Takaful in Kuwait could ‘face a tsunami’ unless proposed legislation put forward in 2005 is brought into effect, according to Dr. Mahmoud Behbehani, professor of insurance and actuarial science at Kuwait University.
Speaking to Kuwaiti national news agency KUNA, Dr. Behbehani noted that Takaful insurance is forecast to post noticeable growth at the international level but warned of potential difficulties in the domestic market-place in Kuwait.
Takaful instalment payments in Kuwait are now running at approximately KWD 180 million ($646 million) per year and the number of Takaful companies in the country has risen to 28. Dr. Behbehani warned that the Kuwaiti authorities need to decide on a strategic approach to the sector, either halting the issuance of Takaful licences in order to allow existing operations to grow and become successful or allowing further licences to be issued to boost competition, accepting what that may mean for those which do not succeed.
source: CPI financial