Malaysian insurtech company PolicyStreet has received the regulatory nod from the Labuan Financial Services Authority (LFSA) to begin its Takaful and Retakaful operations in the region.
By securing the necessary approvals, PolicyStreet is now equipped to reinsure and underwrite Takaful products to address the growing market need for Syariah-compliant insurance solutions.
The Malaysian Takaful industry has shown significant growth, with the family Takaful new business sector recording RM10.06 billion in gross contributions in 2022, an 18.3% increase from the previous year. The general insurance and Takaful sector also saw a 12% growth, surpassing the 3.8% growth in 2021.
Bank Negara Malaysia, under its Financial Sector Blueprint, aims to reach a 4.8% to 5% insurance and Takaful penetration rate by 2026. Current estimates by RAM Rating Services Bhd. place the penetration rate at 4.6%, indicating potential for market growth and an increasing demand for Syariah-compliant insurance products.
“We are thrilled to receive the approval for the establishment of the Takaful and Retakaful window, which opens up new opportunities for us to contribute significantly to narrowing the protection gap in the region.
We believe that our venture into the Takaful and Retakaful arena will not only contribute to the achievement of national insurance penetration targets but will also usher in a new era of insurance solutions tailored to the unique requirements of the Takaful market,”
said Yen Ming Lee, Co-founder and Group Chief Executive Officer of PolicyStreet.
