Takaful Industry Continues To Be Resilient Despite Pandemic

The Malaysian Takaful industry continues to show resilience during the pandemic with an increase of seven percent new business contribution for all Family Takaful certificates in 2020, amounting to RM 6.59 billion as compared to RM 6.16 billion in 2019. The new Takaful protection value has increased by 21.4 percent to RM 461.7 billion, from RM380.2 billion in 2019.

The Family Takaful new business single gross contributions registered RM 5.09 billion in 2020, an increase of 4.9 percent from RM 4.85 billion in 2019. while the Family Takaful annual gross contributions of new business have recorded RM1.50 billion in 2020, a double-digit growth of 14.8 percent when compared to RM 1.31 billion in 2019. In terms of distribution channels, Bancatakaful was the main contributors with 41.6 percent followed by Agency for 25.1 percent.

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As a whole, the takaful industry added 839,358 new certificates in 2020, marked a significant growth of 14.4%.

This resulted in a notable growth of Family Takaful industry penetration rate, a measure of number of inforce certificates to the total Malaysian population, which has increased to 16.9 percent in 2020 from 15.9 percent in 2019. This also demonstrates that the industry’s Takaful protection value has reached to RM1.1 trillion, an increase of 14.5 percent from 2019.

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The General Takaful business registered Gross Written Contributions of RM 3.46 billion, an increase of 4.4 percent over the same period in 2019. Motor Takaful portfolio remains at the top position with the share of 66.1 percent [2019: 64.8 percent] of the portfolio mix.

In terms of distribution, both agency and direct distribution channels are the main contributors to the overall growth of general takaful, 59.4 percent and 31.7 percent, respectively. It is also worthy to mention the growth of the Internet channel which has been encouraging. This channel has grown by 22.1 percent from RM174.5 million in 2019 to RM213.1 million gross written contribution in 2020, 96.1 percent of which is motor takaful.

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In terms of claims paid, the Net Claims Incurred Ratio (NCIR) has edged down to 55.7 percent in 2020.  For motor business, the industry’s NCIR decreased to 68.2 percent from 72.7 percent in 2019.

“This promising growth is an evident of positive outcome from reopening of economy during Covid-19 pandemic under the Government’s recovery efforts to revitalise economic activities, especially during the third and fourth quarter of 2020.” Elmie Aman Najas, the newly elected Chairman of the Malaysian Takaful Association (MTA) today said.

New Office Bearer 2021-2023

In MTA’s 19th AGM held on April 7, a new office bearer was elected for the term 2021-2023. Elmie Aman Najas, CEO of AIA PUBLIC Takaful Bhd. has been elected as the new Chairman for the Association. He will be supported by newly elected Deputy Chairman, Mohamed Sabri Ramli, CEO of Syarikat Takaful Malaysia Am Berhad, and Treasurer, Zafri Ab Halim of Etiqa Family Takaful Berhad.

Elmie has 25 years of insurance and takaful experience in multinationals. Previously, he was the Deputy Chairman of MTA. He also serves as a board member for the Institute of Islamic Banking and Finance (IBFIM) and the Insurance Services Malaysia (ISM). He is a Fellow Member of the Chartered Institute of Islamic Finance Professionals (CIIF) and a Fellow of the Malaysian Insurance Institute (MII).

Elmie replace Muhammad Fikri Mohamad Rawi who have served the maximum constitutional terms of four years as MTA Chairman. Encik Muhammad Fikri, who is also the CEO of Sun Life Malaysia Takaful Berhad, has served MTA Management Committee since 2009.

He held various roles in the Association, namely, the Chairman of MTA Corporate Communications Subcommittee, Treasurer, Deputy Chairman and lastly, as MTA Chairman over his 12-year period as a member of MTA Management Committee. MTA would like to put on record the Association’s deepest and sincere appreciation to Encik Muhammad Fikri for his contribution to MTA and the industry during his tenure.

The new line-up for members of MTA Management Committee for the term of 2021-2023 are as follows:

Chairman :       

Elmie Aman Najas
AIA PUBLIC Takaful Bhd.

Deputy Chairman :     

Mohamed Sabri Ramli
Syarikat Takaful Malaysia Am Berhad

Treasurer :       

Zafri Ab Halim
Etiqa Family Takaful Berhad

Committee members :

1. Shahrul Azuan Mohamed
Etiqa General Takaful Berhad

2. Shahrul Azlan Shahriman
Great Eastern Takaful Berhad

3. Mohd Asri Omar
Hong Leong MSIG Takaful Berhad

4. Mohammad Nizam Yahya
Malaysian Reinsurance Berhad

5. Wan Saifulrizal Wan Ismail
Prudential BSN Takaful Berhad

6. Marcel Omar Papp
Swiss Re Retakaful (Swiss Re Asia Pte. Ltd)

7. Nor Azman Zainal
Takaful Ikhlas Family Berhad

–Bernama–

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