In an industry often seen as complex and unapproachable, Ouch!, a Malaysian takatech startup, is on a mission to simplify insurance, making it affordable and accessible for the masses.
Launched to address longstanding gaps in the insurance market, Ouch! is using technology and customer-centric products to redefine takaful, an Islamic-compliant insurance model, for the B40 and M40 income groups—those in lower to middle-income brackets who have traditionally been left out.
Securing Funding and Regulatory Momentum
Ouch!’s efforts have not gone unnoticed. The company recently raised RM5 million in a funding round led by PPB Ventures Sdn Bhd (PPB Ventures), adding to a growing list of investors including OSK Ventures, RHL Ventures, and Vynn Capital. This latest capital injection supports Ouch!’s mission to make affordable takaful coverage available to all Malaysians and will fund key initiatives to expand its market share, enhance its technology infrastructure, and drive product innovation.
In addition to securing funding, Ouch! has also received a one-year extension to operate within Bank Negara Malaysia’s (BNM) Regulatory Sandbox, a regulatory support system that allows financial startups to innovate under supervised conditions. With the sandbox extension, Ouch! can continue to develop its services while meeting BNM’s regulatory standards, a critical element as it seeks to introduce new, tech-driven solutions to the market.
Reimagining Insurance for Everyone
“Our goal with Ouch! was to take the complexity and opacity out of insurance,” explains Shazy Noorazman, CEO of Ouch! Protect Berhad. For decades, the insurance sector has been marked by high costs, intricate terms, and a lack of clarity that excludes many who need coverage the most. Ouch! is setting a new standard by offering takaful solutions that are easy to understand, affordable, and above all, accessible to all Malaysians.
One such product is Ouch!’s flagship, Pusara Pro. Designed as a term-life takaful plan, it provides death benefit coverage of up to RM500,000 and an additional 10% compassionate payout within 24 hours, a response feature aimed at easing financial stress during bereavement.
Pusara Pro operates on a straightforward 20% management fee, or wakalah fee, with 100% of any surplus returned to participants, underscoring Ouch!’s commitment to transparency and affordability. The company’s innovative use of technology has allowed it to streamline operations, thus offering these solutions at lower costs than traditional insurers.
Positioned for Growth in a Booming Market
Ouch! is tapping into a growing demand for takaful in Malaysia, where the Family Takaful segment has seen a 7.55% rise in gross contributions, bringing the total to nearly RM9 billion, according to the Malaysian Takaful Association.
With approximately 30 million Malaysians still underserved in terms of financial protection, Ouch! sees a significant opportunity to fill this gap, especially among younger families. To capitalize on this demand, Ouch! plans to move from a third-party core system to a proprietary one, incorporating a suite of advanced technologies that will enable the company to respond more dynamically to customer needs.
Further, the company is working towards obtaining a Digital Insurance and Takaful Operator (DITO) license from BNM. If approved, this license would allow Ouch! to expand its service offerings and better meet the protection needs of underserved communities across Malaysia.
Navigating Regulatory Waters
The journey, however, has not been without its challenges. Takaful, as an industry, is heavily regulated, and ensuring compliance while pushing for innovation is no small feat. Ouch! faced a steep learning curve early on as it navigated the complex regulatory landscape. Fortunately, guidance from seasoned industry veterans proved invaluable, leading the startup to gain a place in BNM’s regulatory Sandbox, where it continues to test and refine its customer-centric solutions.
Ouch! also views its technology platform as foundational to its mission, allowing it to bridge the gap between regulatory compliance and user-friendly design. As a takaful tech innovator, Ouch! prioritized agility and built its system from the ground up, enabling rapid iterations to better serve customer needs and comply with stringent regulations.
Partnerships and Community Building
While Ouch! operates on a predominantly direct-to-consumer model, partnerships have been a key ingredient in its early success. Collaborations have not only helped Ouch! reach underserved communities but have also bolstered its credibility as a newcomer in the industry. With strategic partnerships in the pipeline, Ouch! aims to deepen its reach across Malaysia, expanding access to affordable takaful solutions.
Additionally, customer feedback has been central to Ouch!’s evolution. “It’s been largely positive, but it’s also highlighted ways we can improve,” Shazy says. For example, the company adapted its app to support automated recurring payments, a highly requested feature among users. And this iterative approach is just the start, as Ouch! uses data and analytics to continually refine its offerings, ensuring products remain relevant and responsive to customer needs.
A Vision for the Future of Fintech in Takaful
Ouch! is optimistic about the role of fintech in reshaping the takaful landscape. For too long, insurance and takaful have been seen as products that are “sold, not bought,” a sentiment Ouch! aims to change. By building products that solve real-life issues, Ouch! hopes to foster an environment where insurance is not just a safeguard, but a proactive choice for customers.
Advice for Aspiring Takaful Entrepreneurs
For those eyeing the takaful and insurance space, the founder advises a customer-first approach, suggesting that focusing on adding real value to users’ lives offers a promising path forward. “Do your research, find the right partners, and be prepared for the challenges. It’s a tough journey, but it’s incredibly rewarding,” he says.
In the burgeoning world of takatech, Ouch! stands as a pioneer, setting out to redefine insurance for Malaysia’s underserved. With fresh funding, regulatory support, and a vision for accessible, technology-driven takaful, Ouch! is poised to make insurance accessible to those who need it most.