KUALA LUMPUR (July 24): Takaful operators disbursed RM2.24 billion in the first quarter of 2024 (1Q2024), with family takaful payouts at RM1.72 billion and general takaful payouts at RM514 million, said the Malaysian Takaful Association (MTA).

MTA chief executive officer Mohd Radzuan Mohamed said total family and general takaful disbursements rose by 4.9% in 1Q2024 compared to the same quarter last year.

Family takaful disbursements increased by 2.5%, while general takaful saw a rise of 13.6%.

“Comparing the pattern in 1Q2024 and last year, we observed 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 was increasing, much remained 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% household income category, including gig workers who lack insurance or takaful coverage.

He added that the takaful penetration rate stands at 20%, while that of conventional insurance is at 40%.

Previously, it was reported that the association aims to double takaful penetration to 40% in four years, from the current 20% 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 (from July 7), as it is now being finalised.

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