Application for digital insurers and takaful operators’ licence opens with continued interest

28 April 2025

On 10 March 2025, Bank Negara Malaysia (“BNM”) announced that applications for the digital insurers and takaful operators (“DITOs”) licence will be accepted until 31 December 2026. BNM have indicated that all interested applicants are required to consult BNM before submitting a formal application, and would need to meet the criteria outlined in the Policy Document on Licensing and Regulatory Framework for DITOs. BNM aims to address insurance protection gaps, as fewer than half of Malaysians have life or family takaful coverage. DITOs are seen as a key solution to bridge these gaps and are expected to offer innovative and digitally tailored products to meet the needs of underserved segments of the population, enhancing inclusion, competition, and efficiency in the industry.