| Azlan Othman |
ONE of the major challenges faced by the insurance industry is the lack of awareness of the people about it, said Yusof bin Haji Abdul Rahman, Managing Director of Autoriti Monetari Brunei Darussalam (AMBD), at the opening of the Insurance and Takaful Day yesterday at The Mall in Gadong.
“This year’s theme of the day, ‘Know Your Insurance or Takaful’, conveys a very simple yet powerful message. It is undoubtedly a very important reminder, not just to customers and Takaful and insurance providers, but also to the society at large.
“For customers, it emphasises the need to promote their empowerment with information and knowledge regarding the ins and outs of their insurance policy or Takaful certificate so that it will satisfy them that they have obtained the most appropriate protection and level of coverage that suit their needs.
“It also means that they know beforehand what is expected of them and what they can expect from their insurance or Takaful provider should they need to make a claim,” said Awang Yusof said.
“A study on the Takaful and insurance industry, undertaken by AMBD at the end of 2016, has found that customers place great importance on the need to understand the product through interacting with intermediaries or direct sales channels before making a decision to purchase life insurance or family Takaful.
“This, in turn, means that insurance and Takaful providers should provide the necessary tools to help empower their customers and inculcate trust in their services. This could include simplifying their sales processes, spending a few extra minutes with their customers to ensure the customer is well informed of the products and services on offer, following-up with customers and confirming that they understand their insurance policy or Takaful certificate well.”
Yusof also said for the society, the theme means empowering individuals and businesses with the understanding that insurance and Takaful play an integral part in their lives. Without motor insurance or Takaful, motorists would not be able to drive their cars on the road.
“This would also mean that public transportation and the logistics industry would not be able to work efficiently without insurance. Many professionals, such as doctors, lawyers or consultants, would not be able to carry out their jobs without worry if there is no professional indemnity insurance.
“We now see a growing trend in Brunei Darussalam of people using courier services and postal services to send and receive goods from abroad. Would these people and businesses be willing to send or receive goods from unseen parties without the comfort or protection of insurance or Takaful in case the goods get lost in transit, or against the seller’s or buyer’s fraud? These are just some of the examples of how Takaful and insurance can play a crucial role in our everyday lives without us knowing so.”
Yusof added that AMBD places high importance on consumer education and financial inclusion. “We support the ambition of the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam to nurture a savings culture among Bruneians.
“The Total Debt Service Ratio (TDSR) measure is an example of this. AMBD has also been embarking on a series of awareness campaigns on financial services spanning banking, credit bureau, capital markets and insurance, with the intention to raise awareness.
“At the same time, it is of great importance that AMBD does not stand alone in the pursuit of enhancing consumers’ understanding of financial products and services. Instead, to be effective and to ensure a wider scope of coverage of financial education, there must not only be collaboration and cooperation among relevant agencies, but also commitment in achieving the vision of a financially literate generation.
Meanwhile, Haji Osman bin Haji Mohd Jair, Chairman of Brunei Insurance and Takaful Association (BITA), said that this is the 4th edition of the Insurance and Takaful Day observed in the country.
To enhance public awareness, BITA has introduced the Motor Claims Guideline Brochure which is available at the association’s booth. BITA also launched an awareness video to assist public in better understanding the procedures when they sign up with a general agent, he added.
This is a dynamic year as this year BITA sees the drafting of the Life Agents Handbook, the initiation of competition order from the Department of Economic Planning and Development (JPKE). With the restructuring of the management committee this year, BITA has an additional vice-chairman for life insurance/family Takaful. This year, BITA also employed a full time BITA manager who would run the operations of the association.
The event aimed to promote awareness among the public to help them better understand their insurer as well as their rights, launch an awareness video on proper transaction through registered general agents and introduce the Motor Claims Guidelines (MCG) Brochure.
The post Lack of public awareness posing a big challenge to insurance industry appeared first on Borneo Bulletin Online.