KUALA LUMPUR: CIMB Islamic Bank Bhd and Takaful Ikhlas General Bhd aim to achieve 11% year-on-year growth in total gross contribution of RM168mil over the next five years through their bancatakaful strategic partnership.
CIMB Islamic Bhd chief executive officer Rafe Haneef said the partnership with the Islamic insurance arm of MNRB HOLDINGS BHD would provide general takaful products to CIMB Islamic’s customers across retail, small and medium enterprises (SMEs) as well as commercial segments.
“As the general takaful industry is expected to grow around 7% in 2019, we are confident that our partnership will capitalise on new businesses and contribute to growth.
“We already have a strong base of existing customers. We will grow the insurance takaful business with our existing base of customers that stands around one million, ” he told reporters after launching the partnership.
The general takaful industry posted growth of 8.9% with gross contribution of RM2.79bil in 2018 from RM2.56bil in 2017.
Given the continued growth in the Islamic finance industry, Rafe noted that demand for additional services like general takaful products is increasing due to Islamic banking regulation requiring customers to opt for takaful products.
“Given that CIMB’s asset base is growing more towards Islamic banking, we are confident that the natural demand for takaful products will grow in tandem, ” he said.
Last year, CIMB Islamic and Sun Life Malaysia joined forces to offer life insurance products following the success of its first universal life haj takaful, Takaful Suria, which was introduced in 2015.
On CIMB’s partnership with Sun Life and Takaful Ikhlas, Rafe said both partnerships would complement each other as both insurance companies are offering different products such as life insurance and general takaful, respectively.
Meanwhile, Takaful Ikhlas president and chief executive officer Eddy Azly Abidin said two products would be offered initially – motor and home protection.
Over the next one year, a total of 13 products are expected to be rolled out for commercial packages, SMEs, travel-related insurance and hajj travel.
“Takaful Iklhas will leverage on CIMB Islamic’s extensive distribution channels comprising the bank’s 250 branches nationswide, online platforms and call centres, ” Eddy said.
Moving forward, he expects Takaful Ikhlas, a wholly owned subsidiary of MNRB HOLDINGS BHD, to register a double-digit growth for financial year ending March 31, 2020 on the back of the new partnership with CIMB Islamic Bank.