Top 5 things you should know |Introducing New General Insurance and Takaful Products


It took me quite awhile to finalise a review of Central Bank (BNM)’s BNM/RH/GL 010-14 “Guidelines on Introduction of New Products for Insurance Companies and Takaful Operators”. Procrastinating, perhaps! Anyway, I must say it, “Guidelines were badly written….” and the contents have been some mind-toasting for me, especially for most of my reading time were spent in the car while encountering traffic jam…. You can imagine, driving and reading, reading and driving….

Before I start, it is good if you can download the documents that I am making references to below (by clicking on the links):

[1] [download id=”2″]

[2] [download id=”3″]

However, you would need to register before clicking onto those links…. sorry guys as these are privileged documents.


……..but first of all, you would need to log in or register for it if you have not done so – EITHER CLICK ON THE ABOVE ICON OR GO TO THE UPPER RIGHT-HAND CORNER of this blog and click [LOGIN] or [REGISTER]. If you’ve registered, then come back to this site LOGGED IN and then you click onto the link… the document should appear within your computer screen. Isn’t this so simple? Just TRY IT!

The 5 Important Things about the GUIDELINES that I thought you should know, at least when you are working on some new or packaged products.

(Bear in mind this writeup is in respect of General Insurance and General Takaful products only)

  1. The Board of Directors is required to ensure that there is an effective oversight process in place in respect of all new product introduction and that all necessary product-related risk management controls are appropriately put in place by the management. At the end of each financial year the Board must submit an attestation to the Bank that the conditions and requirements of the Guidelines have been met. This then take us to the needs to have at least some simple POLICIES AND PROCEDURES in place as a matter of good guidance when introducing new products and managing them thereafter.

  2. The definition of what’s deemed a “New Product” – any package or existing product variations are caught within the Guidelines. Understand who can determine whether such a product is caught within New Product or otherwise… and also have a good grasp of what is deemed as MATERIAL CHANGES to the existing product(s).

  3. Understand the differences between a LAUNCH-AND-FILE system (applicable to Health & Medical insurance segments) and the SUBMIT-AND-LAUNCH (30-DAY LATER) process (Other segments). Know exactly what’s within Appendix 1 and Appendix 2 (Takaful), which you can download via the above link.

  4. Insurers and Takaful Operators must have the Policies & Procedures in place – which is expected to have two major parts:

    • Product-related risks – identification, controls, compliance, IT system adequacy, mitigation aspects and management thereof…
    • Fair treatment of Consumers – about the interest of the consumers

  5. A Comprehensive Product Development Management programme must be drawn up to provide guidance to staff involve in the product development and portfolio management


I hope you’ll find this good reading and helpful when discharging your job… By the way, consider buying a kindle, it is as good as an iPad….

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3 comments for “Top 5 things you should know |Introducing New General Insurance and Takaful Products

  1. October 16, 2010 at 09:14

    If our company is introducing a new product but this new product is already in the market, is this still deem a new product and should be treated in the manner as set forth by the Guidelines?

    • October 16, 2010 at 10:55

      Yes, as far as this new product is new from your company’s perspectives then you would need to deal with it according to the Guide.

  2. October 10, 2010 at 12:10

    [New Post] Top 5 things you should know |Introducing New General Insurance and Takaful Products – via #twitoaster

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