Solidarity Family Takaful yesterday said it has signed a marketing agreement with Nexus for takaful products in Bahrain.
Demand for takaful products –which are compliant with key Islamic tenets and based on the concept of shared responsibility – in the Middle East has increased sharply in recent months, with clients appreciating the benefits of transparency and security of such products, as well as their adherence to Islamic ethical expectations, the statement said.
In 2008, the global takaful market was estimated to be worth $2.3 billion (Dh8.4bn), with the Middle East accounting for 46 per cent of total sales, according to the Bahrain Insurance Association. International growth of the takaful market currently stands at between15 and 20 per cent per annum.
Nigel Watson, General Manager of Nexus Bahrain, said: "The takaful market is becoming increasingly sophisticated in response to customer demand, providing an equivalent level of return to conventional financial products, as well as a high level of transparency and flexibility."
The takaful portfolio will include products such as education, start and retirement plans having protection, saving and investment features, as well as takaful pure term life and other Shariah-compliant protection plans.
Gopi Rao, General Manager of Solidarity Family, said: "We are seeing an increased demand for customised takaful products in Bahrain. As part of our commitment to offering flexible products, we are working with regional insurance experts such as Nexus to further develop advanced products suitable to client requirements in Bahrain." Nexus is confident that takaful will emerge as one of its most popular lines over the next 12 months.
"We believe demand for this product range will continue to rise," said Watson.