Global Takaful premium to reach $20 billion by 2017

The significant premium growth in the global takaful sector is expected to continue and reach $20 billion by 2017, with the majority of that increase coming from Malaysia and Saudi Arabia, according to A M Best. A M Best said in its report that despite the rapid growth of takaful on a global basis, it has struggled to take hold in Middle East markets, other than Saudi Arabia, which are considered to be concentrated with a few large players dominating their respective markets. Moreover, a number of challenges remain, including market conditions that leave takaful operators subject to fierce pricing competition from more established insurers that benefit from brand awareness and more established distribution networks.