News Asia14 Dec 2012

Malaysia:Removal of cap on acquisition costs will affect margins, warns Fitch

14 Dec 2012

Bank Negara Malaysia's (BNM) intention to eliminate life insurers' cap on acquisition costs and fire tariff pricing structure could undermine the stability of insurers' operating margin, says Fitch in a recent report. The impending implementation of Personal Data Protection Act (PDPA) - gazetted in June 2010 - could also modify insurers' business practice, potentially leading to higher compliance costs.

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