Malaysian Takaful Association chairman Muhammad Fikri Mohamad Rawi
KUALA LUMPUR, March 19 (Bernama) -- The takaful industry's new protection value is expected to reach RM400 billion by year-end, up from RM324.2 billion registered in 2018, said Malaysian Takaful Association chairman Muhammad Fikri Mohamad Rawi.
Total new business contribution for all certificates combined in 2019 would likely exceed the RM5 billion mark compared with RM4.91 billion secured in 2018, he said.
The growth would be supported by a higher market penetration rate -- measured by the number of family takaful in-force certificates to the total Malaysian population -- that was projected to grow to between 16 and 17 per cent this year from 15.2 per cent recorded as at Dec 31, 2018, he said.
"All takaful operators have come out with the products that meet the public needs. Campaigns were done, awareness was created, and many (promotional) activities were done with our partners. This will help increase the new business and penetration rate," he told a press conference on the industry's 2018 performance here today.
Asked on the slow pace of penetration rate, which was way off the 25 per cent targeted under Bank Negara Malaysia’s Financial Sector Blueprint 2011-2020, he said: "It's challenging; nevertheless, we'll continue to strive to achieve that.
"This (low penetration rate) is due to the level of awareness among the society where they do not put takaful protection as a priority," he said.
Muhammad Fikri said the industry posted a 14.5 per cent growth year-on-year (y-o-y) in takaful protection value last year against RM283.1 billion achieved in 2017.
Meanwhile, the new business contribution for all certificates combined in 2018 grew by a substantial 13.1 per cent y-o-y from RM4.35 billion secured in 2017.
"The buoyant performance of the takaful industry reflected the increasing familiarity with the takaful concept among Malaysians evidenced by greater acceptance of takaful coverage as the choice for protection.
"As a whole, the takaful industry added 699,534 new certificate holders, a marked increase of 4.6 per cent from 668,657 new certificates issued in 2017," he said.
The annual-contribution new business recorded a moderate growth of 4.1 per cent last year while single-contribution new business jumped to 16.6 per cent.