Takaful industry pays out RM8.74 bln in 2023
LUMPUR: The Malaysian Takaful Association (MTA) announced that takaful operators paid out a total of RM8.74 billion in 2023 to support the rakyat in their time of need.
Notably, family takaful honoured RM6.79 billion in benefits, underlining its commitment to safeguarding families across the nation.
The general takaful disbursed a total of RM1.95 billion. This uptick of 24.40 per cent in payouts demonstrates the takaful industry’s responsiveness to emerging needs and its dedication to promptly assist certificate holders.
This payout comes on the back of family takaful gross contribution of business inforce which grew 7.55 per cent to RM8.97 billion, compared to RM8.34 billion in 2022. The number of certificates inforce in 2023 was stable at 6.60 million, shy of the 6.63 million certificates inforce recorded in 2022.
Throughout the year, the family takaful business added 1.13 million new certificates with a corresponding gross contribution of RM9.59 billion but could not reach the high 1.31 million new certificates and RM10.06 billion gross contribution registered in 2022.
Although this figure was slightly lower than the previous year, it underscores the sustained interest and trust in takaful protection among the rakyat.
MTA chairman Elmie Aman Najas commented, “The importance and benefits of takaful are gaining greater traction, as evidenced by the consistent inforce certificates following a strong year in new certificates in the previous year.
“This signifies that participants continue to fulfil their contribution obligations, indicating a sustained awareness of financial planning and retention among participants.
“The industry-wide awareness initiatives are translating to tangible outcomes, with takaful products continuing to be a preferred option.
“Performance-wise, the three-years numbers indicate a normalisation in the industry in 2023 after a year of strong postpandemic growth in 2022.
“The family takaful penetration rate in 2023 held relatively steady at 19.58 per cent, even as the population grew by 678,500 people, outpacing that of 2022 and was a record 10-year high growth,” he continued.
In 2022, the penetration rate was 20.06 per cent and population growth was 401,600 persons.
MTA expects the takaful industry to maintain a steady momentum in 2024, reflecting the forecast for Malaysia’s overall economic expansion.
The industry is united in its commitment to accessible and affordable takaful protection for the rakyat as part of its efforts to support the country’s economic development.