Insurance

Global takaful sector to grow

The global takaful industry is well on course to surpass US$8.8 billion in contributions this year. Contributions grew by 29 per cent in 2008 to reach US$5.3 billion. Those are the conclusions of the Ernst & Young's World Takaful Report 2010: Managing performance in a Recovery, unveiled at the fifth Annual World Takaful Conference in Dubai. Saudi Arabia, with contributions totaling US$2.9 billion in 2008, and Malaysia with US$900 million are the top two takaful markets in the world. Sudan is the most significant market outside of the GCC and SE Asia, with contributions totaling US$280 million in 2008. ""Global compound annual growth rate for takaful for the period 2005-2008 has been 39 per cent - the Levant region and Africa grew at 18 per cent, the Indian Subcontinent at 135 per cent, SE Asia at 28 per cent and the GCC at 45 per cent," the report said. "Globally, performance has been mixed,"" said Ernst & Young Middle East Islamic financial services group head Sameer Abdi. ""Yields realized by GCC operators have been comparably high but volatile, while Malaysian operators have posted stable returns driven by better underwriting results. In terms of operating efficiency, average combined ratios of GCC firms have continued to improve and reached 72 per cent in 2009, indicating improving operational efficiency. The figures seem to indicate that while the industry may seem to be temporarily bogged down by market troughs, the long term outlook seems very positive," he added.

UAE seen driving global takaful market to US$8.8bn

Driven by the UAE and Indonesia, the world’s fastest growing markets for Islamic insurance, the global takaful industry is well on course to surpass US$8.8 billion in contributions in 2010, a report by Ernst & Young said. Contributions grew by 29 per cent in 2008 to reach US$5.3 billion. The UAE is the fastest growing takaful market in the world with a compound annual growth rate of 135 per cent from 2005-2008 while Indonesia rose quickest in South East Asia at 35 per cent. According to the report, Saudi Arabia, with contributions totaling US$2.9 billion in 2008, and Malaysia with US$900 million are the top two takaful markets in the world. Sudan is the most significant market outside of the GCC and SE Asia, with contributions totaling US$280 million in 2008.