The Malaysian Takaful industry made significant strides in 2024, fulfilling its commitment to protect and uplift the rakyat through a combination of financial security, social outreach, and shared prosperity.
Underpinned by the Hijrah27 transformation agenda, the industry collectively disbursed RM10.20 billion in benefits to certificate holders – a 16.73% increase from 2023. This record payout reflects the core spirit of takaful: giving back when Malaysians need it most.
Family Takaful accounted for over three quarters (77.37%) of the benefits paid in 2024 at RM7.89 billion, while General Takaful honoured RM2.31 billion.
This increased payout came on the back of a greater number of in-force Family Takaful certificates. 993,393 new certificates were issued throughout the year, bringing the total number of in-force certificates modestly higher to 6.69 million from 6.60 million in 2023, after accounting for certificate replacements, expiries, or terminations over the same period.
The new certificates translated to a 1.48% growth in new business gross contribution at RM9.73 billion from RM9.59 billion. Business in-force contributions also rose in tandem, to RM9.62 billion in 2024 from RM8.97 billion in 2023, a growth of 7.20%.
The upward trend was most apparent when looking at a 3-year bloc period trend. The average increase in takaful benefit payout per year in 2022 – 2024 was RM1.54 billion per year, a significant quantum of almost 400% when viewed against the RM393.34 million average increment in 2019 – 2021.
The average number of in-force Family Takaful certificates per year also rose to 6.64 million in 2022 – 2024 from the 5.58 million certificates in 2019 – 2021. This growth also translated to Family Takaful new business contribution, which averaged RM9.79 billion per year in the 2022 – 2024 period, up from RM7.08 billion per year in 2019 –
2021.
The steady performance indicates the increasing awareness of having financial protection and growing appreciation for takaful among the rakyat. This encouraging development is in part attributable to the concerted industry effort to highlight the role of takaful as a social safety net.
The Takaful operators’ outreach initiatives have resulted in more Malaysians pursuing a career in the industry. There are now 92,866 active Family Takaful agents, with 26,714 new agents registered in 2024 alone.
Correspondingly, agents’ market share of new business increased to 25.56% in 2024 against 23.17% in 2023. Bancatakaful continued to extend its lead at 52.05% of new business contribution, up from 48.68%.
The bolstered number of active agents and the industry’s collective efforts to engage Malaysians helped Family Takaful penetration rate hold steady at 19.57% in 2024 (2023: 19.57%). This is noteworthy given Malaysia’s larger population base of 34.1 million in 2024, a 700,000 increase over 2023. The 993,393 new certificates in 2024 reflects an increase outpacing population growth. It underscores the continued commitment and dedication of stakeholders across the takaful ecosystem to drive meaningful and inclusive growth.
The General Takaful segment maintained its momentum in 2024. Gross written contribution rose to RM5.91 billion from RM5.45 billion, translating to a 8.46% growth. Gross direct contribution saw a corresponding uptick, at 8.41%, to RM5.90 billion from RM5.44 billion the year prior.
General Takaful performance remained driven by motor takaful, the largest contributor to the segment at 68.77% of gross written contribution. This paralleled Malaysia’s record-high 816,747 new vehicle sales units in 2024, surpassing the 800,000 unit mark for the first time.
With motor takaful accounting for the largest share of the segment, motor claims proportionately accounted for the majority of General Takaful claims paid at RM2.04 billion, or 88.30%.
In the non-motor classes, fire takaful experienced greater uptake in 2024 with RM1.00 billion gross written contribution, rising 7.27% from the previous period, while personal accident moderated to 6.56% at RM388.00 million gross written contribution.
Channel wise, agency remained the dominant distribution channel in 2024, growing from 61.29% to 62.67%. Bancatakaful experienced consistent growth, increasing to 13.63% from 13.33% in 2023.
The Malaysian Takaful Association (MTA)’s strategic thrusts outlined in its Hijrah27 transformation plan which includes digital innovation is bearing fruit. Internet sales channel continued to gain ground at 6.58% in 2024 compared to 5.79% in 2023.
MTA Interim Chairman Wan Saifulrizal Wan Ismail said, “MTA’s mandate is clear – to make takaful more relevant, accessible, and impactful through value-based intermediation. Our vision is for takaful to be attuned to the evolving needs of Malaysia’s diverse population, driving sustained industry growth. Strengthening collaboration, deepening public awareness, and advancing product and service innovation will remain our focus, all with the aim of extending protection to the underserved and ensuring every Malaysian has access to a reliable social safety net.”
“On that note, I am pleased to report that industry initiatives are progressing well and translating into tangible action. The importance of a safety net cannot be overstated. From Family Takaful for personal and loved ones to General Takaful for assets, we urge all Malaysians to protect their financial wellbeing. The increased takeup in fire takaful is particularly relevant in view of the recent incident. Beyond this, we encourage homeowners and tenants to seek consultancy on home and home content protection for added peace of mind,” he continued.
Based on Unaudited Interim Condensed Financial Statements for the six-month period ended 30 June 2024 the industry channelled RM31.19 million in zakat. This is more than 60% of the total amount of zakat in 2023 (RM50.83 million). Contributions will be made to initiatives whose intended outcomes align with Shariah principles beyond mere compliance, towards achieving Maqasid al-Shariah (objectives of Shariah) which include the wellbeing of people through the fulfilment of broader ethical and social goals.
ABOUT MALAYSIAN TAKAFUL ASSOCIATION (MTA)
Malaysian Takaful Association (MTA) was established on November 2002 under the Societies Act 1966. It is a trade association representing all 19 licensed Takaful and Retakaful operators in the country. The objectives and the powers of MTA are to promote the interests of its members and to inculcate the implementation of self-regulation within the Takaful industry. More information on MTA can be obtained from its website: www.takaful4all.org
