BIMB Integrated Annual Report 2019

Expanding Digital Footprint as the Driver of Innovation and Competitive Advantage The digital strategy has become the driver of our innovation, competitive advantage and growth. In positioning Takaful Malaysia at the forefront of the digital transformation in the Islamic insurance industry, we reinforced our digital solutions whilst transforming our business structure in meeting the customer expectations on the back of the evolving business landscape. The inevitable advancement of financial technology has driven Takaful Malaysia in earmarking substantial investment to integrate information and operational technologies in optimising performance, driving efficiency and enhancing the quality of product offerings and value-added services. We aimed to enhance our customer experience by delivering a differentiated and seamless experience of customised services to the consumers. We continued efforts to upgrade our data centre infrastructure to support the growing business as well as implemented new infrastructure capabilities to increase productivity, improve sales and turn-around-time while reducing operating expenses. We successfully migrated our former Takaful Integrated System (“TIS”) core application and infrastructure to a new sustainable platform in keeping with current technologies and gaining better business value. The introduction of our artificial intelligence chatbot, Tamara , provides real time response to enquiries related to our online products, No Claim Discount (“NCD”), certificate maturity, windscreen confirmation, status of benefit payouts and many more. Takaful Malaysia also introduced a face-to-face digital- assist point-of-sales system equipped with a smart underwriting engine for its premier bank partners that allows them to promote and market simple protection plans directly to their customer base. The face-to-face marketing via mobile devices provided allowed the bank partners to facilitate transactions seamlessly with straight-through paperless processing through automated underwriting. Expanding Growth Organically Takaful Malaysia continues to lead in Family Takaful business, with business mainly derived from the Credit-Related and Group Employee Benefits products. As part of our ongoing efforts to sustain the Company’s market leader position, we have diversified our product distribution by expanding our distribution channels. We leveraged on our leading position in single contribution products whilst focusing on retail regular contribution products channeled via bancatakaful and online distribution channels to further diversify our business portfolios. Takaful Malaysia also implements robust and efficient business processes to sustain our strategic partnerships with premier Islamic banks. Our achievement for the year in review was mainly driven by our bancatakaful initiatives which resulted in higher sales from credit-related products and our effective penetration strategy through our distribution network by reaching out to more civil servants to market our mortgage and fire protection plans for the housing loan provided by the Lembaga Pembiayaan Perumahan Sektor Awam (“LPPSA”). In view of the stiff competition faced by the General Takaful industry under liberalised market conditions, we manage this risk by offering innovative products and leverage on our digital strategy to grow the business whilst enhancing customer experience. On the General Takaful business front, we remained as the top two leading General Takaful operators in the industry. We improved our General Takaful portfolio and registered total gross contributions of RM724 million in 2019, with an increase in customer acquisitions through our Fire and Personal Accident classes. We also achieved a double-digit growth of 40% for our online Motor Takaful business offered via our innovative Click for Cover Online Sales Portal . Moving Forward While we remain cautious of the market environment in 2020, we expect the Takaful industry to outperform the conventional insurers in view of growing demand for Takaful products. Takaful Malaysia is poised to further expand its market share in 2020. To sustain its market leading position, the company will continue with its innovative strategies via the implementation of its digital strategy, introduction of online solutions, strategic partnerships with leading Islamic banks, growing non-motor business and implementation of brand awareness initiatives in order to expand the business focus beyond credit-related business to reach out to the wide retail customer base of major partner banks. We will further strengthen our distribution capabilities for general Takaful business in view of greater potential to enlarge the Takaful market share in the general insurance and Takaful sector. 117 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary