Etiqa Grows

The family takaful sector in Malaysia is expected to record a 20% growth in premium over the next two to three years, said Etiqa Takaful Bhd. Last year the segment registered total premiums of RM4.5bil, out of which 37% was contributed by Etiqa Takaful.

Etiqa Takaful chief executive officer Ahmad Rizlan Azman said the market penetration rate for the family takaful segment in Malaysia was still low at 11%, compared with conventional life insurance, which was at 55%.

“The growth of family takaful in Malaysia has outperformed the growth in conventional life insurance. Given the large untapped market that still exists and the low penetration rate, there is significant room for the growth of family takaful in the country,” he said on the sidelines of the fourth World Takaful Conference: Family Takaful Summit Malaysia, here yesterday.

The two-day event is a platform for market players to gather and share insights into the key challenges as well as opportunities in the Malaysian family takaful market.

Meanwhile, Rizlan said the anticipated growth in premium registration would also be enjoyed by Etiqa Takaful, as the company was the leading takaful operator in the country.

Etiqa Takaful commands 60% of the family takaful market and 50% of the general takaful sector.
Last year the company’s overall gross return premium amounted to RM2.4bil, out of which 60% was derived from the family takaful business.