Zurich Financial Group Ltd (Zurich), Switzerland’s biggest insurer, has not ruled out venturing into the takaful business in Malaysia. However, it is rather unlikely to expect Bank Negara Malaysia to issue new takaful licence after giving out new licences to four new players in 2009. There maybe opportunities when the takaful industry adopts the Risk Based Capital framework in 2014. By then, takaful operators that do not meet the minimum capital requirement would either have to inject more capital or consolidate.
Malaysia’s contribution to the global takaful industry is expected to increase to US$2.4 billion (RM7.4 billion) this year from US$1.4 billion (RM4.3 billion) in 2011, according to Ernst and Young. Takaful business in Malaysia is still small in terms of scales compared with Indonesia.
Malaysia’s contribution to the global takaful industry is expected to increase to US$2.4 billion this year from US$1.4 billion in 2011. Although Malaysia’s takaful market is growing at 20-25 per cent annually, it still has plenty of room to grow as the penetration rate is still low, at about 11 per cent.
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