Malaysia: Takaful association launches value-based intermediation roadmap
Source: Middle East Insurance Review | Nov 2022
The Malaysian Takaful Association (MTA) has launched the Value-based Intermediation for Takaful (VBIT) roadmap, which is an extension of a framework launched last year.
The roadmap is to assist the industry in implementing initiatives to unlock the potential of the takaful industry towards fostering a sustainable finance ecosystem while also increasing Malaysia’s takaful penetration to more than 19%, said MTA chairman Elmie Aman Najas.
The roadmap outlines actions that are embedded in the VBIT framework, providing concrete action plans and deliverables that can be worked on while ensuring that MTA is capable of delivering the potential of Islamic finance to the community.
“There is a lot that we can do to make sure Islamic finance realises its full potential. The framework provides guidance in terms of understanding the VBIT but the roadmap shows how to implement it in the industry,” he said as he launched the roadmap on 4 October.
“We envision the strengthened role of the takaful industry as part of the nation’s economy as a solutions provider for Malaysians seeking to achieve financial assurance and build their resilience against undesired events. For the stakeholder, VBIT provides a new way to reposition takaful,” he said.
MTA CEO Mohd Radzuan Mohamed said the VBIT would drive further takaful penetration in the country because the action plans would increase financial literacy and make people aware of takaful products, ultimately increasing penetration. “We have identified the criteria for each maturity level and strategic class, which will allow companies to conduct self-assessment related to VBIT and improve as well as fill the gap.
“These allow companies to understand their position and work towards accelerating in line with the roadmap,” he added. M