KUALA LUMPUR, Sept 26 — The takaful industry in Malaysia is poised to benefit from several national economic plans, namely the National Energy Transition Roadmap and the New Industrial Master Plan 2030, alongside the Madani Economy: Empowering the People framework, said Bank Negara Malaysia (BNM).
Assistant governor Suhaimi Ali said via the national economic plans, the industry players could build stronger business connectivity by tapping wider business prospects to unlock the potential of the value-based intermediation takaful (VBIT) framework and roadmap.
“In tapping these opportunities, the future direction of takaful demands a broader perspective and commitment to address issues of scale, expertise and risk appetite.
“Diversification and expansion beyond the current concentration in personal lines are essential.
“This would mean building own capabilities and knowledge to venture into unfamiliar risks, where coordination and cooperation are key alongside innovation, involving various disciplines of syariah, product, risk, strategy and actuarial, and often with the support of retakaful and reinsurance players,” he said at the Takaful Rendezvous 2023 event here today.
Suhaimi also emphasised other priorities to unlock the potential of VBIT, namely by introducing value-based products and value-added services and instilling good governance to improve market conduct expectations.
At the same time, he said Malaysia has an enabling ecosystem with a growing demand for Islamic finance, either from individuals or businesses, to support various economic needs.
As such, the takaful operators should leverage the halal ecosystem and meet the takaful needs for property and business protection to complement the wide range of trade finance solutions for importers and exporters,
Suhaimi added it is imperative for the retakaful players to capitalise on Malaysia’s strength and ecosystem for business outreach to the Asian region and beyond.
He noted that more countries are working on the necessary regulations to enable takaful offerings and scaling up the sector’s contribution.
“Retakaful players in Malaysia, with ready expertise and capabilities, could provide capacity to support growth and expansion of the takaful industry in other markets,” he said.
Meanwhile, Malaysian Takaful Association chief executive officer Mohd Radzuan Mohamed said Takaful Rendezvous 2023, previously known as the International Convention on Takaful and Retakaful, was an annual gathering for industry experts from all over the world to exchange ideas on the opportunities and issues faced by the takaful industry.
“Through this event, MTA has initiated a platform for the takaful and retakaful industry to introduce and promote Malaysian practices on takaful and retakaful structures and principles globally.
“In line with the steadfast growth of takaful industry, this hallmark continues to provide an avenue for stimulating intellectual discourses and realisation of business opportunities,” he said in his welcoming remarks today.
Mohd Radzuan said Takaful Rendezvous 2023 themed “Enabling an Ecosystem of Innovation, Sustainability and Efficiency – Charting the Future Direction”, was both timely and thought-provoking.
Organised in association with Asian Insurance Review, Takaful Rendezvous marked its 13th year since the first collaboration was held in 2010 here in Kuala Lumpur.
— Bernama\
