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 Strategic Alliance The Way Forward …  T ab l eof Content - 0 – COMMERCE TAKAFUL BERHAD C ON T EN T P A GE E X E CU T IVE S UMMA R Y 1 I N T RO D UC T IO N 2 P R OD U CT 34 P R ICING 5 C OMMI SIO N 6  T RAINING 7 S E RVICI N GBYCO MME RCE T AKAF U L 8 MAN A G E MEN TME E T I N G 8 C ON C LUSIO N 8  A PPEN D ICE S - MR TT Pr oduc t Features  A p p en d i x1 - H ouseowner Taka f ul  A p p en d i x2 - Mot or T akaf ul - C IGCal l C ent er  A p p en d i x3 - Commerce G r ou p Ne t w orks  A p p en d i x4

Strategic Alliance Proposal - AFFIN ISLAMIC BANK

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7/18/2019 Strategic Alliance Proposal - AFFIN ISLAMIC BANK

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Strategic AllianceThe Way Forward …

 Table of Content

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COMMERCE TAKAFUL BERHAD

CONTENT PAGE

EXECUTIVE SUMMARY 1

INTRODUCTION 2

PRODUCT 3 – 4

PRICING 5

COMMISION 6

 TRAINING 7

SERVICING BY COMMERCE TAKAFUL 8

MANAGEMENT MEETING 8

CONCLUSION 8

 APPENDICES

- MRTT Product Features  Appendix 1

- Houseowner Takaful  Appendix 2

- Motor Takaful- CIG Call Center  Appendix 3

- Commerce Group Networks  Appendix 4

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Strategic AllianceThe Way Forward …

Executive Summary

 This proposal suggest partnership program between STANDARD

CHARTERED BANK BERHADand Commerce Takaful in providing takaful

products and services under Bancassurance business initiative.

Commerce Takaful is in the group of second largest financial institution

in Malaysia has the resources and readiness to provide products,

competitive takaful contribution rates and services required by

STANDARD CHARTERED BANK BERHADto complement its Islamic

financing products.

 

 The purpose of this paper is to propose ways on which a partnershipprogram may be set up for mutual benefit. The paper covers the area of

 various business distribution channels, products, staff and product

training.

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Strategic AllianceThe Way Forward …

Introduction

• Commerce Takaful is able to provide competitive product,

competitive takaful rate (premium rate) and services required by

 AFFIN ISLAMIC BANK.

• This reasonable rating will make the STANDARD CHARTERED

BANK BERHAD financing package more competitive in the market

place

• There is huge untapped market for takaful products evidence by

small marginal takeup rate of takaful or insurance among the

muslim market.

• There is an opportunity for STANDARD CHARTERED BANKBERHADto expand its fee-based income to a greater scale.

• Embracing advanced technology in administration and services

together with excellent customer services, the company is well

poised to achieve exceptional growth in the next five years and

 beyond.

• Straight through processing and paperless transaction is our

aspiration towards providing excellent services to our Banca

Partner as well as our valuable end customers.

• It is noted that there has been acceleration towards providing full

financial service by STANDARD CHARTERED BANK BERHAD

could offer across a broader range of financial services which

includes takaful via independent risk carriers. Commerce Takaful

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COMMERCE TAKAFUL BERHAD

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Strategic AllianceThe Way Forward …

is merely complementing STANDARD CHARTERED BANK BERHAD

as a one stop financial center.

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COMMERCE TAKAFUL BERHAD

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Strategic AllianceThe Way Forward …

• Enhances the STANDARD CHARTERED BANK BERHAD image as

a dynamic and customer focused financial institution by providing

comprehensive financial needs of customer. Hence, maximizing

cross selling opportunities from the bank huge customer base and

enhance customer loyalty by minimizing the migration of

customers to competitors.

• The relationship would generate greater opportunity in

strengthening customer relationship by offering wider range of

financial products.

Product

• Financing Related Products

Financing given to borrowers, apart from the normal required security

it would be also beneficial to get additional protection in the case ofdeath, permanent disability or even critical illnesses to borrower. In

this situation STANDARD CHARTERED BANK BERHADwould be able

to recover it financing from takaful operator.

 The related products namely:-

1.Mortgage reducing term takaful (MRTT / MRTA)

• This is to cover house financing

• Please refer to Appendix 1 for product features

2.Group Credit Takaful (GCT/DTA)

• To cover personal financing facilities

• Please refer to Appendix 2 for product features 

3.HouseOwner Takaful

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Strategic AllianceThe Way Forward …

• Please refer to Appendix 3 for product features

4.Equipment all risk

• This is to cover equipment finance by STANDARD

CHARTERED BANK BERHAD under business bankingfinancing.

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Strategic AllianceThe Way Forward …

5.Marine Takaful

• On-line transaction for immediate coverage.

• Cover Note could be issue at bank branches / trade centers

 The products can be packaged together with bank product of which

the takaful contribution can be priced together with the financing or

the bank may extend financing for the takaful contribution.

• Stand Alone Product

Commerce Takaful would suggest some of takaful product which is

modeled on simple underwriting and simple acceptance procedure.

 The product would be of low cost and affordable by general public.

 The products namely:-

1.Personal Accident

• Customer to pay via Credit Card on monthly basis as low as

RM20 per month.

2.Auto PA• One off payment from RM50 per year for entire family in the

event of accident whilst driving the registered vehicle.

• Exclusive Product

It is also possible to jointly develop takaful product to meet

STANDARD CHARTERED BANK BERHAD specific need. The

developed takaful product along bank product to enhance it featuresto be more appealing to customers. STANDARD CHARTERED BANK

BERHAD may have it own branding for the product.

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Strategic AllianceThe Way Forward …

Pricing

Commerce Takaful rating for takaful contribution is competitive within

the industry norm and practices. The detail rates or pricing for each

product will be subject to information available.

 As for MRTT, our female rating is the lowest in the industry as at to date.

 This will attract low & competitive package when it is package with

STANDARD CHARTERED BANK BERHAD housing loan.

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Strategic AllianceThe Way Forward …

Commission to Bank

Commissions offered to bank are the standard level of commission

practiced in the industry.

Family Takaful Products

Item Products Commission

1 Mortgage Reducing term Takaful 10%

2 Group Credit term Takaful 10%

3 Individual Family Takaful TBA

General Takaful Products

Item Products Commission

1 Houseowner/Householder Takaful 15%

2 Fire Takaful 15%3 Motor Takaful 10%

4 Personal Accident Takaful 25%

5 All Risks Takaful 25%

6 Money Takaful 25%

7 Fidelity Guarantee Takaful 25%

8 Marine Cargo Takaful 25%

9 Burglary Takaful 25%10 Public Liability Takaful 25%

11 Foreign Workers Takaful 10%

12 Workmen Compensation Takaful 25%

13 Contractors All Risks Takaful 15%

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Strategic AllianceThe Way Forward …

14 Equipments All Risks Takaful 15%

 Training

 Training is a critical part of overall business performance. Commerce

 Takaful will undertake to train and develop a range of knowledge and

skills to STANDARD CHARTERED BANK BERHAD financial executives

and staff.

 Area and Scope of Training

o Product knowledge

o Rating

o Motivation

o Selling techniques

• Structured Training Program

Commerce Takaful is committed to support the development of the

Financial Executives and bank employees. In view of this,

Commerce Takaful would implement a structured training program

to develop the bank employees along their new career path.

• Support Employees

Bank employees who is directly involved in processing of

customers takaful needs will be provided with training on

product knowledge, operational matters and claimmanagement.

• Financial Executives

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Strategic AllianceThe Way Forward …

Financial executives as frontliners will be train on product

knowledge, rating, motivation, selling techniques as well

claim.

Servicing by Commerce Takaful

• Klang Valley

Bank Headoffice and branches within the Klang Valley will be

serviced by team of Commerce Takaful executives from

Commerce Takaful head office. The executives will make

scheduled visits to bank branches or if required would also beavailable anytime to attend to bank’s need.

• Service Network

 The other bank branches would be serviced by executives from

20 Commerce Group branches nationwide. List of Commerce

International Group Branches is available in Appendix 4.

Management Meeting

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Strategic AllianceThe Way Forward …

It is propose that Commerce Takaful and STANDARD CHARTERED

BANK BERHAD Management to meet and to see through on

implementation also to review overall business matter on quarterly

 basis.

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Strategic AllianceThe Way Forward …

Conclusion

 The financial business environment is fast changing. The bigger players

are getting bigger and stronger through merger and acquisition.

Every player would like to delight and lock its customers and at the same

time win away competitors’ customers in the name of business

expansion.

 Therefore,STANDARD CHARTERED BANK BERHAD and Commerce

 Takaful could leverage on each other capabilities at the same timefocusing and improving on their own core competencies.

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COMMERCE TAKAFUL BERHAD