Mideast accounts for 46% takaful sales

According to the Bahrain Insurance Association, the international takaful market is growing at 15 to 20 per cent per annum.

Figures revealed at the recently-held World Insurance Forum show that Shariah-compliant insurance is growing at a far faster rate than conventional insurance in the Middle East region, with the takaful sector expanding by more than 20 per cent year-on-year, compared to standard annual premium growth of about 2.5 per cent a year.

 

However, increasing levels of consumer demand will need to be supported by higher levels of consumer support and more tailored products if the market is to achieve its full potential, according to experts from the largest financial adviser of the region.

“What we’re seeing in the market is that more consumers are being drawn to Islamic financial products because of ethical reasons, and also because they sometimes offer better protection than standard policies,” said Bashar Khatib, sales director at Nexus, which provides life and general insurance services. “For the consumer to benefit fully from the increase in the market size, such growth needs to be accompanied by an increasingly sophisticated product range, as well as the provision of the level of customer support that is provided by conventional insurance packages,” he added.

Nexus is increasingly engaged in helping to introduce more sophisticated Shariah-compliant products in the market.

Mahmoud Nodjoumi, CEO of Nexus, said: “A major part of Nexus approach is to combine our strong understanding of the needs of the local market with international standards of service and support. Takaful insurance is an area where this approach is particularly important.”