MTA aims to capture 46 pct of uninsured Malaysians
KUALA LUMPUR: The Malaysian Takaful Association (MTA) is boosting its efforts to capture the remaining uninsured 46 per cent of the Malaysian population, most of whom are from the B40 and M40 income groups.
MTA chief executive officer Mohd Radzuan Mohamed said that to achieve this, the association has lined up various initiatives including the Takaful Financial Sector Blueprint (FSB) programme.
The FSB programme was developed to facilitate the growth of the takaful industry and is a result of the harmonisation of Bank Negara Malaysia’s (BNM) Financial Sector Blueprint 2022-2026 and Value-based Intermediation for Takaful (VBIT) Roadmap.
He noted that MTA has also launched the Hijrah 2027 Strategic Plan, aiming to double the takaful market and boost the penetration rate in Malaysia from 20.1 per cent in 2022.
“(Thus), within this fouryear programme, we want to look at all aspects, one is how we are going to make a very conducive environment for the takaful industry to operate,” he told reporters after launching the Interim Report on the FSB Programme 2023 yesterday.
Besides that, Mohd Radzuan said the takaful players are also looking at market expansion initiatives by working with the regulators to advance takaful further locally and internationally.
He said the industry is also eyeing to consider a blended tafakul model to achieve targets set for the industry.
“Blended takaful is actually looking into how to make it sustainable but also having a philanthropic approach either by zakat or wakaf,” he said.
According to him, the Takaful FSB Programme is focusing on ensuring the sustainability, stability and continued growth of the industry.
The programme is in its early stages but has already made significant progress as shown in the interim report, he noted.
The success of the programme is attributed to five key pillars, namely good governance, FSB Steering Committee, collaborative efforts from 11 working group members, key project milestones, and adherence to Maqasid Al-Shariah.
Mohd Radzuan pointed out that the programme aims to create a sustainable finance ecosystem by focusing on financial resilience, community empowerment, good selfgovernance, and best conduct.
It seeks to align with Shariah principles and intended outcomes, benefitting not only takaful operators but also participants and the Malaysian economy.
The interim report offers insights into the progress made by takaful operators in implementing its 27 initiatives and its alignment with industry goals.
The full report is set to be released in the first quarter of 2025. — Bernama