The number of takaful operators worldwide has increased to 200, with four additional companies entering the segment compared to 196 the previous year, latest figures in 7th World Islamic Insurance Directory (WIID) have shown.
The four new takaful companies originated from North Africa, with the recent socio-political changes in the region proving positive for the nascent development of Islamic finance. Overall, the GCC continues to lead the way with 77 operators followed the Far East with 40.
Few years after the introduction of Takaful Insurance to boost insurance penetration in Nigeria, performance of the policy has been above average.
Speaking on the new Insurance option, Vice-Chairman Chartered Insurance Institute of Nigeria (CIIN) Oyo State Chapter, Babatunde Omosola, stated at the 2013 media retreat in Ibadan, Oyo State that Takaful Insurance has attained about 70 per cent penetration in the country.
The second day of the 7th International Takaful Summit, which is being hosted by Egypt for the first time, kicked off today.
The first session discussed takaful prospects for the African market, which panel members said had huge potential but also posed challenges which must be faced and met by the takaful industry if it is to get a foothold on the continent.
Inconsistent regulation across the Gulf's takaful (Islamic insurance) industry is hurting profit margins and credit ratings, while leaving the door open to regulatory arbitrage, according to global insurance rating agency A.M. Best.
New rules in Oman and updated ones in Bahrain are expected this year, but lack of coordination among regulators is making life difficult for takaful operators, said Vasilis Katsipis, Dubai-based general manager for market development at the firm.
Because Takaful companies are competing for the same market as conventional insurers, with much the same product offering, local markets could come under strain, according to Vasilis Katsipis, General Market of Market Development for A.M. Best
Takaful is growing faster than traditional insurance, which increases the competition to conventional insurers, according to Katsipis. “Very few Takaful companies have actually focussed in developing new offerings, they are competing with a Shari’ah-compliant product for the same type of business,” he explained.
The development of Takaful regulation in the GCC varies significantly country by country, creating an uneven playing field, according to a new report from A.M. Best.
The levels of policyholder protection differ from one state to another, which has created opportunities for Takaful operators to pursue regulatory arbitrage, according to a new report from A.M. Best Co. This special report maps the provisions for Takaful regulation in the GCC and identifies the implications for policyholder protection and its impact on A.M. Best ratings.
The Sharia-compliant takaful (insurance) industry is on the rise, with the sector forecast to be worth US$12 billion (Dh44bn) at the end of last year, according to a report by Ernst & Young. The UAE is one of the biggest markets for takaful and it is available to Muslims and non-Muslims alike.
Abdulfattah Nasri explains what it's about and why it could be a good option for people seeking ethical insurance products.
The draft law for Islamic insurance or takaful firms and amendments in Capital Market Law for accommodating Sharia compliant debt instrument or sukuk have been finalised. This will be enacted after it completes the routine regulatory approvals from different government entities, said Abdullah bin Salem bin Abdullah Al Salmi, Executive President of the Capital Market Authority (CMA).
Takaful “ the Islamic alternative to conventional insurance “ represents a radical new insurance business model that is firing a potentially very big emerging market in the MEA. Now in it's third year, the Middle East and Africa Insurance Summit, will be held on 14-15 January 2013 in Dubai, UAE.
The MEA insurance market is characterised by a large number of players in a limited market. With a majority of these being unregulated, there exists a cut-throat price war; demanding a need to set up effective regulations that will see the desired consolidation and fuel commercial growth. Takaful “ the Islamic alternative to conventional insurance “ represents a radical new insurance business model that is firing a potentially very big emerging market in the MEA.
Tokio Marine Middle East Ltd, the Dubai-based regional hub of Japanese insurance giant Tokio Marine, plans to launch its new Saudi joint venture which will spearhead its activities in the Kingdom and beyond.
Ajmal Bhatty, President and CEO, Tokio Marine Middle East Limited, confirmed to Saudi Gazette that the Alinma Tokio Marine KSA, the joint venture between Tokio Marine Middle East; Saudi Basic Industries Corporation (SABIC), the world’s largest petrochemicals exporter; Saudi Arabia’s Alinma Bank; and some local smaller investors, will start operations very soon. The new company is capitalized at SR100 million.