ANNUAL REPORT 1 · 2018-04-20 · 4 ANNUAL REPORT Malaysian Takaful Association (MTA) was formed in November 2002 under the Malaysian Societies Act of 1966. The objectives of MTA

1A N N U A L R E P O R T

2 A N N U A L R E P O R T

List of Member Companies

ACR Retakaful BerhadUnit A-12A-10, Level 12AMenara UOA Bangsar 5, Jalan Bangsar Utama 159000 Kuala LumpurTel: 03 2299 2288Fax: 03 2299 2289 Web: www.acrretakaful.com

AIA PUBLIC Takaful BhdLevel 14, Menara AIA99, Jalan Ampang50450 Kuala LumpurTel: 03 20371333Fax: 03 2056 3690Hotline: 1300 88 8922 Web: www.aiapublic.com.my

AmMetLife Takaful BerhadLevel 23, Menara Sentrum,No. 201, Jalan Tun Sambanthan,50470 Kuala LumpurTel: 03 2271 8000Fax: 03 2272 3229Hotline: 1300 22 9777 Web: www.ammetlifetakaful.com

Etiqa Family Takaful BerhadLevel 21, Tower CDataran MaybankNo 1, Jalan Maarof59000 Kuala LumpurTel: 03 2297 1888Fax: 03 2297 1800Hotline: 1 300 13 8888Web: www.etiqa.com.my

Etiqa General Takaful BerhadLevel 20, Tower CDataran MaybankNo 1, Jalan Maarof59000 Kuala LumpurTel: 03 2297 1888Fax: 03 2297 1800Hotline: 1300 13 8888Web: www.etiqa.com.my

Great Eastern Takaful BerhadLevel 3Menara Great Eastern303 Jalan Ampang50450 Kuala LumpurTel: 03 4259 8338Fax: 03 4259 8808Hotline: 1300 13 8338Web: www.greateasterntakaful.com

Hong Leong MSIG Takaful BerhadLevel 5, Tower B, PJ City DevelopmentNo.15A, Jalan 219, Seksyen 51A46100 Petaling JayaSelangor Darul EhsanTel: 03 7650 1800Fax: 03 7620 6730Web: www.hlmtakaful.com.my

HSBC Amanah Takaful (Malaysia) Berhad8th Floor, North TowerNo. 2, Leboh Ampang50100 Kuala LumpurTel: 03 2075 3000Fax: 03 2031 0833Hotline: 1800 88 9659Web: www.takaful.hsbcamanah.com.my

Malaysian Re Retakaful Division 12th Floor, Bangunan Malaysian Re No. 17, Lorong Dungun Damansara Heights 50490 Kuala LumpurTel: 03 2096 8000Fax: 03 2092 1677Web: www.malaysian-re.com.my

Munich Re Retakaful (Munchener Ruckversicherungs-Gesellschaft)Suite 13.1, Level 13 Menara IMC, 8 Jalan Sultan Ismail 50250 Kuala LumpurTel: 03 2380 8500Fax: 03-2032 5955Web: www.munichre.com/en/reinsurance/business/retakaful/default.aspx

Prudential BSN Takaful BerhadBrand and CommunicationsLevel 8A, Menara PrudentialNo. 10 Jalan Sultan Ismail50250 Kuala LumpurTel: 03 2053 7188Fax: 03 2026 7688Web: www.prubsn.com.my

Sun Life Malaysia Takaful BerhadLevel 11, 338Jalan Tuanku Abdul Rahman50100 Kuala LumpurTel: 03 2612 3600Fax: 03 2614 3550Hotline: 1-300-88-5055Web: www.sunlifemalaysia.com

Swiss Re Retakaful (Swiss Reinsurance Company Ltd.)No. 10, Persiaran KLCCLevel 13A-2, Naza Tower @ Platinum Park50088 Kuala LumpurTel: 03 2633 5800Fax: 03 2633 5803Web: www.swissre.com/reinsurance/insurers/retakaful/

Syarikat Takaful Malaysia BerhadMenara Takaful MalaysiaNo.4, Jalan Sultan Sulaiman50000 Kuala LumpurTel: 1300 88 252 385Fax: 03 2274 0237Web: www.takaful-malaysia.com.my Takaful Ikhlas BerhadIKHLAS Point,Menara 11A, Avenue 5, Bangsar South, No. 8, Jalan Kerinchi59200 Kuala LumpurTel: 03 2723 9999Fax: 03 2723 9998Web: www.takaful-ikhlas.com.my

Zurich Takaful Malaysia Berhad8th Floor, No. 566 Jalan Ipoh51200 Kuala LumpurTel: 03 6287 6666Fax: 03 6259 0088Web: www.zurich.com.my


01Table of Contents

4567781717181923

About MTA | 01

Chairman’s Message | 02

Management Committee 2017–2019 | 04

Representatives in other Organisations and Committees | 05

MTA Subcommittees | 06

Key Figures & Development of the Takaful Industry | 07

Research & Developments of the Industry | 08

Talent and Intermediaries Development | 09

Events, Conferences and Seminars | 10

Takaful Awareness Activities | 11

Courtesy Visits and Talks | 12


Malaysian Takaful Association (MTA) was formed in November 2002 under the Malaysian Societies Act of 1966. The objectives of MTA are essentially to promote the interests of its members and to supervise self-regulation within the Takaful industry. Currently, a total of 12 Takaful operators and 4 Retakaful operators are member companies of MTA.

MissionTo provide leadership on issues bearing on the industry’s collective strength and image, locally and internationally to benefit the industry as a whole.

Vision• Sustainably profitable and growing Takaful industry

in Malaysia.• An industry that can be trusted and recognised as

contributing to society and the economy.• An economic and public policy climate conducive to a

flourishing industry.• A trade body recognised as providing active

leadership and an authoritative collective voice for the Takaful industry

Object and Power of MTAMTA was established to foster cooperation and mutual understanding amongst its registered members, whilst furthering the interests of the Takaful concept01

About MTA Promote and

represent the interests of members and also the foundation of a sound Takaful structure with cooperation

Institute strategic alliances and co-operation with other similar associations both locally and internationally.

Promote the benefits of Takaful to the government, regulators, policy makers and the public.

Represent the Malaysian Takaful industry to government, regulators and policy makers in locally and internationally, driving effective public policy and regulation.

Advocate high standards of services within the industry and provide useful information to the public about Takaful.

Collect, collate and publish statistics and any other relevant information relating to Takaful to members


02Chairman’s Message

The industry has been working tirelessly on the LIFE Framework leading up to the splitting of licences between family and general Takaful that will take place in 2018. With the LIFE Framework already in its third year of implementation, the industry has achieved quite a feat in ensuring the initiatives are implemented such as the mock run of balanced score card for agents, building the direct channels presence by offering commission-free term takaful, simplification of customer fact find form, enhancement of product disclosure in sales illustrations and getting a dedicated page on MTA website to introduce the LIFE Framework.

MTA has also continued to work closely with other Associations such as the Life Insurance Association of Malaysia (LIAM) and Persatuan Insurans Am Malaysia (PIAM) on several industry initiatives such as the Starter Pack Initiative known as Perlindungan Tenang, National Consumer Education Campaign (NCEC) on Phased Liberalisation of Motor Tariffs as well as the Customer Service Charter which serves as a guide and benchmark for the industry in customer service.

The Association has continued to work with several strategic partners in its effort to raise Takaful awareness. This year, the Association took part in

a roadshow to four higher learning institution in the southern region as part of industry’s effort to engage with the young generations and educate the Gen Y on the importance of financial protection.

In this regard, the Association will continue to play central role as the industry’s representative body and strive even harder in ensuring strong growth momentum amidst strong economic fundamentals and lower penetration rate.

On behalf of the Management Committee, I would like to express my sincere appreciation to all members companies and their representatives for their service, commitment and dedication for their support to MTA’s initiatives and activities. Their continued commitment and determination has become the catalyst for the Association to move forward.

While ensuring the Takaful industry grows in manifold, it is pertinent that the industry stay true to its concept of helping one another “Taawun”, which is one of the fundamental pillars of Takaful. I strongly believe that through the spirit of mutuality and togetherness between Member Companies, MTA would be able to contribute significantly in achieving higher penetration rate and ensuring the Takaful industry grows from strength to strength.

Lastly, I wish to thank my appreciation to the Secretariat team for their hard work and dedication for carrying duties in ensuring smooth operations and activities of the Association.

Encik Muhammad Fikri Mohamad RawiChairman


04Management Committee 2017–2019

Encik Muhammad Fikri Mohamad RawiChairman

Sun Life Malaysia Takaful Berhad

Encik Elmie Aman NajasCommittee Member

AIA PUBLIC Takaful Bhd.

Encik Mohd Asri OmarCommittee Member

Hong Leong MSIG Takaful Berhad

Dr. Mohamed Rafick Khan Abdul Rahman

Committee MemberMunich Re Retakaful

Encik Marcel Omar PappCommittee MemberSwiss Re Retakaful

Encik Zafri Abd HalimTreasurer

Etiqa Family Takaful Berhad

Encik Shahrul Azlan ShahrimanCommittee Member

Great Eastern Takaful Berhad

Puan Hajah Mili Mohd YusoffCommittee Member

Malaysian Re Retakaful Division

Encik Nor Azman ZainalCommittee Member

Prudential BSN Takaful Berhad

Encik Azli MunaniCEO/Executive Secretary

Datuk Hj. Ab Latif Hj. Abu BakarDeputy Chairman

Takaful Ikhlas Berhad


06MTA Subcommittees

05Representatives in Other Organisations and Committees

Malaysian international IslamicFinancial Centre (MIFC)

Family Takaful

Shariah Advisory

Corporate Communications

General Takaful

LIFE Framework Taskforce

Finance

Intermediaries Registration and

Development

National Payments Advisory Council

IBFIMISM Insurance Services Malaysia BerhadMalaysian Financial Planning Council –National Council

Financial Services Profession Board (FSPB) Working Group Code of Ethics

Chartered Institute of Islamic Finance Professionals (CIIF) – Governing PanelMalaysian Code of Institutional Investors (MCII) – Steering CommitteeISM Fraud Intelligence System (FIS) – Steering Committee

Joint Insurance – Takaful Council (JITC)

Takaful Examination BoardMalaysian Accounting Standards Board – Standing Committee

IBFIM’s Capacity Building Project (CBP – Steering Committee

Financial Industry Collective Outreach (FINCO)

Financial Sector Talent Enrichment Programme (FSTEP) – Steering Committee

Regulatory and Risk

Human Resource Development


07Key Figures & Development of the Takaful Industry

Snapshot of Takaful Industry Performance in 2017

RM2.56bGeneral Takaful Gross Contribution

Family Takaful Penetration Rate

14.66%Family Takaful certificates in force as a percentage to the total population 2017

75,719Registered Individual Takaful Agents

17,593New Individual Agents

Family Takaful Market Performance in 2017

New business RM4.35bRM3.95b compared to 2016 Annual Gross Contribution

10.12%

Family Takaful Certificate Inforce

4.74m

Family Takaful Business Inforce

RM4.35b

Total Assets 2017 RM29.3b2016: RM26.8b

Family TakafulTotal Assets 2017 RM25.6b2016: RM23.2b

General TakafulTotal Assets 2017 RM3.65b2016: RM3.59b

9.37%

10.6%

1.5%


Distribution Channels: Family Takaful New Business

General Takaful Market Performance in 2017

Annual Contributions 2.1%

21.4%

1.4%

6.4%

14.5%

57.5%

82%

14.6%Single

Contributions

Others

Brokers

Bancatakaful

Agents

General Takaful Gross Written Contributions

RM2.561b RM153 million increased compared to 2016

6.4%

Moderate growth for Gross Contributions Motor Takaful

RM1.52b 2016: RM1.46b

4.1%

2016: 2.3%

Single digit growth for Gross Contributions Non-Motor Takaful

RM1.04b 2016: RM0.95b

9.47%

2016: 8.6%

Net Claims Incurred Ratio (NCIR)

2016

2017

49.0%

51.1%

63.5%

66.4%

9.1%

19.5% 17.4%25.5%

47.25%45.1%

58.0%

1.8%

40.9%23.7%

OverallMotorFireMedical & HealthMATPersonal accidentMiscellaneous


Agency Registrations Statistics

CategoryFamily Takaful

VarianceGeneral Takaful

Variance2017 2016 2017 2016

Banca 16,455 15,102 1,353 2,612 2,113 499

Non-Banca 46,364 48,447 - 2,083 10,288 10,670 - 382

Total 62,819 63,549 - 730 12,900 12,783 117

Registered Individual Agents in 2017 and 2016 (Breakdown by Categories)

Registered Individual Takaful Agents by Gender

Registered Individual Takaful Agents by Race

Family

General

41,130

7,653 4,835

18,8152,026

302 110

848 MalayChineseIndianOthers

BANCA NON–BANCA

Family49%

General48%

Family51%General52%

Family Takaful General Takaful

2017 2017

20%

80%

26%

74%


CategoryFamily Takaful

VarianceGeneral Takaful

Variance2017 2016 2017 2016

Banca 3,543 3,637 -94 778 614 164

Non-Banca 12,860 14,170 -1,310 412 295 117

Total 16,403 17,807 -1,404 1,190 909 281

New Registration of Individual Agents in 2017 and 2016

Registered Individual Takaful Agents by Age bands

Family

General

5,441

2692,885

27,276

17,734

4,774 4,972

12,368 18 - 2526 - 3536 - 4546 & above

BANCA NON–BANCA

2017

2016

Family Total: 132General Total: 1,260

48%

58%

52%

42%

New Registration of Corporate Takaful Agents in 2017 and 2016

Category 2017 2016 Total

General 720 530 1,250

Family 64 68 132

Family Takaful

24% 20%

74% 80%

General Takaful

35% 32%

65% 68%


Exam Structure RegisteredAbsent

SatPassed

No % No %Part A and B 2,824 399 14 2,425 1,990 82

Part A and C 28,643 4,197 15 24,446 16,323 67

Part B 772 99 13 673 597 89

Part C 604 28 5 576 339 59

Total 32,843 4,723 14 28,120 19,249 68

Takaful Basic Examination (TBE) Statistics

Passing Rate January 2017 to December 2017

Jan MayFeb Jun SeptMar Jul OctApr Aug Nov Dec

63%

72%

66%71% 70%

64%67%

65%65%

71%73% 72%

Passing Rate (%)

Part A + B Part A + C

81 78 83 83848481 84 8283 89 76

70 72 70 70606371 68 6567 63 63

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

83 84 87 89858993 93 9198 89 77

75 85 73 76647774 71 4951 52 40

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Part B Part C


Passing Rate Comparison by Qualifications from January to December 2017

Part A and B Part A and C Part B Part C TOTALRegistered 1,327 12,497 327 245 14,396

Absent 181 1,954 65 12 2,212Sat 1,146 10,543 262 233 12,184

Passed 911 6,126 226 113 7,376

Passing Rate % 79 58 86 48 61

STPM/Matriculation/A-level holder or equivalent

Registered 114 976 8 20 1,118Absent 18 146 - 1 165Sat 96 830 8 19 953Passed 72 498 8 8 586Passing Rate % 75 60 100 42 61

Diploma

Registered 533 6,861 164 108 7,666Absent 83 1,050 17 6 1,156Sat 450 5,811 147 102 6,510Passed 350 3,642 130 67 4,189Passing Rate % 78 63 88 66 64

Bachelor Degree or equivalent

Registered 787 7,606 252 212 8,857Absent 104 939 16 8 1,067Sat 683 6,667 236 204 7,790Passed 609 5,545 213 136 6,503Passing Rate % 89 83 90 67 83

OthersRegistered 63 703 21 19 806Absent 13 108 1 1 123Sat 50 595 20 18 683Passed 48 512 20 15 595Passing Rate % 96 86 100 83 87

GRAND TOTALRegistered 2,824 28,643 772 604 32,843Absent 399 4,197 99 28 4,723Sat 2,425 24,446 673 576 28,120Passed 1,990 16,323 597 339 19,249Passing Rate % 82 67 89 59 68


Key Developments of the Industry

Life Insurance and Family Takaful (LIFE) FrameworkThe LIFE Framework has approached its third year of implementation from when it first started in December 2015., While many Takaful operators faced a lot of challenges to implement the initiatives set out under the Framework, the establishment of a special Task Force that monitors and deliberate on any related issues has helped to pave way for a smooth implementation of the LIFE Framework. In 2017, the industry has achieved a great deal of achievement in implementing the following initiatives:

i. Mock run of balanced score card for agentsii. Building presence of direct channels by offering

commission-free term takafuliii. Simplification of customer fact find formiv. Enhancement of product disclosures in sales

illustrationsv. Introduction of LIFE Framework page on MTA

Website

Direct Distribution Channel for Pure Protection ProductsSet out as one of the initiative under LIFE Framework, which requires all family takaful operators to offer commission free standalone pure protection products namely term, critical illness and medical and health insurance/takaful through at least one direct channel. These non-intermediated channels are to be made widely accessible for consumers to purchase/participate in pure protection products directly from family takaful operators, either at their head office and branch premises, or online through their websites.

Bank Negara Malaysia has (BNM) issued a policy document on Direct Distribution Channels for Pure Protection Products in order to facilitate the smooth implementation of the initiative. On 1 July 2017, the industry has launched its first range of term products for consumer to purchase either via online or over the counter at the head office and branch premises. Pure protection critical illness and pure protection medical and health products are expected to be made available in 1 July 2018.

Fakta Penembusan 2016 untuk petunjuk-petunjuk terpilih

Langganan selular mudah alihLangganan prabayar

Langganan jalur lebarPemilikkan kenderaan bermotor (2015)

Pemilikkan polisi insurans hayatPemilikan motosikal (2015)

Pemilikkan kereta (2015)Langganan pascabayar

Langganan TV berbayarPemilikan sijil Takaful keluarga

Langganan telefon tetap

Peratusan Penembusan =

Bilangan langganan / pemilikanJumlah penduduk

Sumber:https://www.mcmc.gov.my/skmmgovmy/media/general/pdf/Statistical-pocket-Book-2016https://www.data.gov.my/data/ms MY/dataset/bilangan-kenderaan-di-atas-jalan-raya-mengikut-negerihttps://bnm.gov.my/files/publication/msb/2017/4/xls/4.6.1.xlshttps://bnm.gov.my/files/publication/msb/2017/4/xls/4.8.xls

40 60 80 100 120 140

141.3%

38.9%

99.8%

30.9%

110.4%

38.2%

84.7%

20.0%

40.7%

14.9%14.5%


Starter Pack Initiative: Perlindungan TenangBank Negara Malaysia has embarked on the “Perlindungan Tenang” initiative to develop insurance and Takaful products designed to meet the needs of underserved segments particularly the bottom 40% of households (B40) in line with their agenda to enhance financial inclusion of the underserved segments in Malaysia. The objective is to develop a sustainable market where insurers and Takaful operators offer a diverse range of products through various distribution channels. In 2016, the Department of Statistics Malaysia defined B40 households as those earning up to RM4,360 per month.

Perlindungan Tenang was launched at the Karnival Kewangan in Kuching, Sarawak and three Takaful operators have offered their product under the initiative, namely:

i. AIA PUBLIC Takaful Bhd. – AIA i-Starter Planii. Prudential BSN Takaful Berhad – Lindungiiii. Takaful Ikhlas Berhad – AGRO Mabrur-i

Operating Cost Controls for Life and Family Takaful BusinessThe deregulation of operating cost control limits will accord licensed persons greater flexibility to manage operating expenses that commensurate with their business strategies and encourage greater innovation and competition. This will be accompanied by standards to strengthen the professionalism of insurance and takaful intermediaries. In December 2017, Bank Negara Malaysia issued a policy document for the industry and is applicable to licensed insurers carrying on life business and licensed takaful operators carrying on family takaful business. The policy document shall come into effect starting 1 January 2018.

Customer Service Charter for Insurance and Takaful IndustryIn 2017 BNM has requested the Insurance and Takaful industry to develop and introduce the industry’s Customer Service Charter (CSC) for the public. Since then, LIAM, PIAM and MTA have established the Joint Industry CSC Working Group and developed a new CSC for the respective industry. The approved CSC by BNM is expected to be shared to general public through the Associations’ respective website and its members starting 1 January 2018. Established on 4 pillars, the CSC will serve as a guide and a benchmark for the industry in customer service. The 4 Pillars are:

i. Insurance made Assessibleii. Know Your Customeriii. Timely, Transparent and Efficient Servicesiv. Fair, Timely and Transparent Claim Settlement

Process

Insurance and Takaful Industry’s Code of Practice (COP) for Personal Data Protection Act (PDPA) 2010The Insurance and Takaful Industry’s Code of Practice (COP) for Personal Data Protection Act (PDPA) 2010 was published on 24 February 2017. Developed by Joint insurance and Takaful industry Working Group, the COP is the insurance and takaful industry guideline in managing/handling personal data in conformance to the requirement and stipulations of the Personal Data Protection Act 2010. The working group also developed and distributed the training materials on the COP for the industry members to help train the intermediaries and staffs.

Phased Liberalisation of Motor and Fire TariffsThe phased liberalisation of motor and fire tariffs was launched on 1 July 2017 about one year after Bank Negara Malaysia (BNM) released its Policy Document of Phased Liberalisation of Motor and Fire Tariffs. This will impact the way motor insurance/Takaful is being priced and it is hoped that through this change, consumers will have greater options and choices made available to them. In ensuring the smooth launching of the phased liberalisation, two working groups have been established as follows:

Independent Review Committee (IRC)

In compliance with the Policy Document of Phased Liberalisation of Motor and Fire Tariff, the Association has established an Independent Review Committee (IRC) to review the existing and new products submission by Takaful operators.

The IRC’s function is to ensure the definition of common terms on the certificates are appropriate, consistent and will not lead to ambiguity or confusion to certificate owners.

Joint Task Force (JTF) on Communications for National Consumer Education Campaign (NCEC) on Phased Liberalisation

The Association is part of the Task Force on Communications for National Consumer Education Campaign (NCEC) that comprises of Bank Negara Malaysia (BNM) and Persatuan Insurans Am Malaysia (PIAM) that was set up to educate consumers with regards to options made available to them when choosing the right type of motor and fire insurance/Takaful products. It also focused on creating awareness amongst public on the price changes of motor Takaful which took place in July 2017.

The Task Force was also responsible in overseeing the nationwide campaign with involvement of Association members.


Key Industry Deadlines


MTA has collaborated with ISRA’ to conduct shariah researches on subjects that are related to Takaful. The research concluded in year 2017 were:

GST on Tabaru’The objective of the research is to explain the structure of GST on Takaful products a focus on Tabarru’ fund. The research will also highlight maqasid shariah (objective) of Takaful with regard to taxation and the effects of GST on customer. ISRA has published the research note on 19 December 2017.

Compensation of Late Payment of Death ClaimThe objective of the research is to seek Shariah issue in regards to compensation and whether beneficiary is eligible to receive the amount or whether it needs to be channelled out to charitable organizations. Research note has been published on 19 December 2017. The findings from the research will be presented to the industry in Quarter 1, 2018.

Leadership Agency and Management Program (LAMP)The industry is endeavouring to develop the LAMP Modules that can elevate the professionalism of Takaful Agency leaders. IBFIM has been requested to develop a basic agency management course for Takaful aspiring leaders similar to the BAMC program managed by the Malaysian Insurance Institute (MII).

The LAMP modules were further enhanced in 2017 while the contents and syllabus underwent industry’s moderations. The LAMP modules also include Shariah components therefore differentiating it from BAMC. Currently in its final phase, the system for LAMP launching is scheduled in Quarter 2, 2018. The LAMP Train The Trainer (TTT) sessions were held as follows:

Young Takaful Manager Leadership (YTML) Program Designed for middle management managers looking for cross-functional management leadership training, the programwas intended to help young managers prepare and position themselves for higher responsibility, boost their confidence and gain deeper understanding of change issue facing the industry. The YTML program made its inaugural debut in January 2017 with a total of 20 participants from the industry. The program was fully funded under the Capacity Building Fund (CBP).

Chartered Takaful Practitioner (CTP)The Chartered Takaful Practitioner (CTP) was developed under the Capacity Building Project by IBFIM to promote the enhancement of professionalism among Takaful practitioner. Once fully developed, the CTP will comprise of three levels with nine modules. CTP is slowly being transferred to the Chartered Institute of Islamic Finance (CIIF) in the last quarter of 2017. IBFIM and CIIF are currently discussing on the transfer terms and condition as well as the IP ownership.

08Research & Developments of The Industry

09Talent And Intermediaries Development

22 – 24 August : 24 participants

20 – 12 October : 21 participants


participants from all members companies and the highlighted topic for program are as follows:

• Understanding Market Liberalization in a Takaful Environment

• Industry Performance and Update on Phased Liberalisation

• Empowerment and Transformation• Relevance of General Agents in a Digitally Disrupted

Environment• Thriving in a Competitive Takaful Market – An Agent’s

Perspective

Supporting Association for the Following Conferences:HALFEST ASEAN 2017On 25 to 27 August 2017, MTA was invited as the supporting Association for the Halfest ASEAN 2017. MTA was also given the opportunity to speak as guest speaker at the following:

Day / Date : Friday / 25 August 2017

Venue : Mines Exhibition Center

Topic : Awareness on Takaful

Speaker : Yusaini Yusof, Prudential BSN Takaful Berhad

Day / Date : Saturday / 26 August 2017

Venue : Mines Exhibition Center

Topic : What is Motor Takaful Liberalisation in Malaysia

Speaker : Suparno Ahmad, Hong Leong MSIG Takaful Berhad

Shariah Fintech Forum 2017 The Association of Shariah Advisors in Islamic Finance Malaysia (ASAS) organised its inaugural Shariah Fintech Forum 2017 (the Forum) that was held in Kuala Lumpur from 7 – 8 November 2017. Malaysian Takaful Association (MTA) was the supporting association for the event. The forum aims to bring together experts from all over the world, the Shariah and Fintech to showcase cutting-edge banking, financial and payment technology and advancements in the entire financial ecosystem.

The Takaful Rendezvous 2017The Takaful Rendezvous was held on 20 – 21 September, 2017 at Mandarin Oriental Hotel, Kuala Lumpur. The theme of the Takaful Rendezvous 2017, “Takaful 2.0: To Soar to Greater Heights – Making Takaful Better Fit for Purpose” focused on solutions to overcome the challenges and explore hidden avenues for growth to stay ahead of the competition. MTA has continued to be the supporting Association for this annual event.

10Events, Conferences and Seminars

Takaful StarNite 2017- Dinner and Awards NightThe Takaful StarNite 2017 was held on 25 March 2017 at Grand Ballroom Sime Darby Convention Centre Kuala Lumpur. The guest of honour who graced the event was Deputy Governor Encik Shaik Abdul Rasheed Ghaffour. Attended by some 700 guests, the event also received media coverage from Utusan Malaysia.

Subcommittees Appreciation Hi TeaThe Subcommittees Appreciation Hi Tea was held on 8 May 2017. The event was a small gesture by MTA in appreciating all the efforts undertaken by subcommittee members and for their commitment towards industry initiatives throughout the 2015 – 2016 terms. This event not only allow subcommittee members the chance to get together but also strengthen its Takaful fraternity bond.

General Takaful Agents Convention 2017The General Takaful Agent Convention was held on 2 August 2017. MTA Chairman presented the keynotes address at the event that was attended by 160


11Takaful Awareness Activities

Under the Takaful Awareness Framework, there are 5 pillars of execution plan that have been identified as part of the campaign strategy that includes Media Plan, Community Engagement, Lecture Series, Collaboration with other organization.

Community EngagementJalinan Takaful IftarMTA and Etiqa Takaful Berhad have jointly organized the Jalinan Takaful Iftar Ramadhan event as part of the Community Engagement pillar with the aim of engaging the targeted communities to create Takaful awareness within their locality. The event was held on 12 June 2017 at Masjid Tun Hussein Onn Cheras.

MTA and Etiqa volunteers also took Rumah Permata Hati orphans raya shopping at AEON Cheras Selatan during the day. The event also include Ramadhan talk by Ustaz Johari Abdul Wahab followed by presentation of duit raya and food hampers to the orphans, poor folks, (asnaf) and Muallaf.

Lecture SeriesThe lecture series continued in 2017 as part of MTA’s Takaful awareness program. The objective is to create awareness among the young adults at higher learning institution through industry lectures. The following lectures were conducted in 2017:

Audience : Universiti Sultan Zainal Abidin (UniSZA), Terengganu

Date : 3 January 2017

Venue : Malaysian Takaful Association

Topic : Challenges in Takaful Industry

Speaker : Encik Nuur Idaman Bin Abd Rahman – Takaful Ikhlas Berhad

Audience : Students of Diploma in Business Studies and Diploma in Insurance Studies, Politeknik Sultan Salahudin Abdul Aziz Shah

Date : 28 February 2017

Venue : Politeknik Sultan Salahudin Abdul Aziz Shah

Speaker : Puan Yusaini Yusof, Prudential BSN Takaful Berhad

Audience : Politeknik Metro Johor Bahru

Date : 3 March 2017

Venue : Auditorium IBFIM

Topic : Introduction to Takaful

Speaker : Puan Nur Ivy Edmeades, Malaysian Takaful Association

Audience : 15 Students of Actuarial StudyUniversiti Teknologi MARA (UiTM) Shah Alam

Date : 16 May 2017

Venue : Malaysian Takaful Association

Topic : Introduction to Takaful Industry

Speaker : Puan Nur Ivy Edmeades / Encik Mohd Nazmi HosnihMalaysian Takaful Association

Audiences : Faculty of Economy, University Malaya

Date : 22 August 2017

Venue : Social Security Research Centre, Faculty of Economy of UM

Topic : Policy Forum on Insurance and Takaful Industry

Speaker : Encik Azli Munani, Malaysian Takaful Association

Audiences : Students of IIUM Institute of Islamic Banking and Finance (IIiBF)

Date : 15 December 2017

Venue : International Islamic University Malaysia (IIUM)

Topic : The Liberalisation of General Insurance and Takaful in Malaysia: Issues and Challenges

Speaker : Encik Suparno Ahmad, Hong Leong MSIG Takaful Berhad


CollaborationsCollaboration with Yayasan Dakwah Islamiah Malaysia (YADIM)Already in its third year running, the collaboration with YADIM has become an integral part promoting Takaful awareness through the Cinta Muamalah program. In 2017, MTA was able to reach out to communities through the various Takaful talk series during Kembara Muamalah Masjid and Jelajah Muamalah Ummah.

Cinta Muamalah Short Video ContestAs part of the Cinta Muamalah program, a short video contest was held from 1 April to 30 September 2017 and was opened to all universities and college students. Participants were given the following titles to choose from for their video:

i. Industri Takaful Di Malaysia;ii. Keperluan Takaful dari Perspektif Syara’; iii. Perbezaan Antara Takaful dan Insuran; iv. Takaful Sebagai Salah Satu Tempat Pelaburan; danv. Hibah Takaful Elak Masalah Agihan Harta Pusaka.

The Cinta Muamalah prize giving ceremony was held on 14 December 2017. The winner for the contest are as follow:

1. First Place – Muhammad Ismail – Sekolah Menengah Agama Kuala Lumpur (SMAKL)

2. Second Place – Muhammad Fakrulrazi – UiTM Puncak Alam

3. Third Place – Thirumathiraram – Kolej Poli-Tech Mara, Perak

4. Fourth Place – Danial Sakirin – Kolej MARA, Kulim, Kedah

5. Fifth Place – Fatin Lyana – Kolej Poli-Tech Mara, Perak

Kembara Muamalah Masjid Bersama Jabatan Agama Islam Negeri Sembilan (JHEAINS)This year’s collaboration with YADIM saw the participation of MTA in the Kembara Muamalah Masjid bersama Jabatan Agama Islam Negeri Sembilan (JHEAINS). A total of 7 roadshows were organised by YADIM at various mosques in the Negeri Sembilan such as Seremban, Jempol, Jelebu, Tampin, Kuala Pilah, Rembau and Port Dickson.

Jelajah Muamalah Ummah Dan Karnival Muamalah 2017MTA took part in the 4-day roadshow known as the Program Jelajah Muamalah Ummah Bersama Politeknik Malaysia (Zon Selatan) dan Karnival Muamalah Ummah 2017. The program was a collaboration between YADIM and Bahagian Pembangunan Pelajar, Jabatan Pendidikan Politeknik, Kementerian Pendidikan Malaysia. It was held from 10 to 14 June 2017 at four Politeknik locations, Politeknik Mersing Johor, Politeknik Ibrahim Sultan, Pasir Gudang Johor, Politeknik Merlimau Melaka and Politeknik Port Dickson Negeri Sembilan.

This program also include participation from the Association of Islamic Banking Institution Malaysia (AIBIM), IBFIMand Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM). YADIM’s program has also received media coverage by RTM, TV9 and Kosmo.

The program aims to spread awareness and better understanding to the concept of Islamic Finance to the community at large and also to cultivate ideas and thought on Muamalah system into the people.

Venue : Politeknik Mersing Johor

Speaker : Ustaz Mohamed Hadi Abdul HamidEtiqa Takaful Berhad

Venue : Politenik Ibrahim Sultan, Pasir Gudang Johor

Speaker : Branch ManagerTakaful Ikhlas Berhad

Venue : Politeknik Merlimau Melaka

Speaker : Ustaz Abdul Hakim JohariPrudential BSN takaful Berhad

Venue : Politeknik Port Dickson, Negeri Sembilan

Speaker : Ustaz Mohd Hafizal EliasGreat Eastern Takaful Berhad


Collaboration with Amanah Ikhtiar MalaysiaAmanah Ikhtiar Malaysia (AIM) and MTA have collaborated in a program for Sahabat AIM from Ampang, Kuala Lumpur and Selangor region. MTA was given the opportunity to present on Takaful awareness to about 250 participants. The program’s details were as follows:

Day / Date : Thursday/23 February 2017

Venue : Galaxy Ampang

MTA Session : Risiko dalam Perniagaan Anda dan Takaful sebagai Alternatif

Program : MobileLINK Engagement ProgramDate : 2 – 3 April

Venue : i. Pasir Panjang, Port Dicksonii. Kuala Pilah, Negeri Sembilan

Date : 14 – 16 April

Venue : i. Hulu Berang, Hulu Terengganuii. Pekan Kuala Telemung Hulu

Terengganuiii. Kampung Belukar Sukai, Kepong, Hulu

Terengganu

Date : 12 – 14 May

Venue i. Pangkal Meleret, Machang Kelantanii. Mahligai, Bachok Kelantaniii. Pantai Sri Tujuh, Tumpat Kelantan

Program : Mini Karnival Kewangan Bank Negara Malaysia

Date : 23, 28 and 30 April

Venue : Bakong Senggarang Mukim, Kg Bahru, Batu Pahat

Date : 7 May

Venue : Ayer Molek, Melaka

Date : 20 May

Venue : Segamat, Johor

Engagement Session between Malaysia Digital Economy Corporation (MDEC) and Takaful Industry on FintechRealising that technology is driving the biggest opportunities for change in the way that Takaful industry develops, distributes, underwrites, and administers the products to the consumer, an engagement session between member companies and MDEC was held on 16 August 2017. About 22 participants from members companies attended the session titled “Fintech for Islamic Finance in Malaysia”. The Takaful industry and MDEC is exploring on opportunity to engage potential collaboration with industry players to further advance Fintech in the industry. This effort was also supported by the Islamic Banking and Takaful Department of Bank Negara Malaysia.

Tea Talk Session with Naluri Life A Tea Talk session with Naluri Life was held on 6 September 2017 which was attended by 18 participants from members companies. The objectives of the session are to present and discuss the proposed Naluri digital health prevention program to member companies.

Session with RehanstatThe session with Rehanstat on telematics in Takaful industry was held on 17 October 2017. Rehanstat is the market research firm. The objective of the session was to present and discuss the Usage-Based Insurance (UBI) concept to Takaful companies to innovate the traditional approach and formulate telematics strategies. The presenter was the Founder and CEO/Data Scientist of Rehanstat, Datin Dr. Rehana Kassim. Total of 13 participants from member companies attended the briefing.

Special Session with PolicyStreet.comMTA has invited the fintech company, Policy Street.com to have a special session with industry on 31 October 2017. PolicyStreet is a leading Insurtech company which advances inclusive insurance in Malaysia and the region. The topic of the session was “The Wave of Insurtech and Innovation – How Can You Be Involved?” that was presented by Mr. Lee Yen Min, Chief Executive Officer and Mr. Wilson Beh, Co-Founder & Chief Operations Officer of Policystreet. Total of 22 participants from member companies attended this session.

BNM InitiativesBNM Mobile Link / Mini Karnival KewanganThe BNM Mobile LINK is part of the Bank’s efforts in promoting financial inclusion by extending the outreach to a wider community through its mobile customer service coach. It complements the existing channels of LINK ((Laman Informasi Nasihat dan Khidmat) that offer advisory services to the community. MTA member companies continue to support the Mobile LINK program as well as the mini Karnival Kewangan that was held in various locations as follows:


BNM Karnival Kewangan: Kuala LumpurBank Negara Malaysia, in collaboration with the financial industry organised the inaugural Karnival Kewangan at the Putra World Trade Centre (PWTC) from 13 to 15 January 2017. The Karnival aims to inform and educate the public on financial matters, including available services that can help individuals and businesses manage their financial affairs more effectively. The following activities were conducted at MTA booth:

Karnival Kewangan East Malaysia: Kota Kinabalu, Sabah The success of the first Karnival Kewangan had prompted Bank Negara Malaysia (BNM) to organise other similar events outside of Kuala Lumpur. The second Karnival Kewangan was held from 4 to 6 August 2017 at Suria Sabah Shopping Mall, Kota Kinabalu. The following activities were conducted at MTA booth:

Date : 12 – 13 July

Venue : i. Pekan Rendang, Kedahii. Balik Pulau, Pulau Pinang

Date : 5 – 6 August

Venue : i. Taman Sri Kerinau, Temerloh Pahangii. Kampung Sri Ketumbit Kerdau,

Temerloh Pahang

Date : 24 – 26 August

Venue : i. Pejabat Daerah & Tanah Hilir Perak, Perak

ii. Cenderong Balai, Perakiii. Batu 10 Lekir, Perak

Date : 9 – 11 September

Venue : i. Batu Talam, Raub Pahangii. Kg Ria Kundang Patah, Raub Pahangiii. JKKK Felda Sg Koyan, Raub Pahang

Date : 11 – 12 November

Venue : i. Kampung Sungai Jelutong, Negeri Sembilan

ii. Kampung Titi Jelebu, Negeri Sembilan

Activities AchievementsSurvey : 920 completed survey

Quizzes : More than 300 visitors participated

Distribute Articles

: Distribution of 600 sets

Snap, Tag & Win

: Increasing followers on MTA social media page

Karnival Kewangan East Malaysia: Kuching, SarawakThe third Karnival Kewangan was held from 24 to 26 November 2017 at One City Mall Exhibition Cente, Kuching. The following activities were conducted at MTA booth:

Key Highlight:

• Launching on Perlindungan Tenang • Media conference on Perlindungan Tenang and

Phased Liberalisation• Pocket Talk session on Phased Liberalisation in

Malaysia by Encik Suparno Ahmad, Hong Leong MSIG Takaful Berhad

Key Highlight:

• MTA Chairman interview session with Berita Harian on Phased Liberalisation

• Pocket Talk session on Phased Liberalisation in Malaysia by Encik Yassir Azlin, Hong Leong MSIG Takaful Berhad


Crossword Puzzle & Rubik Cube

: 926 recorded visitors

Promotion on Direct Channel

: Distribution of 2,000 brochures


Maze quiz & Rubik cube : More than 300 visitors participated

Promotion on Direct Channel, Perlindungan Tenang, Service Guide, LIFE Framework

: Distribution of 1,000 brochures


12Courtesy Visits and Talks

MTA continues to receive courtesy visits from various embassies and institutions in 2017. The Association will continue to accept visitation requests as it continue to build good network and establish goodwill relationship with relevant parties.

Visitation from Nippon Life Asia Pacific (Regional HQ) Pte. Ltd.The Nippon Life delegates came to visit MTA on 22 February 2017. The purpose of their visit is to obtain current update of Takaful industry in Malaysia.

Visit from Dai-Ichi Life Insurance Company, JapanMTA received total of 12 delegates from Dai-Ichi Life Insurance Company. The visitation was held on 16 October 2017. The aim of their visit was to seek information on Takaful industry in Malaysia.

Visit from Amana Takaful Sri Lanka The Amana Takaful Sri Lanka delegates came to visit MTA between 1 to 9 November 2017. The topics discussed during their visit were:

• Family Takaful operation surplus distribution • Investment modes and the regulatory requirement

pertaining to it.• Co-inward and outward arrangement • Fronting arrangement and rulings pertaining to it.

Event Photos and Highlights in 2017

The delegates also made a visit to other member companies namely, Etiqa Takaful Berhad, Takaful Ikhlas Berhad as well as ISRA and Actuarial Partners.


Contact UsMalaysian Takaful Association

21st Floor, Main Block, Menara Takaful MalaysiaNo 4, Jalan Sultan Sulaiman

50000 Kuala Lumpur, Malaysia

Tel : (603) 20318160Fax : (603) 20318170

www.malaysiantakaful.com.my

www.facebook.com/malaysiantakafulassociation

@malaysiantakafulassociation

Documents

ANNUAL REPORT 1 · 2018-04-20 · 4 ANNUAL REPORT Malaysian Takaful Association (MTA) was formed in November 2002 under the Malaysian Societies Act of 1966. The objectives of MTA