The takaful industry in Malaysia is looking forward to added incentives in 2014 budget to be tabled by the prime minister on October 25.
Takaful Ikhlas Sdn Bhd (Takaful Ikhalas) president and chief executive officer Ab Latiff Abu Bakar said the Malaysia Takaful Association (MTA) had discussed several issues with the relevant authorities on their expectation for next year’s budget.
“We have already discussed some issues but it is only wise if MTA makes a statement regarding the budget (what the industry requires in the 2014 budget),” he told Bernama.
Based on the news report, the takaful industry had expected new business growth to increase at least 20 per cent by year end.
Meanwhile, Takaful Ikhlas, a unit of MNRB Holdings Bhd, aims to achieve a 14 per cent market share by year-end, an improvement from the 12 per cent market it garnered last year.
Ab Latiff said Takaful Ikhlas was planning to strengthen its programmes in order to achieve the targetted market share.
“We are trying to put the right prospective in terms of strategy and many more,” he revealed.
Ab Latiff said Takaful Ikhlas was developing a three-year blueprint to increase its market share.
It planned to concentrate more on agency business which would concentrate on products that would suited market needs.
“We hope the increased market share will attract better results in the next financial year ending March 31, 2014,” Ab Latiff added.
He also highlighted that Takaful Ikhlas would improve its new business financial year contribution in order to emerge among the top two insurance players.
Asked if the insurance industry was affected by the current economic situation, Ab Latiff said it had no impact as people were more concerned about protection and financial planning.
“Normally, when the economy is not strong, most people will seek out insurance as their priority, to get enough coverage should anything happen,” he said, adding that although the market was volatile Takaful Ikhlas’ investments were not affected.
“We invest in syariah compliance tools. There might be some impact but not as big as non-syariah compliance counters,” he said.
Takaful Ikhlas is also confident of netting RM2 million worth of sales this year, against RM1.5 million last year, aided by the appointment of more agents and improved marketing strategies.
Takaful Ikhlas has over 1.8 million registered policy holders and some 5,000 agents and is targeting RM10 million in premium income over the next five years.