Business Takaful

Source: Business Times, 23rd June 2008

Islamic insurance or takaful is expected to register a 30 per cent growth this year despite an environment of higher prices.

Takaful Ikhlas Sdn Bhd chairman Sharkawi Alis said the economic downturns in 1988 and 1997 had proven that the insurance industry can withstand such turmoil.

“It’s a recession-proof industry. Takaful, in particular, can grow bigger as it has only penetrated seven per cent of the population,” he said after the opening of Takafaul Ikhlas’ regional office in Kuantan by State Entrepreneur Development and Cooperative committee chairman Datuk Ishak Muhamad on Saturday.

Present was Takaful Ikhlas president and chief executive officer Syed Moheeb Syed Kamarulzaman.

Sharkawi said throughout the trying period, the public would realise the importance of insurance which provided a back-up plan for them and their families.

Sharkawi said the company had projected RM530 million in premiums for its 2008/2009 financial year.

For the 2007/08 financial year, the company had accumulated RM428 million in premiums, which is higher than the RM320 million projected.

“We believe that the company can get higher contributions as the awareness on takaful products has increased while our operational efficiency has improved tremendously,” he said.

Syed Moheed said the company might repackage some of its 77 existing products to meet the changing demands of its 600,000 clients.

Takaful Ikhlas had also targeted to increase its participants or policyholders to 800,000 this year. Takaful Ikhlas agents are expected to collect RM32.7 million contributions this year compared with RM12.7 millon last year.

The Pahang office is the eighth regional branch after Kuala Lumpur, Kota Baru, Johor Baru, Sungai Petani, Kuching, Kota Kinabalu and Malacca.

Takaful Ikhlas also plans to open a branch in Putrajaya and Ipoh by year-end.