S&P said the market for takaful insurance and reinsurance, which complies with Islamic Sharia law, is supported by high levels of growth and an increase in profitability profitability.
In a report, “Takaful Insurance Has Long-Term Viability and Benefits from Expected Growth, but Stiff Competition Exists,” S&P said particularly strong growth is likely in Malaysia and the Gulf Cooperation Council states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates
One area of concern is the lack of risk-based regulatory supervision of the takaful sector, particularly in the GCC region. This means the sector lacks “the growing sophistication of risk management and capital demand increasingly found in Europe and North America,” according to the report.
Source : Businessinsurance.com