Malaysia launches new framework for digital insurers

The policy eases entry for Takaful Operators.

Bank Negara Malaysia (BNM) has introduced a new policy which is aimed at advancing digitalisation within finance. 

The Policy Document outlining the Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITOs) aligns with the Financial Sector Blueprint 2022–2026.

The policy eases entry for DITOs, emphasising inclusion, competition, and efficiency. 

Applicants can apply from 2 January 2025, with revised entry requirements reflecting stakeholder feedback. 

During an initial phase of three to seven years, DITOs will operate with lower minimum capital, focusing on digital operations and consumer needs while ensuring risk management and consumer protection.