CIMB Islamic, Takaful Ikhlas partnership eyes RM168 mln of business

Last update: 07/08/2019

KUALA LUMPUR, Aug 7 (Bernama) -- MNRB Holdings Bhd’s wholly-owned subsidiary, Takaful Ikhlas General Bhd, and CIMB Islamic Bank Bhd aims to achieve an 11 per cent year-on-year growth in gross contribution over the next five years, totalling RM168 million, through their bancatakaful strategic partnership.

Takaful Ikhlas General president and chief executive officer (CEO) Eddy Azly Abidin said with the partnership, the company would become the preferred general Takaful provider to all CIMB Islamic customers, leveraging the bank’s vast distribution channels, including 250 branches nationwide, online platforms and call centres.

“Initially, we will provide motor and home protection via the channels, and moving forward, we will also include small and medium enterprise and commercial packages, travel-related insurance and hajj travel insurance,” he told reporters after launching the strategic partnership here, today.

Eddy Azly said in 2018, the general Takaful industry grew by 8.9 per cent, with a gross contribution of RM2.79 billion compared with RM2.56 billion recorded in 2017, despite the challenging economic environment.

“The industry is expected to grow around seven per cent this year, and both companies are confident that the partnership could catalyse new business and contribute to growth,” he said.

He said Takaful Ikhlas’ gross contribution is currently about RM300 million, adding that it is eyeing a double digit growth for the financial year ending March 31, 2020 through the partnership and by leveraging the growth in Islamic financing.

Meanwhile, as the insurance provider’s first financial partner, he said CIMB Islamic clients would benefit from Takaful Ikhlas Waqf programme, where RM1,000 will be endowed under the participant’s name, upon demise due to an accident, to recognised institutions.

Meanwhile, CIMB Islamic CEO, Rafe Haneef said the bank would grow the partnership, leveraging its existing strong base of one million policyholders.

“Our existing businesses are already creating a demand for the product. Whenever we give Islamic financing, Takaful would be a requirement as Islamic banking regulation requires those taking Islamic facilities to opt for Takaful,” he said.

Rafe noted that Bank Negara Malaysia expected Islamic banking assets to account for 40 per cent of total banking assets by 2020, adding, CIMB Islamic was also tracking the growth in line with the target, which would boost demands for Takaful products.

“Having a partner with a strong 16-year track record is key in ensuring quality Takaful products for our customers.

“Apart from our branch network, a broad range of Takaful Ikhlas offering would also be made available for purchase via CIMB Clicks online platform by end of 2019,” he added.

— BERNAMA