BNM to refine several aspects of Dito Framework

KUALA LUMPUR - Bank Negara Malaysia (BNM) will be refining several aspects of the Digital Insurers and Takaful Operators (Dito) Framework, based on the feedback on the consultation paper on the Exposure Draft on Licensing and Regulatory Framework for DITO published in November last year.

BNM said this includes enhancements to provide clarity for 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.

"BNM plans to finalise the framework by the first half of 2024,” the central bank said in a statement today.

The Exposure Draft outlines the proposed framework to facilitate the entry of Ditos in Malaysia that can offer strong value propositions to realise the policy outcomes of inclusion, competition, and efficiency.

It said feedback from more than 50 stakeholders was received during the consultation period, which ended on April 28, 2023.

In the months that followed, the central bank continued to engage various stakeholders extensively to consider the feedback, particularly in relation to alternative business and operational models, as well as on the approach to the foundational phase.

"The input and feedback received have been insightful in providing additional perspectives, including market trends, to shape the final version of the policy document,” added BNM. - BERNAMA