General Takaful Sector On Track Of Reaching 20 Pct Mart Share In Insurance Industry By 2020

The general takaful industry is on track of reaching 20 per cent market share in the insurance sector by 2020 from 12.6 per cent now, said Hong Leong MSIG Takaful Bhd.

Head, General Takaful Operations, Suparno Ahmad, said although it was still new in the market, the industry was having an interesting moment among the industrial players and the implementation of the phased liberalisation would complement the industry with value-added products.

For example, the phased liberalisation of motor and fire tariffs will provide for the removal of tariffs through a phased approach.

In this new environment, the insurance and takaful industries will have the flexibility to offer motor and fire products with new features at market-based pricing which is based on the risk profile groups of the policyholder,? he told reporters at General Takaful Agents Convention 2017 here today.

The Malaysian Insurance Institute organised the one-day convention to discuss, address challenges and solutions in general takaful sector.

Earlier, Suparno gave a presentation on the industry’s performance and update on phased liberalisation.

He said the implementation was currently in an approach phase, to allow time for consumers and industry to adjust to the new operating environment.

Starting July 1 this year, insurers has progressively offered new products to the consumers at market rates? however, the existing motor third-party product and motor comprehensive and motor third-party fire and theft product will continue to be made available,? he said.

Suparno also quoted Insurance Services Malaysia Bhd, which said that upon the implementation of phased liberalisation, it could combat and reduce the number of frauds between 20 and 30 per cent.

Allianz General Insurance Co (M) Bhd was reported as saying that between 2014 and 2016 there were bogus insurance claims worth RM5.6 million.

It said insurance fraud was a growing concern in Malaysia and the company reported an average of at least six fraud cases per month between the two-year period.