Canada    FinTech Guide    Chapter 13    Malaysia

13. InsurTech
Malaysia  Malaysia

According to the National Internet of Things (“IoT”) Strategic Roadmap published by MIMOS Berhad, Malaysia shows very encouraging signs in the development of IoT.

Legal Affairs

Digital and mobile brokers: In principle, one must obtain approval from the Central Bank of Malaysia (“BNM”) prior to offering insurance broking services as an independent contractor and must maintain a minimum of RM1,000,000-00 in capital funds at all times. However there will be no such need if the services are provided by the FinTech in its capacity as a corporate agent of a licensed insurer or by hosting its services through the digital channels of the licensed insurer.

Internet of Things: Although there are no specific licensing or regulation with regard to usage or provision of IoT or IoT related services, concerns with regard to data protection laws may arise in the case where data containing personal information of individuals are collected and utilised. Care should be taken to ensure that in the processing of any data which is capable of identifying an individual, regard is paid to compliance with personal data protection laws in Malaysia (where applicable).

Economic Conditions

At this juncture, there is insufficient data however we envisage that this would become apparent in the months following the conclusion of GoBear Ltd and Get Cover Sdn Bhd as well as Jirnexu Sdn Bhd’s participation in the Fintech Regulatory Sandbox administered by BNM ("Regulatory Sandbox").


BNM has awarded licenses to seven FinTechs to operate within its Regulatory Sandbox . Of the seven FinTechs approved, three of them namely GoBear Ltd, Get Cover Sdn Bhd and Jirnexu Sdn Bhd are understood to operate within this segment. The services provided by the abovementioned FinTechs are perceived as akin to that of an insurance broker thus would require BNM’s approval, however neither company are actually insurance brokers therefore creating a state of ambiguity.

Following the liberalisation of motor vehicle insurance from fixed tariff by BNM in July 2017, local insurers has taken steps to utilise advanced telematics which tracks the usage behaviour of motorist in determining an appropriate insurance premium to be set. In this respect, two MOUs had been entered into by local advanced telematics startup, KATSANA. The first MOU was with Allianz Malaysia Berhad and the second was with Etiqa Insurance Berhad and Etiqa Takaful Berhad .

Contributing Authors

Lee Hishammuddin Allen & Gledhill

Adlin Abdul Majid
Kuala Lumpur, Malaysia

Andrew Ean Vooi Chiew
Kuala Lumpur, Malaysia

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018