Global Takaful Market Forecast, Trend Analysis And Competition Tracking - Global Market insights 2015 to 2031

Takaful Market Overview

"The Takaful Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031."

Request Covid - 19 Impact

Takaful insurance is a type of Islamic insurance, which is often praised for its more equitable nature. In many countries, takaful insurance exists as a non-profit enterprise due to the lack of profitability of conventional insurance. A form of risk-sharing and mutual aid investment, takaful is a type of insurance that can be used to help manage uncertainty and financial obligations. It is an Islamic alternative to conventional insurance, which has been heavily criticized for not doing enough to prevent the overuse of fossil fuels and other environmental hazards.

Takaful is a type of Islamic insurance. It differs from conventional insurance in that it is built on social solidarity and responsibility principles. Takaful can be used to insure against risks such as death, disability, and illnesses. It also covers natural or man-made disasters such as floods or earthquakes, which can be financially devastating for someone who does not have the right amount of savings to cover living expenses after a tragedy. Takaful has been traditionally marketed to the Middle East, but now there are expanding into other countries that have large Muslim populations. Some of these countries include Nigeria, Indonesia, and Pakistan.

Factors That Have A Positive Impact On The Revenue Growth

Takaful is a type of insurance that provides protection against unforeseen events, like natural disasters. It is similar to traditional insurance but with one major difference: it does not work on the principle of the "risk pool." Instead, takaful works by taking individual deposits into a central fund. This system fosters accountability and responsibility among participants, as each participant's money will be used to compensate for any losses incurred by another member of the community.

Takaful is a type of Islamic alternative to conventional insurance. It is based on the principles of mutual cooperation, shared risk, and joint responsibility. Unlike traditional insurers, takaful companies don’t make money by investing in premiums; instead, they share profits with policyholders when their investments do well. Takaful benefits Muslims because it complies with Sharia law, which prohibits interest or gambling. This factor is expected to fuel the revenue growth of this target market.

In some countries with a Muslim majority population, such as Nigeria, Pakistan, Egypt, and Bangladesh, the Islamic insurance market is in the initial stage. This is also another factor that is expected to provide revenue growth opportunities for takaful companies in these countries.

Factors Limiting The Growth Of the Takaful Market

The limited availability of short-term non-equity financial instruments (such as Sukuk and treasury bills-compliant money market instruments) poses a further challenge for takaful insurance companies, which makes managing their investment portfolios more challenging than traditional insurance companies Because traditional insurance companies can simply invest in bonds and cash assets.

COVID-19 Impact on The Takaful Market

Source: Prudour, 2021

The unprecedented COVID-19 outbreak has had a moderate impact on the takaful market. As the pandemic has caused huge economic losses to individuals around the world, it has also severely affected the collection of takaful participants. In addition, due to the limited funds available during the pandemic, members cannot afford to donate large amounts of funds for takaful. However, consumers’ awareness of the importance of takaful insurance has surged, which has accelerated the demand for health takaful, family takaful, and commercial protection policies. Therefore, takaful was moderately affected by the COVID-19 pandemic situation.

Takaful Market Dynamics

The global takaful market is segregated into type, end-user, and regions. The general takaful segment is expected to register a relatively higher revenue growth over the forecast period based on the type segment. The individual customer segment is expected to register a relatively higher revenue growth over the forecast period among all the end-user segments. The global takaful market in MEA is expected to show significant revenue growth compared to other markets due to its well-developed services and facilities for individuals and families.

The takaful market is currently concentrated in Malaysia and the Middle East and has been experiencing significant growth. There are approximately 130 takaful companies operating globally, and nearly half of them are located in Gulf Cooperation Council countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. There are also many players operating at the regional level including takaful companies from Bangladesh, Hong Kong, Indonesia, India, Sri Lanka, Pakistan, Singapore, South Africa, China, Egypt, Iran, Israel and Russia.

Competitive Landscape

The Takaful market landscape appears highly consolidated, with a major chunk of it being dominated by below players.

• Islamic Insurance Company
• JamaPunji
• AMAN
• Salama
• Standard Chartered
• Allianz
• Prudential BSN Takaful Berhad
• Zurich Malaysia
• Takaful Malaysia
• Qatar Islamic Insurance Company
• Other Key Industry Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Segments Covered

The Global Takaful Market, By Type

• Family Takaful
• General Takaful

The Global Takaful Market, By End-User

• Individual Customers
• Corporate Customers