KUALA LUMPUR: The Malaysian takaful industry demonstrated resilience in 2025, growing by 4.73 per cent in 2025, bringing total gross contributions to RM16.38 billion, according to the Malaysian Takaful Association.
Its interim chairman, Borhanudin Samsudin, said this reflects a stabilising post-pandemic trajectory and a significantly expanded base.
"Collectively, takaful operators paid out RM10.61 billion in benefits in 2025. Of this, 74.6 per cent, or RM7.91 billion, was disbursed by Family Takaful, while General Takaful honoured RM2.70 billion,” he said in his speech today about the performance of the takaful industry for 2025.
Borhanudin said acceptance of takaful products outpaced population growth, with 861,956 new Family Takaful certificates issued throughout 2025.
This brought the total to 6.74 million in-force certificates at the close of the year, after accounting for natural maturities, expiries, replacements and terminations over the same period.
"This is encouraging as there is improvement in absolute certificate-in-force numbers, compared to 6.69 million in 2024, signalling that industry efforts have encouraged more participants to maintain their contributions,” he said.
While it is a positive sign that more Malaysians have access to protection under takaful, the moderation from the 993,393 new Family Takaful certificates added in 2024 reflects a softer landscape for new business acquisition.
In terms of contributions, he said Family Takaful new business contributions recorded a flat but stable performance at RM9.74 billion in 2025, up by RM10.0 million from 2024.
Borhanudin said business in-force contributions expanded to RM10.15 billion from RM9.62 billion, largely sustained by endowment products within the individual ordinary family business segment.
The business in-force sum participated, meaning the value of coverage, also expanded, recording 4.47 per cent growth to RM1.62 trillion from RM1.55 trillion, signalling greater appreciation for takaful among Malaysians.
Overall, the Family Takaful segment maintained its solid position in the broader protection landscape, with new business contributions market share edging up slightly to 39.44 per cent from 39.16 per cent in 2024.
The takaful penetration rate held steady at 19.63 per cent amid Malaysia’s population expanding to 34.33 million (2024: 34.10 million).
"The penetration rate increased from 19.57 per cent, reflecting the industry’s continued efforts to expand coverage and maintain reach across a larger population base,” he said.
As for General Takaful, Borhanudin said its gross written contribution rose 12.38 per cent year-on-year to RM6.64 billion in 2025 from RM5.91 billion, driven largely by motor takaful.
It remained the largest contributor, accounting for close to 69.0 per cent (68.89 per cent) of gross written contribution, marking a 12.57 per cent expansion, reflecting continued demand for motor vehicle coverage.
The non-motor takaful business also expanded in 2025, rising 11.95 per cent compared with the previous year’s 2.19 per cent.
"Fire takaful recorded stronger uptake at RM1.11 billion gross written contribution, an increase of 10.43 per cent, while personal accident takaful rose to RM422.67 million, translating to an 8.93 per cent increase,” he said.
Agency remained the main channel for General Takaful distribution, representing 61.50 per cent of written contributions, which is slightly lower than the 62.67 per cent recorded in 2024.
Bancatakaful remained the second largest contributor at 13.37 per cent, a moderation from 13.63 per cent.
Takaful operators distributed RM1.30 billion in surplus and benefits to eligible participants in 2025, demonstrating how Takaful creates shared value where participants are partners in a system founded on mutual benefit and shared responsibility. - Bernama
