KUALA LUMPUR: The domestic takaful industry disbursed RM10.2 billion in benefits last year, the highest on record, marking a 16.73% increase from 2023 as it continued to expand its role as a financial safety net for Malaysians.
Malaysian Takaful Association (MTA) interim chairman Wan Saifulrizal Wan Ismail said family takaful accounted for RM7.89 billion, or 77.37% of total benefits paid, while general takaful accounted for RM2.31 billion.
“The industry remained resilient despite population growth, with the takaful penetration rate holding steady at 19.57% in 2024. The number of in-force certificates rose to 6.69 million, following the issuance of 993,393 new certificates.
“Gross contributions for family takaful new business rose 1.48% to RM9.73 billion. Business in-force contributions climbed 7.2% to RM9.62 billion from RM8.97 billion the previous year,” he said at MTA’s media briefing on 2024 takaful industry performance today.
Wan Saifulrizal noted that over the 2022–2024 period, the industry saw an average annual increase of RM1.54 billion in benefit payouts, nearly 400% more than the RM393.34 million average recorded from 2019 to 2021.
“The growth was also reflected in the expanding agent force, with 92,866 active family takaful agents nationwide and 26,714 new agents added in 2024. Agents’ share of new business rose to 25.56%, while bancatakaful remained the largest contributor at 52.05%,” he said.
Wan Saifulrizal said the general takaful segment also grew, with gross written contributions rising 8.46% to RM5.91 billion, supported by strong vehicle sales. “Motor takaful remained the top contributor at 68.77%, with claims totalling RM2.04 billion. Fire takaful rose 7.27% to RM1 billion, while personal accident takaful moderated to RM388 million (6.56%).”
In terms of distribution, agency channels led with a 62.67% share, while internet sales grew to 6.58% from 5.79% in 2023, in line with MTA’s digitalisation agenda under its Hijrah27 transformation plan.
Wan Saifulrizal said the industry channelled RM31.19 million in zakat in the first half of 2024, over 60% of the RM50.83 million disbursed in the whole of 2023, towards social initiatives in line with syariah principles.
He said the figures reflected growing public trust in takaful as a means of protection.
“Our vision is for takaful to remain relevant and accessible while supporting the diverse needs of Malaysians. We encourage more people to take up coverage, especially in areas like fire protection, where awareness is increasing,” he added.
Looking ahead, Wan Saifulrizal said the industry is expected to maintain steady growth as it enhances product innovation, digital adoption and outreach programmes to drive participation from underserved segments, particularly in rural and lower-income communities.
“Promoting financial literacy and inclusion through education campaigns, agent training, and value-based intermediation efforts remains our priority, which aligns protection with broader social goals.”
Wan Saifulrizal emphasised the importance of protecting residential assets, including homes and their contents, in light of the rising number of fire-related incidents.
“Over the six-month period ending June 30, 2024, the takaful industry channelled RM31.19 million in zakat towards value-based social development initiatives. This represents more than 60% of the total zakat distributed in the entire year of 2023, which stood at RM50.83 million,” he noted.
Touching on the industry’s response to the Putra Heights fire incident, Wan Saifulrizal said MTA mobilised on-ground assistance on the same day, setting up service booths to assist affected residents.
Initial estimates by the Fire and Rescue Department placed the damage at RM65 million.
“Given the area’s demographics, many affected individuals are likely takaful participants. Claims are currently being processed, and the industry is committed to expediting, simplifying claims for those impacted,” he said.
On the challenge of medical inflation, which is expected to rise to 30% this year, Wan Saifulrizal said the industry supports Bank Negara Malaysia’s interim measures to cap contribution increases and ensure more affordable medical takaful plans.
“Structural healthcare reform is under way with stakeholders focusing on greater price transparency, efficient payment systems, expanding public healthcare access, and creating low-cost protection options to maintain sustainability,” he said.
