KUALA LUMPUR: The takaful industry has further growth potential, especially in strengthening its role in promoting sustainable economic development and advancing social justice.
According to Bank Negara Malaysia deputy governor Adnan Zaylani, the takaful market has experienced significant growth, with takaful contributions almost tripling over the past decade, now comprising 24.7 per cent of the combined insurance and takaful market share.
"The industry has diversified with players and solutions involving the very needs of households and businesses.
"In 2023, the total net contributions grew to RM17.3 billion, an increase of 6 per cent compared to the previous year.
"While much has been accomplished, the takaful industry can grow more, particularly in elevating their role in achieving sustainable economic growth and enhancing social justice," he said in his keynote speech at Malaysia Takaful Association's (MTA) launch of Hijrah27.
Adnan said with Malaysia's growth prospects and ongoing government structural reforms, the subsidy rationalisation and enhancements in social protection, significant opportunities are there for the takaful industry to grow and deliver a meaningful change.
Additionally, Adnan said there is still a substantial protection gap, particularly for vulnerable segments and climate-related risks.
He also urged the takaful industry to address this need through value-based intermediation, guided by Shariah core values emphasising justice, transparency, and inclusiveness.
"Embracing Maqasid Shariah as a guiding principle ensures all aspects of our business align with these foundational values, even as we grow.
"The recent release of the Maqasid Shariah Scorecard (MSS) is a valuable tool, allowing operators to self-assess their journey towards these goals.
"MSS is more than just a tool; it represents a commitment to a vision of Islamic finance that emphasises community welfare," he added.
Furthermore, Adnan said that 2025 Budget has allocated grants to encourage integrated takaful solutions.
"Therefore, I call upon takaful operators to stand ready with effective strategies and work cohesively to reach any outcome and drive success."