VALUE BASED APPROACH

IN MARKETING & BRANDING

OF TAKAFUL

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CONTENT

• Fundamental of Shariah
• Branding and Marketing
• What is Takaful ?
• Unique Value Proposition of Takaful
• Branding Takaful
• Critical Success Factors in Promoting Takaful
• Holistic Approach to Takaful
• Concluding Remarks

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FUNDAMENTAL OF SHARIAH
• Shariah is Islamic rules and regulation
• Main sources of Shariah
 Al-Quran : Speech of God revealed to Prophet Muhammad in Arabic and
transmitted to us by continuous testimony, or tawatur.

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FUNDAMENTAL OF SHARIAH
• Shariah is Islamic rules and regulation
• Main sources of Shariah
 As-Sunnah : Extension of a Shariah value from an original case to a new case
which have no apparent ruling

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FUNDAMENTAL OF SHARIAH
• Shariah is Islamic rules and regulation
• Main sources of Shariah
 Al-Ijma’ : Unanimous agreement of Islamic Scholars and Jurists
in the community of any period following the demise of
Prophet’s Muhammad (SAW) on any matters

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FUNDAMENTAL OF SHARIAH
• Shariah is Islamic rules and regulation
• Main sources of Shariah
 Al-Qiyas : An analogy by reasoning between a new matter that
has no ruling with the one that already has a ruling

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FUNDAMENTAL OF SHARIAH
 Life mission is to serve Allah Al-Mighty

“ And (remember) I have not created the jinn and mankind except that they
should serve Me.”

Az-Zaariyat 52:56

 Islam is a way of Life

“ O you who believe ! Enter perfectly in Islam (by obeying all the rules and
regulation of Islamic religion)……..……….”

Al-Baqarah 2:208
 Work is an act of worship

“….. Actions are but by intention and every man shall have that which he
intended……”

Bukhari and Muslim

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BRAND
Why do people
like BRANDS ?
self- Rolex, platinum credit card
expression

Simple self-
Apple, Microsoft,
understanding esteem/self-
actualisation Religious, spiritual needs
Why do
people like
BRANDS
Risk
Mc Donald’s Choice
Avoidance
brands of car

Quality
German vs Japanese
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BRAND
• BRAND mostly does two things:

• It tells people what it physically does or provide benefits

measured in terms of numbers, percentage or Dollars
and Cents (RATIONAL), or

• It imparts a sentiment that allows people to connect

benefits to individual emotion, values and spiritual needs
(EMOTIONAL)

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Great BRAND transcend delivering basic
human needs - The EMOTIONAL DIMENSIONS

Spiritual Needs Emotional

Dimensions

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BRAND
• We think with our minds.
• We act with our emotion emanating from the
Heart .
• Emotional dimensions are not limited to drivers
that make customers weep or cry with laughter.
• BRAND is more than a logo, trademarks or promise
of guarantee; it imparts a sentiment that allow
customers to ‘connect’ their emotion, believe or
spiritual needs.
• Emotional drivers of a BRAND can be found in:
• BRAND mission
• BRAND values
• BRAND personality
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BRAND
• BRAND Mission
• The reason or purpose why the company or product exists.
It is timeless. People need a purpose in life.
• Mission is like a guiding star – forever pursued, but never
reached.
• BRAND mission is concerned with answering the
questions:
• How is the world going to be better place as a
consequence of the BRAND?

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BRAND

• BRAND Values
• VALUES are the principles that guide the
organization's behavior or imbedded product
attributes that would help customers solving their
problems, offering solutions, giving them result
and making them happy after achieving what they
needed.

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BRAND
• BRAND Personality
• A BRAND needs to establish its own unique position
both rationally and emotionally in the mind of target
customers.
• Personality breathes life into the BRAND. It humanizes
the organisation that make its products attractive to
customers. It provides a platform for lasting
differentiation.

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 BRANDING
• ‘ .…creating a unique name and image for a product in
consumers' mind, mainly through advertising campaigns with
a consistent theme’
• ‘...to establish a significant and differentiated presence in the
market that attracts and retains loyal customers ‘

www.businessdictionary.com

• ‘ …..expression of essential truth or value of an organization,

product, or service. It is communication of characteristics,
values, and attributes that clarify what this particular brand is
and is not.
James Heaton 15
MARKETING
• ‘….activity to promote products or services. It’s a push
tactics ‘

James Heaton

• ‘ …set of actions, or tactics, that a company uses to

promote its brand or product in the market’

economictimes.indiatimes.com

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 BRAND
• Heart–Brain Interactions:
• ‘..The signals the heart sends to the brain can influence perception, emotional
processing and higher cognitive functions. This system and circuitry is viewed by
neurocardiology researchers as a “heart brain.’

Heartmath

• ‘…thoughts we think in our Mind and the emotions we feel in the Heart, give
form and substance to the physical reality we experience as life .’

•“There is in the body a clump of flesh - if it becomes good, the whole body
becomes good and if it becomes bad, the whole body becomes bad. And indeed it
is the heart”

Bukhari

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e.g. Great BRANDS

Brand Mission Brand Values Brand Personality

Disney To make people happy Honesty , integrity, Fun , loyal , full of
through entertainment respect , courage , laughter , imaginative ,
openness , diversity creativity,

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e.g. Great BRANDS

Brand Mission Brand Values Brand Personality

3M Improving life through Transformational and Free thinking and
Innovation yielding differences creative

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e.g. Great BRANDS

Brand Mission Brand Values Brand Personality

NIKE Inspiration and Innovation performance, Nike: ambitious
in Athletics authenticity, and
sustainability

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Why Takaful was introduced in
Malaysia ?
• Demand by faithful Muslims for Insurance that adhere to Shariah
Principles
• Muslims are more conscious of their religious obligations to
meet both physical and spiritual needs in their life cycle
• Complementing Islamic Banking that started in 1983
• Seeking Blessing in this World and Hereafter

“ But seek , with that (wealth) which Allah has bestowed on you,
the home of the Hereafter, and forget not your portion your
lawful enjoyment of this world ……”

Al-
Qasas : 77

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Reality Checks on Takaful Today

• Shariah compliant and ethical Product

• Surplus sharing
• More expensive and less superior than conventional
Insurance
• Convergence vs divergence with conventional Insurance
• Alternative to conventional insurance
• Lack of Awareness

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WHAT IS TAKAFUL ?

• Takaful is Islamic Insurance

• Mutual guarantee and Taawun
• A Concept of bringing people together to do good deeds

‘...Help You one another in Al-Birr and At-Taqwa (virtue,

righteousness and piety); but do not help one another in sin
and transgression…’
Al-Maidah 5:2

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WHAT IS TAKAFUL ?
 Operator is a risk manager and do not assumed risk
 WE DON’T SELL but PROMOTE THE CONCEPT
 Key differentiator - Tabarru’ (donation )
 My donation is to help you and yours to help me

“ The likeness of those who spend their wealth in the

way of Allah, is as the likeness of a grain (of corn) ; it
grows seven ears, and each ear has a hundred grains.
Allah gives manifold increase to whom He
wills……..’

Al-Baqarah 2:261
 No guaranteed returns on investment 24
WHAT IS TAKAFUL ?
Riba
( Interest ) ‘ If you do it not (leave riba), take notice of War from
Allah and His Messenger….’ (2: 279)

Gharar It was reported that the Messenger of Allah) forbade

( Uncertainty ) sales that involve undue risk (gharar).

(Related by Muslim, 1513 )

Maisir ‘ O believers! Intoxicants and gambling, (dedication of)

( Gambling ) stones, and (divination by) arrows for seeking luck or
decision) are an abomination of Satan's handiwork ……..’
(5:90)

2
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WHAT IS TAKAFUL?
Forbidden Shariah Basis for Validation
practices solution

Riba Invest in Shariah- ‘ If you do it not (leave riba), take notice

Compliant of War from Allah and His Messenger….’
(2: 279)
portfolios
Gharar Risk Sharing And cooperate in righteousness and
piety, but do not cooperate in sin and
Donation aggression
(Al-Maidah: 5)
Maisir Donation And cooperate in righteousness and
piety, but do not cooperate in sin and
aggression
(Al-Maidah: 5)

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WHAT IS TAKAFUL?
Mudharabah Prosperity
Risk Sharing Brotherhood
Personal Welfare
Mutual Guarantee
Community
Donation(Tabarru’) Piety Welfare

Charity

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WHAT IS TAKAFUL ?
Fulfillment of Maqasid (Objective) of Shariah
Protection of Piety
Religion
Protection of Brotherhood Personal
Life Welfare
Mutual Collaboration
Protection of
Guarantee Community
Lineage
Welfare
Protection of Prosperity
Intellect
Protection of
Property Charity
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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation
1. Get and offer • A full/portion of contribution “…. a man who gives
protection donated to risk fund charity secretly so that
• Do it out of sincerity and voluntarily his left hand does not
through Tabarru’ • The donation is to help others know what his right
(Donation) • Other’s donation is to help you hand has given …..”
Bukhari
2. It is a systematic • Donation done on periodic basis
‘CSR’ program • Upon maturity, Tabaruu portion And cooperate in
continue to remain in risk fund to righteousness and
help other participants on defined piety, but do not
risks cooperate in sin and
aggression
(Al-Maidah: 5

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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation
3. Opportunities for • Cooperate to help one another in “ …….to spend of your
Mutual time of misfortune substance out of love
• Spirit of Brotherhood for Him, for your kin,
Cooperation • Keeping ones promise for the orphans, for the
(ta'awun) • Patience in the face of misfortune needy, for the wayfarer
and for those who ask,
and for the ransom of
slaves; to be steadfast
in prayer, and practice
regular charity, to fulfil
the contracts that you
have made… “
(2 :177)

4. Help to bring out • Virtue of donation cut across religion “ You will not attain
One’s natural and culture righteousness, unless
characters to care
for others • A systematic way of doing donation you give of that which
you love.”

(3:92)
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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation

5. Providing protection • Free of Riba “ What is Halal is clear.

solution for Muslim to Stay • Free of Gharar And what is Haram is
• Free of Maisir
Clear of forbidden also clear. And in
elements between those two is a
dubious area in which
many people do not
know about. So
whoever distanced
himself from it, he has
acquitted himself (from
blame). And those who
fall into it, he has fallen
into a state of Haram .”
Bukhari and
Muslim

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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation

6. Financial planning tool to meet • If one lives too long (illnesses, “ He said: ‘You shall sow for
life cycle need education, retirement) seven consecutive years
and that which you have
harvested you leave it in its
ear, except a little whereof
you eat’.” “Then after that
seven years of
hardship will come that
(people) will consume what
• If one lives too short ( Death ) you have before hand laid
up for them, except a little
of what you will have
preserved.”
(12:47-48)
“ verily, it is better for you
to leave your offspring
(heirs) wealthy than to
leave them poor asking
others for help’
Sahih Bukhari

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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation
7. Help to strengthen • Contribution deposited "....so that it will not be a
Islamic economy in IB used to fund perpetual distribution among
through pooling of only the rich from among you..."
funds for circulation in development (59:7)
the market place

8. Help to strengthen • Death of breadwinner “ verily, it is better for you to

leave your offspring (heirs)
economic well being of will leave behind wife wealthy than to leave them
individual and family poor asking others for help’
Sahih Bukhari
units and children to continue
their life
(2:240)

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UNIQUE VALUE PROPOSITION (UVP)
UVP Description Validation
9. Sharing on • Revenue based on efforts “…others travelling through the
land, seeking of Allah’s
investment • Transparent and fairness in bounty;…..” (73:20)
arrangement
• Mudharabah
10. Helping others • Properties destroyed by Fire “ Whosoever removes a worldly
hardship from a believer,
to compensate and covered perils Allah(SWT) will remove from
for loss of him one of the hardships of the
day
properties of Judgment”

Sahih Muslim

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UNIQUE VALUE PROPOSITION (UVP)

UVP Description Validation

12. To earn a Halalan • Opportunity to earn an “ O you people! Eat of what is
Toiyiba income and on earth, lawful and good, and
honest and meaningful do not follow the footsteps of
giving back to society the Evil One, for he is to you an
income avowed enemy”
• Giving back to society in
the form of Alms ( Zakah) (2:68)
“And be steadfast in prayers:
practice regular Charity (Zakah),
….”

(2:43)

13. Seeking Blessing ( • Operation guided by “ If the people of the towns had
but believed and feared Allah,
Baraqah ) from Allah basic tenets of Shariah We should indeed have opened
SWT • Elements of out to them (All kinds of)
blessings from heaven and
Righteousness and Piety earth…..”
(7:96)

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UVP- MEANING OF GREAT LIFE
TO MUSLIMS
Great Life to Muslim

Life in this world and the Hereafter

• Muslims believe that successful • Whatever a Muslim does in this life he
life is not just for this world but will be rewarded / held accountable in
also for the next world i.e. the the Next Life.
Hereafter.

• In a hadith narrated by Anas bin Malik:

the Prophet was reported to have said,
• Muslims are taught to pray as
follows: • "When carried to his grave, a dead
person is followed by three, two of
• "... our Lord! grant us good in this which return (after his burial) and one
world and good in the Hereafter, remains with him: his relatives and his
...“ property go back while his deeds
(2:201) remain with him."

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UVP - Meaning of Wealth to Muslims Wealth is
not an end in itself but a means to an end

Wealth is for doing Good Deeds

Wealth is seen as positive

• Muslims should earn more • “They ask thee what they should
than his / her basic needs in spend (In charity). Say: Whatever
order to perform obligatory ye spend that is good, is for
duties such as going to Haj, parents and kindred and orphans
paying the zakat and also and those in want and for
the optional but highly wayfarers. And whatever ye do
desirable acts such as giving that is good, -(Allah) knoweth it
to charity (sadaqah, Waqf, well. (2:215)
hibah) and providing • “The upper hand is better than
benevolent loan (Qard the lower hand”.
Hassan), Sahih Bukhari
• “ Blessed is the wealth of a
Muslim from which he gives to
the poor, the orphans and to
needy travelers”. Sahih
Bukhari
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UVP – CSR from Islamic Perspective
( Dr Asyraf Wajdi Dusuki )
LEVEL DESCRIPTION
Level 1: Extreme situation depicting organisation’s behavior which is irresponsible and even breaching the
Irresponsible minimum moral standard required by law such as dumping toxic waste, violating employees’
rights and abusing human rights.
Level 2: Playing by the “rules of game” by complying with the minimum requirement of legislation. The
Minimalist only objective is to maximise profits/shareholders’ wealth.

Level 3: Operate within the ambit of the law. Participation in CSR activities are minimal, piecemeal with
Apathetic mixes motives; could be for the owner’s own glory or extra benefits to retain skilled staff.

Level 4: Fulfill CSR including the philanthropic or altruistic responsibilities such as making voluntary
Tactical contributions to society, giving time and money to good works which perceived to benefit the
organisation in the long run thru publicity and goodwill to enhance reputation.

Level 5: CSR is manifested based on the belief that the organisation should be socially responsible
Taqwa- centric regardless of the financial consequences. This belief is enshrined in the Islamic world-view,
guided by Shariah. The commitment to societies is the manifestation of the taqwa-paradigm or
God-consciousness which reflects comprehension of the Islamic principles of trusteeship and
justice.

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BRANDING TAKAFUL

Halalan
Toiyiba
Community Fair and
Welfare Transparent
(CSR)
SHARIAH
Piety/Blessing
Hereafter
Benefit Ethical
Charity/ product
Donation (FAST)
Free of Riba
Gharar and
Maisir

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BRANDING TAKAFUL
• ‘ The Solution’ for Insurance needs for Muslims
• Self and community welfare
• Right awareness ensures Business Sustainability
and consistency
• Walking the talk - Live by the BRAND
• Value based approach
• Takaful as commodity vs Takaful as a BRAND
• Ethical product vs Fulfillment of spiritual needs

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BRANDING - TAKAFUL
Brand Mission Brand Values Brand
Personality
Takaful • Full adherence to • Amanah (Trustworthiness) Helping one
shariah principles “…The signs of a Munafiq are when another through
• Islamic Insurance he speaks, he lies ; when he promises, he breaches Charity/Donation ,
• Personal welfare ; when he is trusted, he betrays (the trust)..” Halalan Toiyiba,
• Community Bukhari Fair, Transparency,
Welfare • Siddiq (Truthful)
• Spiritual needs “…..the ones upon whom Allah has bestowed favor
of the prophets, the steadfast affirmers of truth, the
martyrs and the righteous. ….” (4: 69)
• Tabligh (Propagating good values)
“You have indeed in the Messenger of Allah a
beautiful pattern (of conduct)…”
(33:21)
• Fatanah (Wisdom)
“Invite (all) to the way of your Lord with wisdom and
beautiful preaching; and argue with them in ways
that are best and most gracious…” (16:125)

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BRANDING

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CRITICAL SUCCESS FACTORS (CSF)
“God commands justice, the doing of
good, and liberality to kith and kin,
Awareness on Takaful BRAND and He forbids all shameful deeds,
and injustice and rebellion….”
(16:90)
“Let there arise out of you a band of
Stakeholders with good people inviting to all that is good,
enjoining what is right, and
appreciation for Shariah forbidding what is wrong…”
(3 :104)
“And fulfill the promise. Surely
Value Added Products (every) promise shall be questioned
about.” (17:34)

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CRITICAL SUCCESS FACTORS (CSF)
“That Allah may reward them
according to the best of their deeds,
Optimising Technology and add even more for them out of
His grace..”
(24:38)
“An honest and trustworthy
merchant will be with the martyrs on
Effective and Efficient Services the Day of Resurrection”
Ibn Majah
and Al-Hakim

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Holistic Approach to Takaful - An Islamic
Institution Organizational Framework

ALIGNMENT
(Vision of Greatness/Sense of Mission)
(Shared Values in Action)

• MUTUAL CONSULTATION

(Man in The Pivotal Role)

• JUSTICE

EMPOWERMENT
• FREEDOM OF EXPRESSION
(Acts of Faith :
ATTUNEMENT

(Vicegerent :
Plus
• PERSONAL INTEGRITY
• ENHANCEMENT OF RELATIONSHIPS
• LEADERSHIP EFFICACY
• ETHICAL CONDUCT
• MORAL UPLIFT THROUGH
SPIRITUAL KNOWLEDGE

SYNERGY
(Success & Prosperity through Teamwork)

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HOLISTIC APPROACH TO
TAKAFUL
“ And I (Allah) created not the
Vision - Mankind’s duty is to jinn and mankind except that
Alignment serve Allah they should worship Me
(Alone)” (51:56)

“ O you who believe ! Enter

Mission - Acts of Ibadah - Islam perfectly in Islam (by obeying
as a way of Life all the rules and regulation of
Attunement the Islamic religion) ….”
(2:208)
“ And when your lord said to
Trust given to Khalifah angels “Indeed, I will make
Empowerment (vicegerent) upon the earth a successive
authority (Khalifah)”
(2:30)
“…If there are twenty steadfast
Teamwork – A symbiotic persons amongst you, they will
Synergy relationship overcome two hundreds …..”
( 8:10)

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HOLISTIC APPROACH TO TAKAFUL
“ And those who have
responded to their Lord and
i. Consultations (syura) established prayer, and whose
affair is determined by
consultation among themselves,
and from what We have
provided them, they spend.’”
(42:38)
“ Verily, Allah commands that
you should render back the
trust to those, to whom they
Leaderships are due, and
ii. Justice that when you judge between
men, you judge with justice……’
(4 : 58)

“ Actions are but by intention

and every man shall have that
iii. Freedom of expression which he intended…...”

Bukhari and Muslim

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HOLISTIC APPROACH TO TAKAFUL
i. Personal integrity ‘ ….And fulfill (every) covenant. Verily, the covenant,
will be questioned about.’ (17:34)

“ O mankind! We have created you from a male and

ii. Enhancement of a female, and make you into nation and tribes, that
relationship with people you may know one another….” (26:13)

“All of you are guardians and are responsible for

your subjects. The ruler is a guardian of his
subjects, the man is a guardian of his family, the
The Five Tenets of iii. Leadership efficacy – woman is a guardian and is responsible for her
Excellence Producing desired results‘ husband's house and his offspring; and so all of
you are guardians and are responsible for your
subjects."
Bukhari and Muslim
“ Verily, Allah commands justice and the doing of
good to others’ “
iv. Ethical conduct
(16:90)
“…..Say: ‘Are those who know equal to those who
v. Moral uplift through know not?’ It is only men of understanding who will
spiritual knowledge remember ( i.e. get lesson from Allah’s Signs and
Verses)’
)
(39:9)
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CONCLUDING REMARKS
• Shariah is Islamic rules and regulation that touches on all
aspects of human lives
• A Brand is more than just a trademarks that allow customers
to connect with their emotions , believe and spiritual needs
• Branding involves personalisation of an organisation with
imbedded values and mission.
• Branding comes with a set of promises and delivery that
involve every part of the organization
• Takaful is a concept that enjoins people to come together to
help one another that is value driven that touches on one’s
emotion .
• Takaful hinges on the concept of donation , Prosperity,
Brotherhood, Mutual Guarantee and Piety for the welfare of
self and community
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CONCLUDING REMARKS
• Takaful has many value based features that offers both
worldly and Hereafter benefits
• Takaful positioning should be moved from product
compliance to Branding Takaful as an organization that
centered on the well being of the community and
fulfilment of spiritual needs
• There must be a consistency in delivering the BRAND
promises across the CSF
• Holistic approach to Branding Takaful does not lies only
on product compliance only but compliance in every
aspects of the organization.

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CONCLUDING REMARKS

 Ultimate Road to Success

‘ O you who believe! If you help Allah, He will help

you and will make your foothold firm’

Muhammad : 7

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