An analysis of value-based intermediation for Takaful operators in Malaysia

Rosman, Romzie and Zakariyah, Habeebullah and Hassan, Rusni and Shafie, Amir Akramin and Redzuan, Nur Harena (2024) An analysis of value-based intermediation for Takaful operators in Malaysia. Technical Report. Co-opbank Pertama (CBP), Kuala Lumpur.

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Abstract

In 2021, the Malaysian Takaful Association introduced the Value-Based Intermediation for Takaful (VBIT) Framework, a strategic initiative to position the Malaysian Takaful industry as a leading force in the Islamic financial sector. This framework highlights the role of takaful operators as catalysts for positive change within the financial system. VBIT has since gained prominence in the Islamic finance and takaful landscape by advocating for ethical, socially responsible, and sustainable takaful practices. This study comprehensively explores Value Based Intermediation (VBI) principles and their alignment with Islamic values, emphasizing the importance of responsible financial activities contributing to societal well-being. It highlights how value-based intermediation empowers takaful operators to meet the growing demand for ethically driven financial products and services within the community. Our study employs content analysis to evaluate the non-financial performance of selected takaful operators in Malaysia, examining the content available on their websites and in press releases related to VBIT. Also, two (2) experts in the Takaful industry were interviewed to gather their opinions and experiences concerning VBIT strategies. VBIT paves the way for a more inclusive takaful system, reinforcing financial stability and aligning business objectives with the national agenda. It serves as a financial gateway, extending takaful services to the underserved. By monitoring the progress of takaful operators in implementing the VBIT agenda, policymakers can offer their support to these initiatives. At the same time, takaful management can align their activities with the strategic roadmaps outlined by VBIT. This study provides valuable insights into the pivotal role of VBI in shaping the Malaysian Takaful industry's ethical and inclusive financial practices, with broader implications for Islamic finance globally.

Item Type:	Monograph (Technical Report)
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	PROF. DR. ROMZIE ROSMAN
Date Deposited:	21 Jan 2025 13:46
Last Modified:	21 Jan 2025 13:46
URI:	http://irep.iium.edu.my/id/eprint/118782

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