AIA Launches Takaful Bancassurance Joint Venture in Malaysia
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|Source:||A.M. Best Company, Inc.|
Takaful is Islam-compliant insurance. AIA AFG Takaful is a 70%-30% joint venture between
The takaful joint venture follows AIA's receiving a family takaful license from Bank Negara Malaysia, the central bank of
The venture will provide takaful savings, protection and investment products in
"With this launch, AIA is set to become a major player in the important and fast-growing takaful market in
AIA said the takaful market is "an important and sizable strategic opportunity for AIA" as it allows the company to access a large Muslim population that can now purchase Shariah-compliant products.
AIA AFG Takaful will focus on four key strategies, which
To target a wider segment of the Malaysian market, AIA AFG Takaful CEO Encik Wan Azman Wan Mamat said the company's products will "initially be focused on protection, education, savings and investment" and will be distributed through its agency force and more than 90
This is a "timely opportunity" as it allows
The chairman added the partnership has reflected the group is committed to provide more Shariah-compliant financial solutions covering Islamic banking and takaful to meet the market demands of the Muslim community and Malaysians.
AIA has another wholly owned takaful subsidiary --
The liberalization move by Bank Negara in 2009 lifted the cap on foreign entity holdings of operators of takaful, conventional insurance, investment banks and Islamic banks from 49% to 70% (BestWire,