by GLORIA HARRY BEATTY

TAKAFUL insurance has increased in demand, recording a penetration rate reaching 20% to date, up from 15% in 2015.

Malaysian Takaful Association (MTA) chairman Elmie Aman Najas said the penetration rate is derived from an enlarged base of Family Takaful certificates at 6.6 million from 4.6 million, or a 44% increase, with Annualised Contribution exceeding RM8.97 billion.

He said much effort was done to shape the Takaful landscape into the dynamic and robust sector it is today.

“This is evident by the tremendous growth experienced by the industry since its nascency – assets more than doubled in just 10 years, rising from RM23 billion in 2014 to RM55.6 billion today,” he said at the launch of Hijrah27 in Sasana Kijang on Friday.

Elmie said these investments strengthen Shariah-compliant capital markets and channel funds into critical sectors like technology, infrastructure and healthcare, fuelling economic progress and generating jobs across Malaysia.

“Over the same period, the number of registered takaful agents rose 37% to 108,158 compared to 78,979 in 2014.

“Takaful’s resilience is further demonstrated by a compound annual growth rate (CAGR) of 49.8% for zakat payments by Takaful operators and 36.8% in participant surplus sharing over the last decade, totalling RM205 million and RM3.5 billion respectively,” he added.

Elmie pointed out that the Takaful industry has paid out RM37 billion in claims to benefit families in the past decade, reflecting its enhanced capacity to support mutual financial protection and growing preference of Shariah-compliant solutions among consumers.

A notable highlight of the industry’s responsiveness is the rapid adoption of digital solutions post-pandemic, which has provided ease and convenience for customers. 

He also noted that digital submissions accounted for at least 6% of the total number of Takaful applications in 2023.

With the launch of Hijrah27, Elmie envisions an industry marked by inclusivity and innovation. 

“This strategic transformation plan will better equip Takaful operators to extend their reach and impact, ensuring mutual benefit, success, and protection for all,” he said.