The Malaysian takaful industry grew by 4.73% year on year in 2025, with total gross contributions reaching MYR16.38bn ($4.02bn), according to the Malaysian Takaful Association (MTA).
In the family takaful segment, new business revenue held steady at MYR9.74bn, up by MYR10m from 2024.
Business in-force contributions expanded to MYR10.15bn from 2024’s MYR9.62bn, buoyed endowment products in the individual ordinary family business segment.
Signalling a shift toward higher-quality protection and deeper consumer confidence, the average certificate value surged by 15.34% to MYR11,300 in 2025 from MYR9,797 in 2024.
The family takaful penetration rate was steady at 19.63% in 2025 (2024: 19.57%), even as Malaysia’s population expanded to 34.33m (2024: 34.1m).
The general takaful segment was more robust in 2025, with gross written contributions increasing 12.38% to MYR6.64bn from MYR5.91bn in 2024. It continued to be driven by motor takaful, which remained the largest branch with MYR4.59bn in contributions, accounting for 69% of general takaful gross written contributions. This represented a 12.57% growth over 2024.
The non-motor takaful branches also expanded in 2025, rising by 11.95%. Fire takaful recorded MYR1.11bn in gross written contributions, an increase of 10.43% over 2024, while personal accident takaful rose to MYR422.67m, translating into an 8.93% increase.
In distribution, the agency channel continued to dominate in 2025, accounting for 61.5% of written contributions (2024: 62.67%). Bancatakaful remained the second largest contributor at 13.37% (2024: 13.63%), while contributions from direct channels and online platforms were 8.45% and 6.73%, respectively (2024: 7.64% and 6.58%).
The takaful sector underscored its commitment to protection by paying out MYR10.61bn in benefits in 2025. Family takaful distributed MYR7.91bn (2024: MYR7.89bn), while general takaful settled MYR2.7bn in claims, a 16.88% increase over 2024. M