Takaful market grows despite Covid-19, Malaysia praised

In an interview with Fitch Ratings’ Islamic banking and insurance global head Bashar Al Natoor, Parker learnt that the creation of an Islamic finance-enabling ecosystem in Malaysia is the key driver of the takaful industry’s growth in the country. “This makes Malaysia a leading model for the sector, especially in light of the Muslim-dominated make-up of the untapped population segment, ” according to Al Natoor.

PETALING JAYA: The takaful market in Malaysia is showing steady growth and “in a very obvious way is overtaking conventional insurance” despite global financial and insurance sectors having been hit by the pernicious Covid-19 pandemic, says a London-based independent economist and writer.

In a commentary, Mushtak Parker said while the market share of Islamic banking of the total banking sector is just under 40%, the share of takaful is way behind at 16% of the total insurance sector in Malaysia.