Growing demand to support Islamic insurance premium growth

Tehran (IQNA)- Islamic Insurance (Takaful) industry is expected to experience improved premium growth this year.

Islamic Insurance (Takaful) industry is expected to experience improved premium growth this year supported by growing demand from key regions such as the  persian Gulf Cooperation Council (GCC), Southeast Asia and Africa, according to ratings agency Moody’s.

 

“We expect global takaful premiums to keep growing moderately in the next two to three years. In the GCC region, the largest market for Islamic insurance, the spread of compulsory motor and medical cover will support demand, as will economic activity linked to planned sporting and cultural events, such as 2020 Expo in the UAE and the 2022 Fifa World Cup in Qatar,” said Mohammed Ali Londe, AVP-Analyst at Moody’s.

Experts speaking at the 14th World Takaful & Insurtech Conference in Dubai earlier this month said despite the slow pace of growth in premiums, the industry has huge potential for expansion.

“According to the Islamic Finance Development Report 2018 by Thomson Reuters, the global takaful industry reached $46 billion in 2017. However, at just two per cent, it still remains the smallest contributor to the Islamic finance industry in terms of assets. This, despite that fact that currently close to 324 operators around the world offer Takaful. It is quite evident then that the takaful sector has tremendous potential to expand its role in the Islamic finance industry,” said Abdullah Mohammad Al Awar, Chief Executive Officer, Dubai Islamic Economy Development Centre (DIEDC).

 

Source: gulfnews