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Liberalization of Commission Structure: How Minimum Allocation Rate (MAR) Affecting Takaful Operator’s Model

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dc.contributor.authorAzrul Azlan Iskandar Mirzaen_US
dc.contributor.authorNor Haziah Hashimen_US
dc.contributor.authorJunaidah Abu Semanen_US
dc.date.accessioned2024-05-30T07:21:41Z
dc.date.available2024-05-30T07:21:41Z
dc.date.issued2020-11-10
dc.descriptione-Proceedings of The 9th Islamic Banking, Accounting and Finance International Conference 2020 (iBAF2020) “Navigating the New Normal in Islamic Finance and Wealth Management” 10th – 11th November 2020, Malaysia Organized by: Faculty of Economics and Muamalat,USIM Page: 145-153en_US
dc.description.abstractEffective 1 October 2020, Bank Negara Malaysia (BNM) Life Framework required all Takaful Operator to comply with the new Minimum Allocation Rate (MAR) requirement together with the liberalization of commission structure. Due to the implementation of MAR, few Takaful Operators decided to withdraw their Investment Link plans from the shelves and launches more Family Takaful savings plans. The implementation of the new MAR primarily to establish a sustainable fund for the participant, but the operators look at it as a tight policy that could affect mostly on commission structure for agents. From the distribution side, reducing the commission structure could lead to the withdrawal and reduction of agents. For big players, they can still offer this product by reducing profit margins and an increase in the volume of sales. For small and mid-players, the innovation in Takaful Model is crucial to ensure they can offer a similar product without contradicting the new MAR. This paper will propose an innovation for Takaful Models that could help the Takaful industry remain relevant in the market.en_US
dc.identifier.epage153
dc.identifier.isbn9789674408558
dc.identifier.spage145
dc.identifier.urihttp://fem.usim.edu.my/ibaf2020-proceeding/
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/17393
dc.language.isoen_USen_US
dc.publisherUniversiti Sains Islam Malaysiaen_US
dc.relation.conferenceThe 9th Islamic Banking, Accounting and Finance International Conference 2020 (iBAF2020)en_US
dc.subjectIslamic Finance, Takaful, Takaful Modelen_US
dc.titleLiberalization of Commission Structure: How Minimum Allocation Rate (MAR) Affecting Takaful Operator’s Modelen_US
dc.typeArticleen_US
dspace.entity.typePublication

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