A.M. BestTV: Takaful Market Secures Foothold in Malaysia

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FOR IMMEDIATE RELEASE

OLDWICK - JULY 18, 2016 10:59 AM (EDT)
In this ^A.M.BestTV episode, A.M. Best Senior Financial Analyst Salman Siddiqui explains how regulation has helped to boost growth in Malaysia’s takaful industry. Click on http://www.ambest.com/v.asp?v=takaful716 to view the entire program.

This issue is fully explored in a Best Special Report, titled, “The Dynamics of Takaful Markets Of the Middle East and Malaysia.”

“When I exclude the Saudi corporative insurance market, I’d say that the Malaysian takaful industry has been more successful in getting a strong foothold in this local insurance market,” said Siddiqui. “Looking at takaful penetration, which is a ratio of takaful contributions as a percentage of total gross written premiums in that market, the ratio for Malaysia is much higher, at about 15%, compared with an average of 8% for the entire Middle East. It is evidence of the strong level of traction that takaful has had in the Malaysian market. Malaysia’s success is all the more impressive when you consider that only 60% of Malaysia’s population is Muslim, compared with an average of 92% in the Middle East.”

Siddiqui said regulation has had a large role in Malaysia’s strong takaful traction.

“Regulation is one of the key factors here. Regulations are a very important factor in the development of any industry, as it allows market participants, investors, consumers and insurers, to actively partake in the development of that industry.”

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