Why Regulations, Awareness and Crossover Can Boost Takaful Growth

Takaful (Islamic insurance) is one of the pillars of Islamic finance markets but its growth requires further impetus. Takaful accounted for USD46 billion of global Islamic finance assets in 2017, up by 4.5% from 2016*.

Bashar Al Natoor
Mar 12 · 4 min read

Traditional & Takaful National Companies

Gross written premium by line of business

Annual Report for The Insurance Sector of the UAE 2017

Conclusion

The takaful industry still faces numerous challenges as it strives to grow its footprint in markets dominated by conventional firms and where insurance penetration is low. However, recent and developing regulatory changes like making health insurance compulsory in parts of the Middle East could provide a meaningful boost for takaful growth in the medium term as compulsory health insurance spreads across the region. Bahrain will introduce compulsory health insurance in 2020 and Kuwait is also working on similar new laws. This could be accompanied with increased awareness and education around insurance in general and Islamic insurance in particular which could enable the sector to become more established.

Also published in Gulf News

Why? Forum

Commentary from Fitch on why we think what we think.

Bashar Al Natoor

Written by

Global Head of Islamic Finance at Fitch Ratings

Why? Forum

Commentary from Fitch on why we think what we think.