MTA UNVEILS FUTURE PLANS FOR TAKAFUL INDUSTRY

By Nadia Jumri

KUALA LUMPUR, May 29 (Bernama) -- The Malaysian Takaful Association (MTA) today unveiled a new initiative for the takaful industry, namely the takaful post-retirement medical cover project initiative. 

MTA chief executive officer Mohd Radzuan Mohamed said this project represents a significant milestone in the industry’s efforts to provide sustainable solutions for retirees and to ensure that the takaful industry benefits the community and environment. 

“We are committed to driving positive change and setting new industry standards,” he told Bernama after the launch of the project at the Global Forum on Islamic Economics and Finance here today.  

Mohd Radzuan said that MTA is embarking on the takaful post-retirement medical cover project initiative in response to Malaysia's progression towards becoming an aged nation with the population aged 60 and above reaching 15.3 per cent by 2030, according to data from the Department of Statistics Malaysia.

“This initiative aims to provide comprehensive medical coverage for retirees, ensuring financial security and access to necessary healthcare services post-retirement,” he said in a separate statement.

According to the statement, among the features of this initiative are upfront contributions from participants while employed, with coverage commencing at retirement age, flexible payment options via the use of Employees Provident Fund contributions, leveraging the iLindung platform, and inclusivity whereby products conforming to “Perlindungan Tenang” are encouraged to ensure broad accessibility.

At the same event, MTA also soft launched its maqasid al-shariah scorecard (MSS) for the value-based intermediation for takaful (VBIT).

Mohd Radzuan said that the MSS aims to assess the values and impacts of Malaysian takaful operators, focusing on community betterment and environmental sustainability in line with maqasid al-shariah requirements and VBIT expectations.

He stated that MTA engaged the International Centre for Education in Islamic Finance, represented by the ISRA Research Management Centre, in December 2022 to develop the scorecard for the takaful industry in Malaysia.

“While the MSS was developed specifically for the takaful industry, it is applicable to any industry as the foundational principles allow for the key performance indicators and measurements to be adapted,” he said, adding that the MSS will set a global standard.

He said that this initiative is part of MTA’s strategic efforts to visualise the future of the takaful industry through value-based intermediation. 

-- BERNAMA