Due to increasing demand for takaful, or Islamic insurance, OCBC Al-Amin Bank will begin distributing regular contribution term takaful products, beginning with Great Eastern Takaful’s One Plan-i.
The plan’s coverage increases by 10% every five years for fifteen years, without any increase in contributions.
According to OCBC Al-Amin chief executive officer Syed Abdull Aziz Syed Kechik, the move is quite timely, as awareness of family takaful is growing among Malaysians.
OCBC Al-Amin and GETB said in a joint statement that the market penetration rate of family takaful is at 14.5%, compared to conventional life insurance, which is at 41.2% according to Ernst and Young data.
“Clearly, there is potential for takaful to grow especially in the emerging affluent segment. With the launch of One Plan-i, we aim to penetrate deeper into the bancatakaful business,” said Syed Abdull Aziz. “In the future, we will continue to roll out more such products, with unique propositions that meet our customers' needs.”
“Banctakaful” is a strategic alliance between takaful operators and banks, where takaful products are distributed via a bank’s branch network alongside other financial products.
