BNM Head Aims to Give Malaysians More Digital Options in Finance

An important motivation for introducing digital players in insurance and takaful is to serve the objective of expanding coverage. Our insurance penetration is still low. Only 15% of SMEs have insurance or takaful cover, and 25% of lower-income working adults have some form of life insurance and family takaful cover. Digital insurers and takaful operators can play a role by introducing more innovative offerings that better serve these segments. New players will inject greater dynamism into the sector. We also want to also see traditional players undertake digital transformation to remain relevant in the face of competition.