Malaysia’s first digital Takaful operator approved by Bank Negara Malaysia (BNM), OUCH! has launched a self-initiated employee Takaful plan designed for small and medium-sized enterprises (SMEs that offers affordable and portable protection for underserved employees workers across the country.
This solution arrives at a crucial time for Malaysia’s financial ecosystem. Takaful penetration in the country remains low—less than 20% overall—and among SMEs, it is even more concerning. According to a 2023 PwC report, only 15% of Malaysian SMEs offer any form of insurance or Takaful coverage to their employees. The data also shows that micro-SMEs, which represent a large portion of the economy, account for over half of the underinsured and uninsured segment.
Under Budget 2025, RM5 million has been allocated to subsidise micro-Takaful for small entrepreneurs, and RM30 Perlindungan Tenang vouchers have been introduced to encourage low-income participation. OUCH!’s plan directly supports these national goals by offering a proven, digital-first product that lowers the cost and complexity of employee protection.
OUCH!’s flagship plan, Pusara Pro, allows employees to enrol themselves for Takaful coverage via a simple mobile application. Employers can support their teams by sponsoring contributions through a corporate programme, giving their workforce a strong foundation of security—without the complexity, overhead, or exclusivity that traditionally comes with insurance.
With this model already available and functioning successfully, OUCH! is now working to raise greater awareness among SME owners, HR leaders, and employees. Through the app, employees can complete their registration by secure digital verification (e-KYC), and answering a few straightforward health questions. Once eligibility is confirmed and the employer successfully contributes to their coverage, employees instantly receive their Takaful certificates, via email and within the app—no agents, paperwork, or in-person meetings required.
Pusara Pro is a pure protection plan focused on essentials. It offers financial support for death and compassionate circumstances, without any savings or investment-linked components that tend to inflate premiums. Coverage under OUCH!’s model is not tied to a person’s job. If an employee opts to leave their company, they have the option to continue their contributions on their own and retain their protection. This portability addresses a long-standing gap in the market, where job changes often result in sudden and complete loss of coverage.
“We built this plan because we saw a clear gap in how SMEs could provide real, sustainable welfare to their employees,” said Shazy Noorazman, Chief Executive Officer of OUCH!. “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.”
The plan is open to all Malaysians and is built on the ethical, community-focused principles of Shariah, offering coverage that welcomes both Muslim and non-Muslim employees. OUCH! offers live onboarding sessions, in-app tools such as contribution estimators, and clear, jargon-free educational materials. Employees can access their benefits, update their personal details, assign beneficiaries, and manage their certificates through a single intuitive platform. The company’s model also supports BNM’s Digital Insurance and Takaful Operator (DITO) framework and its Financial Inclusion Blueprint 2022–2026, both of which advocate for more accessible financial services for underserved groups.
Discussions are also underway to integrate OUCH!’s offering into Malaysia’s national social protection frameworks, creating even greater synergy between private innovation and public policy. By aligning with government initiatives, OUCH! hopes to amplify its reach and contribute to a more comprehensive safety net for all Malaysians.