Malaysia

PolicyStreet Granted Takaful Operations Authorization by Labuan Regulator

Malaysia-based InsurTech firm PolicyStreet has been authorized by the Labuan Financial Services Authority (LFSA) to commence Takaful and Retakaful operations in the region, enabling it to offer reinsurance and underwriting services for Syariah-compliant insurance products.

The Takaful industry in Malaysia is experiencing rapid growth, evidenced by the family Takaful new business sector's gross contributions reaching RM10.06 billion in 2022, up 18.3% from the previous year. Additionally, the general insurance and Takaful sector witnessed a 12% increase, outpacing the 3.8% growth seen in 2021.

In line with the Financial Sector Blueprint of Bank Negara Malaysia, the goal is to achieve a 4.8% to 5% insurance and Takaful penetration rate by 2026. According to RAM Rating Services Bhd., the current penetration rate is at 4.6%, suggesting a promising market expansion and rising demand for Syariah-compliant insurance offerings.

Yen Ming Lee, Co-founder and Group Chief Executive Officer of PolicyStreet, said: “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. 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,”