Takaful Segment Dominates Malaysia’s Insurance Industry

Stable domestic consumption and growing consumer awareness have allowed Malaysia’s Takaful industry to enjoy faster growth than the country’s conventional insurance sector.

Data from Fitch Ratings showed that in the first half of 2019, family and general Takaful premiums rose by 29.6% and 16.4% YoY, respectively. In the same period, conventional life insurance in Malaysia grew 12.2% YoY, with the general insurance sector declined 1.3% YoY.

The Takaful sector is also gaining market share in Malaysia’s domestic insurance market with family Takaful comprising 35% of the overall life insurance market based on new business premiums in the first half of 2019. This figure...