We always hear several quarters or parties urging the takaful industry to promote the microtakaful business whether in Malaysia, Indonesia, or any other countries. Despite of those numerous efforts, the outcome of microtakaful business is not as what expected.The number of operators which participated in this business is less than 3 players even though the main objective of this initiative is really ethical and jive with the concept of takaful i.e. helping each other. Now we need to do really assess whether this is the right strategy or not.
In Malaysia, the government is working hard to develop the nation into a high income population. This is in line with the aspiration to become a developed country by 2020. However, this high income population initiative definitely will result in lower low income population. This segment of population is actually the main target market for microtakaful business. Therefore, the appetite of takaful industry to promote microtakaful business is obviously eroding. This could be the main reason why the response from the industry in microtakaful business is almost negligible. We need to review the initiatives thoroughly and decide whether we should continue in promoting microtakaful business.
