Value-Based Intermediation
For Takaful (VBIT)
About VBIT
VBIT Framework
VBIT Roadmap
Takaful FSB Programme
Events & Training
The framework aims to encourage industry players towards achieving growth that is sustainable and meaningful for all stakeholders. In the effort to create a positive socio-economic impact, Takaful Operators (TOs) aspire to become a major influence on the realisation of prosperity and Maqasid Shariah.
The framework operates as a guideline for Takaful Operators in their implementation of Value-based Intermediation for Takaful (VBIT) by outlining the best conduct and practices in the industry. The framework is comprehensive and relevant to Family Takaful, General Takaful and Retakaful Operators.
A clear understanding of how Takaful Operators can embrace VBIT will drive the industry to the next level.
A set of clear underpinning thrusts is developed to guide the adoption of VBIT by all TOs in Malaysia to create positive value and sustainable impacts for the respective stakeholders. This integrated set of thrusts serves as a compass for TOs in the journey of implementing VBIT.
Financial Resilience
Good Self-Governance
Community Empowerment
Best Conduct
The implementation of VBIT begins with Corporate Value Intent (CVI) in delivering Shariah propositions through Takaful business activities – operations, practices, conduct and offerings.
CVI is beyond the company’s slogan. It expresses the specific desirable future that the TO is committed to achieving – a goal which balances the creation of value for all stakeholders.
The execution of VBIT by TOs may be conducted by focusing on identified key implementation strategies. The way the institution delivers its CVI and implements its value-based strategies shall be based on four (4) interlinked areas of focus.
Inclusive Stakeholder Engagement
Impact-based Assessment
Constructive Collaboration
Value-driven Solutions
A comprehensive measurement that assesses the progress and effectiveness of the VBIT initiatives implemented by TOs. It will address both financial and non-financial indicators under the four underpinning thrusts of VBIT.
It is important because:
The enhanced disclosures will demonstrate TOs’ accountability towards VBIT commitment and in delivering sustainability values. It reflects the progress and effectiveness of the VBIT initiatives in deliberating relevant impact-focused information. The disclosure shall include consistency, reliability, comparability and meaningfulness of each VBIT initiatives.
- Receive better quality of Takaful offerings
- Fair and better transparency to build strong confidence in TOs
- Better awareness and preventing negative outputs
- Better alignment of business focus with the national agenda
- Greater integration and effective collaboration
- Strengthen financial stability
- Enhance operational efficiency
- Unlock business opportunities in the underserved & unserved markets
- Increase penetration in new target segments
- Increase competitiveness among TOs
- Effective Takaful ecosystem
- Enhance corporate image in the local and global markets
VBIT Framework serves as a guideline in implementing VBI within the sustainability ideals through its value-based agenda. The framework is comprehensive and relevant to Family Takaful, General Takaful, and Retakaful Operators.
VBIT reflects the industry’s aspiration to elevate Takaful to the next level by transforming the industry towards achieving meaningful sustainable growth whilst delivering impactful and measurable values to the customer and stakeholders. The objective is to deliver positive socio-economic impact whilst upholding the objectives of Shariah and sustaining positive financial returns for the relevant stakeholders.
It is good to note that during the development of the VBIT Framework, it is foreseen that the implementation of the VBIT initiatives will take place in stages. As the industry progresses through the adoption of the VBIT principles, it is hopeful that the discussion of VBIT ideals can encourage the stakeholders to embrace value-driven agenda and change their mind set to consider more meaningful propositions in delivering the intended outcome.
The VBIT conversations are expected to spur the TOs’ creativity and encourage them to innovate in delivering positive and meaningful impacts to their stakeholders. This will ideally lead to a better quality in TOs’ offerings for distinct market segments nationwide, with greater integration and effective collaboration between different stakeholders in transitioning towards a sustainable financial future for all.
VBIT is the extension of VBI, where VBI is focused more on adoption of the VBI principles by Islamic Banking in Malaysia. VBIT Framework provides a specific guide for Takaful practitioners on the awareness of and the process to transform the Takaful industry into an intentional and meaningful journey towards achieving the ultimate objectives of Shariah. It is also the first of such framework in the global Takaful landscape, where it explicitly mentions Maqasid Shariah and sustainability agenda in together.
Consumers can expect Takaful Operators to gradually offer a more customised and inclusive products and services that brings greater meaning and more valuable to them. It will be more thought through and the distinct feature would be more unique to specific communities and segments.
As the implementation of VBIT ideals provides the opportunity for the industry to focus on its unique value proposition – Shariah compliant, mutual benefit sharing and transparency; the key success factor is highly dependent on the continuous and concerted efforts and commitments from all respective stakeholders – the society, the industry and the regulators in the journey to unlock the full potential of Takaful industry.
Implementing VBIT involves:
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