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UAE Takaful firms catching up with conventional peers

Dubai

Islamic insurance, or takaful, continues to grow in the UAE, catching up with conventional insurance in recent years and experiencing improved profitability, according to a report by insurance ratings agency AM Best.
In 2018, UAE-listed insurers recorded gross written premiums (GWP) of AED21.9 billion (US$5.96 billion), with takaful contributing AED3.7 billion (US$1.01 billion), the report said. Conventional insurers’ GWP dipped by 0.5% year-on-year, but was offset by 5.8% growth in the takaful segment’s gross written contributions (GWC). As a whole, the UAE market’s overall premiums grew by 0.5% in 2018.
However, despite decent GWC growth, takaful amounted to a stable 17% market share. Due to the country’s predominantly Muslim population, AM Best said that takaful companies in the market have under-delivered on their ability to gain market share, lagging behind Islamic banks.–Agencies