Global Takaful could hit $25bn in 2015

DUBAI—Global Takaful contributions are expected to touch $12 billion at the end of this year, and could reach$25 billion at the end of 2015, said experts at international Takaful summit concluded recently in London.

By (Wam)

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Published: Wed 20 Jul 2011, 7:32 PM

Last updated: Tue 7 Apr 2015, 4:37 AM

This is a steep rise from the Takaful contributions of $9.15 billion in 2010, pointed out Ernst & Young’s experts at International Takaful Summit 2011.

“If we continue with the 2009 growth rate of 31 per cent or higher, we will clearly touch the $25 billion mark in 2015. We expect that growth will be maintained, as the foundations of the Takaful market in Muslim countries and in emerging markets have already been laid,” said Ashar Nazim, Mena head of Islamic Financial Services, Ernst & Young, terming Takaful “the default choice for Islamic countries”.

The Takaful market is only one per cent of the global insurance market at present, even though Muslims make up 20 per cent of the global population.

“In addition to emerging markets, Muslim countries are expected to increase the adoption of Takaful and related instruments in the coming years. We expect Takaful to be the default choice for Islamic countries in the future,” added Nazim.

The Takaful industry today is concentrated mainly in the Mena region and in Malaysia, but its future growth markets are the most populous countries of Indonesia and the Indian subcontinent, followed by the African sub-continent and the CIS countries, he said.

UAE, Saudi Arabia and Malaysia are the top three Takaful markets, while Egypt, Sudan, Bangladesh and Pakistan are growing at a rapid pace.

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