The concept and implementation of Bancatakaful : an analysis of family Takaful products in Prudential BSN Takaful

Abstract

Bancatakaful is a new distribution channel which has been adopted from the bancasurrance concept. It has now become a major distribution channel and major contributor to the development of the takaful industry. The study examines the concept of bancatakaful and how it is implemented particularly in Malaysia. PruBSN Takaful is chosen as a sample of the research and the implementation of bancatakaful in the family takaful products of PruBSN Takaful has been analyzed. The study discusses the prospect and development of the takaful industry, particularly the bancatakaful channel in Malaysia. In terms of the operation of bancatakaful, several issues have been discussed. As for Shariah issues, common issues related to takaful are also discussed. To materialize the research, primary data were collected by conducting field research. Secondary data and related information were collected from books, articles, journals, conference and seminar papers, websites and any other related materials. The researcher found that the products distributed via bancatakaful are quite similar to the agency products as the main distribution channel. The researcher also found that bancatakaful is a combination of two financial institutions which are the takaful operators and banks or financial institutions. There are three parties involved in the bancatakaful operation, which are the takaful operators, banks or financial institutions and participants. Some similar features shared between takaful operators and banks make bancatakaful successful. However, there is no major issue related to bancatakaful in terms of Shariah issues.