Malaysia: Ecosystem and other factors fuel growth opportunities for takaful

Source: Middle East Insurance Review | Mar 2020

The creation of an Islamic finance-enabling ecosystem is the key driver of the takaful industry’s growth in Malaysia, Fitch Ratings said.

This makes Malaysia a leading model for the sector, especially in light of the Muslim-dominated make-up of the untapped population segment.

Increasing product awareness is also a factor towards improving market penetration as almost half of the Malaysian population does not have protection due to a lack of awareness of the comprehensive range of solutions offered by the takaful industry, Fitch said in its report ‘Malaysia Takaful Dashboard: 2020’.

The takaful sector in Malaysia continues to enjoy faster growth than the conventional insurance sector, driven by stable domestic consumption and increasing consumer awareness. Family and general takaful premiums rose 29.6% and 16.4%, respectively in 1H2019, compared with 12.2% in conventional life and -1.3% in general insurance. M

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