Bank Negara Malaysia held a dialogue with leaders of the insurance and takaful industries today to discuss developments in the economy and wide ranging issues facing these industries.

In this challenging environment, the insurers and takaful industries have continued to reinforce their institutional capacity and preserve their financial soundness. The insurers also reiterated their readiness to implement the Risk Based Capital framework effective 1 January 2009 to have strong capital buffer and to further strengthen the resilience and robustness of their risk management infrastructure and capability. The meeting also discussed the importance of being vigilant against fraudulent claims and potential fraud. In this regard, the meeting agreed for greater exchange of information and consultation between the industry and Bank Negara Malaysia on emerging trends and developments that may affect the sector.

As part of the pre-emptive measures to maintain the stability of the financial system, Bank Negara Malaysia has made available liquidity facility to insurance companies and takaful operators regulated and supervised by the Central Bank.

Bank Negara Malaysia highlighted the importance of responsible behavior by insurers and takaful operators as well as their agents in their dealings with customers. The dialogue also discussed on various initiatives to further strengthen the resilience of the industry, moving forward.