Archipelago Life Insurance Limited Launches the region’s pioneer Endowment Takaful

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February 11, 2018

On November 1, 2017, Archipelago Life Insurance Limited (Archipelago) today officially launched of Endowment Takaful Series — the region’s pioneer Family Takaful plan designed to fulfill the unique insurance needs of the individuals and families within the South-East Asia region. Endowment Takaful Series is essentially a Family Takaful policy which provides protection and savings for a specific term (on its maturity) or on death.

Archipelago, a Labuan based international life insurer is pleased to be able to extend the life protection products and services to clients within SEA region with Shariah-compliant products, leveraging on our considerably financial strength and Asian market expertise and experience.

Archipelago’s conventional Endowment Series has struck a chord with policyholders within the region — approximately USD16 million of premiums in just less than four years. Archipelago Endowment Takaful Series is the next logical step for us — it brings Shariah-compliant protection products to a proven demand from affluent clients. Though many clients with a preference of Takaful products live in Muslim markets like Malaysia, Indonesia and Brunei, these affluent individuals and families are increasingly internationally mobile and demand for insurance products that can support their protection needs. We believe Archipelago Endowment Takaful is that product.

The Takaful market is an important and sizeable strategic opportunity for Archipelago as it allows Archipelago to access the large Muslim population within the region who are now able to purchase Shariah-compliant products to benefit their families. The total global Family Takaful contributions were estimated to be USD2.6 billion in 2015 of which South East Asia recorded gross written contributions of USD1.5 billion. This represents 57% of the global Family Takaful share followed by Gulf Corporation Council (GCC) which only captured 27%*. In South East Asia, Family Takaful is dominated by Malaysia and Indonesia where the majority of the population for both markets is Muslim. However, Takaful penetration rate is much lower than the conventional insurance penetration rate. The lack of market penetration represents a significant growth opportunity for Family Takaful in this market.

Ms. Ong Hui-Koon, Principal Officer/Director of Archipelago Life Insurance Limited said, “We are very excited of this product launch and this marks a milestone for the Company as it reflects our commitment and to further add value towards providing a wider range of Shariah-compliant Family Takaful products to our clients. The demand for Shariah-compliant Family Takaful products continues to grow and we are constantly working to bring new products to the market to meet the needs of not only the Islamic community but also those of clients who are attracted by the transparency and participatory nature of the Shariah insurance products.”

Endowment Takaful Series is a closed-end product and launches on a quarterly basis every year. It provides a combination element of protection and savings for participants at a shorter period of cover of up-to 36 months. With a minimum contribution of USD5,000, this product provides a targeted return upon maturity or death benefit. The subscription period for every Endowment is 1-month. For now, Endowment Takaful Series is only available in United States Dollar (USD) currency. In the near future, we plan to roll out in other major currencies such as Singapore Dollar (SGD), Australia Dollar (AUD), depending on the demand from the market.

Archipelago Life Insurance Limited (Company No. LL09829 I Licence No. 152013141) is licensed and regulated by the Labuan Financial Services Authority (LFSA). The Takaful window was granted by Labuan Financial Services Authority in April 2015 and we have been recognized as the pioneer of midshore Life insurer with Takaful window in ASEAN region. It operates within the strong Labuan IBFC regulated environment and is also a member of the Labuan International Insurance Association (LIIA). With its co-located office in Kuala Lumpur, it works closely with licensed insurance/Takaful brokers and professional/Islamic financial advisers/planners within the region. It aims to penetrate ASEAN region as well as to contribute growth and development to Labuan International and Business Financial Centre with its innovative suit of products targeted towards the high networth individuals, families and multinational corporations.

*source : Milliman Research Report — Global Takaful Report 2017