The study also revealed bias towards highlighting the benefits of a product in explanation given by sales agents, while risks and costs were not adequately explained. The Bank is concerned with these findings as they undermined informed decision and judgements by consumers. We shall act on this findings. Insights drawn from the study will serve as input to the Bank’s comprehensive planned review of the mandatory disclosure regime, next year. 2  BIS central bankers’ speeches  The Bank will also work with key stakeholders including industry’s representatives to undertake targeted financial education strategies to elevate public awareness on the importance of reading and understanding product disclosure materials and financial agreements. Offer customised solutions that meet the needs of consumers It is no great secret that truly great businesses have one thing in common; they cultivate customer trust, every step of the way. Cultivating trust requires a systematic process, first, traditional distribution models of products and services must adapt with targeted solutions that meet individual needs and risk appetites. Second, marketing strategies must adopt a paradigm shift from product-push to an advisory model and provide better service orientation. Third, the industry must reflect to ask if it has done enough for its customers to meet their needs and demands. On many occasions, the industry has been reminded that in transitioning into the new landscape, it can no longer afford to rely solely on traditional business models and delivery channels.

This is especially true in life insurance, where policies bought represent a long-term commitment. The industry needs to quickly comprehend changing customers’ preferences and shoulder the responsibility of inculcating responsible consumer behaviour by expanding and deepening the scope of customers’ education and awareness. Through greater understanding of the respective responsibilities, disputes and potential conflicts could be minimised. Balancing profitability with serving the needs of customers for long-term sustainability Industry players that focus on short-term gains will not achieve long-term sustainability. The traditional view that the sole purpose of business is to make money the more the better is no longer a tenable view today. Institutional logic now dictates that companies are more than instruments for generating money; the value that a company creates should be measured not just in terms of short-term profits but also in terms of how it sustains the conditions that allow it to flourish over time. What this means is that industry players today should not be fixated solely on generating profits but rather investing in relationships with their customers. If the industry can meet the needs of its customers, then that relationship will sustain the insurance company or takaful operator even during distressing periods. Regularly benchmark against the best to measure your performance Benchmarking exercises have proven to drive performance improvement by facilitating comparison and performance measurement amongst industry players. It is a yard stick that measures how your company faired in delivering its mandates to its shareholders and customers.