On the back of its five-year exclusive collaboration with agriculture-centric development financial institution (DFI), Agrobank Bhd, Takaful Ikhlas Bhd is targeting MYR211 million (US$47.9 million) in total premium contributions.
The two entities signed a memorandum of understanding (MoU) on a partnership in the areas of personal accident takaful; mortgage takaful (MRTT); group credit term takaful (GCTT); group family takaful; family takaful plans for education, retirement and medical; motor takaful; fire takaful and other non-motor takaful coverage.
“We are targeting MYR211 million in contributions in total from this five-year collaboration, across (all) segments,” said Takaful Ikhlas’ President and CEO Datuk Ab Latiff Abu Bakar.
He noted that the first offering from the collaboration, the Agro Nurani, which is also the country’s first takaful plan for the disabled, has been met with a good response.
“We have seen a very healthy take up of the Agro Nurani offering, and to date, it has attracted over 350 policyholders, which (which amount to) MYR28,000 in contributions since its soft launch on 14 January.
“This policy is available to any Orang Kurang Upaya (OKU) cardholder and covers conditions like mental illness as well. The next policy that we will roll out will be an educational plan sometime in the middle of this year,” he said.
By partnering with Agrobank, Takaful Ikhlas will also be able to tap into the rural Malay market, which makes up the bulk of Agrobank’s clientele – a change in strategy from when it focused on just the urban demographic.
“We are still targeting the urban demographic, but we are now enlarging our market by also going into the outskirts,” said Datuk Ab Latiff.
Meanwhile, Agrobank’s President and CEO Datuk Wan Mohd Fadzmi Wan Othman, said that this exclusive collaboration is a win-win for both parties, as it is in-line with both Takaful Ikhlas’ and Agrobank’s respective objectives.
“(Agrobank has) always been keen in developing our banca-insurance business, and we believe this exclusive partnership with Takaful Ikhlas will help deepen this particular segment, which, as of the end of last year, contributed some MYR40 million to our bottom line.
“Of course, if you compare that to commercial entities, it is not that big of a number, but for a DFI like us with no technical expertise in takaful, it is significant. We are also expecting this partnership to contribute positively over the medium term,” he said.
Takaful Ikhlas has over two million policyholders, as well as an estimated 5,000 registered agents across the country. M
MYR1 = US$0.23