Islamic insurance industry to grow 15 percent annually

Malaysia Sun (IANS) Tuesday 10th April, 2007

Abu Dhabi, April 10 (Xinhua) The Islamic insurance (takaful) industry in the Gulf region is expected to grow 15 percent a year, Gulf News reported Tuesday.

'There is clear evidence of growing demand for insurance in the Gulf Cooperation Council (GCC) region ... Takaful premiums should grow at more than 15 percent annually,' said Abdullah Kubursi, regional vice-president of American International Group (AIG).

Kubursi spelled out the forecast at the World Takaful Conference opened in Dubai Monday, citing that the regional economies are booming and the regulatory frameworks are becoming global in nature.

Insurance penetration in the Muslim world is estimated to be less than five percent while Muslims account for more than 25 percent of the total world population, Kubursi said.

Currently the total global conventional insurance premium is worth $1.6 trillion, accounting for 99.3 percent of the total global insurance premium, while takaful represents just 0.7 percent ($11 billion).

According to AIG's estimates, the GCC region has a potential for a gross premium of more than $20 billion but currently it is below $4.5 billion.