Bank Negara Malaysia (BNM) has issued updated Registration Procedures and Requirements on Professionalism of Adjusters, setting out stricter rules to enhance governance, integrity, and professional standards in the insurance adjusting industry.
The new policy, which takes effect immediately, outlines the registration process for new adjusters and imposes ongoing obligations on existing registered adjusters, their shareholders, directors, and key responsible persons.
Among the key measures include Fit and Proper Standards – Shareholders and senior officers must meet stringent criteria, including clean records on fraud, bankruptcy, and regulatory breaches.
Corporate Governance – Boards and senior management of adjusters are required to implement robust internal policies, conflict-of-interest safeguards, and strong oversight of employees’ work quality.
Business Conduct Rules – Adjusters must ensure independence, objectivity, and timeliness in handling claims, with clear disclosure of methods and sources used in loss assessments.
Training & Continuous Development – Adjusting employees must undergo a minimum of 15 hours of continuous professional development (CPD) annually to keep up with industry and technological changes.
Transparency & Accountability – Adjusters are required to notify BNM promptly of material changes such as capital, management, or shareholding structure, and maintain records of their adjusting work for at least seven years.
BNM said the measures aim to ensure loss adjusters carry out their role of independently assessing insurance and takaful claims with greater professionalism, ultimately strengthening consumer confidence in claims processes.
The new policy supersedes the previous guidelines issued in June 2023.
