The Risk Base Capital for Takaful (RBCT), a takaful risk management framework in Malaysia, is expected to be implemented by the first half of next year.
Malaysian Takaful Association president, Datuk Syed Moheeb Syed Kamarulzaman said the framework would enable industry players to conduct a better risk management on capital, thus improving the takaful management system in Malaysia.
"We expect the implementation to be next year with a shorter time frame to its actual execution, compared to the year given to conventional insurance," he told reporters, after the opening of the inaugural Malaysia Insurance Summit 2011 here today.
The Malaysian Insurance Institute chief executive officer, Khadijah Abdullah officiated the event.
A similar framework for conventional insurance was implemented in January 2009.
Meanwhile, on the takaful forecast for this year, Syed Moheeb said the segment is expected to exceed last year's growth, given that three more companies will make their debut as well as the stronger performance of existing companies.
"This year's growth is expected to be the highest by far in the takaful segment," he added.
Syed Moheeb said the addition of the three new companies would bring the total number of takaful entities in Malaysia to 14, comprising 11 takaful and three re-takaful companies.
There is also another company still waiting for its licence to be approved by Bank Negara Malaysia, he added.
Last year, the takaful segment grew by more than 20 per cent with assets valued at RM14.7 billion and accounting for 8.7 per cent of the combined asset base of the conventional and takaful industries.