KUALA LUMPUR: The International Forum of Insurance Guarantee Schemes (IFIGS), which was launched on Wednesday, will raise the benchmark in developing policy owner protection schemes.
Perbadanan Insurans Deposit Malaysia (PIDM), which is one of 15 founding members of the IFIGS, said the forum would enable insurance guarantee schemes and other stakeholder organisations to enhance their cooperation to develop the schemes.
PIDM said IFIGS' mandate was to facilitate and promote international cooperation between insurance guarantee schemes and other stakeholders which develop policy owner protection schemes.
PIDM chief executive officer JP Sabourin said on Thursday that PIDM was keen to share its collective experiences and transfer of knowledge on setting up and managing effective insurance guarantee schemes to protect policy owners if there was an insurance company failure.
Essentially, an insurance guarantee scheme is a body mandated to provide policy owners with protection against loss of their insurance benefits when an insurer is unable to fulfil its insurance contract commitments.
The protection can be in the form of payment of compensation or by securing the continuity of coverage of the insurance contracts.
To recap, PIDM was set up in 2005 to administer the national Deposit Insurance System (DIS) and the Takaful and Insurance Benefits Protection System (TIPS) in Malaysia.
PIDM protects bank depositors and owners of takaful certificates and insurance policies against the loss of their bank deposits or takaful/insurance benefits should a member institution fail.
PIDM is also a member of the International Association of Deposit Insurers (IADI).
Sabourin said PIDM was committed to building strong partnerships and international collaboration and exchange with other deposit insurers and insurance guarantee schemes.
"Our involvement is part of our ongoing international initiatives to help promote Malaysia as a centre of excellence for financial services.
"Through collaborations with IADI and IFIGS, we can share knowledge about how PIDM operates our financial consumer protection systems while at the same time enable us to learn from other protection systems, especially those with intervention and failure resolution experiences," he added.
He added the launch of IFIGS would boost ties between insurance guarantee schemes around the world and it would be a very valuable platform for exchanging ideas and discussing common issues. Other IFIGS members include insurance guarantee schemes from Australia, Canada, France, Germany, Greece, South Korea, Norway, Poland, Romania, Singapore, Spain, Taiwan, the United Kingdom and the US.
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