Research and Markets predicts that the takaful market in Malaysia will grow at a CAGR of 19% from 2013 to 2018 in a report titled Takaful Market in Malaysia 2014-2018.
The increasing geographic expansion of international takaful providers into Malaysia and an emphasis on Islamic banking are key trends, the analysts noted. Bank partnerships, which present a new and readily available distribution channel, open up new opportunities for takaful operators to write shari'ah-compliant bancassurance products.
According to the report, one of the major drivers in this market is the rapid growth of the Malaysian economy. Malaysia is one of
the fastest growing Southeast Asian countries, with a GDP growth of
approximately 5% per annum in recent years. The country has a large Muslim population that is already inclined to purchase products which comply with shari'ah principles, and increased disposable income with which to do it.
However, since takaful is a relatively new concept, many Islamic and non-Islamic segments of the country are not aware of takaful products and their benefits.
Key vendors dominating this space include HSBC Amanah Takaful (Malaysia), Malayan Banking, and Syarikat Takaful Malaysia. Other vendors mentioned in the report include Sun Life Financial, AIA AFG Takaful, AmFamily Takaful and Great Eastern Takaful.