PETALING JAYA: Bank Negara Malaysia (BNM) received encouraging interest from various parties in submitting applications for Digital Insurers and Takaful Operators (DITO) licence(s), just three months into the start of the two-year application window that began on Jan 2.
BNM in a statement yesterday said that this positive reception reflects a strong belief in the push for greater innovation to enhance the insurance and takaful industry.
The planned consultation sessions with interested applicants are currently underway. The application period will remain open until Dec 31, 2026.
“Efforts to close the insurance protection gaps remain uneven, with unmet needs still prevalent among underserved and unserved segments of society. For instance, less than half of Malaysians have life or family takaful protection coverage. The insurance and takaful industry must innovate to bridge these gaps, helping consumers better prepare for unexpected events,” said BNM.
By effectively leveraging technology and digital advancements, BNM said insurers and takaful operators (ITOs) can address supply and demand challenges, resulting in more personalised and diverse product offerings beyond traditional services.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour said, “With DITO, BNM hopes to further strengthen the financial system with more inclusive, competitive and efficient offerings in line with the evolving needs of consumers”.
Recognising these opportunities, DITOs are expected to offer significant value in inclusion, competition, and efficiency. Applicants are expected to understand and address the protection needs of digitally focused consumer segments by offering tailored products and services. They should aim to enhance efficiency to their end-to-end operations to deliver a seamless customer experience.
Alongside the existing ITOs, DITOs can strengthen the financial system by fostering responsible innovation for Malaysians and achieving the goals outlined in the Financial Sector Blueprint 2022-2026.
