KUALA LUMPUR: Bank Negara has refined several entry requirements for digital insurers and Takaful operators (DITOs) in its policy document licensing and regulatory framework.
The centre bank said, under the refined entry requirements, DITOs would observe a foundational phase over a period between three years and up to seven years to demonstrate their viability and operational soundness.
“DITOs will also be accorded a lower minimum paid-up capital during the foundational phase to be more proportionate to DITO’s business operations at their initial stages,” it said in a statement yesterday.
Apart from that, the central bank said DITOs are characterised by their digital operations, with innovative business models and products to better meet consumer needs.
“Once in operations, DITOs are envisioned to close critical protection gaps in digitally-focused segments alongside existing insurers and Takaful operators and other players in the insurance and takaful value chain,” it said.
According to Bank Negara, the refinements were made after taking into account feedback and insights from various stakeholders.
It said they were in line with the Financial Sector Blueprint 2022 to 2026 strategic thrust to advance the digitalisation of the financial sector.
“Bank Negara will issue licences to applicants who can successfully demonstrate their capacity and capability to achieve the intended policy outcomes, while still preserving a strong focus on risk management and consumer protection,” the central bank said.
Interested applicants are invited to submit formal applications to Bank Negara between Jan 2, 2025 and Dec 31, 2026.
Meanwhile, in a separate statement, the central bank said it received encouraging response from various parties in submitting applications for DITO licences in just three months into the start of the two-year application window.
“‘With DITO, Bank Negara hopes to further strengthen the financial system with more inclusive, competitive and efficient offerings.
“This is in line with the evolving needs of consumers,” said governor Datuk Seri Abdul Rasheed Ghaffour.
All interested applicants must secure consultation sessions with Bank Negara by emailing DITF@bnm.gov.my before submitting a formal application.
Applicants must meet the criteria outlined in the policy document on licensing and regulatory framework for DITOs, the central bank added. — Bernama
