Takaful industry to see high growth

KUALA LUMPUR: The takaful (Islamic insurance) industry is expected to record high growth this year amid growing competition in the market this year.

Malaysian Takaful Association (MTA) chairman Mohd Tarmidzi Ahmad Nordin said the premium would continue to grow by as much as RM600mil to RM3bil this year compared with RM2.4bil last year.

This was expected to help realise the country’s vision of becoming an Islamic financial hub in the region and at a global level, he said.

“The issuance of new licences in the last two years has increased participation and the growth has been tremendous,” Tarmidzi told reporters at the launch of a campaign on increasing the level of awareness of Islamic financing here last Friday.

The positive development of the industry is in line with high sales for products related to mortgage, motor, medical and education in the market.

“With the country’s good economy, rising income of individuals, systematic marketing techniques and partnerships with foreign partners, we have been able to progress fast and provide choices to customers,” Tarmidzi said.

He said there would be some challenges for takaful operators due to people’s mindset of saving for the future. While there was a growing number of people aware of syariah-based insurance, it had yet to reach the society at large.

For this, he said takaful operators should continue to beef up various activities including awareness campaigns.