FWD Takaful has launched several valued-based intermediation for Takaful (VBIT) initiatives as part of its commitment to support the Bank Negara Malaysia’s VBIT framework. The Takaful operator hopes to position itself as champion for VBIT in the industry. Its initiatives include a partnership with the Malaysian Takaful Association (MTA) to contribute a total of RM1million (US$227,730) to the MTA Fund4Cause program as well as the launch of a VBIT educational microsite among others.
The Fund4Cause program was introduced by the MTA to assist in achieving the goals of the Strategic Plan 22-23, the VBIT roadmap and the financial sector blueprint 2026. Through the partnership between the operator and MTA, FWD Takaful will support the VBIT Development Fund, one of four MTA developmental funds.
“Even before the formal establishment of the VBIT framework, empowered by our vision of changing the way people feel about Takaful, we had set out to pursue initiatives that would foster financial resilience and empower the communities around us, be it through our product offerings, research collaboration and financial literacy initiatives. We thought it was timely to showcase our key initiatives in conjunction with the launch of the MTA’s Fund4Cause program which includes the VBIT Development Fund,” Wan Ahmed Najib bin Wan Ahmad Lotfi, FWD Takaful’s chief of strategy and digital transformation, told Islamic Sustainable Finance & Investment (ISFI).
While not a regulatory requirement, the industry led framework reflects the Takaful industry and the regulator’s joint aspiration to create meaningful value to society and to enhance the Islamic finance ecosystem. The initiatives introduced also contribute to the operator’s ESG Strategy 2021-2024 by providing inclusive protection, sustainable growth, ethical practices and talent development.
Commenting on why FWD Takaful aspires to be a champion for VBIT, Wan further shared with ISFI “ It’s because we truly believe in the spirit of the VBIT framework. Furthermore, it’s aligned with both our vision of changing the way people feel about Takaful and our group ESG Strategy… The VBIT initiatives are part of the FWD Group’s ESG strategy that is aligned with the UN SDGs,”