- Aims to make takaful more accessible to the Malaysian public
- Initiative will pave way for takaful operators to explore fintech potentials
The Malaysian Takaful Association (MTA) signed an memorandum of understanding (MoU) with the Fintech Association of Malaysia (FAOM) to spur the adoption of financial technology (fintech) and encourage digital innovation and the use of fintech among takaful players in Malaysia.
In a joint statement, both parties said the signing of the MoU is a strategic initiative by MTA that supports Strategic Thrust Three: Advance digitalisation of the financial sector of Bank Negara Malaysia’s financial sector blueprint (FSB) 2022-2026.
MTA chief executive officer Mohd Radzuan Mohamed said, “It is our collective aim to achieve greater productivity, efficiency and effectiveness in our business operations, stakeholder communications (including agency networks) as well as customer interactions.
“More importantly, the cooperation allows us to explore avenues towards the implementation of initiatives identified under the value based intermediation for takaful roadmap, launched in July 2022 and relevant initiatives under the national FSB 2022-2026,” said Mohd Radzuan.
President of FAOM Wilson Beh expects the cooperation to bring value to the takaful players and the industry’s further development.
“It is exciting to think about the potential impact fintech can have in the takaful space and for Malaysian consumers.
“With the introduction of takaful-tech, we can imagine revolutionising and simplifying the access to Takaful protection plans, claims handling and management and agency transactions on your mobile phones and devices,” said Beh.
The 24-months cooperation has identified various areas of mutual cooperation to accelerate and encourage intech in the takaful space, including:
- FAOM to connect subject matter experts with takaful industry players who can offer technical advice, sharing of latest trends in fintech industry and mentorship support to MTA;
- MTA to explore platforms to connect and increase participation of FAOM members and fintech startups in MTA’s events, programmes and initiatives;
- Both parties will support and co-organise programmes related to digital technology and digitalisation initiatives, takaful transformation and development as well as general awareness building; and
- Both parties will support the cross promotional and marketing of each other’s programmes and initiatives.
Innovations and digitalisation in the takaful sector is expected to benefit the industry, helping it step up its game, especially in making takaful more accessible to the Malaysian public, the associations said.
This will contribute to greater financial inclusion and social protection among Malaysians, they added.