IslamicFinance.de

Takaful is set to grow in Turkey, with its predominantly Muslim population showing increasing interest in Islamic finance products and the government keen to support their growth. However, insurance of any kind can be a hard sell in Turkey, with the population generally averse to insurance cover and penetration levels as low as 1.4%. Consultancy firm Ernst & Young (E&Y) has identified Turkey as a new market for sharia-compliant insurance. E&Y suggests a number of hurdles have to be removed before such products could take off, with supply-side constraints and a limited legal infrastructure for Islamic finance currently hindering growth.

Fola Daniel, head of the National Insurance Commission (NIC), said the Nigerian insurance market has the capacity to become the biggest in Africa and one of the largest globally. However, a recent study shows that penetration rates of products and services offered by insurance companies are low. In order to achieve a higher coverage, the acceptance of insurance among the wider public needs to be increased. The rising purchasing power of many Nigerians may allow the industry to deepen its penetration and lift earnings.