PolicyStreet has received approval from the Labuan Financial Services Authority (LFSA) to begin its takaful and retakaful operations, marking a significant milestone for the firm and placing it among a limited group of approved takaful and retakaful operators in Malaysia.
With this new capability, PolicyStreet can now reinsure and underwrite takaful products, potentially increasing the diversity and competitiveness of takaful offerings in the region.
The Malaysian Takaful Association reported that the family takaful new business industry saw significant growth, with gross contributions reaching RM10.06 billion, an 18.3% increase from the previous year. Similarly, the non-life sector, which includes general insurance and general takaful, experienced 12% growth in 2022, a substantial increase compared to 3.8% growth in 2021.
Bank Negara Malaysia’s Financial Sector Blueprint has set an ambitious target to achieve a 4.8% to 5% insurance and takaful penetration rate by 2026. According to RAM Rating Services Bhd., the current penetration rate stands at 4.6%, indicating notable potential for market growth and an increasing demand for Shariah-compliant insurance products.
Yen Ming Lee (pictured above, center), co-founder and group chief executive officer of PolicyStreet, expressed optimism about the new opportunities this approval presents for the company. He also emphasized PolicyStreet’s commitment to financial inclusivity and the evolving needs of their community.
“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,” Yen Ming said.
Yen Ming also reiterated PolicyStreet’s commitment to offering purposeful and simple insurance solutions. The establishment of the takaful and retakaful window at PolicyStreet is a strategic move to cater to a broader range of insurance needs and to address the rising demand for Shariah-compliant insurance solutions in the market.
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