Dubai: The Islamic insurance industry in the region is projected to grow at 15 per cent per annum during the next eight years, a senior industry executive said at the World Takaful Conference (WTC), which opened in Dubai yesterday.
"Insurance penetration in the Muslim world is estimated to be less than five per cent while Muslims account for more than 25 per cent of the total world population.
"Considering the huge demand from the region, Takaful premiums should grow at more than 15 per cent annually," said Abdullah Kubursi, regional vice-president, AIG addressing a session on "Seizing the Growth Imperative: How can Takaful Operators Capture Growth Potential?" at WTC.
"There is clear evidence of growing demand for insurance from the GCC region as the regional economies are booming and the regulatory frameworks are becoming global in nature. There is a huge potential for growth for Islamic products in this part of the world as Muslims are becoming more affluent and aware of the advantages of takaful," said Kubursi.
Currently the total global conventional insurance premium is worth $1.6 trillion accounting for 99.3 per cent of the total global insurance premium while takaful represents just 0.7 per cent ($11 billion).