Having recently concluded a pre-series A funding round, Malaysian insurtech start-up Ouch! has confirmed that it is in advanced stages of acquiring a final approval from Bank Negara Malaysia (BNM) to operate in its regulatory sandbox, with eyes on becoming the country’s first digital Takaful operator.
While the Takatech start-up did not reveal the amount of funding acquired, it is understood that it was in a six-figure range; it has also exercised its over-allotment to onboard additional investors.
Working on launching its digital Takaful product in the first quarter of 2023, CEO Shazy Noorazman, who is also a general partner at venture capital firm TH Capital, said the funding will allow Ouch! to deliver “affordable cover at a bigger and wider scale”.
Founded in September 2019, Ouch! currently offers insurance solutions in partnership with AXA Affin Life and Etiqa Takaful across the life, home, travel and motor segments. The start-up, however, has refined its focus to operate within the Islamic insurance space. To this end, it has appointed the former CEO of Zurich Takaful Malaysia, Mukesh Dhawan, as its advisor and board member. Dhawan is a shareholder of Ouch!.
It also intends to apply for a Digital Insurers and Takaful Operators (DITOs) license, which BNM is expected to open the applications for at the end of this year. The central bank is currently accepting feedback on its DITO exposure draft until April, with a view of issuing up to five DITO licenses.
“Obtaining the license will expand our market and thereby potential, significantly. This is all in line with our ambition to be a first-of-its-kind digital Takaful operator especially focusing on the younger generation bringing our signature approach to insurance to a new space,” said Shazy.