tic­i­pate in the 34th Terry Fox Run 2014 (also known as Marathon of Hope) on 2 Novem­ber 2014 and spon­sored mer­chan­dise items from CARIF. (Note : In­surans Hayat is the Ba­hasa Malaysia word for Life In­sur­ance.)

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