Page 52 - LIAM Annual Report 2020

50 ANNUAL REPORT 2020

RAISING PROFESSIONALISM OF AGENTS
One of the objectives of the LIFE Framework is to raise the competency and professional standards of life
insurance/takaful agents through training and education. In this regard, the insurance/takaful industry is
seeking to enhance the confidence of financial consumers with professionalism from their insurance advisors.

Professionalism would require a higher standard of behaviour from advisors, enhanced personal ethical
standards, personal integrity and competence in product knowledge to understand and service customers’
needs appropriately. It also requires a higher standard of care and conduct in acting reasonably and providing
quality services to customers of all levels of financial literacy.

In this regard, a workshop was organized with industry representatives and stakeholders to formulate a blueprint
towards the development of professional agents, followed by focus groups with CEOs and Heads of Agency
of life insurers/takaful operators, the Malaysian Insurance Institute (MII), Finance Accreditation Agency (FAA),
NAMLIFA, and another with agents, between December 2019 and early 2020.

Based on the input received from the industry and stakeholders, a Standard on Professional Insurance
Management and Practices was drafted which consists of a Charter for Professional Insurance Advisor and
industry best practices for agents, agency leaders and insurers/takaful operators. The Standard is intended to
be a voluntary standard that provides guidance on personal behaviour for the professional insurance advisor
in the form of a charter.
The industry has engaged with BNM in finalizing the standards for implementation.

Life Insurance Association of Malaysia