FWD Takaful Berhad (formerly known as HSBC Amanah Takaful (Malaysia) Berhad) (“FWD Takaful”) today signed a collaboration agreement with ISRA Consultancy Sdn. Bhd. (“ICSB”) for a collaboration to invest RM1 million in research, feasibility studies, and development of a user-friendly booklet to explain Takaful in simpler terms. 

The collaboration will also include an in-depth feasibility study and research, with the aim of establishing Shariah-compliant Micro Family Takaful plans for individuals in the low to middle level income category in Malaysia. 

FWD Takaful Chief Executive Officer, Salim Majid Zain and ICSB Chief Executive Officer, Professor Dr. Ashraf Mohd. Hashim signed the collaboration agreement at the opening of the 14th International Shariah Scholars Forum. Deputy Minister of Finance, YB Dato’ Haji Amiruddin bin Haji Hamzah witnessed the signing ceremony held at Pullman Kuala Lumpur City Center Hotel & Residences.

ICSB, recently voted as the 2019 Best Consultancy Firm Award by Islamic Finance News (IFN), is the business arm of the International Shariah Research Academy for Islamic Finance (“ISRA”), an affiliate of Bank Negara Malaysia. The main objective of ISRA is to promote applied research in the area of Shariah and Islamic finance.

FWD Takaful is committed to identifying potential Shariah requirements that may be applicable in the Takaful industry. This study will shed light on the potential applications of these requirements into calculations that may affect various elements within the Takaful industry, such as the amount of contribution by participants. 

Salim said, “Our operations at FWD Takaful have the ability to leave an impact in the community. We want to improve Takaful protection for Malaysians especially for those in the B40 group as they require it the most. The RM1 million investment towards this collaboration shows our commitment to the development of the Takaful industry including activities to introduce more innovative and inclusive products as well as growing talent.”

He also said that FWD Takaful is publishing a booklet in multiple languages to educate the public on the various aspects and importance of having Takaful coverage from the perspectives of Shariah, risk coverage, as well as market conduct and obligations. The booklet will be published in an attractive and interactive manner to realise FWD Takaful’s vision of changing the way people feel about Takaful.

Dr Ashraf thanked FWD Takaful for the trust in ICSB. He said “This is another opportunity to bring research into application with a win-win solution for the benefit of all stakeholders. We strongly believe that, inshaAllah, with the support of the strong team at ICSB and FWD Takaful, we can successfully complete the project.” 

FWD Takaful staff will also benefit from the collaboration through a series of tailor-made training sessions conducted by ICSB that covers various aspects pertaining to Islamic Finance and Shariah. 

ICSB offers extensive services specific to the needs of financial institutions at every point of the value chain, capitalising on the power and strength of Malaysia as a leader in Islamic finance. Its services leverage its extensive knowledge across the entire spectrum of Islamic finance by local and international experts.