Takaful Industry To See Steady Growth

Bernama    February 02, 2010 13:58 PM

By Mohd Iswandi Kasan Anuar

KUALA LUMPUR, Feb 2 (Bernama) -- The takaful industry will continue its steady growth momentum this year in line with the expansion of the industry globally which has seen an annual growth rate of 25 per cent the past few years.

The industry is in a strong position to increase further in an environment of stronger economic performance projected for 2010, said Malaysia Takaful Association chairman Datuk Syed Moheeb Syed Kamarulzaman.

"The efforts and commitment by industry players focusing on customer service with a stronger marketing strategy will enable further growth in the industry," he told Bernama in an interview recently.

The combined family and general takaful sector is estimated to have recorded 15 per cent growth or RM3.0 billion in premiums last year over RM2.7 billion recorded in 2008, Syed Moheeb said.

He said due to strong interest in takaful both among Muslim and non-Muslim customers due to growing awareness about Syariah insurance will bring more positive impact to the sector.

"The industry will benefit from the growth trend in family takaful products such as saving, education and investment-linked products," he said.

Syed Moheeb, who is Takaful Ikhlas Sdn Bhd president and chief executive officer, said industry players should consider in keeping the premium at affordable rates in order to create better demand for takaful products. This will enable businesses and families in society to have access to insurance protection.

He said companies should also create a more sustainable environment for the recruitment, training and human capital development in the effort to bring new blood into the industry.

"We are facing new challenges in the industry, in terms of attracting quality talents who will could understand the takaful landscape in line with Syariah principles," he said, adding that the industry's growth will be hampered by the lack of talents.

Meanwhile, Syed Moheeb said Takaful Ikhlas, which is currently in the consolidating phase, is on track to achieve RM630 million in premium for the financial year ending March 31, 2010 from RM580 million previously.

In order to better serve its customers, he said the company would be opening two more branches by the middle of this year. This will be also in line with its expansion plans.

"The branches would be opened in Kuala Terengganu and Klang with a cost of between RM500,000 and RM1 million each," he said.