MTA: Digital Insurers, Takaful Operators Can Boost Takaful Penetration Rate To 30%
Author Avatar
(Image: Berita RTM)

The Malaysian Takaful Association (MTA) has said that digital insurers and takaful operators (DITOs) will be able to help Malaysia increase its takaful penetration rate from 18.6% in 2021 to 30% by 2027. This is as the country continues to strive for an overall insurance penetration rate of 75%, as previously set by the government.

Chief executive officer of MTA, Mohd Radzuan Mohamed said that DITOs will play a big role in digitally transforming the insurance and takaful segments. “Hopefully, DITOs will be able to supplement some numbers to the target rate as we all know that insurance and takaful operators offer diverse products and services. DITOs can help operators reach untapped areas to introduce their products to the people,” he said.

Chief executive officer of Deloitte Malaysia, Yee Wing Peng, too, echoed the sentiment, adding that the upcoming introduction of the DITO framework will help streamline the process. This is as the framework will promote innovative product design, better risk-response underwriting practices, more efficient claims management process, and seamless service to consumers.

For context, Bank Negara Malaysia issued its exposure draft for the DITO framework in November 2022, seeking written feedback from industry players. This came after the issuance of the discussion paper back in January, in the same year. Essentially, the framework aims to facilitate the entry of DITOs to serve the unserved and underserved markets, as well as provide better offerings, via the adoption of technology and innovative business models.

(Image: Bernama)

Yee further shared that Malaysia’s insurance penetration rate currently stands at 4.7%, in comparison with the higher global average of 7.2%. Additionally, only 25% of working adults in the B40 household group have purchased some form of life insurance or family takaful cover – significantly lower than the 59% of insured working adults recorded for the general population.

“DITOs can play an important role to close the protection gap, especially within the B40 household,” Yee said, adding that DITOs can also contribute towards better social and economic benefits with its services, such as reducing poverty. In turn, this will help Malaysia in its transition to become a digitally driven, high-income developed nation.

(Source: Malay Mail)

0 0 votes
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Insurance Articles
Post Image
Government and Private Hospitals in Malaysia: How Much Do They Really Cost?
- 2nd January 2018
We keep hearing that government hospitals are cheaper than the private ones, but what’s the price difference really like? Keep reading to find out!
Post Image
How To Claim Income Tax Reliefs For Your Insurance Premiums
Alex Cheong Pui Yin
- 23rd March 2023
There are quite a few types of tax reliefs that you can claim to reduce your chargeable income […]
Post Image
The First Cancer Rider Offering Treatment Allowance & Hospice Care In Malaysia By Takaful IKHLAS
Katrina Balan Quiroz
- 1st July 2021
Around the world, Malaysia included, cancer has remained as one of the leading causes of death. Last year, […]
Post Image
Cancer Treatment In Malaysia: How Much Does It Cost?
- 2nd October 2018
Many know the devastating effects of cancer, but few talk about just how expensive cancer treatment costs can be.

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image