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Takaful penetration rate rises to 18.6% in 2021 despite pandemic

KUALA LUMPUR (April 25): Malaysia's takaful industry penetration rate rose to 18.6% last year from 16.9% recorded in 2020, according to the Malaysian Takaful Association (MTA).

Chairman Elmie Aman Najas said the landmark increase was the highest growth over a five-year period, whereby the ratio of the number of Family Takaful in-force certificates to the total Malaysian population grew to 6.07 million certificates in 2021 versus 5.51 million in 2020.

“The Family Takaful market has shown an exceptionally strong resilience despite the pandemic, with annual takaful contributions of new businesses reaching the two billion ringgit mark for the first time, recording RM2.23 billion, an increase of 48.8%, compared to RM1.5 billion in 2020.

“Overall, the Family Takaful new business industry registered RM8.5 billion in gross contributions, a 29.7% increase from RM6.59 billion in 2020,” he said during the industry's 2021 performance presentation prior to an Iftar event with the media on Monday (April 25) night.

In parallel, a total of 1,135,189 new business certificates were issued in 2021, a 35.2% increase from the 839,355 certificates in 2020, while total business in-force gross contribution was RM7.42 billion in 2021, in contrast to RM6.12 billion in 2020, he said.

Elmie, who is also a chief executive officer for AIA Public Takaful Bhd, said the General Takaful business registered gross written contributions of RM3.83 billion, the Motor Takaful business of RM2,54 billion, while the Fire Takaful business recorded RM0.69 billion in 2021.

“These are increases of 10.6%, 11.2% and 10.3% respectively from their performances in 2020,” he added.

Agency and Bancatakaful were the main distribution channels contributing 60.6% and 14.2% of businesses respectively.

For new businesses, Agency recorded 85.7% as the main distribution channel for "annual contribution" takaful plans, while Bancatakaful was the main contributor for "single contribution" plans at 52.4%.

http://www.theedgemarkets.com/article/takaful-penetration-rate-rises-186-2021-despite-pandemic

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