Islamic Insurance: Study shows growth of Takaful
Takaful is seen as a bellwether of consumer appetite for Islamic financial products.
DUBAI:
Growth of Takaful (Islamic insurance) business is rebounding, fuelled by improved economic conditions across its core markets and increased underwriting needs from the broader Islamic banking sector, a study found. Saudi Arabia and Malaysia command 70% of the business and are expected to retain that lead, but new markets are making headway, such as Oman, Pakistan and Indonesia. Takaful is seen as a bellwether of consumer appetite for Islamic financial products. Expansion of its core markets in the Gulf and Southeast Asia helped the sector reach $12.3 billion in gross contributions globally last year, the study by consultants EY showed. In previous years, inefficiency and intense competition have limited the sector’s expansion, and growth rates slowed around the turn of the decade.
Published in The Express Tribune, September 10th, 2014.
Growth of Takaful (Islamic insurance) business is rebounding, fuelled by improved economic conditions across its core markets and increased underwriting needs from the broader Islamic banking sector, a study found. Saudi Arabia and Malaysia command 70% of the business and are expected to retain that lead, but new markets are making headway, such as Oman, Pakistan and Indonesia. Takaful is seen as a bellwether of consumer appetite for Islamic financial products. Expansion of its core markets in the Gulf and Southeast Asia helped the sector reach $12.3 billion in gross contributions globally last year, the study by consultants EY showed. In previous years, inefficiency and intense competition have limited the sector’s expansion, and growth rates slowed around the turn of the decade.
Published in The Express Tribune, September 10th, 2014.