BNM issues Policy Document on Claims Settlement Practices

3 October 2024

On 1 July 2024, BNM issued a Policy Document on Claims Settlement Practices (“Policy Document”) outlining the minimum standards on the handling assessment of general insurance and general takaful claims. This must be met by licensed insurers carrying on general business and licensed takaful operators carrying on general takaful business as well as registered adjusters.

The Policy Document aims to ensure fair, transparent and timely outcomes in claims settlement practices through the imposition of regulatory requirements and expectations for licensed insurers and takaful operators (“ITOs”) and registered adjusters.

Another key objective of this Policy Document is to promote wider adoption of digital solutions by ITOs to reduce frictions, enhance efficiencies and improve customer experience. This in turn will facilitate better management of claims costs and containment of fraud risk(s) by ITOs.