Unveiling Takaful Trends for Graduates Entering the Industry

Discover the latest trends in the Takaful industry with insights from Wan Ahmad Najib Wan Ahmad Lotfi, Chief Distribution Officer at FWD Takaful. In this engaging discussion, Wan Ahmad Najib delves into the industry's growth trajectory, driven by digitalization, changing consumer behaviors, and a heightened focus on social responsibility. Gain valuable insights into how these trends are reshaping the Takaful landscape and driving innovation in the sector.
Jevitha Muthusamy
Editorial Writer
Industry Insights - FWD Takaful

gradmalaysia's Industry Insights delivers quick expert perspectives on current industry trends, hiring insights and useful tips for fresh graduates gearing up to kickstart their careers with confidence and success.

About the Interviewee

Wan Ahmad Najib Wan Ahmad Lotfi serves as the Chief Distribution Officer at FWD Takaful Berhad, joining the FWD Group in December 2017 to spearhead its entry into Malaysia and Takaful projects. 

Initially, he held the position of Chief Strategy and Digital Distribution Officer before transitioning to his current role. In his capacity, he oversees the development of FWD Takaful's business across various channels, including agency, bancaTakaful, corporate care, and digital commerce. 

Wan Ahmad Najib holds a Bachelor of Science (Hons.) in Information Technology from Universiti Tenaga Nasional, a Certificate in Shariah from the International Islamic University Malaysia, and is a Fellow Chartered Professional in Islamic Finance (F.CPIF). 

He also serves as a Board member of ISM Insurance Services Malaysia Berhad, providing essential technology and statistical services to the insurance and takaful industries.

Q: How have you observed the growth and evolution of the takaful industry in Malaysia over the past few years? And what factors do you see driving this transformation?

Over the past few years, we've seen significant growth in the Takaful industry in Malaysia, mainly driven by digitalization, changing consumer behaviors, and a focus on social responsibility. 

For instance, digital platforms have made it easier for consumers to access Takaful products and services, while shifting consumer preferences towards socially- responsible investments have prompted the industry to offer more Shariah-compliant options. 

Additionally, the industry's emphasis on social responsibility has led to initiatives such as microTakaful schemes aimed at providing affordable coverage to underserved communities.

Q: What challenges do professionals typically encounter in navigating the dynamics of the Takaful industry in Malaysia? And what advice would you offer to graduates entering this field?

Professionals often face challenges such as addressing awareness gaps, navigating misinformation, and adapting to evolving consumer expectations. For example, misconceptions about Takaful may hinder its adoption among certain demographics, requiring professionals to educate consumers about its principles and benefits. 

My advice to graduates entering this field would be to develop skills in problem-solving, critical thinking, communication, and collaboration. Proactive learning, curiosity, and a willingness to embrace emerging technologies are also crucial for success in this dynamic industry.

Q: How do you see the Takaful industry adapting to emerging trends and tech advancements? And what role can graduates play in leveraging these changes for the industry's growth?

The Takaful industry must adapt to emerging trends and technological advancements to stay relevant and competitive. For instance, the integration of artificial intelligence and data analytics can streamline processes and enhance customer experiences. 

Graduates can play a vital role in driving this adaptation by staying informed about industry trends, leveraging their digital literacy, and contributing fresh perspectives to innovate processes and customer experiences. For example, graduates with expertise in fintech can explore opportunities to develop digital solutions tailored to the needs of Takaful customers.

Q: Considering the importance of Shariah compliance and ethical considerations in Takaful, what skills and knowledge areas do you believe are becoming increasingly important for professionals in Malaysia? And how can graduates develop these skills?

Professionals in the Takaful industry must possess knowledge of Shariah compliance, ethical principles, legal frameworks, and an understanding of the industry's ethical and social responsibilities. 

For example, they may need to navigate complex Shariah rulings to ensure that takaful products and investments comply with Islamic principles. For graduates, developing these skills involves studying Islamic finance principles, legal frameworks, and ethical considerations relevant to the industry. Additionally, gaining practical experience through internships, continuous learning, and engaging with industry professionals can further enhance their expertise in this area.

Q: How can graduates contribute to promoting social responsibility and sustainability within Takaful practices?

Graduates can contribute to promoting social responsibility and sustainability within Takaful practices by advocating for inclusive and accessible Takaful solutions, engaging in community outreach programs, and supporting initiatives that align with environmental sustainability goals. 

For example, they can collaborate with NGOs to develop takaful products tailored to the needs of underserved communities, such as farmers or small business owners. They can also encourage ethical business practices, transparent communication, and responsible investment strategies within the industry. 

By embracing the principles of social responsibility and sustainability, graduates can contribute to creating a more equitable and resilient Takaful industry for the future.