KUALA LUMPUR: The Malaysian Takaful Association (MTA) is cautiously optimistic about the outlook for the Takaful industry in 2024 despite external factors such as slowing global growth, slowing global trade and geopolitical tensions. ing.
MTA Chairman Elmy Aman Najas said at the Takaful Industry Performance 2023 that “after a difficult year, the country’s economic growth rate is between 4% and 5% (growth is expected this year), and in most sectors “It will be a boon to have positive forecasts for expansion.” Recent media briefings.
He said that the MTA will continue to play its role in raising the level of public and private awareness of Takaful products and services, positioning itself as a catalyst for the transformation and growth of the Takaful industry into the future. .
“We understand the importance of reliable and comprehensive protection to support our nation’s growth and development.”
In that regard, he added that the MTA has started formulating a Takaful industry transformation plan aimed at promoting Takaful, called Hijra 27.
“Hijrah27’s mission is to make Takaful well known in Malaysia, increase the market share or penetration of Takaful by 2027, and work with BNM to ensure that more Malaysians are protected. ‘The goal is to be a catalyst towards a significant contribution to the Financial Sector Blueprint (FSB),’ he said.
He added that Hijra 27 is a continuation of the successful completion of the 2022-2023 MTA reform plan known as ISLAH23.
He said the industry’s strong performance, rising awareness of financial literacy and the beneficial and more significant Islamic financial and non-financial ecosystem created by governments, religious authorities, BNM and MIFC have led to a comprehensive strategic transformation plan for the industry. He said that this has given rise to the need to formulate a. To adapt to this change and take advantage of the opportunities.
“We believe this strategic plan will provide impetus to Takaful growth and help maintain the growth momentum thereafter,” he said.
Elmie said that while Hijrah27 is still being developed by consulting partner Ernst & Young, MTA envisions uniting and guiding the industry and the entire Islamic ecosystem to work together towards the development of Takaful. Stated.
“While making it easier for Malaysians to participate in the ecosystem, the focus remains on collaboration, inclusive recognition, product and service innovation, and expanding the role of Takaful in the overall ecosystem.”
Takaful operators paid a total of RM8.74 billion in 2023. Family Takaful paid out RM6.79 billion in benefits, while General Takaful paid a total of RM1.95 billion.
Elmy said this 24.4% increase in payments demonstrates the Takaful industry’s responsiveness to new needs and the company’s dedication to quickly assisting certificate holders.
