What is the potential of the global takaful sector? What is the annual gross written contribution of the takaful market in 2020, and what is the projection in the next three years?
Dr Mazen Abou Chakra, managing director of Gen Re Life and Health in MENA and the East Mediterranean region, said that the annual gross written contribution in 2020 was around $21bn worldwide.
With the growing number of companies entering the takaful market, the Islamic insurance sector is expected to expand to $44bn by 2024, said Dr Mazen, speaking at a webinar hosted by Doha-based SEIB Insurance and Reinsurance on the Islamic insurance sector, The Peninsula reported.
Read: Takaful sector in Indonesia to see sustained contribution growth
Dr Mazen said takaful markets are mainly in Malaysia, Saudi Arabia and Iran, which together command around 80% of global takaful assets.
Another industry expert, Nohra Chaghouri, said, “In the mid-1990's, there were only seven takaful companies in Sudan, Dubai, Saudi Arabia, Bahrain and Jordan, and in 2016, this number increased to around 300 takaful companies.”
What is the meaning of takaful?
Takaful is a co-operative system of reimbursement or repayment in case of loss, organised as an Islamic or sharia compliant alternative to conventional insurance. Members contribute money into a pool system to guarantee one another against loss or damage.
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