Malaysia, Saudi Arabia to lead premium growth of global takaful sectorApril 13 2015 by InsuranceAsia News Staff
Malaysia and Saudi Arabia will take up the majority of the premium growth in the global takaful sector, which is expected to reach US$20bn by 2017, a special report released by A.M. Best showed.
The report, however, found out that while the takaful industry is growing rapidly on a global basis, operators in Middle Eastern markets, outside Saudi Arabia, are still struggling with growth and profitability.
AM Best sees significant opportunities for takaful operators given the huge global Muslim population but a number of challenges remain.
Among the challenges are market conditions that lead to fierce pricing competition, developing a niche market position and a loyal customer base, and achieving growth without compromising on profitability.
The report was based on an analysis of 14 Gulf Cooperation Council takaful operators and 24 conventional insurers in the United Arab Emirates.
- February 28
Mukesh Dhawan handed chief executive role.
- August 17
The move aims to boost its takaful and general insurance brand within the region.
- August 7
The Insurance Commission has said that the country is not yet ready to introduce Islamic insurance.
- July 9
Firms have not been able to differentiate themselves adequately from conventional insurance companies.