Bank Negara Malaysia (BNM) has reported strong interest from various parties in submitting applications for Digital Insurers and Takaful Operators (DITO) licences, just three months into the two-year application window, which began on 2 January 2025. The positive response underscores confidence in the push for innovation within the insurance and takaful industry, with consultation sessions with prospective applicants currently underway. The application period remains open until 31 December 2026, and BNM may announce successful applicants during or after this timeframe.

Despite ongoing efforts to close insurance protection gaps, many Malaysians remain underserved or unserved, with less than half of the population having life or family takaful coverage. The insurance and takaful industry must innovate to address these gaps, ensuring that consumers have access to financial protection to better prepare for unexpected events. By integrating technology and digital advancements, insurers and takaful operators can tackle supply and demand challenges, enabling more personalised and diverse product offerings beyond traditional services.

Governor Dato’ Seri Abdul Rasheed Ghaffour emphasised that the introduction of DITO is expected to strengthen Malaysia’s financial system by fostering more inclusive, competitive, and efficient insurance and takaful services that align with evolving consumer needs. Recognising the potential of digital insurers and takaful operators, BNM expects applicants to demonstrate a clear understanding of the protection needs of digitally focused consumer segments and to offer tailored products and services. These new operators should also prioritise efficiency across their operations to enhance customer experience, while working alongside existing insurers and takaful operators to drive responsible innovation in the financial sector.

DITOs are expected to contribute significantly to achieving the goals outlined in the Financial Sector Blueprint 2022-2026, which aims to enhance financial resilience and accessibility for Malaysians. By leveraging digital capabilities, these operators can improve penetration rates and ensure that insurance and takaful products reach a broader segment of the population.

BNM reiterated that all interested applicants must engage in consultations with the central bank before submitting a formal application. Prospective applicants are encouraged to schedule consultation sessions via email at [email protected] and must meet the criteria set out in the Policy Document on Licensing and Regulatory Framework for DITOs. Further details on the licensing process are available in the updated Frequently Asked Questions published by BNM.

• TAGS:
• Bank Negara Malaysia
• BNM
• Dato’ Seri Abdul Rasheed Ghaffour
• Digital Insurers
• Digital Insurers And Takaful Operators (DITOs)
• DITO Framework
• Insurance
• Takaful Operators