Insurtech site Ouch! bags 6-figure funds, aims to be first digital takaful operator in M’sia
Summary
is now looking to acquire final approval from Bank Negara Malaysia (BNM) to operate in its regulatory sandbox.This is in line with the startups mission to become Malaysias first digital takaful operator with the planned launch of its new digital Takaful product within Q1 2023.With the impending introduction of the first pure tech-enabled takaful solutions provider, this successful round of funding will allow us to deliver affordable cover at a bigger and wider scale, said Shazy Noorazman, CEO of Ouch!.We are proud to have received the vote of confidence from several big players and it is a sign that our approach is being recognised and well received by the market.In March 2021, Ouch! It had also initially planned to raise a pre-Series A round later that year.Takaful is the Islamic alternative to insurance, whereby a group of people agree to contribute a certain amount regularly to accumulate a pool of money.This pool of money is managed by a third party, and will be used to financially support a group member during an unfortunate event.Takaful is Shariah-compliant, meaning that its socially responsible and mutually disperses risks among participants, does not have excessive interest rates, and avoids uncertainty. The takaful surplus is also distributed to participants, instead of belonging to the insurance company.A user does not have to be Muslim to sign up for a takaful plan and receive its coverage.The goal to become Malaysias first digital takaful operatorIn late 2022, BNM announced that it had five licences up for grabs for digital insurers and takaful operators (DITOs) come 2023.The central bank had issued an exposure draft on licensing and regulatory framework for DITOs, which marks a new type of entry into digitisation.As such, it expects DITOs to enhance the financial resilience of consumers whose protection needs are currently not served or underserved, and offer diverse products with good customer experiences.Similar to how the digital banking licences were given out, there will be an observation period for licenced DITOs called a foundational phase that could last from three to five years.Obtaining the licence will expand our market and thereby potential, significantly. wants to tackle, with a simple, straightforward product that Shazy is confident resonates with the youth of today and tomorrow.To spearhead the brand in this direction, Ouch! also announced the appointment of a board member and advisor, Mukesh Dhawan.He is the former CEO of Zurich Takaful Malaysia Bhd, with 25 years of experience in the finance and insurance industry.