The increased level of awareness on the significant benefits and advantages of using Takaful products and services has become a major factor in the industry segment’s growth in the Middle East region, according to Hussein Al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN), an Islamic Insurance provider in the UAE, during his keynote address at the opening day of the World Takaful Conference, which is running until April 17, 2012 at the Dusit Thani in Dubai.
Meeza’s statement complements the recent Ernst and Young World Takaful Report, which shows that global Takaful contributions since 2010 has jumped by 19% in the last two years, reflecting a total value of over $8.3bn.
During his speech, AMAN’s CEO proposed a three point plan of action to help improve the business of local Takaful providers and maintain continuous growth for the Takaful segment.
Meeza’s three-point proposal includes the call to continue raising the level of awareness on the immense potential of using Takaful products; tap into newer markets and industry verticals and to invest more into research and development.
“The success encompassed by the Takaful segment can widely be attributed to the strategic management and adoption of today’s economic realities. The recent economic gridlock has given birth to new found consumer and corporate behavior—demonstrating a need to be well-versed on a product or service before making a purchase or sale decision,” said Meeza.
“This new consumer challenges the Takaful segment to roll out products and services with more intensity, coupled with more information and value additions. This is a new age for the Takaful market, where we have gone beyond investment income goals and thriving on intense competition. Today, as it should have always been, we give light to the needs and demands of our customers, with better understanding and empathy.”
One of the highlights of the two-day event was the presentation of the latest global report from Ernst and Young. Entitled ‘Industry Growth and Preparing for Regulatory Change,’ the report reveals that of the $8.3bn worth of global contributions, the GCC region contributed $5.68bn while South East Asia entered over $2bn. The global report has ranked Saudi Arabia as the largest Takaful market, contributing $4.3bn or 51.8% of the industry at an average contribution per operator of $141m. Malaysia grew 24% to reach contributions of $1.4bn at an average contribution per operator of $141m. The UAE is ranked third place with contributions of $818m, growing at 2%. AMAN is one of the Platinum Sponsors for the seventh edition of the World Takaful Conference. The event has positioned itself as the world’s largest annual gathering of Takaful industry leaders. With huge untapped growth potential in the Islamic insurance industry and the increasing interest of the leading conventional insurance players and major banks in the sector, the conference promises to be even more influential in charting the future direction of the industry.