Malaysia – Legal Updates July 2024
Financial Services
Licensing Framework for Digital Insurers and Takaful Operators
Bank Negara Malaysia (“BNM”) has finally issued its policy document on the licensing framework for digital insurers and takaful operators (“DITOs”) which will come into effect on 2 January 2025.
Pursuant to the policy document, DITOs need to, among others:
- develop strong value propositions to serve the unserved and underserved market, provide competitive offerings and enhance consumer experience via the adoption of advanced digital technology and innovative business models
- develop a clear and comprehensive seven-year business plan for BNM to assess the viability of the applicant’s business strategies, its ability to deliver the intended value propositions, and determine whether the applicant has adequate financial, managerial and organisational resources in place to support its operations
- ensure that its distribution channels are innovative to promote inclusive protection and promote operational efficiencies.