Takaful industry set to hit $10 billion mark

Takaful is widely becoming one of the most recognised forms of alternative insurance, rivaling conventional insurance brands.

In essence it works similarly to a mutual insurance fund, hence appealing to a global audience who prefer this form of ethical finance. It is especially attractive due to the mandatorily employed principles of ‘mutuality and transparency'.

Complaints surrounding the murky dealings in conventional insurance have promulgated Takaful and Retakaful products worldwide, giving rise to an appetite for Shariah compliant insurance products in a wide market.

In the spirit of forward growth the Middle East Business Forum, along with Afkar and IBFIM are bringing the Second Annual International Takaful Summit to the Jumeirah Carlton Tower in London, to be held from the 14th to 16th of July 2008.

The Takaful industry is broadly estimated at over $3.5 billion, for both life and non-life business cover. This industry is growing rapidly at over 20% annually but with careful management the growth will be exponential; and estimates indicate that the premiums are set to top the $10 billion by 2012.

The three fold aim of the summit shall be; education, in the form of a Master class to be held on the 14th of July, followed by a participatory conference for delegates on the 15th and 16th of July, interjected with a Gala Awards dinner, on the eve of the 15th, celebrating the success of the most influential companies dealing in Takaful and Retakaful.

Even though Shariah compliant insurance has shown immense development in the preceding years, the lack of information flow has hindered a number of investment deals and consumer growth has suffered.

The Master class, which is to be hosted by Lovells, is aimed at increasing attendee knowledge of the regulatory frameworks, demographic analysis of the size and scope of the market as well as the various Shariah issues that must be addressed thus bolstering the position of such individuals in the market through enhanced expertise.

There has been further evidence that networking opportunities are limited due to the culture gap, time difference and geographic distance between the Middle East, Asia and Europe. The conference to be held as part of the Takaful Summit is a brilliant opportunity for members of the Takaful and conventional insurance community to share acquaintance, bridging the gap that has made alternative forms of finance so inaccessible.

As astutely observed by Mr Kamsani Tati, Deputy CEO of the Tokyo Marine Retakaful with reference to the first summit, "I would like to believe that the Summit was successful based on the diversity of the participants and the lively exchanges between speakers and participants."

It has become obvious, that though a certain respect has been established for Islamic Finance products, not many institutions are willing to award hard work and excellence. Takaful is not given deserved credit with only a few awards handed out as cursory recognition of the industry.

The summit's awards dinner, a light hearted affair, presents the opportunity for leading business institutions to rejoice in their triumphs. It also gives institutional investors, asset managers etc. a chance to observe the best in the business in a social setting.

"I am passionate about Takaful, and want to make sure that those who risk entering the alternative services market in a business environment ruled by conventional finance, are given the due respect. Encouragement must be provided by those of us that wish to see Islamic products succeed. Further, acknowledgment of the fact that Islamic services are not limited to the Middle East and Malaysia, but a global phenomenon must be had", says Mohaned Abdullah of Middle East Business Forum.

‘I urge all institutions that feel they have made exceptional strides to advance the Takaful and Retakaful industry to go to the Takaful Summit website and enter to be considered for one of these Awards'.

The Takaful industry has witnessed paramount escalation in the past five years, and the figures are astounding. This niche market is now building roots strong enough to rival conventional finance in years to come. One of the main aims of the Second International Takaful Summit is to build awareness of the different products available, and the nearness of their availability world wide.

"Sudan is deemed to be the first home for Cooperative Insurance industry in the world, I always participate in the conferences exploring the most pertinent Takaful issues, especially the International Takaful Summit which we are very proud to sponsor and I look forward to being at the coming summit in London next July", commented Mr Osman El Hadi Ebrahim, Managing Director of Shiekan Insurance and Reinsurance Company, confirming the need for the dissemination of Takaful knowledge and markets through such events.