Regional insurtech firm, PolicyStreet, has successfully obtained approval from the Labuan Financial Services Authority (LFSA) to kickstart its Takaful and Retakaful operations.
This accreditation places PolicyStreet in an exclusive category of approved Takaful and Retakaful operators in Malaysia, granting the company the authority to reinsure and underwrite Takaful products.
This strategic move enhances the competitiveness and diversity of Takaful offerings available in the region.
“We are thrilled to receive the approval for the establishment of the Takaful and Retakaful window, which opens up new opportunities for us to contribute significantly to narrowing the protection gap in the region,” said Yen Ming Lee, co-founder and group CEO of PolicyStreet.
“Our entry into the Takaful market is a testament to our dedication to financial inclusivity and serving the evolving needs of our community.
“We believe that our venture into the Takaful and Retakaful arena will not only contribute to the achievement of national insurance penetration targets but will also usher in a new era of insurance solutions tailored to the unique requirements of the Takaful market,” he added.
According to the Malaysian Takaful Association, the family Takaful new business industry recorded an impressive RM10.06 billion in gross contributions, marking an 18.3% increase from RM8.5 billion in 2021.
Concurrently, the non-life sector, encompassing general insurance and general Takaful, experienced a notable growth of 12% in 2022, compared to 3.8% in 2021.
Meanwhile, Bank Negara Malaysia’s Financial Sector Blueprint has also set an ambitious target of achieving a 4.8% to 5% insurance and Takaful penetration rate by 2026, with RAM Rating Services Bhd. estimating the current penetration rate at 4.6%, signalling considerable room for expansion within the market and a growing demand for Shariah-compliant insurance products.
“In line with our ongoing commitment to advancing Purposeful and Simple insurance solutions, the establishment of PolicyStreet’s Takaful and Retakaful window enables us to offer a broader selection of insurance solutions and proactively address the growing market need for Shariah-compliant insurance
solutions,” said Yen Ming.
By establishing a Takaful and Retakaful window, the insurtech company is committed to introducing innovative and competitive Takaful solutions that align with the values and preferences of its diverse customer base.
For more information about PolicyStreet and its innovative insurance solutions, please visit here.
