Malaysia provides update for DITO framework, to encourage broader participation

This framework is designed to facilitate the entry of Digital Insurers and Takaful Operators (DITO) in the country.

Bank Negara Malaysia (BNM) is pleased to share an update on the outcomes of the consultation paper for the Exposure Draft on Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITO Framework), which was issued in November 2022. 

During the consultation period, which concluded on 28 April, BNM received valuable feedback from over 50 stakeholders. 

After careful consideration of this feedback and additional insights gained, BNM has decided to refine various aspects of the DITO Framework. 

These enhancements aim to provide greater clarity, particularly for emerging and innovative business models like embedded insurance and insurance-as-a-service. The goal is to encourage broader participation from entities within the insurance and takaful value chain, ultimately realising the policy objectives of the DITO Framework.

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This engagement focused on alternative business and operational models, as well as the approach to the foundational phase. The input and feedback provided valuable insights into market trends and have played a significant role in shaping the final version of the policy document.

BNM intends to finalise this framework by the first half of 2024, demonstrating its commitment to fostering a dynamic and inclusive digital insurance landscape in Malaysia.

This framework is designed to facilitate the entry of DITOs in Malaysia, aligning with the objectives of promoting inclusion, competition, and efficiency in the industry.