What drove takaful protection value growth from 2017 to 2018?

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Factors Contributing to Takaful Protection Value Growth from 2017 to 2018

The takaful industry experienced a notable increase in its protection value from 2017 to 2018, driven by several key factors including enhanced market penetration, the introduction of products that resonated with public demand, and strategic awareness campaigns. This growth was reflected in a 14.5 per cent year-on-year rise in takaful protection value, reaching RM324.2 billion in 2018 from RM283.1 billion in the preceding year.
Increased Market Penetration and Product Relevance

A significant contributor to the expansion of takaful protection value was the growing market penetration. In 2018, the industry successfully added 699,534 new certificate holders, marking a 4.6 per cent increase from the 668,657 new certificates issued in 2017. This expansion suggests a greater acceptance and adoption of takaful as a preferred protection option among the Malaysian population. This trend is further supported by the development of products that are specifically designed to meet the evolving needs and demands of the public, thereby increasing their appeal.
Impact of Campaigns and Promotional Activities

Beyond product development and market reach, targeted campaigns and promotional activities played a crucial role in driving the industry's performance. These initiatives, often undertaken in collaboration with partners, were instrumental in raising public awareness and understanding of the takaful concept. By actively engaging with potential customers and highlighting the benefits of takaful coverage, these efforts contributed to the substantial growth observed in both the overall protection value and new business contributions.
Performance of New Business Contributions

The growth trajectory was also evident in the new business contributions. For all certificates combined, new business contributions saw a significant rise of 13.1 per cent year-on-year in 2018, reaching RM4.91 billion compared to RM4.35 billion in 2017. While annual-contribution new business recorded a more moderate growth of 4.1 per cent, single-contribution new business experienced a substantial jump to 16.6 per cent in 2018, indicating a strong uptake in these specific product types.

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What drove takaful protection value growth from 2017 to 2018?

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