As Malaysia works to expand financial inclusion, OUCH!, the country’s first digital Takaful operator approved by Bank Negara Malaysia (BNM), has launched an innovative solution that addresses a major gap in the local protection landscape: employee coverage for small and medium-sized enterprises (SMEs).
The product – a self-initiated, employer-sponsored employee Takaful plan – provides affordable, portable coverage that aligns with both SME realities and national financial goals. It arrives as a timely response to long-standing structural challenges in Malaysia’s insurance sector, where Takaful penetration remains below 20% and SME employee coverage is especially low.
A recent PwC Malaysia study (2023) revealed that only 15% of SMEs offer any form of insurance or Takaful to their staff. Among micro-SMEs, which from the backbone of the Malaysian economy, most workers remain underinsured or completely uncovered. In line with Budget 2025, the government has pledged RM5 million for micro-Takaful subsidies and issued Perlindungan Tenang RM30 vouchers to promote inclusion for low-income earners.
Removing Barriers to Protection
With its new solution, OUCH! challenges the notion that employee protection must be costly, complicated or agent-dependent. Its flagship plan, Pusara Pro, is entirely digital – from onboarding to claims – and requires no paperwork, agents or in-person appointments.
Employees can self-enrol through the OUCH! mobile app by completing a secure e-KYC process and answering a few short health questions. Employers, meanwhile, can sponsor contributions through a corporate programme. Once activated, employees receive their Takaful certificates instantly – both in-app and via email.
Importantly, the plan is portable. Coverage doesn’t end when employment does. If an employee leaves their job, they can continue contributing on their own to maintain their protection. This flexibility addresses one of the most significant drawbacks of traditional employer-linked insurance plans, which often terminate coverage the moment someone resigns or retires.
Pure Protection, Inclusive by Design
Unlike investment-linked insurance products, Pusara Pro focuses solely on protection – covering death and compassionate circumstances. By eliminating savings or wealth components, premiums remain low and easy to understand for both employers and employees.
Inclusivity is also a defining pillar of OUCH!’s approach. The plan is available to all Malaysians – Muslim and non-Muslim alike – with no religious restrictions, and it is governed by Shariah principles that prioritise transparency, community support, and ethical finance.
To ensure users truly understand what they’re signing up for, OUCH! offers live onboarding sessions, an in-app contribution estimator, and clear, jargon-free educational tools. Employees can also assign beneficiaries, manage certificates, and update their details all within a single, intuitive interface.
Supporting Malaysia’s Financial Inclusion Blueprint
OUCH!’s digital Takaful model supports the goals outlined in Bank Negara Malaysia’s Financial Inclusion Blueprint 2022–2026 and its Digital Insurance and Takaful Operator (DITO) framework, which encourages innovation to serve underbanked communities.
“We built this plan because we saw a clear gap in how SMEs could provide real, sustainable welfare to their employees. We’ve removed the middlemen, the long fine print, and the financial complexity. What’s left is a tool that helps businesses show their people they matter—not just in words, but in action,” said Shazy Noorazman, Chief Executive Officer of OUCH!.
Looking Ahead: Private Innovation, Public Value
While Pusara Pro is already operational and gaining traction, OUCH! acknowledges that much of its potential remains untapped. The company hopes to see greater adoption among SMEs, HR leaders, and even informal sector employers, turning essential protection into a new standard – not a luxury.
Discussions are ongoing around integrating OUCH!’s solution into national social protection frameworks, which could expand its reach and strengthen the synergy between private innovation and public welfare initiatives.
To learn more or register your SME team, visit http://ouch.my or email [email protected].
