Global insurers are already aware of the large untapped market in Malaysia and are knocking hard on our doors notwithstanding the current economic setback. Another critical area which can make a difference to a financial institution's operation is technological advancements. While technological development has swept through the business fraternity worldwide, Malaysian insurers have yet to fully realise its potential as many have yet to venture on-line. Many still focus the use of technology on accounting or record keeping functions. To maintain a competitive edge to be able to render prompt and efficient service to the insuring public, it is important for insurers to extend technological development to cover the front-end operations.
Takaful business is yet another area that holds tremendous potential for insurers.
Bank Negara has identified the strengths and weaknesses of the takaful industry and will be working with the takaful operators to draw up a strategic five-year plan to spearhead its development. As in the past, Bank Negara will continue to put in place measures to further spur the development of the insurance industry. As usual, we welcome suggestions from you and other proposals you wish Bank Negara to consider. Under this present economic condition, it is especially important for both the regulators and the industry to collabrate to tide over this difficult period. It is hoped that this will help ease the financial burden on the agency force during this period of slow growth in new business.