KUALA LUMPUR (Aug 7): The newly-forged CIMB Islamic Bank Bhd-Takaful Ikhlas General Bhd partnership is targeting RM168 million in gross contribution from the sale of Islamic insurance or takaful products over the next five years.

In essence, gross contribution is expected to grow 11% every year for the next five years, CIMB Islamic and Takaful Ikhlas General said today. MNRB Holdings Bhd wholly-owns Takaful Ikhlas General.

CIMB Islamic chief executive officer Rafe Haneef said he is confident that the collaboration will achieve its goal, banking on CIMB Islamic’s strong existing takaful customer base of over one million policyholders.

“We are not going to look at new bank customers; we already have our existing customer base. So, we will grow the takaful business within the existing customer base. 

“The existing businesses have already created the demand for the (new) products. So in addition to the existing business, we will also grow the bank's customers,” Rafe said at a media conference after the launch of the partnership here today.

Under the partnership, Takaful Ikhlas General will be the preferred general takaful provider to all CIMB Islamic customers. CIMB Islamic will leverage Takaful Ikhlas General's offerings, including motor, home and fire insurance.

Takaful Ikhlas General will, in turn, leverage CIMB Islamic’s distribution channels, comprising the bank’s 250 branches nationwide, besides CIMB Islamic’s online platform, and call centre.

Takaful Ikhlas General president and CEO Eddy Azly Abidin said the company is targeting double-digit year-on-year growth in gross contribution for current financial year ending March 31, 2020, as he observed rising demand for takaful products in Malaysia. 

“I can certainly attest that the demand for takaful products is growing and both organisations should work closer together to capitalise on this market potential. We want to be part of the growth and widen our reach.

“This partnership will be built on both organisations’ shared commitment and ambition to drive greater takaful penetration rate,” Eddy Azly said.