PETALING JAYA: The Malaysian takaful industry recorded strong growth in the family takaful and general takaful businesses in the first half (H1) of 2021 compared to the same period in 2020 despite the challenges posed by the Covid-19 pandemic.

       Malaysian Takaful Association (MTA) deputy chairman Mohamed Sabri Ramli said this could be seen from the total contributions of the family takaful business, which increased 46.7% in H1 of 2021 to RM4.68bil compared with RM3.19bil in the same period last year.

       Of this growth, he said 36.7% arose from new business contributions.

       In line with the development, he said the new certificates issued for family takaful increased 56.2% to 348,833 certificates, of which 45.3% were attributed to new businesses.

       The annual new business contribution recorded the highest percentage growth of 88.6% at RM1.04bil.

       Meanwhile, the single contribution new business also increased 37.9% to RM3.64bil in the same period this year from RM2.64bil in the period of January-June 2020.

       “The total general takaful business contribution also grew 13.6% for the period to RM1.86bil, while the motor takaful business sector retained the largest market share of 62.5% from RM1.64bil in H1 of 2020.

       “MTA believes that this positive upward trend is due to several factors.

       “These include the strength of the takaful industry itself; an increase in the level of understanding and confidence in takaful among Malaysians; attractive and flexible product offerings from takaful operators; and the hard work, commitment and creativity of agencies/agents in wooing customers,” he said at the virtual Takaful Star Awards 2021.

       Mohamed Sabri said the penetration rate, a ratio of the number of family takaful in-force certificates to the total Malaysian population, increased to 17.1% from 16.9% in the same period in 2020.

       “This rate is expected to increase as awareness of the importance of takaful and insurance protection is rising as a result of the pandemic,” he said.

       Meanwhile, MTA chairman Elmie Aman Najas said despite the challenging situation, the takaful industry has offered employment and business opportunities to the people.

       This is evidenced by the registration of 34,248 new takaful agents in 2020.

       This is an increase of 33% compared to 2019.

       In H1 of 2021, he said a total of 27,741 candidates sat for the Takaful Basic Examination (TBE), which has been conducted virtually since April 2020.

       The TBE is a compulsory examination for any individual who wishes to register as a takaful agent.

       Elmie is confident that after weathering the pandemic challenges for almost two years, the Malaysian takaful industry is now in a stronger position to move forward.

       This is because it has become more aware, more prepared and more confident after having faced the adversities of the pandemic in the last two years. ― Bernama