KUALA LUMPUR: Bank Negara Malaysia will issue licences to any digital insurers and takaful operators that meet its requirements instead of limiting the number to just five.
This follows the release of the central bank's Policy Document on Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITOs) today.
Applications are open from Jan 2, 2025 to Dec 31, 2026, although interested applicants must consult with Bank Negara before submitting their bids.
The central bank, in a statement, said it had refined several aspects of the entry requirements proposed in earlier consultations after taking into account the feedback received and insights gained from various stakeholders.
DITOs will observe a foundational phase of between three years and seven years to demonstrate their viability and operational soundness.
They will also be accorded a lower minimum paid-up capital during the foundational phase to be more proportionate to their business operations at their initial stages.
"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 ITOs and other players in the insurance and takaful value chain," Bank Negara said.