74
life/family licenses. These transformations are mandatory requirements under the IFSA 2013
and Financial Services Act 2013 (BNM, 2018).
6.1.3. Growth Trends
The significant reforms introduced over the years have led to substantial growth in the Takaful
market llustrates the growth of Family and General Takaful business in Malaysia. The
total Family Takaful new business contributions grew by 13.1%, from MYR 4.35 billion in 2017
to MYR 4.91 in 2018. In 2018, the annual contribution for new business showed moderate
growth of 4.1%, while single contribution new business jumped to 16.6%. The total Family
Takaful business contributions grew by more than 11.8% to MYR 4.86 billion in 2018 and
increased by 4.6% fromMYR 4.74 million in 2017.
According to the Malaysian Takaful Association, the Takaful industry added 699,534 new
certificate holders in 2018, 4.6% more compared to 668,657 new certificates in the year 2017.
Meanwhile, the General Takaful industry had a decent growth of 8.9% with gross contribution
amounting toMYR 2.79 billion compared to MYR 2.56 billion in 2017. Motor Takaful contributed
to a portfolio mix 62.3%, followed by fire - 20.1% and other classes - 17.2% (MTA, 2018).
Motor Takaful recorded a gross contribution of MYR 1.74 billion in 2018, up by 14.6% compared
to MYR 1.52 billion in 2017, on top of strong car sales performance.11
FIGURE 13: DYNAMICS OF GENERAL AND FAMILY TAKAFUL IN MALAYSIA
(A) Family Takaful New Business
Gross Contribution & Growth (%)
(B) General Takaful Total Gross
Contribution & Growth (%)
Source: Adopted from The Edge Financial Daily (March 11, 2019)
11 The Edge Markets (n.d.) Malaysia’s 2019 Takaful growth to stay moderate. Available on:
Accessed on: 22/08/2019
-4
-2
0
2
4
6
8
10
12
14
0,00
1,00
2,00
3,00
4,00
5,00
6,00
2014 2015 2016 2017 2018
MYR billion
Family Takaful Growth
0
2
4
6
8
10
12
14
0,00
0,50
1,00
1,50
2,00
2,50
3,00
2014 2015 2016 2017 2018
MYR billion
General Takaful Growth