It therefore gives me great pleasure today to launch the Consumer Education Programme for the insurance and takaful industries. This represents an important step in the ongoing evolution of the development of our financial system. Indeed, this also represents a part of the overall efforts to promote market integrity and consumer protection over the whole spectrum of banking, insurance and takaful activities in the market. For consumers to fully realise the benefits of increased opportunities available in this continuously changing financial environment, consumers need to be in a position to actively manage their financial assets while at the same time safeguard their financial future. The public response to the launch of the Consumer Education Programme for the banking sector early this year has been most encouraging. To date, more than two million visitors have accessed the Bank Negara Malaysia’s “Banking Info” website and more than 360,000 booklets have found their way into the hands of consumers. The launch of the Consumer Education Programme for the insurance and takaful industries today will be part of this on-going effort to enhance the ability of consumers to understand and draw meaningful comparisons of alternative financial products and make betterinformed decisions in financial planning. In formulating a consumer education strategy, the distinct features of the insurance industry have been taken into consideration to meet the information needs of insurance consumers. Insurance contracts are essentially formed on the basis of disclosures made by prospective policyholders about the risks to be insured.

The establishment of the complaints unit by insurers and takaful operators is expected to promote a more pro-active approach in the management of complaints. Such consumer complaints also provide valuable information regarding any shortcoming in the products and services. Responding to consumer complaints also promotes customer goodwill. Certainly, as consumer awareness and financial literacy increases with the implementation of this Consumer Education Programme, it is essential for financial service providers to recognise the opportunity to build customer loyalty and increase customer retention through this mechanism. Ladies and Gentlemen, The advent of new technology and other market innovations will bring new challenges and possibilities for businesses and consumers. We can expect that this pace of change in the financial services industry will continue to increase. In striving to adjust to these changes, we should not underestimate the significant improvements in financial and business practices that can be achieved by empowering consumers through education. BIS Review 38/2003  3  As we continue on this drive to raise the standards of individual economic and financial well-being through consumer education, the broad involvement of all parties involved in every stage of the programme’s implementation is vital to encourage expanded linkages between business and consumer education on an ongoing basis. Our success in this important endeavour will have a significant bearing on how well prepared our society is to meet the challenges of an increasingly dynamic and complex financial environment.