Keen interest in digital insurance licences - Bank Negara

KUALA LUMPUR: Bank Negara Malaysia says it has received encouraging interest for digital insurers and takaful operators (DITO) licences, just three months into the start of the two-year application window that began on Jan 2 this year.Despite this, applications for the licences will open until end of 2026, Bank Negara said.The central bank added that the planned consultation sessions with interested applicants are currently underway.

The successful applicants may be announced during or after this period, if any.Bank Negara said the positive reception reflects a strong belief in the push for greater innovation to enhance the insurance and takaful industry."With DITO, Bank Negara hopes to further strengthen the financial system with more inclusive, competitive and efficient offerings in line with the evolving needs of consumer," Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour said.



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.Bank Negara also said interested applicants must consult the central bank before submitting a formal application.Industry specialists reportedly said fintech financial technology) and insurtech (insurance technology) firms, as well as a few established digital insurers in the region, were the likely applicants for such a licence in Malaysia.

Bank Negara reportedly may be open to having big digital insurance players from Asia participate in the industry. These could include China's Ping An and Hong Kong's ZA Insure.© New Straits Times Press (M) Bhd.