The Malaysian Takaful Association announced that takaful operators paid out a total of RM8.74 billion in 2023 where the Family Takaful paid out RM6.79 billion in benefits, while the General Takaful disbursed a total of RM1.95 billion.
This was an uptick of 24.40% where the payout comes on the back of Family Takaful gross contribution of business inforce
which grew 7.55% to RM8.97 billion, compared to RM8.34 billion in 2022. The number of certificates inforce in 2023 was stable at 6.60 million, shy of the 6.63 million certificates inforce recorded in 2022.
Throughout the year, the Family Takaful business added 1.13 million new certificates with a corresponding gross contribution of RM9.59 billion but could not reach the high 1.31 million new certificates and RM10.06 billion gross contribution registered in 2022.
MTA Chairman Elmie Aman Najas commented, “The importance and benefits of takaful are gaining greater traction, as evidenced by the consistent inforce certificates following a strong year in new certificates in the previous year. This signifies that participants continue to fulfil their contribution obligations, indicating a sustained awareness of financial planning and retention among participants. The industry-wide awareness initiatives are translating to tangible outcomes, with takaful products continuing to be a preferred option.”
The Family Takaful Penetration Rate in 2023 held relatively steady at 19.58%, even as the population grew by 678,500 people, outpacing that of 2022 and was a record 10-year high growth. In 2022, the Penetration Rate was 20.06% and population growth was 401,600 persons.
The General Takaful business continued its upward trajectory in 2023 with a 17.44% increase in gross written contributions to RM5.45 billion from RM4.64 billion. Gross direct contribution also registered an increase, of 17.40% to RM5.44 billion from
RM4.64 billion a year prior.
These contributions are primarily attributable to the robust performance of motor takaful, which expanded 18.70% to RM3.64 billion, and remained a key driver of General Takaful. This performance aligns with an all-time high 799,731 new motor vehicles sold in the year due to promotional campaigns and new model launches.
General takaful operators are agile and have adapted to the uptake in electric vehicles (EVs) by introducing innovative motor takaful for EVs. The tailor-made products help the operators gain grounds, and support the overall National Energy Transition
Roadmap of having 20% of all vehicle sales being xEVs by 2030, and 50% by 2040.
In terms of channels, Agency and Bancatakaful remained the key contact points, with new business with total contribution standing at 34.03% and 29.99%.
MTA expects the takaful industry to maintain a steady momentum in 2024.
