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Nov 2019

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Malaysia: Takaful industry eyes low-income group

Source: Middle East Insurance Review | Jun 2019

Malaysia’s takaful industry is planning to launch more affordable products such as Perlindungan Tenang to target the bottom 40% (B40) income group, in line with Bank Negara Malaysia’s (BNM) aspiration to narrow the protection gap in the country. 
 
The number of sign-ups for Perlindungan Tenang is very positive, but it is still a challenge for the industry to reach out to those in the outskirts as they might not understand the necessity for such protection, said Malaysia Takaful Association (MTA) chairman Muhammad Fikri Mohamad Rawi. “But we will continue to reach out and educate the masses on the matter,” he added.
 
Currently the Malaysian population remains under-served with only 15.2% of Malaysians having family takaful coverage despite a Muslim population of over 60%. In 2017, the family takaful penetration rate was 14.8%.
 
Mr Muhammad said the MTA has been working hard with its members to achieve the 25% takaful penetration target set by BNM by 2020.
 
Perlindungan Tenang, an affordable insurance and takaful scheme launched in 2017, is a combined initiative of the MTA, Life Insurance Association of Malaysia and General Insurance Association of Malaysia under the purview of BNM. The premiums is as low as a few ringgit per month. M 
 
MYR1 = $0.21
 
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