Minimum Capital Fund Requirements for Digital Insurers and Digital Takaful Operators Gazetted
07 January 2025
- introducing a definition of ‘licensed digital insurer’;
- amending the definition of ‘foundational phase’ to include a foundational phase for licensed digital insurers as a minimum period of three years up to a maximum period of seven years from the date the licensed digital insurer commences its insurance business, as determined by BNM; and
- stipulating that the minimum capital funds for a licensed digital insurer shall be RM30,000,000.00 during the foundational phase and RM100,000,000.00 after the foundational phase.
P.U.(A) 475/2024 amends the Islamic Financial Services (Minimum Amount of Capital Funds or Surplus of Assets over Liabilities) (Licensed Person) Order 2013 [P.U.(A) 209/2013] as follows:
- introducing a definition of ‘licensed digital takaful operator;
- amending the definition of ‘foundational phase’ to include a foundational phase for licensed digital takaful operators as a minimum period of three years up to a maximum period of seven years from the date a licensed digital takaful operator commences its takaful business, as determined by BNM; and
- stipulating that the minimum capital funds for a licensed digital takaful operator shall be RM30,000,000.00 during the foundational phase and RM100,000,000.00 after the foundational phase.
The amendments to P.U.(A) 58/2022 and P.U.(A) 59/2022 accord with the requirements set out in the DITOS Policy Document.
Interested applicants for digital insurance licences and digital takaful operator licences are to consult BNM before submitting formal applications from 2 January 2025 to 31 December 2026. BNM has indicated that it will not be limiting the number of licences to five as previously announced
1.
Our article on the DITOS Policy Document can be accessed
here.
Alert by Lee Ai Hsian (Partner) of the Corporate Practice of Skrine.