KUALA LUMPUR: The Malaysian Takaful Association (MTA) voiced cautious optimism with regard to the takaful sector, anticipating a sustained momentum until 2024, supported by optimistic estimates of the nation's economic development, which range from 4.0 to 5.0 percent.
MTA highlighted the industry's tenacity by pointing out that it performed better in 2023 after experiencing strong post-pandemic growth in 2022.
Elmie Aman Najas, the chairman, emphasised the MTA's transformation strategy, Hijrah27, which aims to bring the sector and the wider Islamic ecosystem together and steer it in the direction of making takaful a dominant force in Malaysia.
He highlighted a four-year plan that aims to raise the profile of the takaful business and develop a new generation of industry players, with the ultimate goal of making it a household name.
Elmie listed favourable industry performance, increased awareness of takaful and financial literacy, and a supportive environment for Islamic finance and non-finance as additional elements that necessitated a comprehensive strategic transformation strategy.
This strategy, he said, aimed to take advantage of new opportunities and match the industry with changing dynamics.
This strategic approach will provide takaful with a vital boost that will enable it to continue on its current growth trajectory, he said during the 2023 takaful industry update, here recently.
According to MTA, Takaful operators disbursed a combined RM8.74 billion in 2023 to provide support to members, during hard time.
Family Takaful contributed RM6.79 billion in benefits, while General Takaful distributed RM1.95 billion.
According to Elmie, the total disbursement showed a 24.4 per cent increase, indicating the industry's commitment to supporting certificate holders and timeliness.
This payment was made possible by the Family Takaful gross contribution to business inforce, which increased from RM8.34 billion in 2022 to RM8.97 billion, or 7.55 per cent, growth.
A steady 6.6 million certificates were in effect in 2023, just short of the 6.63 million certificates that were registered in 2022.
Elmie pointed out that the data over the course of the three years indicates that the industry is expected to return to normal in 2023 after seeing strong growth in 2022 as a result of the pandemic.