TOUCHING LIVES IN A MEANINGFUL WAY

ANNUAL REPORT MALAYSIAN TAKAFUL ASSOCIATION 21st Floor, Main Block, Menara Takaful Malaysia, No 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur, Malaysia Tel : (603) 20318160 Fax : (603) 20318170 www.malaysiantakaful.com.my @malaysiantakafulassociation malaysiantakafulassociation 2019 MALAYSIAN TAKAFUL ASSOCIATION 02 ANNUAL REPORT 2019

LIST OF MEMBER COMPANIES

FAMILY TAKAFUL OPERATORS Prudential BSN Takaful Berhad Syarikat Takaful Malaysia Am Level 13, Menara Prudential, Berhad AIA PUBLIC Takaful Bhd. Persiaran TRX Barat Tun Razak 17th Floor, Annexe Block, Level 14, Menara AIA Exchange, 55188 Kuala Lumpur Menara Takaful Malaysia, 99 Jalan Ampang, Tel : 03-2778 3888 No. 4, Jalan Sultan Sulaiman, 50450 Kuala Lumpur Web : www.prubsn.com.my 50000 Kuala Lumpur Tel : 03-2037 1333 Tel : 1300 88 252 385 Sun Life Malaysia Takaful Berhad Fax : 03-2056 3690 Fax : 03-2274 0237 Penthouse, 338 Jalan Hotline : 1300 88 8922 Web : www.takaful-malaysia.com.my Web : www.aiapublic.com.my Tuanku Abdul Rahman 50100 Kuala Lumpur Takaful Ikhlas General Berhad AmMetLife Takaful Berhad Tel : 03-2612 3600 9th Floor, IKHLAS Point Level 23, Menara Sentrum Fax : 03-2698 7035 Tower 11A, Avenue 5 No.201, Jalan Tun Sambanthan Hotline : 1 300 88 5055 Bangsar South, No. 8, Jalan 50400 Kuala Lumpur Web : www.sunlifemalaysia.com Kerinchi Tel : 03-2271 8000 59200 Kuala Lumpur Syarikat Takaful Malaysia Keluarga Fax : 03-2272 3229 Tel : 03-2723 9668 Berhad Hotline : 1 300 22 9777 Fax : 03 2711 8140 26th Floor, Annexe Block, Web : www.ammetlifetakaful.com Web : www.takaful-ikhlas.com.my Menara Takaful Malaysia, Etiqa Family Takaful Berhad No. 4, Jalan Sultan Sulaiman, Zurich General Takaful Malaysia Level 20, Tower B, 50000 Kuala Lumpur Berhad Dataran Maybank Tel : 1300 88 252 385 Fax : 03-2274 0237 Level 23A, Mercu 3 No.1, Jalan Maarof Web : www.takaful-malaysia.com.my No 3, Jalan Bangsar 59000 Kuala Lumpur KL Eco City Takaful Ikhlas Family Berhad Tel : 03-2297 1888 Fax : 03-2297 1800 59200, Kuala Lumpur 9th Floor, IKHLAS Point Hotline : 1 300 13 8888 Tel : 03-2109 6000 Tower 11A, Avenue 5 Web : www.etiqa.com.my Fax : 03- 2109 6888 Bangsar South, No. 8, Hotline : 1 300 888 622 FWD Takaful Berhad Jalan Kerinchi Web : www.zurich.com.my No. 211, 29th Floor Menara 59200 Kuala Lumpur Shell, Jalan Tun Sambanthan, Tel : 03-2723 9668 Fax : 03 2711 8140 50470 Kuala Lumpur Web : www.takaful-ikhlas.com.my Tel : 03-2771 7888 RETAKAFUL OPERATORS Hotline : 1300 13 7988 Zurich Takaful Malaysia Berhad Web : www.fwd.com.my Level 23A, Mercu 3 Malaysian Reinsurance Berhad No 3, Jalan Bangsar (Malaysian Re Retakaful Division) Great Eastern Takaful Berhad KL Eco City 12th Floor, Bangunan Level 3, Menara Great Eastern 59200, Kuala Lumpur Malaysian Re 303 Jalan Ampang Tel : 03-2109 6000 Fax : 03- 2109 6888 No. 17, Lorong Dungun 50450 Kuala Lumpur Hotline : 1 300 888 622 Damansara Heights Tel : 03-4259 8338 Web : www.zurich.com.my 50490 Kuala Lumpur Fax : 03-4259 8808 Tel : 03-2096 8000 Hotline : 1 300 13 8338 Fax : 03-2096 7000 Web : www.greateasterntakaful.com Web : www.malaysian-re.com.my GENERAL TAKAFUL Hong Leong MSIG Takaful Berhad Munich Re Retakaful Level 5, Tower B, OPERATORS Suite 13.1 Level 13, Menara IMC PJ City Development, Etiqa General Takaful Berhad 8 Jalan Sultan Ismail No 15A, Jalan 219, Seksyen 51A Level 21, Tower C 50250 Kuala Lumpur 46100 Petaling Jaya, Selangor Dataran Maybank Tel : 03-2380 8500 Tel : 03-7650 1800 No.1, Jalan Maarof Fax : 03-2032 5955 Fax : 03-7620 6730 59000 Kuala Lumpur Web : www.munichre.com Web : www.hlmtakaful.com.my Tel : 03-2297 1888 Swiss Re Asia Pte.Ltd Malaysia Fax : 03-2297 1800 Branch Hotline : 1 300 13 8888 No. 10, Persiaran KLCC, Web : www.etiqa.com.my Level 13A-2 Naza Tower @ Platinum Park 50088 Kuala Lumpur Tel : 03-2170 3601 Fax : 03-2170 3602 Web : www.swissre.com MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 03

CONTENTS

04 About MTA

05 Chairman’s Message

06 Management Committee 2019–2021

07 MTA Subcommittees Representatives in other Organisations and Committees

08 Development of the Takaful Industry

17 Conference, Seminar, & Workshop Collaboration

20 Lecture Series and Courtesy Visits

21 Events, Training and Media Engagements

26 Key Figures

30 Photo Gallery MALAYSIAN TAKAFUL ASSOCIATION 04 ANNUAL REPORT 2019 1 ABOUT MTA

Malaysian Takaful Association (MTA) was formed in November 2002 under the Malaysian Societies Act of 1966. The objectives of MTA are essentially to promote the interests of its members and to supervise self- regulation within the Takaful industry. Currently, a total of 15 Takaful operators and 3 ReTakaful operators are member companies of MTA.

MISSION Promote and represent the interests of members and also the foundation of a To provide leadership on issues bearing on the industry’s collective strength and image, locally and internationally to benefit the industry sound Takaful structure with cooperation. as a whole. Represent the Malaysian Takaful industry to government, regulators and policy makers VISION in locally and internationally, driving • Sustainably profitable and growing Takaful industry in Malaysia effective public policy and regulation. • An industry that can be trusted and recognised as contributing to society and the economy Institute strategic alliances and cooperation • An economic and public policy climate conducive to a flourishing with other similar associations both locally industry and internationally. • A trade body recognised as providing active leadership and an authoritative collective voice for the Takaful industry Promote the benefits of takaful to the government, regulators, policy makers and OBJECT AND POWER OF MTA the public. MTA was established to foster cooperation and mutual understanding amongst its registered members, whilst furthering the interests of the Takaful concept. Advocate high standards of services within the industry and provide useful information to the public about Takaful.

Collect, collate and publish statistics and any other relevant information relating to Takaful to members. MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 05 2 CHAIRMAN’S MESSAGE

The local Takaful industry continued its increasing and active trend towards the promotion of Takaful protection to Malaysians. Over the last 36 years, even though the Takaful industry faced many challenges, the industry kept its relentless pace in responding well to the nation’s aspirations, so that everyone could afford a Takaful coverage. As proof, the Takaful industry had put endless efforts into the Life insurance and Family Takaful (LIFE) framework and the Phased Liberalisation on Motor and Fire Tariff. The industry had been innovative and embraced transparency in its Takaful products and services. Our Association continues to strive leadership on issues bearing on the industry’s collective strengths and to shape the decisions made by the various stakeholders, locally and internationally. We have been lucky to have had the assistance of various stakeholders such as Life Insurance Association Malaysia (LIAM) and Persatuan Insurans Am Malaysia (PIAM) in enabling us to forge the many initiatives carried out for this year. Top of the list was our concern on the rising inflation of medical and health insurance/Takaful (MHIT). Towards this, an industry task force was set up with LIAM and PIAM focusing on hospitalisation/in-patient cost given its significant contribution to the rising total MHIT premium/contribution. The move towards digitisation has made it easier and convenient for the general public to be connected to the World Wide Web with just a click. There is increased awareness of our direct channel products available in the market. The introduction of online nomination for Takaful certificates has simplified the process for consumers. Encouraged by this, the industry will continue to provide a seamless experience in terms of online content for consumers. Basic protection needs, simple product descriptions and hassle-free e-payment processes are some of the contributing factors leading to consumers subscribing to Takaful Plans. The Association also has played a big part through the lecture series at several higher learning institutions to publicise awareness of Takaful amongst the younger generation. Branding through social media platforms, participations in exhibitions, CSR programmes, broadcast publicities and media interviews were some of the mediums adopted. Furthermore, several courtesy visits from Nigeria, Turkey, South Korea, Kazakhstan and Japan showed increasing interests in Takaful too. On behalf of the Management Committee, I wish to express my sincere gratitude to all members companies and their representatives for the continuous support and dedication in assisting MTA’s initiatives. The MTA Member Companies have shown their support over the years for the Association and I`m confident that with this camaraderie spirit we can collectively achieve higher penetration rates and reach a wider audience thus appealing to all market segments of the Takaful value proposition. Finally, I would like to thank Team Secretariat for their tireless hard work and commitment in carrying out the Association’s activities and operations.

Encik Muhammad Fikri Mohamad Rawi Chairman MALAYSIAN TAKAFUL ASSOCIATION 06 ANNUAL REPORT 2019

3 MANAGEMENT COMMITTEE 2019– 2021

Encik Elmie Aman Najas Encik Muhammad Fikri Mohamad Rawi Encik Zafri Ab Halim Deputy Chairman Chairman Treasurer Chief Executive Officer Chief Executive Officer Chief Executive Officer AIA PUBLIC Takaful Bhd. Sun Life Malaysia Takaful Berhad Etiqa Family Takaful Berhad

Encik Shahrul Azlan Shahriman Encik Mohd Asri Omar Mr Marcel Omar Papp Encik Wan Saifulrizal Wan Ismail Committee Member Committee Member Committee Member Committee Member Chief Executive Officer Chief Executive Officer Head, Swiss Re Retakaful Chief Executive Officer Great Eastern Takaful Berhad Hong Leong MSIG Takaful Berhad Swiss Re Asia Pte.Ltd Malaysia Branch Prudential BSN Takaful Berhad

Encik Mohamed Sabri Ramli Encik Eddy Azly Abidin Encik Mohamad Nizam Yahya Encik Azli Munani Committee Member Committee Member Committee Member CEO/Executive Secretary Chief Executive Officer President & Chief Executive Officer Senior Vice President, Head of Syarikat Takaful Malaysia Am Berhad Takaful Ikhlas General Berhad Retakaful Division, Malaysian Re MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 07 4 M TA SUBCOMMITTEE

Finance Subcommittee

Family Takaful Subcommittee

General Takaful Subcommittee

Shariah and Regulatory Subcommittee

Corporate Communication Subcommittee

Claims, Health and Services Subcommittee

Intermediaries Registration and Development Subcommittee

Human Resource and Development Subcommittee

REPRESENTATION IN OTHER ORGANISATIONS AND COMMITTEES

Jawatankuasa Khas Kewangan Islam Kementerian Kewangan

ISM Insurance Services Malaysia Berhad (ISM) – Board of Directors

Islamic Banking & Finance Institute Malaysia (IBFIM)- Board of Directors

Malaysian Financial Planning Council (MFPC) – National Council

Chartered Institute of Islamic Finance Professionals (CIIF) – Governing Panel

Takaful Examination Board (TEB) – Board Members

Malaysian Accounting Standards Board (MASB) – Standing Committee

IBFIM’s Capacity Building Project (CBP) – Steering Committee

Financial Industry Collective Outreach (FINCO) - Board of Directors/Steering Committee MALAYSIAN TAKAFUL ASSOCIATION 08 ANNUAL REPORT 2019 5 DEVELOPMENT OF THE TAKAFUL INDUSTRY

Direct Distribution Channel for Pure Protection Total Annualised Total Collected Products Contribution (RM) Contribution (RM) In September 2018, Bank Negara Malaysia (BNM) issued 65,657.32 48,289.85 the revised Policy Document on Direct Distribution Channels Total Sum Covered (RM) for Pure Protection Products set out the follows: Number of 31,095,000 i. requirements on the offering of pure protection critical certificates issued illness and pure protection medical and health products 224 through direct distribution channels. ii. enhancements to the disclosure requirements for all 2017 products offered through direct distribution channels. The pure protection critical illness (CI) and medical and health (MH) products were made available to the market in March 2019. For term products, the total certificates issued in 2019 accounted to be more than the combined total certificates Total Annualised Total Collected for 2017 and 2018. The increased numbers show that more Contribution (RM) Contribution (RM) people are becoming aware of direct channel products 100,196.16 83,151.61 available in the market. Simple product description, basic protection needs, and hassle-free e-payment processes are a Total Sum Covered (RM) Number of few of the determining factors for the public and consumers in certificates issued 60,395,000 considering participating in the scheme. Statistic for the direct channel is in graft illustration 1 and 2. 260

2018

Chart 5.1: Statistic Direct Channel 2017 & 2018 39.42% Percentage of overall certificate issued under direct channel Total Sum Covered (RM) 19,243,950.00 Total Annualised Contribution (RM) 6.15% 837,908.56 Percentage of overall certificate issued under direct channel 54.43% Total Collected Contribution (RM) Percentage of overall certificate Total Sum Covered (RM) issued under direct channel 606,373.08 22,100,000.00 Total Sum Covered (RM) Number of certificates issued 235,102,353.00 872 Total Annualised Contribution (RM) 126,696.89 Total Annualised Contribution (RM) 432,038.95 Total Collected Contribution (RM) 26,099.20 Total Collected Contribution (RM) 192,146.98 Number of certificates issued 136 Number of certificates issued 1,204 Term 2019 Critical Ilness Medical & Health Chart 5.2: Statistic Direct Channel 2019 MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 09

Data Checking Arrangement with Jabatan to educate the public on the importance of nomination to their Pendaftaran Negara (JPN) Takaful certificates. Currently, Great Eastern Takaful Berhad has implemented online nomination for new customers. Look To expedite claims process for death benefits, a collaboration out for more Takaful operators offering this service in the between Takaful operators, insurance companies, BNM future. and JPN was reached to proactively contact the next-of- kin/beneficiaries, who may not be aware of the existence of a Takaful coverage or certificate. The initiative provides MyCoverage an automated mechanism that allows Takaful operators to MyCoverage is a financial education website with the aim regularly check the status of certificate owners against data at to provide information about Life Insurance and Family JPN. This may simplify the documentation and procedures in Takaful products. The development of the website is a joint verifying claims and expedite payment of death benefits. The effort by MTA and LIAM. The website can be found at initiative started operations in 2019. On 12 April 2019, BNM https://www.mycoverage.my/web/mc. It has been live issued a guidance on data submission for the data checking since 31 October 2019. arrangement with JPN. The trial run started beginning of Q3 2019 involving the industry, BNM and JPN. Concurrently, Malaysian Financial Reporting Standard the industry is planning a communication framework for (MFRS17) Implementation for Takaful Industry the initiative. The aims are to enhance the claim process for With the new accounting standard MFRS 17: Insurance payment of death-related benefits for life insurance policies Contracts (MFRS 17), are expected to be effective from 1 and family Takaful certificates, as well as to improve the pro- January 2021, and so Takaful operators will need to consider activeness of insurers and Takaful operators in making claim the impact of the issues by the Malaysian Accounting payments. Standard Board (MASB). A consultant has been appointed to assist the Association in providing support to the Takaful Online Nomination for Takaful Certificates industry in relating to the implementation of MFRS 17. The introduction of online nomination is to complement the The support provided includes training and workshops, bi- channel being used for nomination and to give Malaysian monthly MFRS 17 forums, formulation of guidance notes consumers an alternative option to the manual process. It is and representation on behalf of the Association to other primarily aimed to target all existing and new customers to regulatory bodies. Several engagement sessions were held be able to nominate seamlessly without the hassle of getting with member companies and stakeholders together with the physical signature of a witness. Based on statistics, the the issuance of Guidance Notes as illustrated at Chart 5.3 number of certificate holders who completed the nomination Industry Engagement Sessions on MFRS17. is on the low side and more effective steps need to be adopted

Session with Actuarial Forum 1 Forum 2 Forum 3 Forum 4 Partners on MFRS 17 9 August 2019 8 October 2019 15 November 2019 (61 participants) 16 December 2019 Date: 19 June 2019 (67 Participants) (98 participants) Function Room 1&2 , MNRB Holdings (60 participants) Venue: AIA Auditorium Auditorium , Level 6, Menara AIA Theatre Hall, Menara Berhad Multipurpose Hall (MPH), Applicability of MFRS 17 to Takaful Takaful Malaysia 1. Review of issue log submitted by Dataran Maybank contracts 1. Columnar members 1. 1 risk adjustment vs Multiple fund model – Requirement Presentation of 2. Measurement model 2 risk adjustments for separate funds accounting and Financial Statement • Criteria 2 & 3: How should 2. Number of discount reporting for Takaful calculation be performed for rates for Takaful Multiple fund model – 1 CSM or operators Takaful contracts? contracts 2 CSMs? 2. Level of o Assessment of VPA eligibility Aggregation and criteria Mutualisation • Criteria 1: Is PRF an underlying items • Criteria 2 & 3: How should calculation be performed for Takaful contracts?

MFRS 17 Breakfast Talk Meeting with BNM, MASB & Auditors MFRS 17 Discussion BNM Townhall Session with SAC Special MASB Meeting – Session with Deloitte on Presentation of Financial Statements on Columnar of BNM on IFRS 17 and on MFRS 17 27 August 2019 Presentation of Columnar Presentation of Financial Takaful with IASB Date: 23 July 2019 BNM HQ Financial Statement Statement for Takaful Operators Applicability & Venue: AIA Auditorium MFRS 17 Training & Workshop 20 November 2019 13 November 2019 Columnar Presentation 3-5 September 2019 Auditorium, MNRB Conference Hall 1, Sasana Kijang of Financial Statement (82 participants) Holdings Berhad for Takaful Operators Concorde Hotel, KL 20 December 2019 Day 1 – Industry training FRF/MASB Day 2 - Detailed workshop (finance) Conference Room, Day 3 – Detailed workshop (actuary) MASB MFRS 17 Columnar Presentation of Financial Statement 29 October 2019 Boardroom, Prudential BSN Takaful Berhad Chart 5.3: Industry Engagement Sessions on MFRS17 MALAYSIAN TAKAFUL ASSOCIATION 10 ANNUAL REPORT 2019

The industry participated in MASB Transaction Resource Profit Commission Group (TRG) as work stream for MFRD 17 which meant to Several member companies of the Association and LIAM discuss and deliberate implementation challenges in relation have recently been issued with notice of assessments by IR to MFRS 17. There were also sessions with selected parties in respect of profit commission and reinsurance commission on MFRS 17. where the IRB is of the view that such commissions are taxable under Section 60(8) and Section 60AA(13) of the Revision on Current Taxation Framework for Income Tax Act 1967 for Life Insurance and Family Takaful Takaful Operators entities respectively. However, based on Section 60AA(3) Prior to Year Assessment 2008, the Government had adopted of the Income Tax Act 1967, the Takaful contributions from Section 60 of the Income Tax Act 1967 which was applicable certificate holders for Family business are not taxable. to the Conventional Insurance to be simultaneously applied Correspondingly, the expenses incurred in relation to the for the taxation of the Takaful industry. This is specified under Family business (certificates issued on Family business) are Section 60AA –“the provisions of sections 60 and 60A shall not allowed for tax deductions. apply, mutatis mutandis, to a Takaful business carried on Given that the potential tax impact is significant to the industry, pursuant to the Takaful Act 1984”. However, such application both MTA and LIAM are engaging a consultant to make a of Section 60 for the Takaful industry, in practice proved to be proposal submission to the MOF to address the corporate tax too simplistic and did not take into consideration the unique issues affecting the industry. nature of Islamic Takaful industry and its operations. As a result, Takaful Operators were subject to numerous tax audits Value-based Intermediation (VBI) for Takaful by Inland Revenue Board of Malaysia (IRBM). Consequently, raising of additional tax assessment (Form JA) and penalties. The Takaful industry has joined the bandwagon to implement VBI initiatives that further enhance the ingrained sustainable MTA is convinced that the numerous tax audits result from the business practices and values. The initiative is set to bring lack of clarity of the existing legislation and inapplicability the Malaysian Islamic financial industry, particularly the of such legislation originally meant for the Conventional Takaful industry to the next level and unlock the full of Insurance but subsequently applied for the Takaful industry. potential of the industry. It will provide the platform for This situation has caused tax compliance to be costly, lacking greater innovation in product and service offerings, with certainty, simplicity and transparency. The Association on emphasis on entrepreneurship facilitation, community well- behalf of its members is continuously making appeals to the being, sustainable environment and economic growth, as Government to amend the existing legislation to resolve the well as ensuring better values for all stakeholders. BNM following taxation issues: has collaborated with major Islamic financial and banking • Taxability of income and deductibility of expenses in institutions in the application of VBI practices. Rooted in Shareholders’ Fund (SHF) the underlying values, moral compass and priorities of the Shariah principles, VBI aims to strengthen the impact and • Capital allowance for fixed assets cost incurred by SHF roles of Islamic banking institutions that will lead to a sound • Tax deductibility of profit on sukuk incurred by SHF and sustainable Islamic financial ecosystem.

Provision of Risk Margin for Adverse Deviation Market Study on the Development of Investment- (PRAD) Linked Business in Malaysia IRBM is of the view that PRAD is not tax deductible because Milliman Advisors Sdn. Bhd. (Milliman) was appointed by it is a “provision” in nature and an “estimate” that is not the Association and LIAM to conduct a market study on “incurred”. Their view is that for an expense to be “incurred’ it investment-linked plan (ILP) in Malaysia. The result of the study must be a fixed quantum with a certain financial commitment will help the regulator to understand that ILP has a role to play to make payment. The industry appointed Deloitte as in protection and is more flexible and friendly to customers, consultant acting on behalf of MTA and PIAM to appeal for as riders can be added or removed and is good value to the tax treatment on PRAD. On 22 November 2019, the Ministry customer. of Finance (MOF) have confirmed that the expenditure with PRAD elements are tax deductible effective from assessment Guide to Investment-Linked Takaful Participants year 2009 which applicable for both general insurance and General Takaful businesses. on Takaful Coverage Effective 1 July 2019, all Takaful operators providing ILP Tax treatment to of the Retakaful Contribution were required to communicate to their customers on the Payment made to Labuan Companies sustainability of ILP, especially to ILP Takaful participants. A consumer guide was developed together by both MTA and The Association had sent a letter to the Director-General of LIAM member companies. This guide shows how an ILP Labuan Financial Services Authority (LFSA) to seek clarification works, what could affect the fund value and how to maintain on the deductibility of general reinsurance premium paid by them. licensed Malaysia insurers including the Takaful operators. On 26 March 2019, LFSA has confirmed that reinsurance premiums by a Malaysian Resident insurer to a Labuan reinsurer are fully tax deductible pursuant to Section 60(7) of the Income Tax Act 1967. MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 11

ILP Awareness Takaful Operational Framework (TOF) Issued on Campaign 26 June 2019 The Association and The new TOF outlines the parameters that govern the LIAM have jointly operational requirements relating to the management of collaborated to Takaful funds and shareholders fund. TOF aims to achieve feature an ILP article, operational efficiency of Takaful business and sustainability titled, “Managing of Takaful funds, thereby safeguarding the best interests of the and Sustaining Your Takaful participants. This policy document comes into force Investment-Linked on 1 July 2020. Life Insurance Policy/Family Takaful Certificate”, in a form of advertorial in the New Straits Times and Berita Harian. Professional Code of Ethics for Insurance and The advertorial appeared as a public message from the Takaful Industry (COEIT) Association and LIAM to further educate the public on ILP and as part of the Communication Plan for Investment-Linked The Association, LIAM and PIAM have embarked on the Business for insurance and Takaful industry. There were also development of a COEIT. This initiative is in response to the a series of write-up by Ringgit Plus, GoBear, Imoney, Marion, Financial Services Professional Board’s (FSPB) call for the KC Lau, Ariff Shah, Ringgit oh Ringgit. The Committee also financial services industry to develop and advocate a strong produced a hero video and five (5) short awareness videos. culture of professionalism and ethics across the industry. The development of the Code is to align the industry practices with FSPB’s Professional Code for Financial Services Industry, which was designed to serve as a catalyst in shifting the mind-set of the financial services industry towards greater self-regulation and ethical conduct.

Takaful Basic Examination (TBE) Exemption for General Takaful Agents The TBE exemption rules were made less stringent in order to attract and facilitate the recruitment of more General Insurance agents, with the intention of increasing non-motor business. This TBE exemption was for a temporary period from 1 October 2018 to 31 December 2019. A total of 439 applications were received and due to encouraging responses from the agents, the exemption period was extended until 30 June 2020.

E-Payment Leadership Agency Management Program (LAMP) The Association is monitoring The first inaugural LAMP examination was held on 28 March e-payment implementation via 2019. Eight candidates from four Takaful operators sat for monthly submission. Effective 2019, the examination. A list of amendments/improvements has any operators that utilise less than been prepared for IBFIM and the Association`s next action. 75% of its cumulative e-PIF account The list of amendments/improvements to LAMP are divided are monitored by the respective into three (3) parts namely on registration, examination industry association. Contribution and moderator’s guide. IBFIM was requested to update the into this centralised e-PIF is to be Guidebook and the Moderator`s Guide and submit to the made before 31 January of each Association for final review. LAMP will be launched once the calendar year. requested improvements have been fulfilled. The Association has executed an Implementation of the Single License Conversion E-payment campaign. The campaign has been published in the website and through social media Module into the Online Takaful Agents platforms. The aim of the campaign is to create awareness Registration System (OTARS) and encourage the industry and public to adopt the E-payment The Islamic Financial Services Act (IFSA) 2013 entails method and reduce the usage of cash and cheques. the mandatory conversion of composite license Takaful companies to single Takaful businesses. On 18 May 2019, Takaful Branding the conversion was implemented in the OTARS to be in line Awareness with the Takaful operator’s single license conversion. Campaign The purposes of this module are to: The Association i. Separate the agents’ information for composite Takaful developed a Takaful operators into two separate databases, namely, Family Branding awareness and General Takaful; and campaign with the ii. Enable separate log-ins for the Family and General aim to highlight to Takaful operators. the public the importance of Takaful especially to the B40. The campaign was published through social media platforms. MALAYSIAN TAKAFUL ASSOCIATION 12 ANNUAL REPORT 2019

MALAYSIAN TAKAFUL ASSOCIATION 14 ANNUAL REPORT 2019

MTA Intermediaries Star Rating Guide The Star Rating is an initiative from the Association to encourage the enhancement of intermediary professionalism • Fakta sebenar mengenai insurans and for the improvement of servicing levels by intermediaries. /Takaful perubatan dan kesihatan The objective is to award recognition of intermediaries’ was published on 20 November performance in delivering services to the public. It can also 2019. serve as a review-based analysis on the industry’s quality • Amat Penting memahami pelan service and provide confidence to customers in dealing with perubatan dan kesihatan anda Takaful intermediaries. There are three (3) main criteria for published on 4 December 2019 the rating and their weightage are Qualification (20%), Experience (20%) and Performance (60%). • Mengapa premium/sumbangan perubatan dan kesihatan saya terus Revised Rules on Registration of Takaful meningkat 11 December 2019 Intermediaries (RRTI) On 9 October 2019, the Intermediaries Registration and Development Subcommittee made a revision to the existing Phased Liberalisation of Motor RRTI guidelines due to the various possible scenarios and and Fire Insurance/Takaful: situations. The amendment was to incorporate the following: Independent Review Committee (IRC) i. Staff who are hired by the TO but they are located at Since the establishment of IRC to review the existing and bank branches to solicit products of the TO; new products submission by Takaful operators, the industry launched 14 new motor and 12 new fire products in the “Employees of Takaful Operators who ONLY solicit products market via the e-Library. A total of 53 motor and 33 fire of the Takaful Operator directly with prospects or participants products submission were submitted to IRC for review to give are not required to register with MTA. However, Takaful the bank and the industry more time to implement actions to Operators are to encourage its employees to have TBE further liberalise the businesses/services. qualifications”. ii. Agents who are hired by the TO for one year before New they leave the Takaful Operator to become full-fledged Existing agents. This is under the members’ entrepreneurship development Program. 12

“Employees of Takaful Operators are defined as those under 14 1 5 the payroll and headcount of the operator regardless of 2 Launched by Class Pending Launch where they are located”. Fire Motor Race for Cover Towards Takaful 2020 Sprints 2 Total The Race for Cover Towards Takaful 2020 currently entered Submission Sprints 2 of the campaign with the nomination of Critical 29 Illness, Medical and Health Products. This campaign promotes 86 a healthy competition among members with the aim to have 25 activities thereby creating publicity and awareness about 19 Takaful to Malaysians. 13 33 10 Consumer Education Program on Medical 12 1 10 and Health Insurance/Takaful 19 53 13 As part of the education program for MHIT, MTA, LIAM and 12 9 PIAM have produced a series of three (3) articles. 2015 2016 2017 2018 2019 Fire Motor

Chart 5.4: Statistic on Product Submission for IRC Review • Lowdown on medical and health insurance/Takaful published on 16 October 2019. • Why do medical health plan Joint Industry Task Force on Review of No Claims premiums/contributions keep Discount (NCD) Structure (and other incentives) increasing was published on and on Review of Third-Party Cover Rating 22 October 2019 The industry has embarked on the exercise to review the • It pays to understand your medical current motor Takaful/insurance NCD structure. The Joint and health plan was published on Industry Task Force conducted a thorough review on the past 5 November 2019. years data and the forecast in the coming years before finally presenting to BNM two recommended options to replace MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 15

the present NCD structure. Assumptions and impact study the industry to assess the feasibility of giving the discount and based on the past years data were made to derive possible to gauge an estimate of the impact to the industry. scenarios of both options. The industry at the same time submitted a studied proposal Guidelines to Control Operating Costs of General from the outcome of the review on Motor Takaful/Insurance Insurance Business Third Party Cover rating. The review clearly demonstrated PIAM and MTA have jointly proposed measures to BNM for all the current rating structure is significantly inadequate or the member companies to comply with the existing requirements third party cover risk profile has been severely under rated. in a consistent manner. This will include providing clarity on The Joint Industry Task Force on Third Party Cover Rating the scope and definition of Agency-related and Management submitted to BNM a proposal for the review of the rates that Expenses. BNM will study the proposals by PIAM and MTA corresponded more to the historical data of industry third and convey its decision to member companies through the party claims and also anticipated additional exposure to the association. BNM will work with the industry to address all industry arising from the new statutory provisions. anti-competitive concerns in this entire process.

Fraud Intelligence System (FIS) Coverage for E-Hailing FIS which was fully adopted by General Takaful operators The industry whilst working closely with Grab Malaysia has and General Insurance companies beginning June 2018 has implemented two forms of cover for E-Hailing. Grab has yet to demonstrate its effectiveness in curbing fraud claims subscribed to Grab Daily Insurance arrangements where in motor Takaful/insurance. A report generated on 30 June the E-Hailing vehicles will cover on the activation of the App 2019 showed a very low utilisation of the system by most by the driver and the premium is charged on the per-day members and in terms of amount, FIS has reported a total App activation. The E- Hailing drivers also have the option of RM1.6m. saved (as at September 2019). A joint industry to take up an annual E-Hailing cover by taking up E-Hailing review undertaken with ISM led to the formation of FIS Endorsement in the Takaful/insurance coverage of the vehicle. Investigator Networking Group with the objectives: i. To help end users become extremely proficient in using Study on the Cost of Drivers of Increasing Medical FIS, particularly in the context of validating and correctly Insurance Premium & Takaful Contribution in interpreting networks and investigating fraud. Malaysia ii. To create and share a best practice for fraud The Association, LIAM and PIAM have established an investigations. industry task force to identify the main drivers that led to the iii. To promote and facilitate the sharing of fraud intelligence persistent rise in medical premium costs and to provide high between members. level recommendations to address this trend. The Task Force iv. To discuss observed & emerging fraud behaviours where has appointed Actuarial Partners Consulting Sdn. Bhd. to appropriate, in order to collectively develop a counter identify and quantify the underlying drivers that led to the fraud approach. trend of increasing medical premium rates by considering the role played by multiple stakeholders namely, healthcare Trade Credit Takaful (TCT) providers network, Third-Party Administrators (TPA), insurance and Takaful industry, and many others. The study will focus The Association at the urging of the regulator to leverage on the hospitalisation/in-patient cost only given its significant on the growth of trade finance portfolio of Islamic banks contribution to rising total medical premium costs. has initiated the critical assessment for the Takaful industry to underwrite TCT. Sessions were held with Islamic banks Accident Assist Call Centre (AACC) with the support of the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM). MTA Trade Credit The Association and PIAM have reappointed Telekom Malaysia Working Group had engagements with ReTakaful and other (TM) to continue managing and running AACC program for service providers on the technical aspects of the portfolio. the industry. TM has committed to further enhance the value- The General Takaful member companies deliberated on the added services to industry member companies’ customers. industry proposition to underwrite Trade Credit business. TM undertake to create higher awareness of AACC by: • Introducing 1-5-500 Universal Toll-Free Number Ministry of Transport (MOT) and Takaful/ • Incorporating AACC TM promotional events and Insurance Industry Collaboration on Program activities Insentif Pemanduan Cemerlang (I-Pc) • Developing a mobile App to enhance communication The Ministry of Transport in an initiative targeted to benefit and coordination with Tow Truck Service Providers Malaysians public has proposed for general insurers and General Takaful operators to grant a 5% discount on the Takaful Industry visit to Motordata Research premium/Takaful contributions to exemplary vehicle owners Consortium (MRC) who have not been issued with any summons or those with On 21 August 2019, the Association visited MRC’s office and clean records of summons. Upon the request from the industry, training centre at Shah Alam Selangor. The objective of the MOT has furnished all registered vehicle owners summons visit was to discuss and explore any untapped opportunities data which was sourced from Jabatan Pengangkutan Jalan between both organisations. MRC also presented and shared (JPJ) and Polis Diraja Malaysia (PDRM) for a study. The data their roles and core function within Malaysia particularly in analysis on vehicles issued with summons is being studied by the development of the body and paint business. MALAYSIAN TAKAFUL ASSOCIATION 16 ANNUAL REPORT 2019

INDUSTRY STATISTICS 2019

FAMILY TAKAFUL BUSINESS

25.3% Strong Double Digit Growth New Business Total

New Business 29.7% 17.3% Total Contributions 14.5% RM6.16b 2.4% 2018: 13.1% 2018: RM4.91b 2.9%

-15.6% 380.2 324.2 33.3% Strong Double Digit Growth 276.6 283.1 New Business Single RM’ Bil 207.2 213.2 Contributions 2014 2015 2016 2017 2018 2019 RM4.85b New Business Single Contributions 2018: 16.6% 2018: RM3.64b 17.9% 2.5% Low Single Digit Growth 25.9% 16.3%

New Business Annual -1.8% Contributions 5.9% RM1.31b -36.1% 313.5 2018: 4.1% 2018: RM1.27b 265.9 232.7 228.5 174.5 184.8 RM’ Bil 4.8% Single Digit Increase 2014 2015 2016 2017 2018 2019 New Business Certificates Issued New Business Annual Contributions

54.2% 733,408

2018: 4.6% 2018: 699,534 26.5% 24.3% 14.3%

9.9% Single Digit Growth 6.9% -8.4% Business Inforce 54.6 58.3 66.7 Total Contributions RM’ Bil 22.5 28.5 43.9 RM5.34b 2014 2015 2016 2017 2018 2019 2018: 11.9% 2018: RM4.86b Business Inforce 4.4% Single Digit Growth 16.3% Business Inforce 11.6% Number of Certificates 12.5% 5.17m 8.4% 6.6% 2018: 4.6% 2018: 4.96m 969.9 16.5% 834.2

3.7% Penetration Rate 747.5 664.5 613.2 15.9% RM’ Bil 575.5 2018: 3.5% 2018: 15.3% 2014 2015 2016 2017 2018 2019 MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 17

New Contribution Types Business MARKET SHARE

22.1% 24.6% 21.2% New Business 25.9% 28.1% 28.2% Total Contributions 2018: 32.3% 34.4%

77.9% 75.4% 71.9% 71.8% 74.1% 78.8% New Business Total Number of Certificates

2018: 36.1% 2014 2015 2016 2017 2018 2019 35.1%

Annual Contributions Single Contributions Total Business Inforce New Business Total Contributions 2018: 12.4% 12.6% Agents Brokers Banca 24.8% 2.9% 45.8% Business Inforce Others Number of Certificates 26.6% 2018: 28.1% 28.9%

Total Assets and Insurance

10.5 10.1 10.0 9.6 9.4 31.4 9.2 29.3

New Busines Single Contributions 26.8 24.7 22.7 Brokers Agents Banca 20.9

3.6% 9.5% 53.3% 206.4 219.2 231.6 241.4 261.3 286.6 Others

33.5% 2014 2015 2016 2017 2018 2019 Life Insurance Family Takaful Takaful Market Share

Family Takaful Life Insurance

27.6 25.6

23.2 21.4 19.6 10.5 18 10.1 9.6 9.9 9.2 9.3

New Business Annual Contributions 178.6 190.2 200.5 210.3 228.9 235.5

Banca Others 2014 2015 2016 2017 2018 2019 17.7% 0.7% Life Insurance Family Takaful Takaful Market Share Agency General Takaful and General Insurance 81.6% Brokers 4.24 0.0% 3.76 3.65 3.32 3.59 10.9 3.13 10.4 10.1 10.1 9.8 9.7

28.91 31.06 31.03 32.41 33.55 34.76

2014 2015 2016 2017 2018 2019

Life Insurance Family Takaful Takaful Market Share MALAYSIAN TAKAFUL ASSOCIATION 18 ANNUAL REPORT 2019

Portfolio Mix Distribution Channel Statistic

Motor Takaful remained the largest class of business 1.58% 0.67% 0.77% 0.72% 0.56% 0.35% 7.87% 9.56 10.61% 11.07% 8.89% with a market share of 64.8% 12.18%

50.02% 48.96% 50.22% 54.89% 59.52% 47.70% 20.3% 17.8% 18.5% 19.3% 17.6% 17.2%

18.0% 20.3% 20.1% 19.9% 21.0% 21.5% 17.84% 19.67% 19.04% 18.11% 16.33% 14.68%

17.12% 15.67% 15.44% 15.37% 14.68% 12.31% 59.8% 61.9% 60.5% 59.2% 62.3% 64.8% 3.58% 4.41% 5.18% 4.52% 4.66% 5.27%

2014 2015 2016 2017 2018 2019

Internet Direct Clients Bancatakaful Agency Brokers Others

2014 2015 2016 2017 2018 2019 MARKET SHARE Others Fire Motor Overall Other Classes Portfolio Mix For 2019 15.7% 8.7% PA MHI 2018: 13.5% 2018: 7.7% 8.8% 3% Motor Fire WCEL Liabilities 0.2% 0.9% 20.3% 15.0% Others CAR & Eng 2018: 17.0% 2018: 14.4% 1.7% 1.8% MAT Motor Fire 0.8% 64.8% GENERAL TAKAFUL BUSINESS 18% 18.8% Strong Double Digit Growth Bonds Total Business Gross 0% Contributions RM3.31b 2018: 18.9% 2018: RM2.79b

24.9% Strong Double Digit Growth Distribution Channel Motor Takaful Gross Direct Business Channels Motor Vehicle Contributions 32.26% Franchise holders 1,068,699,289 RM2.15b Bancatakaful 12.49% 413,813,075 2018: 13.4% 2018: RM1.72b 14.68% Others 486,370,844 0.35% 11,470,039 6.6% Single Digit Growth Internet Agency Fire Takaful Gross 5.27% Takaful Brokers 174,548,780 59.52% Contributions 7.87% 1,971,504,702 Registered 260,708,897 Agents Direct Clients 47.03% RM0.60b 12.31% 1,557,691,627 2018: 1.4% 2018: RM0.56b 407,779,665

11.4% Double Digit Growth Other Classes Gross Contributions

Local Brokers RM0.57b 7.87% 2018: 3.6% 2018: RM0.51b 260,708,897 MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 19 6 CONFERENCE, SEMINAR, & WORKSHOP COLLABORATION

Workshop on Insurans and Takaful Product with closely engage with each member companies’ Shariah IRBM department and Risk and Compliance Department, experts from BNM and Shariah Committee on the Takaful SNC The IRBM has invited representatives from the Association to events and issues experienced by the member companies. give presentations about insurance and takaful product in The workshop aims to develop a generic draft of SNC a workshop session. The workshop was held on 13 March Classification and Parameters that can be adopted by the 2019 at IRBM Headquarters, Cyberjaya and attended by industry. The workshop has successfully developed a list of IRBM officers. The objective of this session is an effort of IRBM 17 SNC Parameters for Takaful industry’s adoption as best to have engagement with the industry and to understand practices. products offered in market and any tax issues pertaining to it. Perlindungan Tenang Engagement Session Wacana Kewangan Islam 2019 As part of review of Microinsurance and MicroTakaful The Jabatan Kemajuan Islam Malaysia (JAKIM) together Discussion Paper and Perlindungan Tenang specification with the Association and AIBIM have organised Wacana letter by BNM, BNM organised a consultation session with Kewangan Islam on 28 March 2019 at Institut Latihan Islam the industry on 23 August 2019 at Sasana Kijang. The Malaysia, Bangi themed “Pematuhan Syariah Perkukuh session was specially geared towards companies that have Ekonomi Ummah. Ustaz Wan Jemizan W. Deraman was experience in implementing microTakaful products. The the one of the speakers with the topic of “Kepentingan session discussed the following issues: Pelindungan Takaful dalam Kehidupan Masyarakat Kini”. Meanwhile, Ustaz Mohamad Saifuddin Gahnehman was i. The variety of challenges, including regulatory, faced in the panellist for the forum session. The program recorded offering microinsurance/Takaful 450 participants from various government agencies. ii. Industry views on potential areas of regulatory enhancement Presentation Session on DUITNOW by Payments iii. The effectiveness of Perlindungan Tenang in enhancing Network Malaysia Sdn. Bhd. (PayNet) public trust and awareness of microinsurance/Takaful A presentation session on the proposition of DuitNow by the representative from PayNet was carried out on 24 April Young Takaful Managers Leadership Program 2019. The objective of this session was to share how the (YTML) Takaful industry can utilise DuitNow and a further discussion The YTML program is an intensive 10-day training program on the advantages of transactions using DuitNow. The session covering three (3) separate sessions. The program was was attended by 10 attendees from member companies. participated by 25 young Takaful managers who have been identified as high potentials in their organisation. The details Focus Group Discussion Workshop Micro Family of the training program were as follows: Takaful for B40 Community A discussion session with the Faculty of Economics and Session 1 Management Science Universiti Sultan Zainal Abidin (UniSZA) 15 – 17 August 2019 was held on 30 April 2019. The objective of this focus group was geared towards their research entitled “Micro Family Takaful for B40 Community”. It was also an initiative to seek Session 2 input from the industry on their draft model on the same topic. 26 – 28 September 2019 It was attended by 9 attendees from member companies (both direct Family Takaful and Retakaful operators). Session 3 Shariah Non-Compliance (SNC) Parameter 16 – 19 October 2019 Workshop The YTML program is developed with the objective to address The Association organised a SNC Parameter Workshop which the leadership gap in Takaful industry which aims to provide was held on 3 May 2019 at Concorde Hotel, Kuala Lumpur. young Takaful managers with adequate skills to lead and The workshop was attended by 31 attendees comprising of respond to the changing nature of the Takaful industry. Shariah Committee members, Head of Shariah and Shariah officers. The discussion was led by Ustaz Muhammad Ali For the first session, the participants undertook a discovery Jinnah Ahmad from the Shariah Committee of FWD Takaful journey to understand individual personal values, Berhad. The objective of the workshop was to discuss and communication preferences and roles of individual in teams MALAYSIAN TAKAFUL ASSOCIATION 20 ANNUAL REPORT 2019

when dealing with conflict. During the second session, The Takaful Rendezvous (TTR) 2019 participants were demonstrated on the leadership behaviours TTR 2019 was held from 8 to 9 October 2019 at the Four which are essential in developing high performing teams. Seasons Hotel Kuala Lumpur highlighting the theme of For the third session, participants learnt on the framework Transformation of Takaful in Industrial Revolution 4.0: Being to provide leaders with the strategic thinking process that is Smart and Sustainable. This conference attracted 140 crucial to create differentiation. delegates from insurers, re-insurers, regulators, technical and services providers and consultants. Encik Muhammad Fikri IRBM Engagement Session on CRS Reporting Mohamad Rawi presented the industry keynote address. The The Association organised an engagement session with IRBM regulatory keynote address was presented by Encik Adnan on 19 September 2019 pursuant to the IRBM engagement Zaylani Mohamad Zahid, the Assistant Governor of Bank session with Malaysian Financial Institution on 30 April Negara Malaysia. 2019. The objective of the engagement session was to provide opportunities for Takaful operators to highlight any Islamic Financial Planner (IFP) C-Suite Masterclass relevant issues related to Common Reporting Standard (CRS) IBFIM and Financial Planning Association of Malaysia (FPAM) and to contribute valuable inputs to IRBM’s CRS Compliance organised a 2-day program of Islamic Financial Planner (IFP). team. The session was participated by 17 representatives The program was attended by 14 C-suites participants from from member companies and 7 representatives from IRBM. the financial services industry at the Sheraton Hotel Kuala Lumpur from 10 – 11 October 2019. The programme was Program Transformasi Kewangan Usahawan designed to certify and provide the participants with the Selangor concepts of financial planning from the Shariah perspective The Association was invited to be a speaker for the Program and the key Islamic financial planning components such as Tranformasi Kewangan Usahawan Selangor for SMEs. The cash flow and liability management, risk management and program jointly organised by AIBIM together with Invest Takaful, Islamic investment, zakat and tax, retirement, Islamic Selangor and Hijrah Selangor was conducted in 4 sessions estate and waqf. in Shah Alam, Kuala Selangor, Bangi and Gombak. The Association nominated a speaker for each venue to share Presentation on Rehabilitation Medicine about the importance of Takaful protection for businesses. On 19 November 2019, the Malaysian Association of Rehab 1st Session Physicians (MARP) presented an introduction on rehabilitation Date: 10 September 2019 medicine and its costs to the LIAM-PIAM Joint Technical Venue: SDCC Seminar Hall, Selangor Information Committee (JTC) on medical and health insurance/Takaful and Technology & E-Commerce Council, i-City. MOH. The objective was to address the issue of non-coverage Participants: 40 SMEs Participants of rehab facility to insurance and Takaful participants. There Speaker: MTA Secretariat was a total of 21 participants from member companies, representatives from MOH and representatives from MARP. 2nd Session Date: 12 September 2019 Presentation on Uterine Fibroid & Adenomyosis Venue: Bangunan PKNS, Kuala Selangor Participants: 40 SMEs Participants Treatments with High Intensity Focused Speaker: Encik Kamarulzaman Mohd Nasir Ultrasound (HIFU) (Takaful Ikhlas General Berhad) There was a presentation by the MOH on 26 November 2019 3rd Session on HIFU. The objective of the presentation was to educate the Date: 17 September 2019 industry on the availability of new technology to treat uterine Venue: Perpustakaan Awam Hulu Langat fibroid and adenomyosis. HIFU is a technology brought by Participants: 40 SMEs Participants HAIFU, a company based in Chong Qing, China, which Speaker: Puan Nur Basmin Md Amin makes one of the best ultrasounds based HIFU machines in (Etiqa General Takaful Berhad) the world. HIFU treatment for benign and malignant tumours are well accepted in many countries in the world. There was 4th Session a total of 15 attendees from member companies. Date: 18 September 2019 Venue: Perpustakaan Awam Gombak Joint LIAM – MTA Agent Professionalism Participants: 40 SMEs Participants Speaker: Encik Zaharuddin Mohamed Nawi) Development Workshop (Etiqa Family/Etiqa General Takaful Berhad) On 9 December 2019, a workshop on the professional development of agents was conducted at Sasana Kijang, Global Islamic Fintech Summit (GIFS) 2019 BNM. The workshop was attended by 50 participants from the Association and LIAM member companies, IBFIM, The Association took part as the supportive organisation for National Association of Malaysian Life Insurance and Family the Global Islamic Fintech Summit (GIFS) 2019 which was Takaful Advisor (NAMLIFA), Malaysian Insurance Institute held from 1 to 3 October at Berjaya Times Square. This event (MII) and Finance Accreditation Agency (FAA). During the attracted 900 delegates and trade visitors. Encik Wan Ahmad workshop, the draft framework for agents’ professionalism Najib Wan Ahmad Lotfi, Chief Strategy & Digital Distribution was presented and the participants provided feedback on the Officer, FWD Takaful Berhad was the MTA speaker speaking implementation steps and plans. The framework would entail on the topic” Searching for The Takaful -Tech Pioneer “on the the education path and required qualifications for an agent 3rd day. at the various stages of his career path. MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 21

Talk on the 13th Fee Schedule (Private Healthcare Taklimat Akses Pembiayaan Dan Inisiatif untuk and Facilities Act 2006) Organised by Insurance Perusahaan Kecil dan Sederhana (PKS) at and Takaful Industry and MOH Sarawak Terengganu, Melaka, Sabah and Perlis. LIAM organised a briefing session by Bahagian Amalan BNM has organised series of seminars to the Small Medium Perubatan of the MOH on the Notes of 13th Fee Schedule, Enterprises in various venues in 2019. The program was with the objective of obtaining feedback from the industry aimed to meet the following objectives: on the proposed amendment to the 13th Fee Schedule on 1. to elevate SMEs’ awareness on the various assistance 10 December 2019. The briefing was attended by about and programmes that are their business expansion; 55 participants from member companies of LIAM, PIAM and MTA. Subsequently, the JTC on Medical and Health, has been 2. to provide opportunity for SMEs to seek information on liaising with MOH to conduct a talk to brief the industry on the various financing products and services for their the amendments made to the 13th Schedule. This talk will business operation needs; and be extended to member companies of LIAM, PIAM, MTA 3. to enhance capability of SMEs in basic financial and also Managed Care Organizations (MCOs) who are management. engaged by insurers and Takaful operators to manage their The details of the program were as follows: medical insurance/Takaful claims. Date: 21-22 February 2019 Islamic Finance Rendezvous at Pulau Pinang and Venue: Pullman Miri Waterfront Hotel Sarawak Johor Bahru Speaker: Puan Khamah@Norhashimah Binti Ahmad (Syarikat Takaful Malaysia Am Berhad) The Association, Bank Negara Malaysia (BNM) and The Booth: Syarikat Takaful Malaysia Am Berhad Association of Islamic Banking and Financial Institution Participants: 150 Malaysia (AIBIM) has organised the Islamic Finance Rendezvous 2019. The objective of the program was Date: 3 April 2019 to provide insights to the businesses about the variety of Venue: TH Hotel and Convention Centre Kuala financial products and services offered by Islamic Financial Terengganu Institutions (IFIs) and how these offerings can help to propel Speaker: Encik Sokdi Yusof (Etiqa General Takaful their business further. Berhad) Booth: Zurich General Takaful Berhad IFRS Pulau Pinang Participants: 200 Date: 14 January 2019 Date: 11 July 2019 Venue: Eastin Hotel Pulau Pinang Venue: Kings Green Hotel Melaka Officiated By: Chief Minister YB Chow Kon Yeow Speaker: Encik Kamaruzaman Mohd Nasir Participants: 200 (Takaful Ikhlas General Berhad) Exhibitors: Etiqa General Takaful Berhad, Syarikat Takaful Booth: Takaful Ikhlas General Berhad Malaysia Am Berhad, Takaful Ikhlas General Berhad, Zurich Participants: 300 General Takaful Berhad and AIA PUBLIC Takaful Bhd. Date: 26 September 2019 Collaborators: Invest Penang, Malaysian International Venue: Putra Regency Kangar Chamber of Commerce and Industry (MICCI), MATRADE, Speaker: Puan Zurina Binti Da’ail SME International Trade Association of Malaysia (SMITA), (Etiqa General Takaful Berhad) Penang International Halal Hub (PIHH) and Dewan Booth: (Etiqa General Takaful Berhad) Perniagaan Dan Perindustrian Kaum India Malaysia, Participants: 150 Pulau Pinang. Date: 10 October 2019 Venue: Four Points Sandakan IFRS Johor Bahru Speaker: Encik Junaidi Yunus Mazenin Date: 1 October 2019 (Etiqa General Takaful Berhad) Venue: Grand Paragon Hotel Booth: Etiqa General Takaful Malaysia Berhad Officiated By: Menteri Besar Johor Participants: 150 Dr. Sahruddin Jamal Date: 12 December 2019 Participants: 200 Venue: Geno Hotel Shah Alam Exhibitors: Etiqa General Takaful Berhad, Syarikat Takaful Speaker: Encik Kamarulzaman Mohd Nasir Malaysia Am Berhad, Takaful Ikhlas General Berhad, Zurich (Takaful Ikhlas General Berhad) General Takaful Berhad, AIA PUBLIC Takaful Bhd. and Great Booth: Takaful Ikhlas General Berhad Eastern Takaful Berhad Participants: 150 Collaborators: Dewan Perniagaan Melayu Johor, Federation of Malaysia Manufacturer, Iskandar Regional Development Authority, Johor Bahru Chinese Chamber of Commerce & Industry, Perbadanan Usahawan Johor, Johor Indian Chamber of Commerce & Industry MALAYSIAN TAKAFUL ASSOCIATION 22 ANNUAL REPORT 2019 7 LECTURE SERIES AND COURTESY VISITS

The MTA Lecture Series is a concept that features a range of lectures by experienced subject matter experts from the industry. Speakers will provide valuable knowledge and information to the students and it will also serve as a forum that provide students with the platform to gain an overview and insight into the Takaful Industry. Conducting the lecture series and serving the young minds is one of the ways for the industry to give back to the community through the concept of knowledge sharing and creating Takaful awareness by reaching out to those in higher learning institutions. The list of lecture series conducted in 2019 as below mentioned:

Students Students Students 42 34 30 6 Students 68 Students Wide Opportunity in General Claims Processing and Introduction to Introduction to Wide Opportunity in Takaful Takaful Industry Management Malaysian Takaful Malaysian Takaful Industry Industry Speaker: Speakers: Industry Tips for Successful Interview Ustaz Mohamad Khairul Mr Hung Kian Teong Speaker: Speaker: Speakers: Daim Ahmad Shamsuri (Overview of Takaful Industry) MTA Secretariat MTA Secretariat Ustaz Mohamad Saifuddin – AIA PUBLIC Takaful Bhd Encik Azmiruddin Mohd Zaman) • 15 March 2019 • 28 March 2019 Gahnehman • 9 January 2019 (Career Opportunities in Takaful) – Sun Life Malaysia Takaful Berhad Mr Noh Eng Jin (General Claims Puan Maslina Sahrom Processing and Management) – Great Eastern Takaful Berhad – Syarikat Takaful Malaysia • 30 August 2019 Keluarga Berhad • 7 March 2019

30 Students 150 Students 30 Students 60 Students Takaful Industry in Malaysia Introduction to Takaful and Risk General Takaful in Malaysia Takaful Industry Landscape in Malaysia Speaker: Speakers: Speaker: Speaker: Ustaz Muhammad Siddiq Puan Siti Nadiah Jamel Encik Nur Amin Nurazmi MTA Secretariat Masror – Great Eastern Takaful Berhad – Takaful Ikhlas General • 11 October 2019 – AIA PUBLIC Takaful Bhd • 10 October 2019 Berhad • 3 September 2019 • 11 October 2019

There were a total of 7 courtesy visits from various countries and backgrounds to MTA for year 2019:

9 Minister of Finance of 2 Nigerian Delegates 1 Turkey Delegate 1 Delegate Bangladesh Delegates Takaful Industry in Malaysia Takaful Industry In Malaysia Takaful Industry In Malaysia Takaful Industry in Malaysia Speaker: Speaker: Speaker: Organised and host by: MTA Secretariat MTA Secretariat MTA Secretariat BNM & World Bank Group • 3 July 2019 • 5 July 2019 • 29 July 2019 Speaker: Syarikat Takaful Malaysia Berhad • 9 – 12 April 2019

4 AIFC Kazakhstan Delegates 10 Japanese Delegates 10 Japanese Delegates AIFC’s Business Development Takaful industry in Malaysia Takaful industry in Malaysia Opportunities and the Markets in Speaker: Speaker: Central Asia Through the AIFC Platform MTA Secretariat MTA Secretariat • 19 August 2019 • 13 August 2019 • 10 September 2019 MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 23 8 EVENTS, TRAINING AND MEDIA ENGAGEMENT

ASSOCIATION’S EVENTS AND MTA Raya Gathering TRAINING To celebrate Aidifitri, the Association organised the MTA Raya Gathering on 26 June 2019 at the Multipurpose Hall Takaful StarNite 2019 of Lanai Kijang Bank Negara Malaysia (BNM). A total The Takaful StarNite 2019 was held on 4 May 2019 at number of more than 300 guests attended the event which Istana Budaya Kuala Lumpur. For the first time in 10 years, the comprised of the management of Takaful operators, MTA TS2019 Organising committee decided to change the format Subcommittees, BNM, affiliates and key stakeholders of the of the dinner from a traditional seated dinner to an Oscar industry. During the event, the Association also donated a concept. The event was officiated by the Yang Berhormat sum of RM5,000.00 to Persatuan Wanita dan Ibu Tunggal Mohamed Azmin Ali, Minister of Economic Affairs Malaysia. Kuala Lumpur dan Selangor. There were approximately 700 guests who attended the event with 24 award categories. The highlight of the year was the Launching of TBE Mandarin recognition by the Industry of Yang Berbahagia Datuk Mohd On 27 August 2019, the Mandarin version of TBE textbook Daud Bakar as the Tokoh Kembara Takaful 2019. was made available and can be downloaded upon registration for the TBE. Candidates will be able to sit for the Iftar Ramadhan TBE in Mandarin at any of the 21 Open University Malaysia with Penjara Sungai (OUM) branches nationwide. Candidates will also be able Buloh Prisoners to toggle between Bahasa Malaysia, English and Mandarin As in previous years the during the examination. The availability of the Mandarin TBE Association continued is to encourage more candidates to participate in the Takaful the collaboration with sphere and thus facilitate market penetration. Etiqa Family Takaful Berhad in jointly MTA CEO Meet-and-Greet Session with Interns of organising the Iftar the Industry Ramadhan. For 2019, the Iftar program was held at Penjara MTA CEOs Meet-and-Greet Session with interns of the Sungai Buloh on 22 May 2019/17 Ramadhan 1440H. industry was held at Concorde Hotel on 22 October 2019 where 21 participants attended the program. The session Unsung Heroes Program was aimed to motivate, provide inspiration and give the During the Ramadhan month, the Association continued the interns the opportunity to interact with the CEOs. During the Unsung Heroes program to 4 selected venues i.e. Penjara session, the interns were made aware on the development Sungai Buloh, Balai Bomba dan Penyelamat Lembah Pantai, of the Takaful industry and from the feedback received, the Balai Polis Trafik IPD Ampang and Kem Wardieburn Wangsa participants who were greatly motivated expressed their Maju. eagerness to pursue their careers in Takaful industry. Penjara Sungai Buloh MTA Refresher Training on Agency Rules and Date: 22 May 2019/17 Ramadhan 1440H Participants: Distribution of Bubur Lambuk to Regulations 250 Officers On 7 November 2019, the MTA Refresher Training was held at AIA PUBLIC Takaful Bhd. The training which was Balai Polis Trafik Bahagian Siasatan IPD Ampang attended by 27 representatives from 14 Takaful operators Date: 31 May 2019/26 Ramadhan 1440H was delivered by Puan Shazlyna from the MTA Secretariat. Participants: Distribution of Iftar food to 100 Officers The objective of the training was to provide a refresher Balai Bomba dan Penyelamat Lembah Pantai course for junior staff and/or new recruits of the agency and Date: 29 May 2019/24 Ramadhan 1440H related departments on the roles of MTA Secretariat, agency Participants: Distribution of Iftar food to 30 Officers registration process and other relevant agencies guidelines. Kem Wardieburn Date: 3 June 2019/29 Ramadhan 1440H Participants: Distribution of Iftar food to 300 Officers MALAYSIAN TAKAFUL ASSOCIATION 24 ANNUAL REPORT 2019

PARTICIPATION IN EVENTS Pelancaran Ops Bersepadu Chinese New Year 2019 Jabatan Keselamatan Jalan Raya (JKJR) invited the Association to participate in the launching ceremony for the Kempen Keselamatan Jalan Raya dan Ops Bersepadu Bersempena Perayaan Tahun Baru Cina Peringkat Kebangsaan on the 29 January 2019 at R&R Dengkil. The event was officiated by the then YB Loke Siew Fook, Minister of JKJR. The NCEC Campaign Committee took the opportunity to launch the Karnival Kewangan Kempen Keselamatan Jalan Raya Music Video during this Terengganu event. 4 – 6 April 2019 TH Hotel and Convention Run Up Program for BNM Karnival Kewangan Centre Kuala Nerus Karnival Kewangan Perlis In conjunction with the Karnival Kewangan Terengganu, 1000 survey respondents 28 – 29 September 2019 Bank Negara Malaysia conducted a Run Up Program that Dewan Warisan Kangar was carried out at three (3) routes covering three (3) states 713 survey respondents i.e. Pahang, Kelantan and Terengganu. The program aimed in promoting the Karnival Kewangan as well as creating Takaful/insurance awareness specifically on the Perlindungan Tenang products by providing the speakers and promotional booths. ROUTE 1 Date: 18 – 21 March 2019 Venue: Gambang - Jengka -Bandar Ketengah Jaya – Kota Bharu Participants: Great Eastern Takaful Berhad Hong Leong MSIG Takaful Berhad Takaful Ikhlas Family Berhad ROUTE 2 Date: 24 – 26 March 2019 Venue: Kuala Nerus - Setiu Karnival Kewangan Melaka Karnival Kewangan Sandakan Participants: Great Eastern Takaful Berhad Hong Leong MSIG Takaful Berhad 13 – 14 July 2019 28 – 29 September 2019 AEON Bandaraya Melaka Harbour Mall Sandakan ROUTE 3 331 survey respondents 420 survey respondents Date: 27 – 31 March 2019 Venue: Hulu Terengganu – Marang – Pengkalan Chepa IF INNOFEST and MOU Signing Ceremony with Participants: Great Eastern Takaful Berhad International Centre for Education in Islamic Hong Leong MSIG Takaful Berhad Finance (INCEIF) BNM Karnival Kewangan The Islamic Finance INNOFEST was held on 1 August 2019 at Sasana Kijang BNM with the theme “Digitalising Islamic The BNM Karnival Kewangan series namely Karnival Economy & Finance”. This event was organised by INCEIF Kewangan Terengganu, Melaka, Perlis and Sandakan and was officiated by the then Deputy Finance Minister, continued in 2019. The Association participated in all YAB Ir. Dato’ Wira Haji Amiruddin bin Haji Hamzah. The the Karnival Kewangan programs to promote the Takaful Association participated as a supporting Association by awareness, Perlindungan Tenang, Phased Liberalization and sponsoring the Action Based Learning (ABL) Poster competition Race for Cover. The Association also prepared the interactive which gave postgraduate students the opportunity to promote activities to attract visitors and conducted an awareness their research, action learning projects and ideas relating to survey for each venue. Islamic finance to the public. Students were given the platform to distil their research or project into an A1 poster that best Vehicle Theft Reduction Council of Malaysia showcased their ideas visually. Five (5) contestants entered Berhad (VTREC) -PDRM Vehicle Theft Public for this contest and the list of winners are as follow: Awareness Campaign 2019 • Winner : Khairat Fund Institutionalisation VTREC organised the VTREC-PDRM Vehicle Theft Public • 1st Runner Up : Investment Account Platform Awareness Campaign on 16 July 2019 at NU Sentral • 2nd Runner Up : The Islamic Microfinance Ecosystem Shopping Mall Kuala Lumpur. The Association participated in the event as one of the exhibitors promoting the Phased Liberalisation and AACC together with PIAM. MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 25

In conjunction with this event, an MOU signing ceremony News Strait Times and Berita Harian (NST & BH) between the Association and INCEIF was carried out. Interview Sessions The Chairman of the MTA Human Resource Development Subcommittee (HRDS) Encik Eddy Azli Abidin represented On 22 July 2019, there were interview sessions with NST/ MTA and INCEIF was represented by Professor Dato Dr Azmi BH on Race for Cover and the write-up was published on 31 Omar. The MOU will formalise the areas of co-operation July 2019. The session was represented by the Chairman of between MTA and INCEIF in exchanging the scholarly and the Association Encik Muhammad Fikri Mohamad Rawi. The pedagogical materials, joint research, technical assistance/ objectives were to inform that MTA had embarked onto the training and any other cooperation that was mutually agreed next phase of the Race i.e. Race for Cover Towards Takaful upon by both organisations. 2020. The interview also highlighted the benefits of the initiatives to the member companies as well as to the Public. The Public were further also informed of what’s available in NAMLIFA 2nd National Takaful Annual the market. Convention The NAMLIFA 2nd National Takaful Annual Convention was held on 6 August 2019 at Sasana Kijang Bank Negara Malaysia. The Association Chairman, Encik Muhammad Fikri Mohammad Rawi presented the welcoming remarks for this event.

MOU Signing with Universiti Sultan Zainal Abidin (UniSZA) The renewal of the MOU signing ceremony between MTA and UniSZA was held on 12 November 2019 at the Appearance in Malaysia Hari Ini (MHI) TV3 Dewan Senat Universiti Sultan Zainal Abidin. MTA Finance Subcommittee (FSC) Chairman, Encik Zafri Ab Halim Program represented MTA during the signing ceremony. The MOU On 6 November 2019, the Association was invited for is aimed at formalising the areas of cooperation between an interview in Malaysia Hari Ini (MHI) TV3 Program MTA and UniSZA in the following areas: Joint research and for a discussion on the topic Cabaran Ketika Banjir. The developmental projects, joint education programmes, the Association was represented by Encik Kamarulzaman Mohd publication of the Takaful and insurance regulatory book and Nasir, Senior Vice President, Corporate Solutions of Takaful cooperation in other areas. Ikhlas General Berhad.

Literacy in Financial Technology (LIFT) Festival Putrajaya The Association participated in the LIFT Festival Putrajaya from 28 to 29 December 2019 with a booth showcasing by opened the exhibition booth and carry out the awareness campaign at the digital pavilion inside the Menara MRCB. The event was officiated by the then Deputy Prime Minister YB Dr Wan Azizah Wan Ismail. The member companies i.e. Great Eastern Takaful Berhad, Prudential BSN Takaful Berhad and Takaful Ikhlas Family Berhad has also participated in the program. The Association also given a pocket talk session entitled “Kepentingan Perlindungan Takaful – Perlindungan Appearance in Astro Niaga - Astro Awani Tenang represented by Encik Afdzal Al-Adli Husni Husin from An interview with Astro Niaga by Astro Awani took place on AIA PUBLIC Takaful Bhd. The closing of the program was held 3 December 2019 to discuss on flood and insurance in the on 30 December 2019 at Minister of Finance. The closing East Coast of Malaysia. Encik Kamarulzaman Mohd Nasir, remarks presented by Finance Minister YB Lim Guan Eng. Senior Vice President, Corporate Solutions of Takaful Ikhlas General Berhad represented the Association. TV AND MEDIA INTERVIEWS Media Engagement for Industry Performance A media engagement was organised by the Association for an exclusive interview with the Chairman Encik Muhammad Fikri Mohamad Rawi who briefed the press on the 2018 performance of the Takaful industry on 19 March 2019. The engagement sessions were attended by Bernama, Utusan Malaysia and The Star. MALAYSIAN TAKAFUL ASSOCIATION 26 ANNUAL REPORT 2019 9 KEY FIGURES

TAKAFUL AGENT REGISTRATION REPORT 2019: FAMILY TAKAFUL

TOTAL REGISTERED AGENTS AS AT 31 DECEMBER 2019

Category Family General Grand Total

Individual Corporate ALC Total Individual Corporate Total

Banca 19,615 3 0 19,618 2,416 1 10,191 22,035 Non-Banca 47,960 560 39 48,559 4,841 5,350 58,750 Total 67,575 563 39 68,177 7,257 5,351 12,608 80,785

TOTAL NEW REGISTRATIONS FOR 2019

Category Family General Grand Total

Individual Corporate ALC Total Individual Corporate Total

Banca 6,047 0 0 6,047 814 0 814 6,861 Non-Banca 16,539 105 15 16,659 936 1,306 2,242 18,901 Total 22,586 105 15 22,706 1,750 1,306 3,056 25,762

REGISTERED AGENTS

78,979 76,990 76,332 80,825 72,240 80,785

63,913 63,679 63,549 63,806 65,117 68,177

15,066 13,311 12,783 17,019 7,123 12,608

2014 2015 2016 2017 2018 2019

Total Family General

NEW AGENT REGISTRATIONS 25,762

22,094 22,706 20,471 20,973 18,890 19,314 18,737 17,875 18,377 16,946 16,467

3,056 2,236 1,623 1,944 1,439 1,910

2014 2015 2016 2017 2018 2019

Total Family General MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 27

Registered Individual Agents Registered Individual Takaful Registered Individual Takaful – by Categories Agents – by Gender Agents – by Race FAMILY TAKAFUL FAMILY TAKAFUL BY GENDER FAMILY TAKAFUL BY RACE

47,960 Female Male 44,112 19,615 71% 50% 50% 65% 20,085 29% 33,916 33,659 30% 2,398 980 4% 1% Total: 67,575 Non–Banca Banca Total: 67,575 Malay Total: 67,575 Chinese Indian Others

Registered Individual Takaful Agents – Registered Individual Takaful Agents – by Qualifications by Age Bands FAMILY TAKAFUL AGENTS BY QUALIFICATIONS FAMILY TAKAFUL BY AGE BANDS 16,862 9,599

19,511 5,745 32,623 25% 14% 4,837 28,316 Degree Diploma 29% 8% 14,003 48% 7% (36-45) (18-25) 42% 21% SPM 3,654 Higher Education (26-35) (46 & above) 6% STPM

Total: 67,575 Total: 67,575

TAKAFUL AGENT REGISTRATION REPORT 2019: GENERAL TAKAFUL

Registered Individual Agents Registered Individual Takaful Registered Individual Takaful – by Categories – Breakdown by Gender Agents – by Race

GENERAL TAKAFUL GENERAL TAKAFUL BY GENDER GENERAL TAKAFUL AGENTS BY RACE

4,841 Female Male 5,959 2,416 67% 44% 56% 82% 1,062 33% 3,187 4,070 15% 137 99 2% 1% Total: 7,257 Non–Banca Banca Total: 7,257 Malay Total: 7,257 Chinese Indian Others MALAYSIAN TAKAFUL ASSOCIATION 28 ANNUAL REPORT 2019

Registered Individual Takaful Agents – Registered Individual Takaful Agents – by Age Bands by Qualifications GENERAL TAKAFUL AGENTS BY AGE BANDS GENERAL TAKAFUL AGENTS BY QUALIFICATIONS

2,483 4,076 162 1,288 2,526 706 34% 2% 2,086 56% 500 (46 & above) SPM 18% 35% (18-25) Degree 10% 29% Diploma (36-45) (26-35) 7% STPM 687 9% Higher Education

Total: 7,257

Total: 7,257

TBE STATISTICS REPORT: 2019

Overall OVERALL TBE RESULTS FOR 2019

32,826 34,408 37,623 32,843 34,108 39,488 Family Takaful 78% 71% 72% 68% 73% Part A and C Part C Total 63% Registered 33,371 704 34,075 Absent 4,490 44 4,534 Absent (%) 13 6 13 16% 17% Sat 28,881 660 29,541 15% 14% 13% 13% Passed 20,508 532 21,040 Passing Rate (%) 71 81 71 2014 2015 2016 2017 2018 2019

Registered Absent (%) Passing Rate (%) General Takaful Part A and B Part B Total Registered 3,667 1,746 5,413 Family Takaful Route Absent 408 134 542 Absent (%) 11 8 10 29,241 31,719 34,312 29,247 29,987 34,075 Sat 3,259 1,612 4,871 77% 71% Passed 2,579 1,447 4,026 69% 70% 62% 62% Passing Rate (%) 79 90 83

Grand Total 16% 17% 17% 14% 13% 13% Registered 39,488 Absent 5,076 2014 2015 2016 2017 2018 2019 Absent (%) 13 Registered Absent (%) Passing Rate (%) Sat 34,412 Passed 25,066 Passing Rate (%) 73 General Takaful Route

3,585 2,689 3,311 3,596 4,121 5,413

84% 84% 85% 84% 74% 83%

13% 14% 14% 12% 11% 10%

2014 2015 2016 2017 2018 2019

Registered Absent (%) Passing Rate (%) MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 29

Family Takaful Route for 2019 TBE BY QUALIFICATIONS TBE BY GENDER TBE BY AGE BANDS

13,279 980 8,543 10,394 879 Female Male 16% 12% 13% 85% 85% 13% 14% Absent Absent Absent 67% 63% 66% Absent Absent 78% 66% 74% 71% 71% 15% Passing Rate Passing Rate Passing Rate 15% 13% Passing Rate Passing Rate Absent 13% 12% 14% 1,816 13,296 14,190 17,316 16,759 76% (46 & above) (18-25) (26-35) SPM STPM Diploma Degree Higher Education Registered Registered Passing Rate Registered Absent (%) Passing Rate (%) 4,773 (36-45)

General Takaful Route for 2019 TBE BY QUALIFICATIONS TBE BY GENDER TBE BY AGE BANDS

2,425 158 973 1,750 107 Female Male 10% 8% 10% 87% 95% 9% 11% Absent Absent Absent 82% 81% 75% Absent Absent 88% 76% 85% 82% 83% 11% Passing Rate Passing Rate Passing Rate Passing Rate Passing Rate Absent 456 1,471 2,519 (46 & above) (18-25) (26-35) 10% 2,901 2,512 85% 9% 13% 11% 15% Registered Registered Passing Rate SPM STPM Diploma Degree Higher Education 967 (36-45) Registered Absent (%) Passing Rate (%) MALAYSIAN TAKAFUL ASSOCIATION 30 ANNUAL REPORT 2019

10 PHOTO GALLERY MALAYSIAN TAKAFUL ASSOCIATION ANNUAL REPORT 2019 31 TOUCHING LIVES IN A MEANINGFUL WAY

ANNUAL REPORT MALAYSIAN TAKAFUL ASSOCIATION 21st Floor, Main Block, Menara Takaful Malaysia, No 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur, Malaysia Tel : (603) 20318160 Fax : (603) 20318170 www.malaysiantakaful.com.my @malaysiantakafulassociation malaysiantakafulassociation 2019