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ONE would expect that a company that sells takaful or Islamic insurance
products in a Muslim country wouldn't see the need to convince people
to buy its policies over that sold by conventional insurance firms.
That of course was a wrong assumption that Insurans Islam Taib realised
when it opened in 1993 under the name Takaful Taib Sdn Bhd.
It
opened with only seven staff members and later changed its name to
Insurans Islam Taib in 1997. Now, 15 years later, it has 69 staff
members with four branches located strategically in the sultanate.
"We
are a wholly-owned subsidiary of Tabung Amanah Islam Brunei (Taib), so
we have our own directors and syariah committee," says Jefri Bachee,
assistant manager of the marketing division of Insurans Islam Taib.
While
the majority of Brunei has come to accept Islamic insurance, there are
many who are still figuring out the technical differences between
conventional insurance and Islamic insurance.
"Basically the
operations of conventional insurance and takaful are more or less the
same, but what makes it different is our concept of profit sharing,"
explains Jefri.
In an instance when there are no claims made
against a takaful policy, the premium is given back to the insured upon
renewal of the policy.
"The second difference is that the funds
are invested in syariah-compliant investment arms, so these are the two
main differences," he says.
Some of the challenges that Insurans
Islam Taib faces daily is to keep raising public awareness and
acceptance of Islamic insurance. At the same time, it also faces stiff
competition from conventional insurance companies.
"There are
about 28 conventional insurance companies, and it is a very stiff
competition, trying to get a slice of the cake. We try to provide
competitive insurance claims to rival conventional insurance claims,
but with the cost of claims rising, we have found that now the claims
are becoming higher than the premiums, which is something both
conventional and takaful companies are facing," he says.
Figures from 2006 show that Insurans Islam Taib is leading the Islamic insurance market, with an 85 per cent market share.
In
the bigger picture, the company is currently grasping 18 per cent of
the domestic market for both conventional insurance and takaful.
Insurans Islam Taib has also recorded a steady annual growth averaging seven.
While
it continues to lure more Muslim clients into its doors, it works
harder still on educating the public about how non-Muslims can buy its
policies as well.
"Another challenge that we are facing is the
perception that takaful products are only meant for Muslims, but it is
actually open to all and we hope that more Bruneians, whether Muslims
or non-Muslims, will go for the takaful products because of the benefit
of profit sharing," Jefri says.
The company tackles this challenge through roadshows and exhibitions to educate the public, to create more awareness.
Things
must have improved in regard to its efforts in addressing these
challenges, he says. Insurans Islam Taib has received an ever
increasing number of job applications.
"We don't only take full
time employees, but we also welcome financial institutions who want to
give people work attachments to work with us," says Jefri. He adds that
employees usually spend the first three months of their work time with
a full training course and one of the ways that the company tries to
retain its staff is to provide a number of benefits and a competitive
salary scale. However, with the incentives and benefits, Insurance
Islam Taib faces the same problem that many other companies in the
private sector face losing their staff to the government sector.
"We
encounter the same problem where people come and go, those that go
usually stay for only two to three years, but we have many other staff
who have been here from 1993 because they have a sense of devotion and
loyalty to this company," says Jefri.
The recent enactment of
the Takaful Order 2008, issued by the Ministry of Finance, has many
takaful companies worried, mainly due to the fact that general
insurance and family insurance will now have to be split up into two
separate companies which would mean higher operational costs.
"It
is fine for us to follow the Takaful Order, and we will oblige with the
order. We plan to recruit more younger people who are more energetic
and willing to learn," he says.
Jefri says the company is hoping
it could support the government in projects when it comes to providing
insurance coverage, as it is currently providing coverage for the army
personnel.
"We are trying to look at property at the moment and
also for Brunei Shell to slip us in and maybe even the Brunei Methanol
Company," he says.
The Brunei Times
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