Research and Markets has forecast the global takaful market will grow at a CAGR of 16% from 2013 to 2018 on the back of growing market opportunities and new technical expertise. However, low awareness levels could pose a challenge.
The key vendors dominating this space are Dubai Islamic Bank, Kuwait Finance House, and Malayan Banking. Other vendors mentioned in the report, the Global Takaful Market 2014-2018, include Bank Mandiri, HSBC Amanah Takaful Malaysia, and Asuransi Jiwa Bringin Jiwa Sejahtera.
An analyst from the team said: "Geographically, there are not many large takaful operators operating internationally. In fact, there is a growing opportunity for takaful operators to start operations in full swing in geographies such as Europe, the Americas, and Russia. Governments in these geographies are highly recommending the uptake of takaful. Partnerships with banks will present a new and readily available distribution channel, which could open up a gamut of new opportunities for takaful operators to develop shari'ah-compliant bancassurance products."
According to the report, the rapid economic growth in emerging countries is a major driver as higher per capita disposable income has resulted in money available for purchasing takaful products. Countries such as Indonesia, Turkey, and Malaysia have a large Muslim population who are inclined to purchase products that comply with shari'ah principles while non-Muslims are showing an interest as well.