Growth and profitability prospects for takaful operators vary significantly by markets and sectors, depending on the market’s economic maturity, industry and regulatory structure.
Despite volatility in financial markets, there appears to be growth momentum in three key markets: Saudi Arabia, United Arab Emirates (UAE) and Malaysia. Acquisition of market share, however, has not necessarily translated to profitability in many instances.
Regulatory enhancements have opened new opportunities in rapid-growth markets such as Turkey and Indonesia. The challenge is to build on the lessons earned from core Islamic finance markets to expeditiously address latent demand.
Malaysia has emerged as the world’s largest family takaful market. With a proven model and regulatory clarity, the country is set to further build on this leadership position.
There is a dearth of takaful operators who are able to provide leadership to the growing internationalization of the industry. There is a need for regional champions as a starting point.
Download Report: EY Global Takaful Insights 2014 (745KB)
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