Bank Negara Malaysia issues Policy Document on Prudent and Professional Conduct of Insurance and Takaful Brokers

22 October 2025

On 29 August 2025, Bank Negara Malaysia (“BNM”) issued the Policy Document on Prudent and Professional Conduct of Insurance and Takaful Brokers (“Policy Document”). An approved insurance and/or takaful broker under the Financial Services Act 2013 and/or the Islamic Financial Services Act 2013 is expected to thoroughly assess prospective and existing customers’ need for insurance/takaful coverage and provide independent advice to ensure they have adequate protection against risks.

The Policy Document sets out the requirements that must be met by an approved insurance and/or takaful broker on an on-going basis and, where relevant, also apply to reinsurance and/or retakaful arrangements. The requirements relate to the minimum capital funds of an approved broker, the maintenance of a minimum amount of professional indemnity insurance or takaful cover, the appointment and responsibilities of the board of directors and senior management, the appointment of auditors, business conduct, other permitted business activities, the professionalism of broking staff, the publication of financial statements, and the notifications to BNM.