KUALA LUMPUR (June 10): The Malaysian Takaful Association (MTA) expects a cautious outlook for the Islamic insurance industry in 2026, following record contributions in 2025, due to geopolitical tensions and other risks that may affect demand.
It said businesses are facing higher costs, supply chain disruptions and raw material shortages, which could lead to higher consumer prices and reduce demand for their products, interim chairman Borhanudin Samsudin said during a speech on Wednesday.
He added that customers continuing their takaful coverage is important for operators to keep providing protection services.
The MTA also said it will continue efforts to raise awareness of takaful as a shariah-compliant insurance option.
In the financial year 2025, the MTA saw its total gross contribution rise 4.73% year-on-year (y-o-y) to RM16.38 billion from RM15.64 billion in 2024, thanks to growth in both the family and general takaful segments.
The family takaful segment recorded largely stable new business contributions of RM9.74 billion, an increase of RM10 million from the previous year. Meanwhile, gross written contributions for the general takaful segment climbed 12.38% y-o-y to RM6.64 billion from RM5.91 billion previously.
Overall, the entire net contributions reached another record RM20 billion, compared with RM19 billion in the preceding year.
On the other hand, takaful operators paid out a total of RM10.61 billion in benefits and claims during 2025. Of the total amount, RM7.91 billion or 74.6% was disbursed by family takaful operators, while RM2.70 billion was paid under general takaful coverage.
In 2026, MTA has identified three strategic priorities: maintaining a sustainable medical and health insurance and takaful (MHIT) coverage, strengthening the adoption of hibah as a wealth protection solution, as well as advancing the phased liberalisation of the general takaful segment.
"To support these priorities, the MTA will focus on strengthening industry frameworks and regulatory alignment, enhancing regional and international collaboration, and elevating professional standards across the agency force," Borhanudin said.
He added that these initiatives are aimed at improving the industry's resilience and competitiveness while ensuring takaful operators remain capable of meeting the evolving needs of participants in an increasingly complex operating environment.
Established in 2002, the MTA represents all 19 licensed takaful and retakaful operators in Malaysia.