DUBAI: The Takaful industry attracted nearly US$ 11 billion in gross contributions worldwide in 2012 and recent reports indicate that the industry is expected to grow by 16% annually in the coming years to hit US$ 17 billion by 2015, according to an expert.
“However, this projection indicates a slight deceleration when compared to the average 22% growth rate that the industry achieved between 2007 and 2011,” David McLean, Chief Executive of WTC, in a pre-event statement said.
Leading industry players, thought leaders and key regulators in the international Takaful (Islamic insurance) industry will take part in the 9th Annual World Takaful Conference (WTC 2014), which is set to be held on the 14th and 15th of April 2014 at the Dusit Thani, Dubai.
“Though the industry has achieved significant market share in its key markets, including the Kingdom of Saudi Arabia, Malaysia, Bahrain and the UAE, the acquisition of market share has not necessarily translated into sustainable profitability levels in many instances. Financial performance, RoE, and the quality of growth remain key challenges for Takaful operators in many markets,” he added.
“With key rapid-growth markets poised to become the new centres of Islamic finance development in the next decade and with the development of supporting regulatory infrastructure in key markets, the global Takaful industry has significant opportunities for growth.”
“It is against this backdrop that we are launching the 9th Annual World Takaful Conference (WTC 2014) which will be held this April in Dubai under the theme ‘Scalability and Profitable Growth – Improving RoE and the Quality of Growth in the Global Islamic Insurance Industry’; and we are delighted to have confirmed more than 45 high-profile international speakers from the Middle East, Asia and beyond to discuss new visions for the global Takaful industry and strategies for capturing the true potential of the international Islamic insurance industry,” McLean said.
The 9th Annual World Takaful Conference (WTC 2014) will be opened on the 14th of April 2014 by a special inaugural address by Abdulla Mohammed Al Awar, Chief Executive Officer of the Dubai Islamic Economy Development Centre. The inaugural session will then be followed by a high-profile keynote plenary session featuring Dr. Bassel Hindawi, Immediate Past Insurance Commissioner of Jordan and Member of the Steering Committee of MENA Insurance CEO Club; and Zainudin Ishak, Chairman of the Malaysian Takaful Association.
“The Takaful industry has grown significantly as a viable Islamic alternative to conventional insurance. Though the global Takaful industry has witnessed strong progress, the development of related regulatory and supervisory frameworks has not kept pace and varies substantially between key Takaful markets,” commenting on his forthcoming participation in WTC 2014, Abdulla Mohammed Al Awar, Chief Executive Officer of the Dubai Islamic Economy Development Centre, said.
“In many key countries, the Takaful market is becoming increasingly over-crowded with a number of domestic and international companies competing for a small pool of risks to cover. Industry-wide profit margins have been under pressure and previously strong growth rates have started to decelerate.”
“In line with Dubai’s determination to become the global capital of the Islamic Economy, the Dubai Islamic Economy Development Centre is committed to creating an enabling environment to reignite the growth of the Takaful sector, as part of an integrated vision.”
“The World Takaful Conference (WTC) will play a significant role in shaping the global Takaful industry and I look forward to discussing new strategies that will unlock the true potential of the sector,” Al Awar added.
A key highlight of the 9th Annual World Takaful Conference (WTC 2014) will be the high-profile CEO and Industry Leaders’ Power Debate session focusing on tackling the tough issues in the Takaful industry. The session features Sami Sharif, General Manager – General and Health Division and Assistant to the CEO of SALAMA – UAE; Firas El Azem, General Manager of Takaful Re Limited; Shahril Azuar Jimin, Chief Commercial Officer of Etiqa Insurance and Takaful; and Gautam Datta, CEO of Al Madina Insurance Company, and will analyse how the Takaful industry is faring in achieving critical mass and scale and how profitable growth can be achieved by balancing competitive pressures with the need for risk based pricing. The session will be chaired by Irshied Tayeb, Head of the Insurance and Reinsurance at Bin Shabib and Associates (BSA) LLP.
WTC 2014 will also feature the exclusive onsite launch of the 8th Annual Edition of the World Islamic Insurance Directory (WIID 2014). The World Islamic Insurance Directory, jointly published by Takaful Re and Middle East Insurance Review, has over the years become a critical reference guide to record the growth and development of the international Islamic insurance industry. The 2014 edition of the WIID will provide detailed financial and management data on over 200 international Takaful and ReTakaful operators and will encapsulate the most current information primarily sourced from the major players in the market.
The WTC 2014 exhibition, which will be held along the sidelines of the conference, will showcase the latest products, services and innovations from over 35 international exhibitors.
“A major challenge faced by the global Takaful industry is the lack of added value from the Retakaful industry leading to a over-representation of conventional reinsurers in the market. However, recent developments and the emergence of new sizeable Retakaful companies is an opportunity for the whole Takaful industry to have an integrated approach, and move to the next level. As the global Takaful industry is set to grow further, projected to hit the US$ 17 billion mark in 2015, a lot more additional participation and a leadership role is needed in the Retakaful industry. To meet the demand, Retakaful companies must move from a follower to a more leadership position,” Mohamed Hussein El-Dishish, Chief Executive Officer of Emirates Retakaful Limited (Emirates RE), said.
“We are very delighted to see strengthening Retakaful industry as one of the key areas covered at this year’s World Takaful Conference and we are delighted to be supporting this prestigious gathering of international Takaful leaders as a Platinum Strategic Partner,” he added.