Wednesday, 10 Mar 2021 04:40 PM MYTTelegramKUALA LUMPUR, March 10 — Malaysia’s takaful industry is likely to continue its steady growth this year thanks to government initiatives and a supportive Islamic finance ecosystem, Fitch Ratings said.
Correspondingly, Fitch expected takaful penetration to keep rising, supported by government initiatives to provide financial assistance for the bottom 40 per cent of income earners to purchase insurance and takaful coverage under the ‘Fitch said Malaysia’s vibrant Islamic finance ecosystem includes Islamic banks, shariah-compliant corporates, Islamic fund managers and halal industries that also seek takaful products, where bancassurance is one of the main distribution channels.
“Takaful firms can also invest their liquidity in diverse sukuk and other Islamic options,” it said in a commentary note today. The industry accounted for 38 per cent of the domestic life insurance market in the first half of 2020 versus 34 per cent in 2019, while general takaful accounts were stable at 16 per cent of the overall general insurance market.