Ethical Positioning In Takaful (By Way Of Humanizing Takaful) 5 May, 2009

1. Ethical Positioning In Takaful (By Way Of Humanizing Takaful) 5 May, 2009 ICMIF Takaful Network Meeting Bahrain By: Shahril Azuar Jimin Chief Sales Officer Etiqa Insurance & Takaful

2. Overview

3. The concept of Business Ethics • Business ethics is the application of ethical values to the business world. It applies to any and all aspects of business conduct. Business ethics is relevant to the conduct of individuals and also relevant to the conduct of the business organizations as a whole. • Ethics does not mean any moral discourses but is used as a word that describes complex interdependence of culture, religion society and business. • This interdependence results in various undisclosed but yet very clear set of pattern and behaviors of the society that lead to the acceptance or rejection of a concept.

4. The rise of Ethical Businesses, amidst the global crisis…. • Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. Today, most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings. • Principal role of ethics seen as the harmonization and reconciliation of conflicting interests, to balance overlaps, ie. shareholders vs. stakeholders. • Emergence of a “social contract” approach to business, although critics say the proponents of contract theories miss a central point, namely, that a business is someone's property and not a mini-state or a means of distributing social justice. • Globalization has accelerated the need for ethical positioning, taking into account varying global standards, with religious and cultural perspectives.

5. ….. with opportunity for Islamic finance to seize the day • The global crisis has put Islamic finance in the spotlight. Islamic investments, before this seen as “defensive”, emerges unscathed having excluded the troubled banking and financial industry, and filtered out highly leveraged companies in any industry. • Total Islamic funds AUM about US$34 billion, a growth of 44% in 2007, with appeal now beyond the Muslim population, attracting those drawn to the ethics and principles that form the basis of those funds. • Growing comments suggesting the use of Islamic finance as part of solution to restore confidence n the global financial system.

6. Ethical Positioning and Corporate Reputation • Besides being legal, a good brand should also display ethical values. • Thus, brand values needs to be assessed by both financial and ethical measures as brands and branding have such a profound impact on the society as whole and not just on these people who buy them. • There is a wider public, in addition to shareholders and consumers, who may be potentially affected by the branding decisions. • As such, an ethical positioning enhances the company’s reputation; such a reputation reinforces the brand in turn. • Ethical positioning could provide the company with a differential advantage as a growing number of consumers become more ethically conscious, but also a rise of misuse of corporate ethics policies as marketing instruments

7. Measurement of a corporation’s ethical values The Etishphere approach : ethical companies use ethical leadership as a purposeful method to drive profits.

8. Ethical positioning in Etiqa by way of humanizing Takaful

9. Why the name Etiqa? • Following the merger of 3 insurance and takaful groups beginning end 2005, the most important part about creating and choosing the name was to have it reflect in the brand promise, “Humanizing Takaful”. • How does our name fulfil this requirement? • The name “Etiqa” is inspired by the word “ethics” (English) and “etika” (Malay). • It is defined as a system of moral principles and standards practised by a particular group. • Behaving in an ethical manner is to behave in a more considerate and humane way. This is how the company attempt to humanize takaful for everyone inside and outside the organization.

10. We are guided by The Etiqa Way… Top Management • Etiqa set new standards for the industry • We will role-model The Etiqa Way for our staff, in our daily actions and words Employees • I see my managers walk the talk • I believe in the vision, and will Humanize Takaful in all my interactions with customers, channels and colleagues Agents, FE’s and Channels • Etiqa ‘means what it says’ and ‘says what it means’; It is delivering on its promises • I believe that Etiqa will deliver best-in-class products and services Customers • I am getting best services from Etiqa • Etiqa means accessibility, hassle-free and human touch

11. Basis of Co-operation Basis of Responsibility Basis of Mutual Protection …following the Islamic principle

12. How Etiqa attributes contributes to Humanizing Takaful Humanizing Takafulit’s about People not policies • Performance with Conscience • Crystal Clear • Hand-in-Hand • Rock Solid there is care in what we do we like to keep things clear with diversity we create opportunity we have a firm foundation to build on

13. Transparency principle • “Crystal Clear” • No fine-prints • Moral Value & Ethics • “Performance with Conscience” • “Hand-in-Hand” • In Partnership • Mutual Brotherhood The Etiqa attributes further accentuate critical elements of Takaful principle • Critical Elements of Takaful Principle • Selected Etiqa’s Brand Attributes* • Full transparency for fees, charges • Separation of Participant Funds from Shareholder Funds • Clarity on how funds are invested and surplus are distributed • Concept of Charity, i.e. provide donation into a pool to assist other participants facing difficulties • Conducting business in utmost good faith, honesty, full disclosure, truthfulness and fairness • Risk sharing under mutual brotherhood • * Not Exhaustive. Last brand attribute not illustrated is “Rock Solid”

14. Humanizing Takaful Our Promise (1/2) Small value claims: No documentation needed for 1st time claim below RM 2,000 Car theft claims: Settlement within 30 days SME claims: 10% claims advance for fire, flood, burglary, accidental death Call Center UW: Cover ready before you hang up Funeral expenses: RM 1,000 disbursed immediately for funeral expenses

15. Humanizing Takaful Our Promise (2/2) Etiqa Oneline: One Contact Centre for customers. Purchase your takaful from home or office. No forms, no hassles. Interactive Voice Recording (IVR) Abolishment of IVR system at our contact centre Name Queuing System: No numbers required. Name will be call upon when ready. Paperless Motor Waiver of motor proposal form

16. Activities to Humanize Takaful • Corporate Zakat Responsibilities (CZR) is a program that provides the opportunity to the target group to experience activities that they may not have experienced like other people, especially those with family. It also aims to provide an avenue for the target group to build relationships with the external community and Etiqa staff. • This program is a close collaboration with staff and local vicinities. Hand in Hand: Community Service by Etiqa staff

17. September ‘07 April ‘08 January ‘08 February ‘08 June ‘08 CZR Program Calendar 2007 / 2008 Etiqa Takaful Planner Pertubuhan Al-KhaademBackground:-Social service organization consists of muallaf, orphans, battered women, single mothers and elderly, abandoned children and the needy local and international.Programme by Etiqa:-Official launch, motivational talk, coloring contest, experience sharing, visit “Home of Hope” and interactive session Madrasah Al-AminiahBackground:-School/Centre for Islamic knowledge for fuqara, masakin (poor), ibn sabil, orphans local/internationalProgramme by Etiqa:-Official launch, motivational talk, visit to new additional classroom block, interactive session Yayasan Kebajikan SuriaBackground:-Orphanage HomeProgramme by Etiqa:-Official launch, motivational talk, visit to new Musolla, interactive session 27 Fuqara & masakin via BaitulmalBackground:-27 fuqara & masakin (poor) via Baitulmal Negeri PerlisProgramme by Etiqa:-Official launch, motivational talk, “Bakti Etiqa” (visit to the recipients houses), interactive session, football, sepak takraw match Tahfiz Darul FurqanBackground:-School/Centre for Islamic knowledge for fuqara, masakin (poor), ibn sabil, orphans and publicProgramme by Etiqa:-Official launch, motivational talk, “gotong royong”, visit to new additional classroom block, interactive session

18. CZR Program Calendar 2008 / 2009 Etiqa Takaful Planner Rumah Anak Yatim Darul Izzah Background:-Orphanage HomeBuild Mosque/ Islamic Activity Centre Programme by Etiqa:-Official launch, motivational talk, indoor games, performance by students and interactive session. April ‘09 Pusat Jagaan Anak Yatim Dan Miskin Nurul Iman Background:-Orphanage Home Programme by Etiqa:-Official speeches, Officiate building & hostel, Giveaway of school supplies to the orphans, Performance from Students, Health talk for students and single mother, Cooking class May ‘09 Madrasah Annuriah Paya Rumput Melaka Background:-School/Centre for Islamic knowledge for fuqara, masakin (poor), ibn sabil, orphans and public Programme by Etiqa:- Official speeches, Officiate handing over (Van, Computers & Sewing Machines), Giveaway of school supplies to the orphans, Performance from Students, Health talk (personal hygiene) for students, Indoor games (Scrabble, quiz), Outdoor games, Motivational Talks June ‘09

19. Conclusion

20. Basics of the Business: Pooling of resources to help the unfortunate few Recognizing our customers and clients: We are guided by….. The Etiqa Way to humanize our core business to make it easier for our clients and customers Conclusion Being clear and transparent all the time

21. Thank you