Takaful is a system of insurance based on the Islamic principles of mutual assistance and donation and policyholders in a takaful arrangement agree to guarantee each other and make contributions to a pool or mutual fund instead of paying premiums. The pool of collected contributions creates the takaful fund and each participant's contribution is based on the type of coverage required and their personal circumstances. A takaful contract specifies the nature of the risk and the length of the coverage, similar to that of a conventional insurance policy. The takaful fund is managed and administered on behalf of the participants by a takaful operator charging an agreed-upon fee to cover costs. Moreover, the foundation of takaful is the idea of shared accountability and cooperation. To cover potential risks, policyholders combine their money into a takaful pool. The money is intended to make up for covered losses experienced by pool members. In addition, takaful insurance strictly restricts any participation in interest-based transactions, guaranteeing that the takaful company's financial operations are kosher with Sharia.
The takaful insurance market is driven by numerous benefits such as premium amount refund driving the growth of takaful insurance market through provides a number of advantages, such as premium amount refunds, which make it a desirable choice for people and companies looking for insurance coverage that adheres to Islamic beliefs. Premium refunds encourage openness and equity within the takaful system. According to the traditional insurance model, policyholders pay premiums to the insurance company, which is then allowed to profit from any payments that are not repaid. Takaful, on the other hand, runs on a cooperative model where participants fund a common pool to cover future losses. Furthermore, distribution of investment profit among both participants play a major for growth of the takaful insurance market. However, lower consumer awareness hamper the expansion of takaful insurance markets. In comparison to their conventional competitors, takaful companies make very less marketing and promotional efforts, which contributes to the lack of awareness. In order to inform clients about their goods, traditional insurance companies frequently run extensive advertising campaigns and maintain a significant presence in the media. The marketing and promotion budgets of takaful enterprises, on the other hand, could be less generous, which lowers their market visibility. Furthermore, lack of standardization in takaful insurance due to regional difference are hampering the growth of takaful insurance market. On the contrary, untapped market potential for takaful insurance represents a huge possibility for the industry's expansion. Takaful insurance is still not fully embraced in many areas with sizable Muslim populations and a growing middle class. By appealing to ethical and socially conscious consumers looking for alternative insurance solutions, there is also potential to reach outside of regions with a high Muslim population. Takaful insurance businesses may access a sizable consumer base, grow their market share, and promote the acceptance of Sharia-compliant insurance products by reaching out to these underserved sectors, which will spur industry growth and profitability.
The takaful insurance market is segmented on the basis of distribution, type, application and region. Based on distribution, the market is segmented into agents and brokers, banks, direct response, and others. By type it is segmented into family takaful, and general takaful. On the basis of application, it is segmented into personal, and commercial. By region, it is analyzed across GCC, MEA, Asia, and Rest of World.
The report analyses the profiles of key players operating in the takaful insurance market such as Abu Dhabi National Takaful Co., Allianz, AMAN Insurance, Islamic Insurance, Prudential BSN Takaful Berhad, Qatar Islamic Insurance, SALAMA Islamic Arab Insurance Company, Syarikat Takaful Brunei Darussalam, Takaful International, and Zurich Malaysia. These players have adopted various strategies to increase their market penetration and strengthen their position in the takaful insurance market.
The takaful insurance market is driven by numerous benefits such as premium amount refund driving the growth of takaful insurance market through provides a number of advantages, such as premium amount refunds, which make it a desirable choice for people and companies looking for insurance coverage that adheres to Islamic beliefs. Premium refunds encourage openness and equity within the takaful system. According to the traditional insurance model, policyholders pay premiums to the insurance company, which is then allowed to profit from any payments that are not repaid. Takaful, on the other hand, runs on a cooperative model where participants fund a common pool to cover future losses. Furthermore, distribution of investment profit among both participants play a major for growth of the takaful insurance market. However, lower consumer awareness hamper the expansion of takaful insurance markets. In comparison to their conventional competitors, takaful companies make very less marketing and promotional efforts, which contributes to the lack of awareness. In order to inform clients about their goods, traditional insurance companies frequently run extensive advertising campaigns and maintain a significant presence in the media. The marketing and promotion budgets of takaful enterprises, on the other hand, could be less generous, which lowers their market visibility. Furthermore, lack of standardization in takaful insurance due to regional difference are hampering the growth of takaful insurance market. On the contrary, untapped market potential for takaful insurance represents a huge possibility for the industry's expansion. Takaful insurance is still not fully embraced in many areas with sizable Muslim populations and a growing middle class. By appealing to ethical and socially conscious consumers looking for alternative insurance solutions, there is also potential to reach outside of regions with a high Muslim population. Takaful insurance businesses may access a sizable consumer base, grow their market share, and promote the acceptance of Sharia-compliant insurance products by reaching out to these underserved sectors, which will spur industry growth and profitability.
The takaful insurance market is segmented on the basis of distribution, type, application and region. Based on distribution, the market is segmented into agents and brokers, banks, direct response, and others. By type it is segmented into family takaful, and general takaful. On the basis of application, it is segmented into personal, and commercial. By region, it is analyzed across GCC, MEA, Asia, and Rest of World.
The report analyses the profiles of key players operating in the takaful insurance market such as Abu Dhabi National Takaful Co., Allianz, AMAN Insurance, Islamic Insurance, Prudential BSN Takaful Berhad, Qatar Islamic Insurance, SALAMA Islamic Arab Insurance Company, Syarikat Takaful Brunei Darussalam, Takaful International, and Zurich Malaysia. These players have adopted various strategies to increase their market penetration and strengthen their position in the takaful insurance market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global takaful insurance market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global takaful insurance market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global takaful insurance market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Application
- .Personal
- Commercial
By Type
- Family Takaful
- General Takaful
By Distribution Channel
- Agents and Brokers
- Banks
- Direct Response
- Others
By Region
- GCC
- Saudi Arabia
- UAE
- Bahrain
- Kuwait
- Qatar
- Oman
- Asia-Pacific
- Malaysia
- Pakistan
- Indonesia
- Brunei
- Rest Of Asia
- Middle East and Africa
- Iran
- Jordan
- Sudan
- Egypt
- Nigeria
- Rest of Middle East And Africa
- Rest of ME
- Turkey
- Sri Lanka
- Key Market Players
- Abu Dhabi National Takaful Co.
- Allianz
- AMAN INSURANCE
- Qatar Islamic Insurance
- Syarikat Takaful Brunei Darussalam
- Prudential BSN Takaful Berhad
- Zurich Malaysia
- Takaful International
- SALAMA Islamic Arab Insurance Company
- ISLAMIC INSURANCE
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: TAKAFUL INSURANCE MARKET, BY TYPE
CHAPTER 5: TAKAFUL INSURANCE MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: TAKAFUL INSURANCE MARKET, BY APPLICATION
CHAPTER 7: TAKAFUL INSURANCE MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the takaful insurance market was valued at $31.7 billion in 2022, and is estimated to reach $126.8 billion by 2032, growing at a CAGR of 15.2% from 2023 to 2032.The takaful insurance market is likely to experience a significant growth rate of 36.5% from 2023-2032 owing to rise in the need for optimum utilization of assets in takaful insurances
Takaful insurance is a type of insurance market that operates in accordance with Islamic principles. In takaful, participants place money into a pool for mutual financial support and insurance against a variety of hazards, such as mishaps, illness, or property damage, all while abiding by Sharia-compliant guidelines. Risk sharing, which divides earnings and losses among members, is the fundamental tenet of takaful, making it a moral and collaborative form of insurance. Furthermore, the takaful insurance market differs from the traditional insurance market in that it runs on Islamic principles. These rules prevent practices like interest-charging or interest-payment, undue uncertainty, and other things that are haram (forbidden) in Islam. Moreover, takaful is fundamentally built on the idea of shared risk and cooperation. Participants make regular payments (premiums) into a communal pot; they are frequently referred to as policyholders or members. This pool is used to cover any participant's losses or financial demands in the event of an unforeseen incident or risk, such as a medical condition, an accident, or property damage. In addition, operators of takafuls spend the money from the common pool in sharia-compliant, moral investments and steer clear of companies involved in activities like drinking, gambling, or the production of goods derived from pigs. This is consistent with Islamic financial principles, which place a high value on moral and ethical investments. Moreover, takaful providers work together, as opposed to traditional insurers, who want to make money for their shareholders. The participants divide any profits made from the takaful operations in a way that adheres to Islamic financial rules. This technique for sharing profits and surpluses promotes justice and teamwork.
The takaful insurance market is influenced by several major drivers, restraints, and opportunities. Growth in demand of takaful insurance across Muslim majority countries. As knowledge of takaful and Islamic financial principles has grown, more people and companies in Muslim-majority nations are beginning to comprehend the advantages of takaful insurance. Demand for takaful goods has surged as a result of this raised awareness. Furthermore, distribution of investment profit among both patricipants are driving the frowth of takaful insurance market by profit distribution normally follows a set formula that takes into account both participant contributions and the takaful fund's financial performance. As a result of increased trust and confidence in the system, both people and companies find it more attractive. However, Lack of standardization in takaful insurance due to regional differences is hampering the growth of the takaful insurance market. Because the regulatory structures and approaches to Islamic finance principles may differ between nations and regions, Since they must navigate various regulatory standards, this lack of harmonization might make it difficult for takaful operators trying to expand internationally to comply with regulations. Furthermore, lower consumer awareness raising the initial expenses even higher. The regulatory structures and approaches to Islamic finance principles may differ between nations and regions. Since they must navigate various regulatory standards, this lack of harmonization might make it difficult for takaful operators trying to expand internationally to comply with regulations.
Moreover, consumer confusion may result from regional variations in takaful language and procedures. The intricacies of various takaful products and providers could be difficult for prospective clients to comprehend, which could impede market expansion. On the contrary, untapped market potential for takaful insurance are opportunity for takaful insurance market, as areas and nations with considerable Muslim populations where awareness of Islamic financial concepts is rising, there is significant growth potential for takaful insurance. Takaful service companies can reach a wider consumer base by entering these underserved sectors. In addition, while takaful primarily serves the Muslim community, it also has potential among non-Muslims who could be interested in morally and socially conscious insurance solutions. Businesses and people looking for alternative insurance options can buy takaful providers' products. Hence, untapped market potential for takaful insurance presents lucrative opportunities for the takaful insurance market.
The takaful insurance market is segmented on the basis of type, distribution, application and region. Based on type it is segmented into family takaful, and genral takaful. By distribution, the market is segmented into agents and brokers, banks, direct response, and others. On the basis of application, it is segmented into personal, and commercial. By region, it is analysed across GCC, MEA, Asia, and Rest of World.
The report analyses the profiles of key players operating in the takaful insurance market such as Abu Dhabi National Takaful Co., Allianz, AMAN Insurance, Islamic Insurance, Prudential BSN Takaful Berhad, Qatar Islamic Insurance, SALAMA Islamic Arab Insurance Company, Syarikat Takaful Brunei Darussalam, Takaful International, and Zurich Malaysia. These players have adopted various strategies to increase their market penetration and strengthen their position in the takaful insurance market.
Companies Mentioned
- Abu Dhabi National Takaful Co.
- Allianz
- AMAN INSURANCE
- Qatar Islamic Insurance
- Syarikat Takaful Brunei Darussalam
- Prudential BSN Takaful Berhad
- Zurich Malaysia
- Takaful International
- SALAMA Islamic Arab Insurance Company
- ISLAMIC INSURANCE
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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