Registration procedures and requirements on professionalism of insurance adjusters have been updated by the regulator Bank Negara Malaysia (BNM).
The new updates outlined in a public notice issued by the BNM on 29 August 2025 set 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.
The new 15-page policy document aims to enhance the professionalism of registered adjusters in managing its business and dealing with customers. The updated requirements include fit and proper criteria, effective governance and oversight, and business conduct requirements on the registered adjusters.
Major measures spelt out in the document 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 and continuous development – Adjusting employees must undergo a minimum of 15 hours of continuous professional development annually to keep up with industry and technological changes.
Transparency and 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. The new policy supersedes the previous guidelines issued in June 2023.