DUBAI: The takaful — Islamic insurance — sector has seen double digit growth, but remains underdeveloped compared to the Islamic finance industry, the World Takaful Conference heard on Monday.
The conference, at the Dusit Thani Hotel, saw the launch of the first Finance Forward World Takaful Report 2016. which provides a comprehensive overview of the state of the global takaful market.
“Takaful is a key pillar within the Islamic ecosystem,” said Abdullah Mohammad Al Awar, chief executive officer of Dubai Islamic Economy Development Centre (DIEDC) in his opening keynote address.
“Although a quantum leap cannot be expected in the takaful industry within a year, there have been a lot of strategic developments which will pave way for the growth of Takaful within the Islamic finance landscape.”
Sahar Kazranian, Acting CEO of Middle East Global Advisors, which produced the World Takaful Report, said it is based on expert analysis and feedback from the industry’s leading practitioners: “Our aim is to shed light on the opportunities and challenges that lie ahead for the Takaful market. The report provides a way forward to addressing various challenges ranging from price wars and pricing regulation, to closing the gap of human capital.”
She added: “We hope that this proves instrumental in helping the Takaful leader navigate the regulatory, economic, demographical and technological landscape in these uncertain and sometimes volatile economic times.”
Salmaan Jaffrey, chief business development officer at Dubai International Finance Centre, said Islamic insurance was getting wider acceptance in non-Islamic economies. “This growing momentum is expected to continue and expand its reach into emerging markets in the MEASA [Middle East, Africa, South Asia] region,” he said.
“Our goal as a leading financial hub is to create a dynamic Islamic financial system that will support this growth and contribute to the overall development of our economy.”
Dave Matcham, of the Islamic Insurance Association of London (IIAL), agreed the international market offered new opportunities for takaful.
Ebrahim Obaid Al Zaabi, Director General of the UAE Insurance Authority, said proper regulation was important. “Adhering to the regulatory requirements — ranging from adjusting the internal systems to appointing internal auditors and actuaries by 2018 — will be challenging for the Insurance and Takaful industry but will lead to its growth and stability,” he said.
The WTC audience comprised of high profile guests and dignitaries from organisations including Dubai Islamic Economy Development Centre, Dubai International Financial Centre, Islamic Insurance Association of London, Insurance Authority UAE, PwC, Moody’s, EY, Swiss Re, Munich Re, Noor Takaful, Watania and Emirates RE.
