Malaysia: Takaful association targets doubling of penetration rate to 40% by 2028

Source: Middle East Insurance Review | Mar 2024

The Malaysian Takaful Association (MTA) aims to double takaful penetration to 40% in four years from the current 20% under the Hijrah 2027 Strategic Plan.

MTA CEO Mohd Radzuan Mohamed said that takaful penetration rate is at 20% against 34% for conventional. This means that 46% of Malaysians are still not protected, he said at media briefing on the unveiling of Takaful Financial Sector Blueprint interim report last month, reported the New Straits Business Times.

“We think there is a niche market for takaful which mainly includes those in the bottom 40 income group and the lower middle 40 income group such as young parents and gig workers who are not financially protected.

“We feel takaful has a good proposition for these groups because although our strategies are focused on making takaful more profitable, we also want to contribute back to the community to ensure the financial gap is close. A lot of our planning is about financial literacy and enhancing awareness,” he said. M

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