Global Takaful Market - Market Research 2015-2019

September 30, 2015

Overview of the global takaful market

Takaful is a Sharia-compliant Islamic insurance product, where members of the community contribute money or a part of their earnings to a pooling system that guarantees against any loss or damage. The underlying principle of takaful portrays the responsibility of each to cooperate and protect each other. Technavio’s market research analysts predict the global takaful market to grow at a CAGR of around 19% during the forecast period. The robust macroeconomic environment factors and promising demographics in countries with a Muslim population are driving the growth of the market.

The market has ample opportunities in most of the Muslim countries as they have Islamic banks that provide a financially viable and competitive alternative insurance to its policyholders. Islamic banking cannot be fully Sharia-based unless there is takaful to take their insurance business. Consequently, these products are gaining acceptance in emerging markets such as Indonesia and Malaysia as the majority of their population are Muslims, who are more inclined to purchase Sharia-compliant products.

Segmentation by product and analysis of the takaful market

  • Global life/family takaful
  • Global general takaful

The life/family takaful segment accounted for nearly 60% of the market share during 2014 and is expected to reach USD 20 billion by the end of 2019. Life, medical and health, accident, and education plans comprise a significant portion of life/family Takaful product segment. The increasing awareness among Muslims about the benefits of life insurance is encouraging the use of financial products that follow Sharia principles. This in turn is providing opportunities for foreign vendors to partner with insurance companies providing takaful products and increase their market reach.

Geographical segmentation and analysis of the takaful market 

  • Gulf Cooperation Council (GCC)
  • APAC
  • ROW

The GCC is the largest market and is expected to reach USD 20 billion by the end of 2019. Countries like Saudi Arabia, United Arab Emirates (UAE) and Malaysia are predicted to be the high growth markets in this region. The changing regulation, growing affluence, and growth in organized savings amongst the local customers are the key drivers for the growth of the takaful market in this region.

Competitive landscape and key vendors

Most of the Takaful operators are concentrated in the Gulf region.  The takaful market is witnessing intense competition due to the low differentiation in the product offerings. The industry also has a dearth of technical expertise to develop and innovate new products.

The leading vendors in the market are –

  • Kuwait Finance House
  • Dubai Islamic Bank
  • Malayan Banking Berhad

Other vendors in the market include Bank Mandiri, HSBC Amanah Takaful, and PT. Asuransi Jiwa BRINGIN JIWA SEJAHTERA.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2019?
  • What are the key factors driving the takaful market?
  • What are the key market trends impacting the growth of the global takaful market?
  • What are the challenges to market growth?
  • Who are the key vendors in the takaful market?
  • What are the market opportunities and threats faced by the vendors in the takaful market?
  • Trending factors influencing the market shares of GCC, APAC, and ROW?
  • What are the key outcomes of the five forces analysis of the global takaful market?

Technavio also offers customization on reports based on specific client requirement.

Related reports