 |
 |
 |
 |
 Global Islamic insurance sales rose nearly 20 per cent to US$8.3 billion (Dh30.48bn) in 2010, but opportunities still abound for further expansion, a new report has found. Takaful contributions in the UAE grew by 28 per cent to reach $818 million during the year, said Ernst & Young's World Takaful Report 2012. Add Comment  Over the past decade, Islamic finance has gained visibility especially with the ongoing financial crises, making the general public curious about its functionality and how it withstood the pressures of the global meltdown. Hawkamah, in its recently launched Policy Brief on Corporate Governance for Islamic banks and Financial Institutions, identified a knowledge gap concerning Sharia-compliant finance, which needs to be addressed as Islamic finance enters mainstream finance.  Global Islamic insurance contributions surged 19 percent in 2010 to $8.3 billion helped by Saudi Arabia, the world’s biggest oil exporter, which made up more than half the industry, an Ernst & Young report said. The six-nation Gulf Cooperation Council, which also includes the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait, made $5.68 billion of Islamic insurance or takaful contributions in 2010, and South East Asia $2 billion, according to the World Takaful Report 2012 e-mailed today.  Leading industry players, thought leaders and key regulators in the international Takaful (Islamic insurance) industry will take part in the 7th Annual World Takaful Conference (WTC 2012), which is set to be held in Dubai on April 16-17, 2012.
The two-day event, co-located with the 2nd Annual Middle East Islamic Finance and Investment Conference (MEIFIC 2012), will feature critical discussions on successfully tackling the challenges of an increasingly competitive global Takaful market and will analyse practical strategies that can effectively translate market potential into real growth.  Indonesia’s Shariah-compliant insurance assets increased by 32 percent to 9.2 trillion rupiah ($1 billion) in 2011 from a year earlier, according to data from the Capital Market and Financial Supervisory Agency.
Islamic insurance, or takaful, has grown by 50 percent on average in the last five years, the agency said in an e-mailed statement today. Takaful is based on the Koranic principle of mutual support where policy holders contribute a sum of money to a fund managed by the company for use in the event of a loss by one of its members.  Malaysia’s biggest Islamic insurers plan to expand in Indonesia, taking advantage of industry growth that’s almost three times the pace of their home market and increasing wealth in the world’s most-populous Muslim country.
Mayban Ageas, the nation’s largest insurer, is considering an acquisition in Indonesia, chief executive officer Hans De Cuyper said in a March 6 interview.  Takaful insurance across the Middle East and South East Asia has seen rapid growth over the past five years. Francesca Nyman reports on what the future looks like for this sector.
The takaful insurance industry has seen remarkable growth over the past five years. Global takaful contributions grew by 31% in 2009 to reach $7bn, and by the end of 2011 the market was thought to have a value of $12bn, according to Ernst & Young.  Oman’s Capital Market Authority (CMA) has revealed to The Times of Oman that it will favour standalone Takaful companies, which is against the window operations proposed for conventional banks.
"It looks like CMA may not allow window operations (of conventional insurance firms), rather allow standalone companies because conventional insurance is completely different from Takaful insurance. Most of our advisors are in favour of a separate entity," Abdullah bin Salem al Salmi, Acting Executive President of Capital Market Authority, told Times of Oman. He added that the minimum capital for promoting a Takaful insurance company is envisaged at OMR 10 million.  Takaful operators must focus on improving the quality of their product offerings, Takaful awareness and investment discipline to help in sustaining the rapid growth expected in 2012, said an expert.
Ghassan Marrouche, general manager at UAE-headquartered Takaful Emarat, a Shariah compliant life and health insurance company, will be a panellist at the forthcoming eighth Middle East Insurance Forum which is set to take place on the February 7 and 8 at the Gulf Hotel in Bahrain.  A shift from conventional to Takaful is underway in Kenya.
AMS Insurance Brokers, which sells Takaful and conventional insurance, said that inquiries from both Muslim and non-Muslim clients about Takaful services have increased. | 
|
RSS Feed