At Deloitte, our unwavering passion for all things digital drives us to stay at the forefront of technological innovation.

As the digital landscape continues to evolve, we remain committed to providing unparalleled support and empowering our clients in the Insurance and Takaful sector to achieve their full potential in their digital transformation journey.

We invite you to explore our comprehensive range of industry insights, best practices, and emerging trends, with a particular focus on digital insurance and digital takaful, where we have made significant strides in this field.

Our Point of View

Following the success of the Digital Banking License issuance in 2022, and in line with Bank Negara Malaysia’s ("BNM") aspirations as stated in Financial Sector Blueprint 2022–2026 to advance digitalisation of the financial sector and elevate the dynamism of the Insurance and Takaful sector, BNM aims to issue up to five (5) Digital Insurers and Takaful Operators (“DITO”) licences in the near future.

DITO are envisaged to carry on insurance or takaful business wholly (or almost wholly) through digital means and drive new types of business models to meet diverse consumer needs through wider product choices and more efficient service quality. Our comprehensive range of viewpoints covers a diverse array of topics, from the importance of DITO to their distinctive contributions to the industry, as well as how they differentiate themselves from traditional incumbents. Additionally, our viewpoints provide guidance on navigating the DITO license application journey in Malaysia, and offer practical views to help you achieve success in the digital era of Insurance and Takaful.

Click the links below for our viewpoints on:


What is DITO?

Did you know that only 15% of the SMEs in Malaysia have insurance/ takaful cover (typically against fire and property damage risks), and only 25% of working adults among households in the lower income group have some form of life insurance or family takaful cover (in contrast to the working adults of the general population that stood at 59%)? DITO are mandated to address critical protection gaps in Malaysia by serving the unserved and underserved market and enhancing consumer experience, wholly or almost wholly through digital or electronic means.

In line with the best interest of Malaysia criteria, DITO are required to demonstrate meaningful value propositions that will contribute towards long-term social and economic benefits for Malaysia.

We are delighted to share our publication that features essential insights into a wide range of topics such as industry statistics, key components of the BNM DITO Licensing and Regulatory Framework, and success factors for the DITO license application.

Click here to access the publication.

Our Events

The Malaysia DITO Conference 2023 – 21 February 2023

This inaugural event in collaboration with the Malaysia Digital Economy Corporation (“MDEC”) and Malaysian Takaful Association (“MTA”) brings together potential applicants and shareholders of DITO to explore the prospects and opportunities for DITO, listen to success stories from other DITO launches around the globe, as well as discuss the business and technical aspects of the DITO license application journey.

The conference offers an exceptional platform for in-depth exploration of a broad range of topics related to digital insurance and takaful, through informative speeches and two insightful panel sessions.

Feature speakers include the CEO of Deloitte Malaysia, CEO of MTA, C-suites of existing Digital Insurers, Director of the MDEC Digital Finance and Islamic Digital Economy, Executive Directors from Deloitte Consulting SEA and Deloitte Malaysia, and the Director of Islamic Finance Department from Bank Negara Malaysia.

Here are some key takeaways from the conference:
By leveraging on digital innovation, DITO can improve its operational efficiency by automating processes, streamlining operations, and incorporating AI and ML technologies into its key processes from onboarding, underwriting to product distribution, claims processing and payments. This can result in faster turnaround times, lower operational costs, and a more seamless experience for customers.

For example, insurance is often viewed as something that is sold rather than something people actively seek to purchase. One solution to this challenge is the implementation of AI chatbot technology to help answer simple insurance terminology questions and provide basic education about insurance to better prepare the consumer for more meaningful conversations before purchasing a policy.

Digitalisation can also provide greater visibility into business operations and data, allowing DITO to respond promptly to shifting market conditions and evolving customer demands. DITO can adopt an instant gratification approach in its reward program and proactively anticipate or predict consumer preferences and demands, giving them a competitive edge in the market, ultimately leading to increased customer satisfaction and loyalty.
The path to profitability is important for DITO to ensure that it has a clear plan to generate sustainable revenue and remain financially viable in the long run.

To develop a robust path, it is essential for DITO to be backed by the right consortium partners who can offer valuable capabilities to enhance its overall business strategy. By leveraging on the consortium’s well-established ecosystem such as existing infrastructures and distribution channels, DITO can efficiently deploy a range of digital products and services while maintaining active engagements with its customer base. This approach can significantly lower the cost of customer acquisition and cost to serve, allowing DITO to break even faster.

Incorporating robust prudential standards into the development of DITO's path to profitability can play a crucial role in securing long-term sustainability and success of the business. By prioritising effective risk management and compliance with financial crime measures, DITO can create a secure foundation for its operations and build trust with customers and investors. Additionally, implementing prudential standards can help DITO navigate potential regulatory challenges and maintain compliance with industry regulations, which is essential for sustained profitability and growth.

The introduction of DITO to the Insurance and Takaful sector presents an opportunity to make a meaningful difference in achieving the aspiration of "Finance for All," as outlined in BNM’s Financial Sector Blueprint.
Following the success of the Digital Banking Licence issuance in 2022, in line with the third key strategic thrusts of the BNM Financial Sector Blueprint 2022–2026 to advance digitalisation of the financial sector, BNM issued the Exposure Draft for the Licensing and Regulatory Framework for DITO, with an aim to issue up to five DITO licences.

The DITO licences represent a significant opportunity for market players to bring innovative Insurance and Takaful products to the unserved and underserved. In this regard, the applicant must demonstrate how it plans to fulfil the mandated value propositions, namely Inclusion, Competition and Efficiency, while complying to regulatory requirements applicable to existing licensed Insurers and Takaful Operators. The 5-year business plan must include a clear plan on the DITO’s path to profitability and a roadmap for developing technology solutions, including front to back-office operations, especially on how products and services will be rolled out to the target consumers. In addition, shareholding structure should reflect a cohesive approach to bring together various strengths of consortium partners to work together towards achieving a common goal. Lastly, as exiting the financial system is a complex and intricate process, the exit plan may also consider the principles laid out in the BNM Recovery and Resolution Planning Policy Document to ensure a well-managed and efficient exit strategy.

Contact Us

Justin Ong

Financial Services Industry Leader, Deloitte Malaysia

Bonnie Lee

Associate Director, Risk Advisory, Deloitte Malaysia

Rebecca Faun

Manager, Risk Advisory, Deloitte Malaysia