Malaysian life insurers’ finances could be dealt a blow if commission rates remain unchanged despite the central bank’s implementation of the minimum allocation rate (MAR).
Bank Negara Malaysia’s MAR will come into effect in January, 2019, and will require that insurers allocate a larger proportion of new business premiums to the customer’s funds in the earlier years of a policy, according to a report by The Star, citing Maybank Investment Bank Research (MIBR).
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