Malaysia and Indonesia Takaful Market Report

Market Overview:

The Malaysia and Indonesia takaful market is expected to exhibit a growth rate (CAGR) of 15.4% during 2023-2028.

Takaful stands for a shariah-compliant insurance system that is based on the Islamic concept of mutual sharing. It represents a mutual risk transfer arrangement in which the members contribute a sum of money to support each other in case of loss, theft, or damage. The takaful policy holders regularly contribute on a monetary basis, which is supervised and managed by a takaful management firm. Several Southeast Asian countries, such as Malaysia and Indonesia, represent a significant rise in the number of institutions offering Islamic financial services, such as takaful.

The rising implementation of the Life Insurance and Family Takaful Framework by several government bodies across Malaysia and Indonesia is currently propelling the market for takaful insurance. Furthermore, the growing popularity of sharia-compliant services based on the wide presence of the Muslim population in these countries is also driving the market growth. Additionally, the changing consumer inclination from commercial insurance services towards takaful insurance products as the former violates the restrictions on interest, uncertainty, and gambling principles which are outlawed in sharia, is further catalyzing the product demand across Malaysia and Indonesia. In line with this, several international insurance companies are introducing Islamic financial services to cater to the traditional beliefs and culture of the customers in these countries. Apart from this, numerous relaxations on foreign ownership rules along with the rising adoption of takaful insurance products among the non-Muslim population as an ethical investment policy, will continue to drive the market growth in Malaysia and Indonesia over the forecast period.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the Malaysia and Indonesia takaful market report, along with forecasts at the country and regional level from 2023-2028. Our report has categorized the market based on insurance type and distribution channel.

Breakup by Insurance Type:

• Family Takaful
• General Takaful
   

Breakup by Distribution Channel:

• Offline Channel
• Online Channel
   

Breakup by States:

• Malaysia
  • Johor
  • Kedah
  • Kelantan
  • Kuala Lumpur
  • Labuan
  • Others
• Indonesia
  • Jakarta
  • East Java
  • West Java
  • Central Java
  • Riau
  • Others

Competitive Landscape:

The competitive landscape of the industry has also been examined with some of the key players being AIA Group Limited, Asia Capital Reinsurance Group Pte. Ltd. (Catalina Holdings (Bermuda) Ltd.), Etiqa General Takaful Berhad, Hong Leong Msig Takaful Berhad, MAA Group Berhad, Munich Re Group, Prudential BSN Takaful Berhad, Sun Life Malaysia, Syarikat Takaful Malaysia Keluarga Berhad and Takaful IKHLAS (MNRB Holdings Berhad).

Report Coverage:

Key Questions Answered in This Report:

• How has the Malaysia and Indonesia takaful market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Malaysia and Indonesia takaful market?
• What are the key regional markets?
• What is the breakup of the market based on the insurance type?
• What is the breakup of the market based on the distribution channel?
• What are the various stages in the value chain of the industry?
• What are the key driving factors and challenges in the industry?
• What is the structure of the Malaysia and Indonesia takaful market and who are the key players?
• What is the degree of competition in the industry?