KUALA LUMPUR, Dec 7 (Bernama) -- The Malaysian Takaful Association (MTA) announces the launch of pioneering industry-driven research to develop a scorecard based on the Maqasid al-Shariah (objectives of Shariah) to elevate the performance of the Malaysian Takaful industry to a higher level. Anticipating the industry’s pain point to develop workable and measurable performance indicators to chart the progress and impact of its growth and development, MTA initiated a strategic collaboration with INCEIF University to develop a Maqasid al-Shariah Scorecard (MSS).
 
MTA Chairman, Encik Elmie Aman Najas stated that 2022 was a significant year for the industry as it embraced the launch of Bank Negara Malaysia’s (BNM) Financial Sector Blueprint (FSB) 2022-2026 in January, and the industry’s Value-Based Intermediation for Takaful (VBIT) Roadmap in October. Both frameworks set out the strategic direction, aspirations, and initiatives to be achieved by the industry within the next two to five years.
 
In his speech during the MSS launching ceremony, Elmie shared that the scorecard could be “the first of its kind in the world developed for an industry”. Disclosing that while all the initiatives identified by the VBIT Roadmap would bring benefit to the industry, society and country, MTA acknowledged that “there was a distinct need to connect all these initiatives to the spiritual aspect of VBIT,” adding that “this connection is critical as the acceptance of Takaful as an alternative to conventional insurance is predominantly due to it being Shariah-compliant in nature, which by default, suggests its compliance to Maqasid al-Shariah.”
 
INCEIF University Board of Directors Chairman Tan Sri Azman Mokhtar said INCEIF's strategic collaboration with MTA would offer the Takaful industry with a much-needed instrument in realising the true spirit of Maqasid al-Shariah. "In particular, the development of the first-of-its-kind scorecard will help to identify the key performance indicators and their desired outcomes in line with the intrinsic values of Islamic finance as outlined by BNM. This will further enhance the impact measurement instruments needed by the Takaful industry in Malaysia."
 
For the Takaful and Retakaful operators, the scorecard will benefit them in many ways including facilitating the achievement of Maqasid compliance through strategic planning, enhanced decision-making, advanced reporting and full transparency. The scorecard is a measurement tool to demonstrate and validate VBIT based on Maqasid al-Shariah and set a clear distinction between conventional insurance and Takaful in terms of value proposition and product differentiation. This in turn would enhance the stakeholders' confidence and satisfaction in Takaful/Retakaful value proposition, ensuring that the operators are able to handle financial shocks and remain resilient. Also of importance, the initiative would showcase Malaysia as a global leader in operationalising Maqasid in Takaful and Retakaful products and services. 
 
The Association envisions that the MSS will enable the Takaful industry to accurately measure their business and non-business performance based on well-defined KPIs, clear targets and timelines. It will also facilitate Maqasid al-Shariah compliance and enhance decision-making, strategic planning, advanced reporting and better transparency.
 
As such, this research specifically aims to:

1. develop a scorecard to measure VBIT in light of Maqasid al-Shariah;
2. identify the key performance indicators (KPIs) for the scorecard;
3. introduce risk-weighted indicators underlying the scorecard for Takaful; and eventually
4. measure the impact of the Maqasid al-Shariah based VBIT scorecard on selective Takaful business lines, offerings and products.
 
The joint effort between MTA and the ISRA Research Management Centre of INCEIF University will support the VBIT aspirations that accompany the potential growth of the Takaful industry in Malaysia. In this regard, the scorecard goes beyond measuring successful initiatives, rather will elevate the measures to identify the impact of such initiatives including how well the initiatives are carried out and to what extent they have helped vulnerable communities. The scorecard aims to ensure that the initiatives should, as much as possible, bring the benefits of Maqasid al-Shariah to the communities they serve. The MSS is also hoped to build a clear demarcation between conventional insurance and Takaful in terms of value proposition, product differentiation and real impact, thereby enhancing stakeholders’ confidence, perception and satisfaction in the industry and its offerings.
 
Issued by: MTA
 
  
ABOUT MALAYSIAN TAKAFUL ASSOCIATION (MTA)
Malaysian Takaful Association (MTA) is an association registered under the Societies Act 1966 and dedicated in promoting the interest of its members (all 18 licensed Takaful and Retakaful operators in Malaysia) and to supervise the exercise of self-regulation within the Takaful industry. The focus, among others, is on branding, awareness and communication, shared services through leveraging of technology, investment opportunities and relations with regulators. More information on MTA can be obtained from its website: www.malaysiantakaful.com.my
 
ABOUT INCEIF UNIVERSITY
INCEIF University was set up by Bank Negara Malaysia in 2005 to develop human capital and knowledge leadership for the global Islamic finance industry. Apart from its academic programmes, which are PhD in Islamic Finance, Industrial PhD, MBA (Sustainable Business), Masters of Islamic Finance Practice, Executive Masters in Islamic Finance, MSc in Islamic Finance and Professional Certificate in Islamic Finance, INCEIF also offers customised executive training programmes and industry-focused applied research in line with its vision to be the knowledge and thought leader in Islamic finance, through its research arm ISRA Research Management Centre and consulting subsidiary ISRA Consulting. 
 
Both ISRA RMC and ISRA Consulting have been acknowledged by industry bodies as the best in their respective fields. ISRA RMC has been consistently voted as the “Best Islamic Research Firm” and ISRA Consulting as the “Best Islamic Consulting Firm” in an international poll conducted by leading Islamic finance news portal, Islamic Finance News.
 
INCEIF syllabus is structured with inputs from industry players to bridge the gap between academic knowledge and industry experience. INCEIF faculty members, who are globally respected among the Islamic finance academia and industry, have a combined wealth of experience and diversity. The faculty, coupled with continuous support from the industry, provides INCEIF students with strong mentoring relationships and opportunities for professional development.
 
In 2020, INCEIF received a 4-Star MyRA recognition, a ranking implemented by the Ministry of Higher Education Malaysia to measure among others the research and innovation capabilities of universities.
 
In November 2018, INCEIF received full accreditation from AACSB International, joining the top 5 per cent of business schools in the world to be accredited. It is the only Islamic finance university in Malaysia to receive this international accreditation. 
 
For more information, please visit www.inceif.edu.my 


SOURCE : Malaysian Takaful Assocation (MTA)

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Puan Siti Nor Kamariah Ishak
Head, Corporate Communications
Malaysian Takaful Assocation (MTA)
Tel : +603-2031 8160
Fax : +603-2031 8170
Email : mtasecretariat@malaysiantakaful.com.my
 
--BERNAMA