With seven Takaful companies currently operating in the UAE and five new Takaful providers set to launch shortly, the Takaful industry in the UAE has witnessed remarkable growth over the last five years.
Against this backdrop of unparalleled growth, experts from the local Takaful industry debated whether the rise of Takaful companies are enhancing or cannibalizing the local insurance market, at the 8th Middle East Insurex 2011.
Speaking at the panel session on Takaful on the second day of the conference, Ghassan Marrouche, General Manager, Takaful Emarat, said, "The Takaful growth rates speak for themselves- the CAGR of the Takaful market in the UAE was 135% from 2005- 2008 and this figure is set to increase, highlighting the fact that Takaful companies are positively contributing to the overall growth of theUAE insurance industry."
"Although Takaful is not a new concept, it's currently going through a revival. However, we still have a long way to go. Takaful companies need to focus on increasing distribution channels and implementing innovative sales and marketing initiatives to drive success and ensure the sustainability of the business in the long-term."
"At Takaful Emarat, apart from our direct sales force and brokers we are reaching out to 'affinity groups' in the community as an alternate distribution channel. With UNIQA Group, an established European insurance brand, as our strategic partner, we have been able to develop a targeted product designed exclusively for the German Emirates Club in the UAEwhich reaches around 85% of the German- speaking households in the country. This is just one of many ways that Takaful Emarat is looking at to diversify its distribution channels and reach out to a wider non- Muslim customer base," concluded Marrouche.
The recently concluded Middle East Insurex 2011, is one of the leading forums for principal players and regulators in the insurance industry, and took place under the patronage of Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and Industry, U.A.E.
source: AME Info