The Policy Document on Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITOs) sets out requirements to facilitate the entry of DITOs that can deliver strong and meaningful value propositions of inclusion, competition and efficiency.  These include:

1. the types of business models that can be adopted by licensed DITOs;
2. application requirements for the establishment and licensing of DITOs; and
3. regulatory requirements to be observed by licensed DITOs, such as the prudential and business conduct requirements, permissible product distribution channels and physical access points.

Taking into account the feedback received and insights gained from various stakeholders, Bank Negara Malaysia (BNM) has further refined several aspects of the entry requirements proposed in earlier consultations. DITOs will 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.

 Interested applicants are invited to submit formal applications to BNM between 2 January 2025 and 31 December 2026. Prior to submitting the applications, all interested applicants must consult BNM and may start doing so from 1 October 2024 via [email protected]. 

Issuance Date
9 July 2024

Effective Date
2 January 2025

Issuing Departments
Jabatan Pembangunan dan Inovasi Kewangan
Jabatan Sistem Kewangan Islam

Applicability
Licensees under Financial Services Act 2013
Licensees under Islamic Financial Service Act 2013

Relevant Acts
Financial Services Act 2013
Islamic Financial Service Act 2013

Document

• Session by Bank Negara Malaysia with Potential Applicants of Digital Insurers and Takaful Operators (DITO) *New
• Policy Document on Licensing and Regulatory Framework for Digital Insurers and Takaful Operators
• Frequently Asked Questions