By Harizah Hanim Mohamed
KUALA LUMPUR, July 24 (Bernama) -- Takaful operators disbursed RM2.24 billion in the first quarter of 2024 (1Q 2024), with Family Takaful payouts at RM1.72 billion and General Takaful payouts at RM514 million, said Malaysia Takaful Association (MTA).
MTA chief executive officer Mohd Radzuan Mohamed said total Family and General Takaful disbursements rose by 4.9 per cent in 1Q 2024 compared to the same quarter last year.
Family Takaful disbursements increased by 2.5 per cent, while General Takaful saw a rise of 13.6 per cent.
“Comparing the pattern in the first quarter of this year and last year, we observe a return to normalisation, with individuals resuming hospital visits and treatments they had delayed," he told Bernama.
Regarding the trend for the first half of this year, Mohd Radzuan noted that while adoption is increasing, much remains to be done in terms of financial literacy for emergencies.
“Although the adoption of takaful is rising, there is still a perception that insurance and takaful are not priorities.
“Consequently, they are often the first to be unsubscribed when individuals face trouble or plan vacations," he said.
He further explained that more efforts are needed to attract Malaysians from the Bottom 40 (B40) category, including gig workers who lack insurance or takaful coverage.
He added that the takaful penetration rate stands at 20 per cent, while conventional insurance is at 40 per cent.
Previously, it was reported that the association aims to double takaful penetration to 40 per cent in four years from the current 20 per cent under the Hijrah 2027 Strategic Plan.
“We are now moving to Hijrah27, a strategic plan for 2024-2027 aimed at transforming the industry, following the success of Islah23, which focused on reforming the sector," he added.
Mohd Radzuan emphasised that Hijrah27 is expected to be launched in the month of Muharram (beginning July 7) as it is now being finalised.
-- BERNAMA
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