Insurance industry ready for new framework

The Star, Thursday, November 6, 2008, PETALING JAYA: The insurance industry is ready to implement the Risk Based Capital framework effective Jan 1 as it sees the framework helping them to develop a strong capital buffer.

The framework would also further strengthen the resilience and robustness of their risk management infrastructure and capability, Bank Negara said in a statement after a meeting with the industry leaders yesterday.

The central bank said 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 on emerging trends and developments that may affect the sector,” it said.

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

Source from: The Star Online, 6 November 2008
URL:
http://biz.thestar.com.my/news/story.asp?file=/2008/11/6/business/2470803&sec=business