Bank Negara Malaysia (BNM) has 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 2 January 2025. Planned consultation sessions with interested applicants are currently underway.
The application period will remain open until 31 December 2026. BNM may announce successful applicants during or after this period, if any.
The positive reception reflects a strong belief in the push for greater innovation to enhance the insurance and takaful industry.
Efforts to close insurance protection gaps remain uneven in Malaysia 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. By effectively leveraging technology and digital advancements, insurers and takaful operators (ITOs) can address supply and demand challenges, resulting in more personalised and diverse product offerings beyond traditional services.
“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,” said BNM governor Abdul Rasheed Ghaffour.
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.
BNM wishes to reiterate that all interested applicants must consult BNM before submitting a formal application.