RAM Ratings: Malaysia’s Takaful Industry to be Supported by Robust Capitalisation in 2020

Greater volatility and growing credit risks to investments owing to the on-going COVID-19 pandemic are anticipated to impact Malaysia’s Takaful industry for 2020, according to RAM Rating Services (RAM Ratings). The rating agency expects that low interest rate environment will also strain the capital position of Takaful players if the negative duration gap between assets and liabilities widen.

Given that the economic impact of the on-going pandemic is expected to be only temporary with a gradual recovery anticipated by end-2020, RAM Ratings forecasts Malaysia’s Takaful players to steer through the crisis buoyed by their robust levels of capitalisation. According to the latest available official data, as at en...