Islamic insurance set for strong growth
Written by Adrie van der Luijt
Takaful growth has outpaced that in conventional insurance in most countries of the Middle East.
Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law.
Gulf cooperative countries (GCC) represented over 50 per cent of the value of global Takaful contributions of $2 billion in 2006.
Ernst & Young’s inaugural World Takaful Report 2008, launched at the Annual World Takaful Conference 2008, shows that 59 of the 133 Takaful operators worldwide are within the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
The report also forecasts that accepted contributions globally would rise to more than $4.3 billion in 2010 and that the 20 per cent annual growth rate of the industry would be maintained for the foreseeable future.
General Takaful, which includes Property & Miscellaneous Accident Takaful, currently accounts for approximately 50 per cent of written business globally and in the region.
1) Islamic insurance set for strong growth