KUALA LUMPUR (April 16): Malaysia’s takaful industry saw its net contributions increase to RM19 billion in 2024, up 9.8% from RM17.3 billion in the previous year, supported by higher growth in both family and general takaful.
The takaful industry’s share of total net contributions also increased to 23.9% in 2024, compared with 23.4% a year earlier, said Malaysian Takaful Association (MTA) interim chairman Wan Saifulrizal Wan Ismail.
“Acceptance of takaful products outpaced population growth, with 993,393 new family takaful certificates issued throughout the year. This brought the total to 6.69 million certificates at the close of the year,” Wan Saifulrizal said at a media briefing on the MTA's 2024 performance on Wednesday.
New business gross contributions for family takaful were up marginally to RM9.73 billion from RM9.59 billion, while contributions from business in-force rose 7.2% to RM9.62 billion from RM8.97 billion.
Gross written contributions from general takaful rose 8.46% to RM5.91 billion, driven primarily by motor takaful, which accounted for 68.77% of the total.
In the non-motor segment, fire takaful contributions increased 7.27% to RM1 billion, while personal accident takaful increased 6.56% to RM388 million.
Malaysian takaful payout, meanwhile, surged 16.73% year-on-year to RM10.20 billion, with family takaful accounting for RM7.89 billion, and general takaful comprising RM2.31 billion.
“In 2022 to 2024, the average increase in takaful benefit payout per year was RM1.54 billion. This quantum was almost fourfold compared to the average increase in takaful payout per year for the 2019 to 2021 period of RM393.34 million,” Wan Saifulrizal said.
The takaful industry's total fund assets also rose 11.6% to RM59.6 billion in 2024, representing 13.9% of total industry assets, he noted.
Nonetheless, the MTA remains cautiously optimistic for 2025, as last year’s performance provides a solid foundation for the takaful industry’s future growth, said MTA chief executive officer Mohd Radzuan Mohamed.