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In making Malaysia a leader in the Takaful world, Bank Negara Malaysia consistently provides a strong regulatory framework on its Takaful industry. Syed Moheeb Syed Kamarulzaman, president and CEO of Takaful Ikhlas (Takaful IKHLAS), feels that Malaysia’s regulatory framework is well defined, which enables the company to work with its banking partners.
The company believes Malaysia is the most regulated market for Islamic finance and Takaful. The regulator has become a driver that provides a platform for the Takaful players to further develop their potential.
The industry has further increased its number of players over the last two years to eight. The strong regulatory framework does not seem to have hindered market growth. Takaful IKHLAS, for instance, has surpassed its target contribution of RM220 million for financial year 2006/07 and targets revenue of RM320 million for FY 2007/08.
The company is confident that the new competition will further develop niche markets and that the presence of new players will not in any way be detrimental to its growth in the coming years. It emerged first in the “top of mind” category in its brand awareness survey conducted last year.
In line with international and local developments in the practice of Islamic financial protection services, Takaful IKHLAS adopts the Wakalah (agency) system. It allows the use of intermediaries as a medium to better serve customer needs, payment of surpluses and profits where applicable to participants and calculation of investment profits on a monthly basis.
Takaful IKHLAS’ Family protection plans focus on savings or investment-linked plans and mortgage protection plans. Its General protection offerings feature innovative plans to cover properties such as vehicles, buildings and other assets.
The company aims to provide comprehensive family and general Takaful protection and place strong emphasis on product innovation, coupled with differentiating features to ensure market acceptance. Its services are supported by state-of-the-art technology, designed to ensure accuracy and timeliness of information. The company believes this will help enhance its efficiency and professionalism when dealing with customers, as well as add value to its stakeholders.
Takaful IKHLAS has performed remarkably well right from the start. For instance, the insurer took only 90 days to commence its business operations upon being granted a license. This is no mean feat as its ability to fast-track its operation reflects its readiness to conduct business.
Merely four years into its operation, Takaful IKHLAS has established an extensive agency network. It now has a presence in all the major centers such as Kuala Lumpur, Johor Baru and Kuching as well as smaller towns like Kota Baru and Sungai Petani. Takaful IKHLAS will spread its wings to Sabah and Putrajaya in the near future.
The high ethical standards set for its staff and business partners underscores its responsiveness to the customers and reputation for fair and fast claims.
Takaful IKHLAS has no “backlog” in claim payments as most cases are approved within 24 hours. Its efficiency in claim management spells out its belief in providing “ease of doing business” to its participants.
To date, more than 450,000 individuals and corporations have placed their trust in Takaful IKHLAS and become participants in the company’s Takaful schemes.
Takaful IKHLAS’ portfolio comprises a comprehensive range of Family, General and Group Takaful Plans and Riders for individuals and commercial enterprises, with more being planned in the not too distant future. The company’s distribution/service channels comprise of highly knowledgeable and well-trained people made up of 4,000 agency personnel, brokers, financial institutions, motor franchise-holders, cooperatives and Islamic organizations. |
