Malaysia’s general Takaful payouts up 24.4% in responsiveness

MTA anticipates steady industry momentum in 2024.

The Malaysian Takaful Association (MTA) disclosed that takaful operators disbursed RM8.74b in 2023 to aid the populace, with Family Takaful contributing RM6.79b, showcasing its commitment to safeguarding families. 

General Takaful paid out RM1.95b, marking a 24.40% increase in payouts, highlighting the industry's responsiveness to emerging needs.

Family Takaful's gross contribution grew by 7.55% to RM8.97b, with stable certificate numbers. Despite slightly lower figures in new certificates and gross contribution compared to 2022, sustained interest in takaful protection was evident.

General Takaful saw a 17.44% increase in gross contributions to RM5.45b, primarily driven by motor takaful. The sector adapted to the rise in electric vehicles (EVs) with tailored motor takaful products, aligning with national energy transition goals.

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Other lines of business also recorded growth, notably in aviation, cargo, marine hull, and construction, reflecting post-pandemic recovery.

Agency and Bancatakaful remained key channels, contributing significantly to new business.

MTA anticipates steady industry momentum in 2024, aligned with Malaysia's economic expansion forecast. The association introduced a strategic transformation plan, Hijrah27, aiming to elevate and innovate takaful to be a household name and drive growth in the Islamic ecosystem.

Hijrah27, building on the success of ISLAH 23, focuses on collaborations, awareness, product innovation, and expanding takaful's role in the ecosystem to widen protection. MTA envisions Hijrah27 as a catalyst for maintaining takaful's growth momentum and ensuring every Malaysian has a safety net.