KUALA LUMPUR: The takaful industry has paid out a total of RM7.02 billion in net claims in 2022, an increase of 25.9 per cent from the previous year of RM5.58 billion.
Out of this, family takaful recorded a total net claims payout of RM5.53 billion, up 23.09 per cent from RM4.50 billion in 2021.
General takaful recorded a total net claims payout of RM1.49 billion, an increase of 38 per cent from the previous year of RM1.08 billion.
The Malaysian Takaful Association (MTA) chairman Elmie Aman Najas said this demonstrated the industry's commitment to providing financial protection to its customers and the community as well as emphasised its contribution in supporting the economy.
MTA expects the takaful industry to maintain its growth momentum in 2023, albeit at a moderate rate, despite the country still being in the pandemic recovery phase.
"The industry remains committed to providing accessible and affordable takaful protection to all Malaysians, as part of its efforts to support the country's economic growth and development," Elmie said.
The family takaful achieved a penetration rate of 20.1 per cent in 2022 compared to 18.6 per cent in the previous year based on the number of certificates enforced against the total Malaysian population.
The industry's growth is driven by increasing demand for Islamic finance products and the acceptance of takaful products as preferred protection schemes.
The industry has also made significant strides in digital transformation, with many players offering online platforms for consumers to participate and Takaful operators to manage takaful products.
Elmie said MTA was witnessing a strong demand for takaful products, as more Malaysians recognised the importance of protecting themselves and their families against financial risks.
"The number of certificates in force for 2022 has increased to 6.63 million certificates, compared to 6.07 million in 2021," he said.
The family takaful market has shown strong resilience with annual takaful contributions of new businesses maintained above the RM2 billion mark, recording RM2.19 billion, albeit a slight decrease of 1.9 per cent compared to RM2.23 billion in 2021.
Overall, the family takaful new business industry registered RM10.06 billion in gross contributions, up 18.3 per cent from RM8.5 billion in 2021.
In parallel, a total of 1.31 million new business certificates were issued in 2022, a 15.6 per cent increase from the 1.14 million certificates in 2021.
Gross contribution of total business in force was RM 8.34 billion in 2022 in contrast to RM7.42 billion in 2021.