The report also ranks the UAE in third place in the global Takaful market, which was reportedly worth over $640 million in 2009.
Further, property and aviation insurance policies are also expected to emerge as fast growing segments of the general insurance sector.
Takaful operators have returned better results than their Malaysian counterparts. However, they have suffered through the crisis from having aggressive investment strategies. Returns have again picked up in 2010 after a significant fall during 2008 and 2009. Takaful operators retain more business than conventional insurers due to focus on less complex business classes and potentially excess capacity.
On a whole, the GCC industry cedes more to reinsurers than Malaysian players. This broking approach causes excessive reliance on investment returns to generate profitability.
source: The Saudi Gazette