Insurance and Takaful Compliance for BNM-Regulated Operators
Insurers and takaful operators licensed under the Financial Services Act 2013 and the Islamic Financial Services Act 2013 carry prudential, conduct and, for takaful, Shariah-structural obligations that sit on top of the product knowledge most compliance and operations staff already have. The Risk-Based Capital Framework, fair treatment expectations for policyholders and participants, and the separation between a takaful fund's participants' risk fund and its shareholders' fund are the parts of the job that a general insurance qualification does not cover.
This two-day programme is a compliance-level orientation, not an actuarial course. It gives compliance, risk and operations staff enough of the Risk-Based Capital Framework to understand what it is protecting against and why capital adequacy gets reported the way it does, works through market conduct and claims-handling expectations in practical terms, and spends real time on what makes a takaful operator's compliance obligations different from a conventional insurer's. Orbix is an independent training provider and is not affiliated with Bank Negara Malaysia or PIDM.
HRD Corp SBL-Khas Claimable
Programme Agenda
Day 1, 9:00 AM - 9:15 AM
Welcome and Programme Overview
Introduction to the session, objectives, and housekeeping.
Day 1, 9:15 AM - 10:15 AM
The Licensing and Prudential Framework at an Orientation Level
How the Financial Services Act 2013 and the Islamic Financial Services Act 2013 license and supervise insurers and takaful operators, the prudential standards that follow from that licence, and where insurance and takaful supervision differs from the banking supervision most compliance staff are more familiar with.
Day 1, 10:15 AM - 10:30 AM
Break
Day 1, 10:30 AM - 12:30 PM
The Risk-Based Capital Framework: What It Protects Against and Why
The Risk-Based Capital Framework's purpose, the capital adequacy ratio concept and why it matters to solvency, the risk components the framework weighs, and a compliance-level understanding of what a capital adequacy shortfall actually triggers, without the underlying actuarial mathematics.
Day 1, 12:30 PM - 1:30 PM
Lunch
Day 1, 1:30 PM - 3:15 PM
Market Conduct and Fair Treatment of Policyholders
Fair treatment expectations across the product lifecycle, from sales and disclosure through claims handling, complaint handling standards, and the conduct risk indicators a compliance function should be watching for in distribution channels, including agents and bancassurance arrangements.
Day 1, 3:15 PM - 3:30 PM
Break
Day 1, 3:30 PM - 4:45 PM
Takaful-Specific Structural Requirements
The Shariah compliance overlay that sits on top of a takaful operator's conduct and prudential obligations, the separation between the participants' risk fund and the shareholders' fund and why it matters operationally, and surplus sharing between the fund and participants.
Day 1, 4:45 PM - 5:00 PM
Day 1 Close
Recap and what to review before day two.
Day 2, 9:00 AM - 9:15 AM
Day 1 Review
Recap of day one and the questions it left open.
Day 2, 9:15 AM - 10:15 AM
Product Disclosure and Claims Handling Standards
What has to be disclosed to a policyholder or takaful participant before and at the point of sale, claims handling timelines and documentation expectations, and handling a disputed or declined claim in a way that survives a complaint to the Ombudsman for Financial Services.
Day 2, 10:15 AM - 10:30 AM
Break
Day 2, 10:30 AM - 12:30 PM
PIDM Protection and the Supervisory Relationship
PIDM's role in protecting policyholder and takaful participant benefits, the protection limits that apply, and how BNM's supervisory and enforcement approach for insurers and takaful operators actually plays out, from routine examination through to intervention.
Day 2, 12:30 PM - 1:30 PM
Lunch
Day 2, 1:30 PM - 3:15 PM
Applied Workshop: Conduct Risk Self-Assessment
Participants run a structured conduct risk self-assessment against their own product lines and distribution channels, identifying the two or three areas most likely to attract supervisory attention.
Day 2, 3:15 PM - 3:30 PM
Break
Day 2, 4:45 PM - 5:00 PM
Wrap-Up and Q&A
Key takeaways, next steps, and close.
Key Outcomes
- Describe the licensing and prudential framework insurers and takaful operators sit under
- Explain what the Risk-Based Capital Framework protects against at a compliance level, without needing the actuarial detail
- Apply market conduct and fair treatment expectations across the product lifecycle
- Explain the takaful-specific fund separation and surplus-sharing requirements
- Set product disclosure and claims handling practice to the standard a complaint review would expect
- Describe PIDM's protective role and BNM's supervisory approach for insurers and takaful operators
Training Mode Physical / Online / Hybrid / e-learning
HRD Corp SBL-Khas Claimable
Level Foundation to intermediate. For compliance, risk and operations staff at insurers, takaful operators, and insurance or takaful brokers. No actuarial background required.
Duration 2 Days (16 Hours) | 9:00 AM to 5:00 PM daily
Venue In-house at the client's premises, or delivered via the client's preferred platform (Microsoft Teams, Zoom, or equivalent)
Assessment A conduct risk self-assessment workshop against participants' own product lines, plus a written knowledge check
Certificate Certificate of Completion issued to all participants upon full attendance