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#Malaysia’s #takaful industry is set to double its growth rate this year as companies focus on selling cheaper policies in rural areas. Malaysian Takaful Association's chairman Ahmad Rizlan Azman said the number of policies would rise 10% to 5.05 million in 2016, compared with 4.3% growth in 2015. Insurers entering the micro-takaful market and the liberalisation of commission structures are the biggest drivers.

#islamicfinance - #Malaysia’s #takaful industry is set to double its growth rate this year as companies focus on selling cheaper policies in rural areas, according to the Malaysian Takaful Association. The number of policies will rise 10 % to 5.05 mn in 2016, compared with 4.3 % growth in 2015 and a 1 % estimated expansion of non-Islamic business, Ahmad Rizlan Azman, chairman of the Association, said.

Malaysia’s Islamic insurers are seeking to double policy holders in five years by investing more in digital technologies to attract a younger audience, according to Ahmad Rizlan Azman, chairman of the Malaysian Takaful Association. Takaful operators should also step up educational campaigns to boost customers to 8.4 million by 2020 from about 4 million now, he said. Attracting more professionals is another prerequisite to achieving Malaysia’s targets, Ahmad Rizlan added. Syarikat Takaful’s Mohammad Hassan said the nation’s Islamic insurers have to push for innovative new ideas to keep their growth momentum going. The company is considering an acquisition in the next two years to increase its customer base, he said.

Etiqa Takaful Bhd, a unit of Malayan Banking, plans to issue 300 million ringgit ($92.2 million) in sukuk as early as this month, its chief executive Ahmad Rizlan Azman said. Last month, Etiqa Takaful set up its maiden sukuk programme, rated AA1 by RAM ratings, designed to qualify as Tier 2 capital in the company's balance sheet. The sukuk would be a one-off transaction classified as Etiqa's liabilities, carrying a 10-year tenor and a non-call provision in the first five years, said Azman. Etiqa would use a musharaka structure and the proceeds of the sukuk would be used for general business operations, working capital and other purposes. Maybank Investment Bank is the advisor for the sukuk.

Ahmad Rizlan was apoointed as the new CEO of Etiqa Takaful Bhd by Etiqa Insurance & Takaful. The new CEO has to report to the CEO of Etiqa Insurance & Takaful since the latter is responsible for the entire insurance and takaful group. Rizlan will be in charge of leading the takaful business in Etiqa including the performance of Etiqa Takaful here and regionally.

Read more on: http://www.thesundaily.my/news/529859