The feedback was based on a consultation paper on the exposure draft of the licensing and regulatory framework for DITOs published in November last year.

According to BNM, the refinement 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 the feedback from more than 50 stakeholders was received during the consultation period, which ended in April.

In the months that followed, the central bank continued to engage various stakeholders extensively to consider their 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.