| Lyna Mohamad |
THE global insurance industry observes mixed performances in the life insurance industry due to different buying behaviour trends such as the emerging markets, policyholders citing health fears and advisor recommendations as key motivations.
Managing Director of Autoriti Monetari Brunei Darussalam (AMBD), Yusof bin Haji Abdul Rahman, highlighted that in countries such as Japan, Hong Kong and South Korea, the retirement plan makes one of the most important instruments in the life insurance industry.
“I urge players in Brunei Darussalam to continuously and collectively build efforts to educate the public on the importance of these future benefits,” he said during the official launching of the Brunei Insurance and Takaful Association (BITA) and ‘My Takaful and Insurance Book’ at the Vanda Restaurant of the Orchid Garden Hotel yesterday. The insurance industry currently accounts for six per cent of the financial services sector in the country.
With 13 insurance companies licensed by AMBD comprising eight domestic and five international companies, Yusof bin Haji Abdul Rahman believes in the further growth of the sector through having a more dynamic and conducive business environment especially with the Takaful Order 2008 and Insurance Order 2006 in place.
Within the Brunei Vision 2035, various economic clusters have been identified. The financial services sector is among them and it is hoped the takaful and insurance industry can play a vital role in contributing to the development of this area in the Sultanate.
To achieve these goals, AMBD and BITA must work closely to facilitate the growth in the insurance infrastructure and services. However, the main concern has always been on market penetration.
This issue, he explained, does not only occur in Brunei but has been repeatedly discussed in the Asean insurance industry.
It remains relatively low due to a lack of understanding and appreciation on the benefits of takaful and insurance, which should be looked into for a better future in the industry.
On this note, he highlighted the introduction of the ‘My Takaful and Insurance Book’, to promote a better understanding on both takaful and insurance concepts among the public.