Home Islamic Improved regulations spur Takaful growth

Improved regulations spur Takaful growth

Dubai

The profitability of Takaful insurers will stabilise after falling in 2017 due to heavy price discounting in the GCC countries, and rising claims in south east Asia, Moody’s said, noting that global demand for Islamic insurance is growing, helping premiums to rise and supporting profitability.
“We expect premiums to keep growing moderately in the next 2-3 years, and the industry will benefit from improved regulation,” said Mohammed Ali Londe, an analyst at Moody’s. “Takaful insurers’ profitability should stabilise in 2018 and 2019 after falling in 2017 due to discounting in GCC countries and rising claims in south east Asia.”
According to a recent insurance industry report, gross written premiums of the 30 publicly-listed conventional and Islamic insurance firms edged up marginally by 0.5 per cent to Dh21.9 billion in 2018, up from Dh21.8 billion in 2017.—Agencies