The growth trajectory of Malaysia’s takaful sector is set to remain higher than conventional insurance, especially in the family takaful segment, according to domestic ratings agency RAM Rating Services.
However, the penetration rate of family takaful is at 15%, much lower compared to the 41% of conventional life insurance.
“Amid expectations of a delicate economic recovery, general insurance gross premiums growth is anticipated to stay below 2% in 2017. Meanwhile, subdued consumer sentiment and inflationary pressures will slow the pace of life insurance gross premiums growth to about 5% this year,” said the report by RAM.
