KUALA LUMPUR: Sun Life Malaysia Takaful Bhd (Sun Life Takaful), which signed a four-year bancatakaful agreement with Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) yesterday, expects to rake in RM150 million in premiums a year from subscriptions via the lender.
The partnership between the two parties started in March 2013, with the introduction of Reducing Term Takaful to provide takaful coverage to Bank Rakyat’s personal financing product, namely Al-Aslah, that caters to government employees. The range of products was later expanded to Houseowner Takaful, and then Microtakaful in July 2013 to support the micro financing business.
Sun Life Takaful CEO Muhammad Fikri Mohamad Rawi said the partnership aims to meet the increasing demand for takaful protection in Malaysia as well as allow Sun Life Takaful to tap into Bank Rakyat’s base of five million customers in the country.
“Sun Life Takaful will benefit from Bank Rakyat’s expansive distribution network and brand strength in the marketplace, while Bank Rakyat’s customers will benefit from access to Sun Life Takaful’s products and services,” he told reporters after the signing ceremony here.
Over the next four years, Muhammad Fikri said, the company is targeting to secure about 960,000 Bank Rakyat customers, after having secured 500,000 customers over the past two years.
As at December 2014, he added, the country’s takaful fund asset size had reached RM22.7 billion, an increase of 30.7% over the past five years.
“In terms of fee-based income, Bank Rakyat has obtained more than RM30 million. Over the next four years, I think Bank Rakyat will obtain more than RM100 million,” Muhammad Fikri said.
Under the bancatakaful agreement, Sun Life Takaful offers various products to Bank Rakyat’s customers, including Decreasing Term Takaful, Houseowner Takaful, Microtakaful, as well as personal accident and a medical and health plan through direct and telemarketing channels.
Muhammad Fikri said the takaful operator managed to rake in RM250 million in premiums since the partnership began.
Sun Life Takaful is a unit of Sun Life Malaysia, a joint venture between Canada-based Sun Life Financial Inc and Khazanah Nasional Bhd.
Originally published on www.thesundaily.my