KUALA LUMPUR, March 27 – The Malaysian Takaful Association (MTA) expects the takaful industry to maintain a steady momentum in 2024.
MTA chairman Elmie Aman Najas said 2024 will perform better, reflecting the overall four per cent economic expansion forecast versus 3.7 per cent in 2023.
“We are optimistic. Trend wise, there are improvements in terms of the size in existing products which shows that participations (certificate holders) are becoming more aware about having protection (takaful),” he said at a media briefing Takaful Industry Performance and Strategic Transformation Plan on Tuesday.
Meanwhile, chief executive officer Mohd Radzuan Mohamed said he expects micro takaful products such as the Perlindungan Tenang could see further growth because 40 per cent of the population, mainly from the bottom medium (BM) 40 category, do not have insurance/takaful.
“There are 11 products that are offered by 10 takaful operators. We expect product offerings could increase once we develop the takaful industry transformation plan called Hijrah27,” Mohd Radzuan said.
Hijrah27, the takaful industry roadmap (2024-2027), aims to elevate and innovate takaful to be a household name in Malaysia and to inspire a new generation of participants.
The mandate, he said, is to make takaful more relevant, accessible, and impactful.
“The transformation plan embraces change and aligns MTA’s mission with the visionary goals of the financial sector blueprint 2026 and the industry’s value-based intermediation framework.
“Hijrah27 is the continuation of the successfully concluded MTA reform plan 2022-2023, known as ISLAH 23, and will guide the industry and overall Islamic ecosystem to advance takaful,” he added.
At the event, Elmie said throughout 2023, the family takaful business added 1.13 million new certificates with a corresponding gross contribution of RM9.59 billion.
However, it could not reach the high 1.31 million new certificates and RM10.06 billion gross contribution registered in 2022.
“Although the figure was slightly lower than the previous year, it underscores the sustained interest and trust in takaful protection among the people,” Elmie said.
He also noted that takaful operators paid out a total of RM8.74 billion in 2023 to support people in their time of need.
