Malaysia: Takaful market resilient in face of COVID-19
Source: Middle East Insurance Review | Dec 2020
The Malaysian takaful industry posted MYR286.2bn ($70bn) in new takaful protection value in the first half of this year, for which the total new business contribution amounted to MYR3.19bn, according to the Malaysian Takaful Association (MTA).
General takaful accounted for MYR1.64bn of total gross contributions in 1H2020, 0.6% higher than the MYR1.63bn posted for the corresponding half last year.
Commenting on the resilience of the sector, MTA said the takaful sector remains positive in facing the COVID-19 pandemic that has affected the economy and insurance business.
MTA chairman Muhammad Fikri Mohamad Rawi, referring to the pandemic, said, “We cannot deny the fact that under this unprecedented situation, it has impacted the country’s economy including takaful industry. However, the industry has embraced technologies in promoting takaful digitally.”
He also said, “Living under the new norms, the industry came forward to ease the burden of the community. Among the industry’s initiatives are MYR8m of COVID-19 Test Fund (MyCTF) by MTA, the Life Insurance Association of Malaysia (LIAM) and the Persatuan Insurans Am Malaysia (PIAM); the introduction of remote Takaful Basic Examination by MTA and Islamic Banking and Finance Institute Malaysia (IBFIM); the 90-day deferment of premium/contribution payment by MTA and LIAM; and additional benefits offered by takaful operators to those who are affected by the pandemic.” M
MYR1 = $0.24