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Sunday, 17 June 2012

Malaysia the leader in the global family takaful market, with 73% market share

KUALA LUMPUR (June 12, 2012): Malaysia's family takaful market is expected to reach RM7.2 billion (USD2.4 billion) in the next two years, driven by growing awareness and increasing demand for savings and investment-driven products, Etiqa Takaful Bhd and Etiqa Insurance Bhd chief commercial officer Shahril Azuar Jimin said.
He said the size of the local family takaful market in terms of net contributions currently stands at RM4.2 billion, but is expected grow by another RM3 billion in the next two years.
"While stiff competition among takaful players places pressure on profitability, the family takaful segment can be seen as a long-term sustainable proposition with strong bottom-line returns," Shahril told reporters at the Third Annual World Takaful Conference – Family Takaful Summit 2012 here yesterday.
"Family takaful products have a significant opportunity to translate this positive trend into an impetus for on-going strong growth," he said.
He said the growth in this segment, especially in Malaysia, outpaces both the general takaful and conventional life insurance markets.
Between 2007 and 2011, he said, net contribution for family takaful increased at a compounded annual growth rate of 20%, overtaking the general takaful business.
He said there is significant room for growth given the large untapped market with only 54% of the country's population having a life insurance or family takaful policy.
Shahril said the growing agency force is also expected to contribute to the growth. There are now over 100,000 agents distributing family takaful products compared with only 10,000 agents 10 years ago.
He said the global family takaful market has been forecast to hit US$4.3 billion in the next five years. Its gross contribution in 2010 is estimated at US$1.7 billion, accounting for 20% of the total global takaful gross written premiums.
Malaysia remains the leader in the family takaful market, with a 73% share of the total takaful market, while the Gulf Cooperation Council (GCC) countries account for only 5%.
(The Sun Daily / 12 June 2012)

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