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Takaful Funds For Shariah

Compliant Products

NOR AZMAN ZAINAL


Head of Products Development
Prudential BSN Takaful Berhad

4 August 2010

7th Kuala Lumpur


Islamic Finance Forum
3 - 4 August 2010 * Hotel Nikko, Kuala Lumpur MALAYSIA
7th Kuala Lumpur Islamic Finance Forum | KLIFF 2010
3 – 4 August 2010 * Hotel Nikko, Kuala Lumpur

Takaful Funds For Shariah


Compliant Products

7th Kuala Lumpur Islamic Finance Forum 2010

Our Focus

PRODUCTS FUNDS CHALLENGES


STRATEGY

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7th Kuala Lumpur Islamic Finance Forum | KLIFF 2010
3 – 4 August 2010 * Hotel Nikko, Kuala Lumpur

Takaful Products 
Overview

Takaful Products

• Properties & Casualties


Pure • Credit Related
Protection • Critical Illness
• M di l & H
Medical Health
lth

Traditional • Fixed Term Savings


Savings • Whole Life Savings

• Investment Linked (open ended)


Investment • Tactical (close ended product) – Structured
Investment.

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7th Kuala Lumpur Islamic Finance Forum | KLIFF 2010
3 – 4 August 2010 * Hotel Nikko, Kuala Lumpur

Product Strategy – Key Drivers

Distribution Channel
• Channel appetite – Agency vs. Banca vs. DMTM ?
• Design according to channel profile 

Customers’ Needs
• Investment linked for everyone? One size fits all?
• Buy term invest the rest ?

Market Profile
• Mass/High Net worth
• Urban/Rural?
• Muslims/Non‐Muslims – Takaful for all?

Company’s strategy
• Profitability

Takaful Funds

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7th Kuala Lumpur Islamic Finance Forum | KLIFF 2010
3 – 4 August 2010 * Hotel Nikko, Kuala Lumpur

Takaful Related Funds


Tabarru’
• To maintain Takaful risk charges contributed by participants
• To pay off claims and assets backing reserves
• Essential to balance the liquidity needs

Traditional Savings
• Driven by traditional savings product type whereby participants cannot
choose the investment funds
• TO will determine the investment strategy (on advice by Fund
Manager) to maximise returns

Investment Link
• Similar to unit trust
• Customers to choose to invest in funds that suit their risk appetite
• Typically invest in local equities
equities, local fixed income
income, balanced portfolio

Takaful Structured Investment Funds


• Typically capital protected
• Typically managed by Investment Banks with TO only manage the
tabarru’ fund

Products & Funds ‐ Key Challenges 

Product 
Innovation
Consumer  Human 
Awareness/ 
Education Resources

Distribution  Suitable 
Capability Challenges Assets 

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