suhaimi ali : transcending boundaries - advancing takaful for sustainable growth keynote address by mr suhaimi ali, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the value - based intermediation takaful conference 2024, asian institute of chartered bankers, kuala lumpur, 15 october 2024. * * * this year is particularly momentous as we commemorate four decades of takaful since the enactment of the takaful act 1984. from a modest beginning, the size of takaful contribution has expanded nearly three times compared to a decade ago. players have become more diverse and products have expanded to address different needs of households and businesses. the industry has also demonstrated resilience against challenging economic and financial conditions, while continuing to scale up and improving efficiency in delivering financial protection. this progress is imperative to respond to the higher expectations that stakeholders have on the industry to better serve the protection needs of society. ahead of us, challenges remain significant – climate risk, ageing nation, cost of living pressures, advancement of technologies – all of which requires the industry to continue to innovate and be responsive to these needs. the adoption of vbit principles is crucial to better align and guide the industry's efforts to catalyse growth while contributing meaningfully to society. distinguished guests, ladies and gentlemen, i am certainly pleased to be here, to see progress in the value - based intermediation takaful ( vbit ) journey that began five years ago in 2019. i am delighted to be part of this important occasion and witness the collective commitment by industry players to foster a more ethical and impactful approach to takaful. advancing value - based with clear demonstration of impactful outcomes as today's conference is focused on shariah values and measurements, i would like to highlight three imperatives that should guide industry's efforts to implement the vbit framework : first, is the diversity and inclusivity of protection solutions, with alignment to national strategies and aspirations ; second, is improvements to quality of services and conduct that reflects the fundamental values of shariah ; and third, is impact reporting guided by clear outcomes. diversity and inclusivity of protection solutions ladies and gentlemen, we acknowledge the ongoing exemplary efforts by takaful operators to improve financial well - being and inclusion. for example, expansion in the range of microtakaful 1 / 4 bis - central bankers'speeches products catering to the underprivile

discharge these responsibilities with much greater diligence, and those that do not are likely to bear more severe consequences. the fourth reason that insurance broking is finding itself at a critical crossroad is a more obvious one – the technology revolution. this phenomenon is hardly new and we continue to experience new technological revolutions at an unrelenting pace. the challenge is in swiss re, sigma no. 3 / 2014 : “ world insurance in 2013 ”. bis central bankers ’ speeches understanding and anticipating how evolutions such as aggregator capabilities, internetbased insurance, and big data are impacting insurance broking business models. so far, brokers appear to be taking some comfort in views expressed that technology is having the biggest impact on the more commoditised market for personal insurance lines, while brokers will continue to retain their share in the corporate insurance placements. while this may be a legitimate view, technology will nevertheless have an important impact on the kind of services that brokers are offering their corporate clients and what clients are prepared to pay for such services. in many emerging markets, the technology revolution is starting to gain more traction in the delivery of financial services, including insurance, following greater stability in internet connections, advancements in security and payments infrastructure and strengthened data protection frameworks in these markets. correspondingly, brokers need to strategically review the strength of their value propositions in this changing environment and actively seek to lift their own services by leveraging on technology. these four reasons are just a few that should prompt the insurance broking community to reevaluate their business and operating strategies going forward. all of them – the fallout from the global financial crisis, asia ’ s growth trajectory, the focus on climate risk, and more entrenched technological revolution in the delivery of financial services – are converging to re - define expectations, possibilities and risks in the insurance broking sector in a profound way that will determine if a firm will thrive or be marginalised in the coming decade. going forward, brokers will be expected to play a far more significant role in delivering innovation and choice by developing deep knowledge of the industries that their clients operate in, and working with insurance providers to bring new products into the market that are meeting the changing needs of businesses. brokers will be called on to provide expertise and advice in managing a more complex set of risks that will include environmental, geopolitical, supply chain and cyber risks in a more interconnected global and regional economy. in other words