Gulf Daily News
By JENNIFER GNANA
MANAMA: With the changing political environment in Islamic governments emerging in North Africa, the global takaful industry is set for growth from these markets.
“Islamic governments coming up in Libya, Tunisia and Egypt are set to make significant contributions to the global takaful industry,” Arab War Risks Insurance Syndicate president Ashraf Bseisu said.
“It is not to say that conventional insurance will be overruled.
“In Morocco earlier, takaful was not encouraged but with the changing political climate in the region, it will boost Islamic insurance in the Middle East and North Africa together with the conventional insurance,” he added.
The African takaful industry, which is worth $11.8 million, ranks third globally.
“The African takaful industry is booming because of Sudan,” he said.
“Sudan has one of the oldest takaful industries and all the insurance in the country is Sharia-compliant,” he added.
In the Western markets on the other hand, demand continues to grow because of two distinct types of customers.
“There are two segments in the West the takaful industry caters to,” said Mr Bseisu, who is also Solidarity Group Holding chief executive.
“There are significant Islamic populations who prefer banking with Sharia-compliant products.
“There is also the other segment of secular or religious people who choose ethical products from companies that don’t invest in tobacco or alcohol or gambling industries.
“The West has definite potential and needs to be further developed to sustain the massive takaful market,” he said. “Products need to be structured diligently and properly to ensure success of the industry,” he added.
