Maintaining Growth with Profitability Remains Key
Challenge for Global Takaful Industry
More than 350 international Takaful leaders gather in Dubai for the 7 th Annual World
Takaful Conference (WTC 2012)
Dubai, United Arab Emirates: 16th April 2012: The 7th Annual World Takaful Conference
(WTC 2012) witnessed a high profile opening today at the Dusit Thani, Dubai. Confirming its
position as the world’s largest annual gathering of Islamic insurance industry leaders, WTC
2012 gathered more than 350 international decision-makers from over 150 organizations
for discussions that focused on improving the competitive performance of the global Takaful
industry and managing the essential shift towards sound underwriting profitability. Colocated with the 2nd Annual Middle East Islamic Finance and Investment Conference (MEIFIC
2012), the two day event was inaugurated with a special keynote address by Abdulla
Mohammed Al Awar, Chief Executive Officer of Dubai International Financial Centre
Authority, who focused on new growth horizons for the international Takaful market.
Delivering his inaugural address, Abdulla Mohammed Al Awar, Chief Executive Officer of
Dubai International Financial Centre Authority said that “as a global financial hub, it's critical
that we promote Islamic finance, and continue our efforts in creating an environment which
eases the development and integration of Sharia-compliant products into global financial
markets. Currently, 9% of our regulated firms endorse Islamic business models. There are
tremendous growth opportunities yet to be fully tapped, and such conferences raise
awareness of the importance of insurance and Takaful, and are vital to growing this sector.”
The inaugural keynote address was immediately followed by a special opening keynote
plenary session. The session featured insights covering the industry across the Middle East
and Asia from Dr. Saleh Malaikah, Chairman, Rusd International Holding Group and Vice
Chairman & Chief Executive Officer of SALAMA Group; Hussein Al Meeza, Managing Director
and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN); and
Hans De Cuyper, Executive Director and Chief Executive Officer, Mayban Ageas.
Addressing the gathering, Hussein Al Meeza, Managing Director and Chief Executive Officer,
Dubai Islamic Insurance and Reinsurance Company (AMAN) said that “with the Takaful
segment expected to continue growing by leaps and bounds, the future of the industry looks
very bright and promising. In order to ensure that the industry maintains its growth levels, it
is essential to raise the level of awareness on the significant benefits of using Takaful
products and services. It is also vital that collective efforts should be made to strengthen
underwriting capabilities. In addition to this the industry players should also tap into newer
markets and industry verticals and should also act upon the downward price pressure that is
brought about by increased market competition.”
He also said that “in order to drive Takaful towards achieving its full potential, industry
players should also make considerable investment into research and development as the
strength of the industry lies in its ability to identify and capitalize on what makes this market
segment grow. Having a better grasp of their demands and requirements will lead us in
developing solutions that can be very advantageous for them.”
Speaking to the media present at the event, David McLean, Chief Executive of the World
Takaful Conference said that “Takaful operators are yet to fully achieve critical business
volumes despite having incurred substantial establishment costs. Increasing competition
from not only new Takaful players but also well established global conventional insurers
entering the Takaful market space, is putting immense pressure on the profitability of many
existing players. However, with the Takaful industry being currently concentrated only in
limited markets, segments and business lines, there is huge potential that is yet to be
realized.”
“Given the exciting growth opportunities for the Takaful industry in two of its key markets,
the Middle East and Asia, we are delighted to announce the launch of two new regionally
focused Takaful events building on the success of the annual World Takaful Conference as a
global summit. The World Takaful Conference: Asia Leaders Summit, which will be held in
Malaysia in June this year, and the Middle East Takaful Forum, which will be held in Bahrain
in October 2012, will create platforms to drill even deeper into the core issues driving the
regional development of Islamic insurance in these respective high-growth markets.”
The eagerly anticipated 2012 edition of the Ernst & Young World Takaful Report was also
launched at the event. The Report, developed in collaboration with Ernst & Young, was
presented at a specially convened plenary session at the conference. With a principal focus
on ‘Industry Growth and Preparing for Regulatory Change’, the Report findings noted that
the Takaful industry continued to show double digit growth in 2011 albeit at a relatively
slower rate of 19% as compared to previous years. According to the Report, Malaysia and
the UAE again achieved growth rates of over 24%, whilst Saudi Arabia saw its gross
contributions increase by US$0.5bn. The Report also noted that the Takaful industry has
now obtained significant market share versus conventional insurance in most GCC countries
as well as South East Asian markets. Though there are a number of drivers behind this
growth, the one that is becoming increasingly important is regulatory support through
appropriate amendments in legislature to provide a level playing field with conventional
insurance companies.
The World Takaful Exhibition, which was held along the sidelines of the conference,
showcased the latest products, services and innovations from over 30 exhibitors.
Commenting on their participation at the World Takaful Conference, Dr. Saleh Malaikah;
Chairman, Rusd International Holding Group; Vice Chairman & Chief Executive Officer,
Salama Group said that “with an expanding global footprint, the Takaful industry is well
placed to further capitalize on the industry’s tremendous growth potential. However in
order to ensure that we sustain the impressive growth rate, which the Takaful industry has
enjoyed over the last few years, it is essential to resolve certain critical issues which may
hamper the industry’s long term growth. With increasing competition from large-scale
conventional players and new players entering the market, maintaining scale, operational
efficiency and profitability will become increasingly key issues for all industry players.
SALAMA has been a key partner of the annual World Takaful Conference since its inception.
The event, over the last 7 years, has played an important role in facilitating dialogues that
shaped the growth of the industry and we are once again delighted to be supporting this
prestigious event to enable the world Takaful industry to achieve further success.”
A similar view was expressed by Ghassan Marrouche, Chief Executive Officer of Takaful
Emarat – Insurance who said that “in the next five years, global Takaful premiums are
predicted to grow rapidly with Takaful companies aggressively expanding and providing
innovative and value-added products and services. The Takaful market’s growth is largely
dependent on how we can make meaningful engagements with the larger community and
how to educate them about Takaful as an advanced and ethical way to invest for their
future.
“We are glad to support the World Takaful Conference 2012, for the second consecutive
year, as their “Life & Health Takaful Partner”. Through these forums, we can continue
engaging in an open dialogue on the development of the industry with well-respected
colleagues. Takaful Emarat is committed to raise awareness about the importance of life
and health Takaful products to the industry as a whole”, he added.
More than 350 international delegates are attending the 7 th Annual World Takaful
Conference, which will continue on the 17th of April at the Dusit Thani, Dubai.
-ENDWTC is a MEGA Brand
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Abdul Muhsin
Head: Marketing & Media
MEGA
Tel: +9714 3431200
Email: [email protected]