On Oct. 5, MLY CB updated on proposals re digital insurer licensing.
MLY CB updated on the progress of the public consultation on the exposure draft on licensing framework for digital insurers and takaful operators (DITO framework).
Document dated Oct. 5, 2023, was received on Oct. 9, 2023 due to a new feed.
Received feedback from more than 50 stakeholders during the consultation period.
MLY CB has continued to to engage various stakeholders extensively to consider the feedback received from the exposure draft, particularly in relation to alternative business and operational models, as well as on the foundational phase approach.
Enhancements based on the feedback provide clarification with regard to emerging and innovative business models such as embedded insurance and insurance-as-a-service.
This aims to encourage wider participation from players in the insurance and takaful value chain that can deliver the intended policy outcomes of the DITO framework.
Further feedback is welcomed; MLY CB plans to finalize the framework by H1 2024.
Jul. 2024 Policy Document
On Jul. 9, 2024, MLY CB issued policy document on licensing and regulatory framework for digital insurers and takaful operators (DITOs), along with accompanying FAQs.
Outlines permissible business models for licensed DITOs, and specifies requirements.
Regulatory requirements include adherence to prudential standards, business conduct rules, allowable product distribution channels, and physical access requirements.
Taking into account views and insights gained from various stakeholders, MLY CB said it further refined several aspects of entry requirements proposed in earlier consults.
DITOs will observe a foundational phase over a period between three years and up to seven years in order 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.
Applications for licensing can be made between Jan. 2, 2025 and Dec. 31, 2026.
Before submitting, applicant must consult MLY CB; may start doing so from Oct. 1.
