BNM Targets First Half of 2024 to Finalise DITO Framework

BNM Targets First Half of 2024 to Finalise DITO Framework

by October 5, 2023

Bank Negara Malaysia (BNM) has concluded its consultation on the Exposure Draft concerning the Licensing and Regulatory Framework for Digital Insurers and Takaful Operators (DITO Framework) initiated in November 2022.

The draft proposes a framework to support the introduction of DITOs in Malaysia, aiming for policy outcomes of inclusion, competition, and efficiency.

The consultation period, which concluded on 28 April 2023, received feedback from over 50 stakeholders. Subsequent months saw BNM’s engagement with various entities to address the responses, especially concerning alternative business, operational models, and foundational phase approaches. The feedback offered valuable perspectives and highlighted market trends.

In light of the received insights, BNM intends to refine the DITO Framework, clarifying provisions for innovative models like embedded insurance and insurance-as-a-service.

This revision seeks to boost participation across the insurance and takaful value chain. Bank Negara Malaysia anticipates finalising the framework by the first half of 2024.