MTA: Takaful industry remains resilient in 2020 despite pandemic

KUALA LUMPUR (April 8): The new business contribution for all family takaful certificates increased by seven per cent to RM6.59 billion in 2020 from RM6.16 billion in the previous year despite the challenges brought on by the Covid-19 pandemic, said the Malaysian Takaful Association (MTA).

The association said in a statement today that new takaful protection value increased by 21.4% to RM461.7 billion from RM380.2 billion previously.

“The family takaful new business single gross contribution registered RM5.09 billion in 2020, an increase of 4.9%, from RM4.85 billion in 2019.

“The annual gross contribution of family takaful new business grew 14.8% to RM1.5 billion in 2020 compared with RM1.31 billion in 2019,” said MTA.

As a whole, it said the takaful industry added 839,358 new certificates in 2020, marking a significant growth of 14.4%.

MTA newly-elected chairman Elmie Aman Najas said the penetration rate of the family takaful industry, a measure of the number of enforced certificates to the total Malaysian population, increased to 16.9% in 2020 from 15.9% in 2019.

The industry’s takaful protection value reached to RM1.1 trillion, up 14.5% from 2019.

The MTA said the gross written contribution of the general takaful business increased 4.4% year-on-year (y-o-y) to RM3.46 billion, with the motor takaful portfolio remaining at the top position with a 66.1% share of the portfolio mix.

“This promising growth is evidenced of the positive outcome from the reopening of the economy under the government’s pandemic recovery efforts, especially during the third and fourth quarters of 2020,” he said.

Meanwhile, Elmie, who is also AIA PUBLIC Takaful Bhd chief executive officer, was elected for the 2021- 2023 MTA chairmanship.

He succeeds Muhammad Fikri Mohamad Rawi who had served the maximum constitutional term of four years as association chairman.