Insurtech PolicyStreet has gained approval from the Labuan Financial Services Authority (LFSA) to commence its Takaful and Retakaful operations.
This authority means PolicyStreet is now part of the select group of Takaful and Retakaful operators in Malaysia, granting the insurtech company the ability to reinsure and underwrite Takaful products.
According to the Malaysian Takaful Association, the family Takaful new business industry recorded RM10.06bn ($2.1bn) in gross contributions, marking an 18.3% increase from RM8.5bn in 2021.
“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 chief executive officer 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.”
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The licence by the Australian Securities and Investments Commission (ASIC) will allow the firm to engage in offering advice and services for general insurance products to both retail and wholesale customers.
With its expansion into Australia, PolicyStreet hopes to spur more competition and innovation in the insurtech sector.
It seeks to collaborate with Australian businesses looking to grow in Southeast Asia, especially Australian small and medium-sized firms (SMEs).