The global Takaful insurance market
Charting the road to mass markets
Achieving growth in the Takaful insurance sector and breaking through into the mainstream might be easier said than done. This is especially true because the Takaful industry faces enormous challenges to achieve growth and build mass coverage globally.
Yet, the growing industry has a number of opportunities to set the stage for both short- and long-term growth and achieve Takaful inclusion.
The prominence of concerns about market conduct around the world, and the emphasis placed on consumer needs and protection are increasingly driving us toward greater financial regulation, possibly as a means to restore confidence and the ‘trust’ buzzword among consumers. Martin Wheatley, CEO of the newly set up Financial Conduct Authority (FCA), which replaced the Financial Service Authority (FSA), asserts that “the FCA is there to make sure that consumers get well treated in financial markets, and that conduct of firms that provide products and services is beyond reproach.”
The discussion with industry practitioners yielded useful insights on practices and policy issues. Our analysis and assessment led to forming the debate on the future of the industry in ten key challenges worthy of attention from industry policy-makers and practitioners. We group these ten challenges into five industry disciplines. These interdependent challenges should be addressed by industry stakeholders to embrace leading practices and improve market conduct in the Takaful sector. Not every challenge applies to every Takaful firm and there are other challenges not explored herein.