Insurance to be offered through direct channel without commissions from next year - BNM

KUALA LUMPUR: Beginning next year, insurers will be required to offer pure protection products through a direct channel without commissions, said Bank Negara Governor Datuk Muhammad Ibrahim.

"The high internet and mobile phone penetration in Malaysia suggests that internet or mobile insurance makes good sense,” he said at the 6th Malaysian Insurance Summit.

“Other untapped channels include banking agents, retail chains, employers and cooperatives.  We expect the industry to fully adopt these channels to diversify delivery of services,” Muhammad added.

He said that new products and delivery channels that enhance outreach ultimately contribute towards expansion of a larger industry, and pool of customers for all participants in the insurance sector as a whole.

“In other words, it is not a zero sum game. Everybody will gain,” he said.