Bank Negara Malaysia (BNM) regulates entities which carry on insurance business, insurance broking, adjusting and financial advisory. Insurers are licensed by the Minister of Finance on the recommendation of the BNM. Brokers and financial advisers must be approved by BNM, and adjusters must be registered with BNM.
Branches are not permitted. Insurers (other than professional reinsurers) must be public companies; adjusters must be incorporated whereas BNM may specify the form of establishment of reinsurers, brokers and financial advisors. There is currently a freeze on the issuance of new insurance licences by BNM, although BNM may be open to consider applications on a case by case basis. Prior consultation with BNM is encouraged.
70 per cent limit on foreign equity ownership. >70 per cent considered on a case by case basis for players who can facilitate consolidation and rationalisation of the industry.
4. Control approvals
Prior written approval of the BNM or the Minister of Finance (as the case may be) is required for a person to: • initially acquire an aggregate share interest
of >5 per cent in a licensed insurer; • subsequently hold an aggregate share interest in a licensed insurer equal to or exceeding each multiple of 5 per cent, or the