President and Chief Executive Officer Ab Latiff Abu Bakar said the Islamic insurance penetration rate by the Malays in the country was only 12 per cent, a very small percentage as compared to the population.
"Of the 88 per cent of the Malay market for Islamic insurance protection which have not been penetrated, we are aiming to secure up to 10 per cent next year, driven by would-be-launched new group schemes and existing group insurance policies. We are targeting RM10 million returns in the next five years from our group insurance schemes."
Ab Latiff said Takaful Ikhlas was also confident of netting RM2 million worth of sales this year from RM1.5 million last year, aided by the appointment of more agents, up to 50, and improved marketing strategies.
He said the Islamic insurance industry, particularly the Malaysian Takaful Association, must play its role to eduate the people who think that Islamic insurance and conventional insurance schemes are the same.
"The most important aspect is the product itself and the way we present and promote to potential clients. The insurance business is about reaching out to the masses. The products that we sell must be reasonable in terms of price and are affordable by the people.
"One of our strategies at Takaful Ikhlas is to come up with reasonable and affordable group insurance schemes that can be sold to target groups, be they cooperative members, trade unions, associations and affiliated bodies," he said.
Ab Latiff said the awareness on Islamic insurance schemes would serve as an "eye-opener" for the very small contribution of group Islamic insurance schemes to the company's overall financial results.
We launched three products recently basically to tackle the non-muslim customers as they accounted for only seven per cent from our 1.7 million policyholders. We have about 30 non-Muslim policyholders including agents sitting for qualifying examination before they can perform their duties.
"We are aiming for 100 non-Muslim agents by the end of the financial year (March 31, 2014) and we target to open 5,000 new policies from non-Muslim clients through the agents. We will explain to non-Muslim clients that the Islamic insurance is good for them as the investment is very stable. We will not invest in high-risk counters," he said.
The recently launched three insurance schemes were the first three products specially designed for non-Muslims, he said, adding that two more such schemes would be launched next year. The new schemes will focus more on entrepreneurs and small and medium enterprises.
"These schemes will have no returns or dividends, only protection. Takaful Ikhlas may become the first Islamic insurance company to introduce such an insurance scheme in the country," he added.
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