Bank Negara Malaysia Plans to Form Regulatory Framework for Insurtech

Bank Negara Malaysia (BNM), the country’s Central Bank, announced that it plans to form a regulatory framework for insurance technology (insurtech) in 2022. The plans were laid out on the 24th of January 2022 as part of BNM’s Financial Sector Blueprint 2022-2026 to encourage greater efficiency and competitiveness across the country’s financial sector.

Why it Matters?

The planned framework covers both conventional and Islamic Takaful insurance firms. It is aimed at accelerating the digitisation of the country’s insurance industry and allowing BNM to monitor the plans set for increasing licensing for new digital and takaful firms from 2023. BNM’s plans are against the backdrop of encouraging innovation across Malaysia’s...