Islamic mutual insurance market to grow by 20 percent

March 14th, 2008 - 4:18 pm ICT by admin  

Dubai, March 14 (IANS) With an estimated annual growth rate of 20 percent, the 3rd Annual World Takaful Conference on mutual insurance here April 14-15 will focus on exploring the international market for Shari’ah-compliant insurance products, WAM news agency reported Friday. Takaful is an Islamic insurance system based on the principle of mutual assistance. It provides mutual protection of assets and property and offers joint risk-sharing in the event of a loss by one of the participants. Takaful is similar to mutual insurance in that members are the insurers as well as the insured.

The world takaful market is expected to grow $7.4 billion in global annual contributions by 2015.

The conference is organised in partnership with Dubai International Financial Centre (DIFC), which will feature industry heavyweights such as HSBC, Amanah Takaful and Islamic Arab Insurance Co. (Salama).

Parvaiz Siddiq, general manager of Salama, said: “The World Takaful Conference is the ideal platform to spread and educate the market about Takaful and its principles, since awareness is still low in the Middle East.”

Total premiums written by takaful insurers are projected to reach around nine percent of the world’s insurance market share by 2010. The Middle East market is reported to be growing at 15 to 20 percent a year.

With experts predicting a takaful boom, this year’s theme is: Expanding the International Market for Islamic Insurance: Product Innovation and New Growth Opportunities.

The event will provide practical insights into the next phase in the development of this rapidly growing industry. More than 200 international delegates will participate in the event.

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