KUALA LUMPUR: The takaful industry has demonstrated resilience in 2025, growing by 4.73% in 2025, bringing total gross contributions to RM16.38bil, 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 RM10.61bil in benefits last year.
“Of this, 74.6%, or RM7.91bil, was disbursed by Family Takaful, while General Takaful honoured RM2.70bil,” 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 RM9.74bil in 2025, up by RM10mil from 2024.
Borhanudin said business in-force contributions expanded to RM10.15bil from RM9.62bil, 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% 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% from 39.16% in 2024.
The takaful penetration rate held steady at 19.63% amid the population expanding to 34.33 million (34.1 million in 2024).
“The penetration rate increased from 19.57%, 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% year-on-year to RM6.64bil in 2025 from RM5.91bil, driven largely by motor takaful.
It remained the largest contributor, accounting for close to 69% of gross written contribution, marking a 12.57% expansion, reflecting continued demand for motor vehicle coverage.
Additionally, the non-motor takaful business also expanded last year, rising 11.95% compared with the previous year’s 2.19%.
“Fire takaful recorded stronger uptake at RM1.11bil gross written contribution, an increase of 10.43%, while personal accident takaful rose to RM422.67mil, translating to an 8.93% increase,” he said.
Furthermore, agency remained the main channel for General Takaful distribution, representing 61.5% of written contributions, which is lower than the 62.67% recorded in 2024.
Bancatakaful remained the second largest contributor at 13.37%, a moderation from 13.63%.
Takaful operators distributed RM1.3bil 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
