Published on: Sunday, May 08, 2011
Kota Kinabalu: Deputy Chief Minister Datuk Seri Panglima Yahya Hussin urged Sabahans to participate in the takaful business sector as it has huge potential to expand.
He said at present the penetration rate for the conventional insurance business is just a low 42 per cent while for takaful it is eight per cent.
"Both sectors have much room and opportunities for participation," he said in his speech at the launch of E-Murni Sdn Bhd as the official Family Takaful agency, by Great Eastern Takaful Sdn Bhd and the Armed Forces Cooperative Bhd at Putatan Platinum Plaza, near here, Saturday.
Yahya, who is also the Agriculture and Food Industry Minister, said although faced with various challenges such as low interest rates, a rise in the cost of claims and volatile financial market conditions, the performance of the industry is on the whole very positive.
"Through measures taken to improve capital and risk management, the insurance industry as a whole has at present taken a leap," he added.
He said detailed and comprehensive financial planning will help everyone build and create a better financial standing.
"As part of the financial planning, financial protection plays a key role.
As such, insurance has a role in protecting us when faced with a financial crisis while ensuring the burden is lightened and fully assisted.
"For those with families and dependants, by purchasing insurance, it will protect and guarantee their future should anything unexpected happen," he added.