Takaful News - Middle East: New firms drive growth in takaful - Swiss Re

Source: Middle East Insurance Review | Jan 2016

The growth of takaful is expected to outpace that of conventional insurance in the coming decade, as Islamic insurance gains popularity with the launch of new and strongly capitalised companies in some countries in the Middle East, Turkey and Pakistan (METP) region, according to Swiss Re in a report.

Stringent and comprehensive regulations will be key for orderly sector growth, said the report, titled “Global Insurance Review 2015 and Outlook 2016/17”.

The main Islamic insurance markets in METP are Saudi Arabia and the UAE, which together account for more than 90% of total takaful contributions. In Turkey, the sector is still in its infancy but offers significant long-term opportunities.

While bancassurance is limited in most METP markets, it is becoming more popular, particularly for life products, the report noted. Bancatakaful is expected to play a major role in the development of the market as takaful products continue to gain acceptance.

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