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