Takaful Sector Achieves 60 Pct Of Hijrah27 Targets, Aims For 100 Pct By 2027 - MTA

By K. Naveen Prabu

KUALA LUMPUR, April 8 (Bernama) -- The takaful industry has achieved 60 per cent of its targets under the Hijrah27 framework and is on track to reach full completion by 2027, according to the Malaysian Takaful Association (MTA).

Its chief executive officer, Mohd Radzuan Mohamed, said the industry is now targeting to achieve 80 per cent of the framework’s goals this year as part of its ongoing transformation efforts.

“Last year, we set a target of 60 per cent, and have already achieved it. This year, we are targeting 80 per cent, and we aim to reach 100 per cent completion by 2027,” he told Bernama on the sidelines of the Artificial Intelligence (AI) and Digitalisation Carnival, hosted by MTA in collaboration with the Insurance Collective Marketplace (TIC) here, today.

Launched in November 2024, Hijrah27 is the takaful industry’s framework outlining key initiatives to expand market reach, strengthen digital adoption and enhance industry capabilities.

The framework also aims to enhance professionalism among takaful representatives and promote initiatives aligned with environmental, social and governance (ESG) principles.

Meanwhile, Mohd Radzuan said the takaful sector has demonstrated strong readiness to adopt digital technologies, particularly during the COVID-19 pandemic.

“In fact, we achieved one of the highest growth levels, particularly in 2020 and 2021. Much of this growth can be attributed to our ability to perform during the COVID-19 period, when technology adoption accelerated,” he said. 

He added that the Customer Satisfaction Index for takaful customers improved significantly between 2018 and 2022.

 Mohd Radzuan said AI is expected to further enhance efficiency across the industry, particularly in areas such as operations, decision-making and customer engagement.

“What we look forward to is the takaful industry moving to the next level, with AI adopted across every value chain and process.

“With that, it will accelerate efficiency, particularly in how data is utilised and transformed into meaningful information to improve the industry, whether from an operational, decision-making or informational point of view. 

“However, I believe the biggest challenge lies within the industry itself, particularly whether we see the need to push forward. We cannot continue to position ourselves as followers; we must move ahead and lead in certain areas,” he said.

-- BERNAMA