At the 27th Annual General Meeting (AGM) held yesterday, Takaful Malaysia’s shareholders approved the final dividend of 10 per cent single tier in respect of the financial year ended Dec 31, 2011 amounting to approximately RM16.3 million.
“For the past 12 months, Takaful Malaysia’s share price has increased tremendously from RM1.39 in March 2011 to RM3.96 on April 30, 2012,” added Datuk Mohamed Hassan Kamil, group managing director of Takaful Malaysia.
Takaful Malaysia has improved its market share of total takaful contribution to 20 per cent from 15 per cent in 2010. The total contribution consist of 60 per cent of family takaful and 40 per cent for general takaful.
Based on Insurance Services of Malaysia (ISM) 4Q2011 report, Takaful Malaysia is the only operator among the top three players, which recorded a growth of 43 per cent and increase in market share by five per cent.
With the impending implementation of the Risk Based Capital Framework, it is possible that the industry may witness a round of consolidation between smaller takaful players. If this development takes place in 2012, there will be bigger but fewer players to contend with. This may augur well for Takaful Malaysia to further grow its market share moving forward.
“Takaful Malaysia’s existing products portfolio are well positioned to tap the many opportunities going forward. Our growing image and acceptance for our products and services as well as improving customer service levels will hold us in good stead to compete effectively in the market place.
“We are looking into various strategic initiatives to grow our market share amongst others are marketing and branding, IT strategy and ‘customer centric’ value propositions,” expressed Hassan.
As for marketing and branding, Takaful Malaysia had recently launched the ‘We Should Talk’ campaign which marks an aggressive effort to engage and connect with its potential clients and investors.
The ‘We Should Talk’ campaign is targeted towards creating awareness of takaful or Islamic insurance and the value added benefits of takaful with the profit sharing concept compared to conventional insurance especially on the 15 per cent No Claim Rebate offering for all Takaful Malaysia’s general takaful products.
Takaful Malaysia is the first and only takaful operator in the country that offers this benefit, and had been consistently refunded 15 per cent of the premiums paid if no claims are incurred during the coverage period.
We will also look to enhance our distribution channels to boost sales. The ability to reach customers nationwide is crucial and we will continue to improve our capability and capacity in this area.” The Economic Transformation Programme (ETP) is also likely to have a potential positive impact to the insurance and takaful industry at the end of 2012.
The multiplier or cascading effect of this is income creation, sale and purchase of properties, hiring of employees, loans and other activities; most of which will require insurance coverage.
The government has also expressed its intention of increasing the Gross Domestic Product (GDP) for life insurance from the existing 2.8 per cent to 4 per cent (75 per cent of population) by 2020 via the various ETP based initiatives.
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