Takaful Industry Reports RM10.2 Billion In Benefits Paid For 2024

Samuel Chua

16th April 2025 - 4 min read

The Malaysian Takaful industry reported RM10.20 billion in benefits paid to certificate holders in 2024, reflecting a 16.73% increase compared to the previous year. The figures, released by the Malaysian Takaful Association (MTA), indicate continued activity and uptake across both Family and General Takaful segments. Family Takaful made up the majority of benefits disbursed, amounting to RM7.89 billion, while General Takaful accounted for RM2.31 billion.

The number of in-force Family Takaful certificates rose to 6.69 million, supported by the issuance of 993,393 new certificates over the year. After accounting for terminations, expiries, and replacements, this translated into a net increase in active policies. New business gross contributions recorded a 1.48% growth to RM9.73 billion, while business in-force contributions rose by 7.20% to RM9.62 billion.

Over the three-year period from 2022 to 2024, average annual benefit payouts increased by RM1.54 billion, compared to an average yearly increment of RM393.34 million between 2019 and 2021. The average number of in-force Family Takaful certificates also grew to 6.64 million in the recent period, up from 5.58 million in the earlier timeframe. Similarly, new business contributions averaged RM9.79 billion per year between 2022 and 2024, compared to RM7.08 billion between 2019 and 2021.

The industry also recorded growth in its agent base, with 92,866 active Family Takaful agents at the end of 2024, including 26,714 newly registered agents. Agency market share of new business increased to 25.56%, while bancatakaful’s share rose to 52.05%, up from 48.68% in the previous year. Despite an increase in the national population to 34.1 million, the Family Takaful penetration rate remained unchanged at 19.57%.

General Takaful contributions continued to expand, with gross written contributions reaching RM5.91 billion, an 8.46% increase year-on-year. Gross direct contributions rose by 8.41% to RM5.90 billion. Motor Takaful remained the dominant contributor to the segment, accounting for 68.77% of gross written contributions, which aligns with a record 816,747 new vehicle sales in 2024. Motor-related claims also made up the largest share of General Takaful claims, totalling RM2.04 billion, or 88.30%.

Other segments within General Takaful also showed varied performance. Fire Takaful contributions grew by 7.27% to RM1.00 billion, while personal accident coverage recorded RM388.00 million in contributions, representing a more moderate share at 6.56%.

In terms of distribution, the agency channel remained dominant, with its share increasing to 62.67%. Bancatakaful also grew to 13.63%, while internet-based sales rose to 6.58%, up from 5.79% in 2023. These developments were aligned with MTA’s Hijrah27 transformation framework, which aims to support digital innovation and wider access.

Commenting on the industry’s performance, MTA Interim Chairman Wan Saifulrizal Wan Ismail said that initiatives are ongoing to make takaful more relevant and accessible. “Our vision is for takaful to be attuned to the evolving needs of Malaysia’s diverse population, driving sustained industry growth. Strengthening collaboration, deepening public awareness, and advancing product and service innovation will remain our focus, all with the aim of extending protection to the underserved and ensuring every Malaysian has access to a reliable social safety net.”

He also highlighted the role of takaful in supporting broader financial planning. “From Family Takaful for personal and loved ones to General Takaful for assets, we urge all Malaysians to protect their financial wellbeing. The increased takeup in fire takaful is particularly relevant in view of the recent incident. Beyond this, we encourage homeowners and tenants to seek consultancy on home and home content protection for added peace of mind.”

In the first six months of 2024, the takaful industry channelled RM31.19 million in zakat towards social and ethical development initiatives. This represents more than 60% of the total zakat recorded for 2023. These contributions were directed to programmes aligned with the objectives of Shariah, focused on ethical outcomes and the well-being of communities.

The performance highlights ongoing efforts by industry stakeholders to strengthen participation in takaful as a tool for financial protection, while also supporting social impact goals through structured outreach and distribution strategies.

0 0 votes

Article Rating