October 22, 2025

The VBIT Roadmap: Charting the Future of Malaysia’s Takaful Industry

Introduction When the Value-Based Intermediation for Takaful (VBIT) Framework was launched in Malaysia, it set a bold vision — to transform the takaful industry from being merely Shariah-compliant to becoming…

Introduction

When the Value-Based Intermediation for Takaful (VBIT) Framework was launched in Malaysia, it set a bold vision — to transform the takaful industry from being merely Shariah-compliant to becoming Shariah-purposeful. But vision alone isn’t enough. To turn ideas into action, the Malaysian Takaful Association (MTA) introduced the VBIT Roadmap, a structured, step-by-step guide that helps takaful operators implement the framework effectively.

The roadmap acts as a compass for the industry — aligning products, governance, and culture with the principles of ethical finance, sustainability, and social impact. It ensures that every takaful operator, regardless of size or maturity, can move toward a common goal: delivering long-term value to people, communities, and the planet.

What Is the VBIT Roadmap?

The VBIT Roadmap is a practical implementation plan designed to help the takaful industry operationalise the five thrusts of the VBIT Framework — Financial Resilience, Community Empowerment, Good Self-Governance, Best Conduct, and Capacity Building.

Rather than imposing rigid rules, the roadmap provides a flexible, self-assessment model that allows each takaful operator to evaluate its current practices, identify areas for improvement, and track progress toward higher levels of “VBIT maturity.”

In essence, the roadmap answers one simple question:

“How do we turn value-based intermediation from a theory into daily business practice?”

The Purpose of the Roadmap

The takaful industry in Malaysia has evolved rapidly, but challenges remain: low penetration rates among certain income groups, public misconceptions about takaful, and the need for stronger ethical governance.

The VBIT Roadmap seeks to:

Guide transformation – providing a clear path for operators to embed VBIT principles across their business models.
Standardise implementation – aligning the entire industry under a shared vision while allowing flexibility in execution.
Encourage accountability – promoting transparent measurement and public reporting of value-based impact.
Enhance competitiveness – positioning Malaysia’s takaful sector as a global leader in responsible and sustainable Islamic finance.

Structure of the VBIT Roadmap

The roadmap is structured around four key dimensions that reflect the operational and cultural transformation required under VBIT:

1. Strategy and Leadership

Leaders set the tone for any transformation. Under this dimension, the roadmap encourages takaful operators to:

Integrate VBIT principles into corporate strategies, mission statements, and key performance indicators (KPIs).
Ensure board and management accountability for ethical outcomes, not just financial performance.
Embed maqasid al-Shariah (objectives of Shariah) — protection of life, wealth, intellect, faith, and lineage — into decision-making.

2. Business and Product Development

This dimension focuses on aligning takaful offerings with real societal needs. Operators are encouraged to:

Design products that promote financial inclusion and protection for underserved communities.
Develop micro-takaful, green takaful, and social protection schemes.
Ensure transparency in surplus-sharing and claims processes.
Evaluate products not just by sales volume but by their positive impact on participants’ lives.

3. Operations and Conduct

Here, the focus shifts to daily behaviour — how employees, agents, and partners embody VBIT principles. The roadmap promotes:

Ethical distribution practices that prioritise customer welfare.
Transparent communication and responsible marketing.
Efficient claims management guided by empathy and fairness.
Technology adoption to improve accessibility, transparency, and operational efficiency.

4. Impact Measurement and Reporting

Perhaps the most innovative element of the roadmap is its emphasis on impact measurement. Operators are encouraged to go beyond financial results and start reporting on outcomes such as:

The number of low-income families covered.
The speed and fairness of claims settlement.
Contributions to community empowerment programs.
Environmental or social benefits of investment portfolios.

By disclosing these metrics publicly, takaful operators build trust and demonstrate their genuine commitment to creating value.

The VBIT Maturity Model

To help operators track progress, the roadmap introduces a VBIT Maturity Model, which outlines different stages of adoption:

Initial Stage – The operator has basic awareness of VBIT principles and limited alignment in its strategy or operations.
Developing Stage – Some initiatives reflect VBIT values, but implementation is inconsistent or limited to specific departments.
Established Stage – VBIT principles are integrated across multiple business functions, supported by management oversight and data tracking.
Mature Stage – The operator demonstrates measurable social and economic impact, publishes regular impact reports, and serves as a role model for the industry.

This staged approach ensures that every company, regardless of its size or capacity, can progress at its own pace — while still moving in the same ethical direction.

Key Benefits of the Roadmap

For the Industry

Creates a common framework that enhances professionalism and transparency.
Strengthens collaboration among takaful operators through shared learning and best practices.
Builds a stronger reputation for Malaysia as a global hub for sustainable Islamic finance.

For Operators

Provides a structured path for embedding ethics and sustainability into every aspect of business.
Enhances customer trust through transparency and responsible practices.
Opens new business opportunities by addressing social and environmental challenges.

For Society

Expands access to protection for underserved groups.
Encourages community-based initiatives that enhance financial resilience.
Promotes awareness of ethical finance and sustainability among Malaysians.

Challenges in Implementing the Roadmap

Like any industry-wide transformation, VBIT adoption faces several challenges:

Awareness and Education – Many stakeholders, including agents and participants, are still unfamiliar with value-based concepts.
Measurement and Data – Quantifying non-financial outcomes requires new metrics, systems, and training.
Cultural Change – Embedding ethics and sustainability into business operations requires time, leadership commitment, and mindset shifts.
Resource Allocation – Smaller operators may struggle with the costs of implementing new reporting and governance frameworks.

Despite these challenges, the industry’s momentum continues to grow. Early adopters have already begun integrating VBIT principles into their sustainability reports and community outreach programs.

The Way Forward

The VBIT Roadmap is more than a document — it is a transformational blueprint. By aligning takaful with the values of compassion, justice, and collective prosperity, Malaysia is setting a new global benchmark for ethical finance.

Going forward, success will depend on three key drivers:

Leadership Commitment – Boards and executives must champion value-based thinking.
Collaboration – Operators, regulators, and communities must work together to design products and policies that meet real needs.
Transparency – Regular impact reporting will be essential to maintain credibility and public trust.

Conclusion

The VBIT Roadmap represents Malaysia’s next great leap in Islamic finance. It transforms the takaful industry from a provider of Shariah-compliant products into a catalyst for societal well-being.

By following the roadmap, takaful operators are not just protecting individuals — they are strengthening families, empowering communities, and preserving the environment. In doing so, they embody the true spirit of takaful: mutual assistance, shared responsibility, and purposeful growth.

Ultimately, the VBIT Roadmap reminds us that insurance is not only about financial protection — it’s about creating a better, fairer, and more sustainable world for everyone.