The Malaysian Takaful Association announced the Takaful industry’s strong performance for 2022 on the back of the country’s post-pandemic recovery phase. The industry’s positive growth MTA said can be attributed to several factors, including the growing popularity of takaful products among consumers, the introduction of new innovative products, and the adoption of
digital technologies to enhance service delivery.
The Family Takaful achieved a penetration Rate of 20.1% in 2022 as compared to 18.6% in the previous year based on the number of certificates inforce against the total Malaysian population. The industry’s growth is driven by increasing demand for Islamic finance products and the acceptance of takaful products as preferred protection schemes. The industry has also
made significant strides in digital transformation, with many players offering online platforms for consumers to participate and Takaful operators to manage Takaful products.
MTA Chairman, Elmie Aman Najas said: “We are witnessing a strong demand for takaful products, as more and more Malaysians recognise the importance of protecting themselves and their families against financial risks. The number of certificates inforce for 2022 has increased to 6.63 million certificates, compared to 6.07 million in 2021.” The Family Takaful market has shown strong resilience with annual Takaful contributions of new businesses maintained above the RM2 billion mark, recording RM2.19 billion (a slight decrease of 1.9%) compared to RM2.23 billion in 2021. Overall, the Family Takaful new business industry registered RM10.06 billion in gross contributions, an increase of 18.3% compared to RM8.5 billion in 2021.
In parallel, a total of 1.31 million new business certificates were issued in 2022, a 15.6% increase from the 1.14 million certificates in 2021. Meanwhile, gross contribution of total business inforce was RM 8.34 billion in 2022 in contrast to RM7.42 billion in 2021.
“In relation to agency business, the pandemic has had a significant impact on the growth rate of new agent recruitment. In 2022 MTA has registered 39,027 new agents.
Other industry sectors similarly showed encouraging growth. In 2022, the General Takaful business registered Gross Direct Contributions of RM4.64 billion, with Motor Takaful business contributing RM3.07 billion, and the Fire Takaful business with
RM0.84 billion. These are increases of 21.1%, 20.7% and 23.5% respectively from their performances in 2021. Motor Takaful remained at the top position in terms of portfolio mix of General Takaful at 66.2% [2021: 66.4%], followed by Fire Takaful at 18.2%.
For 2022, the Takaful industry paid out a total of RM 7.02 billion in net claims, an increase of 25.9% from the previous year, RM 5.58 billion. Out of this, Family Takaful recorded total net claims payout of RM 5.53 billion which has a spike in growth of
23.09% from the year 2021, RM 4.50 billion. Meanwhile, General Takaful recorded a total net claims payout amounting to RM 1.49 billion, an increase of 38% from the previous year, RM 1.08 billion.
MTA expects the Takaful industry to maintain its growth momentum in 2023, albeit at a moderate rate, despite the country still being in the pandemic recovery phase.
