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Al Baker, right, opening the METF and exhibition, in the
presence of senior industry officials

Takaful premiums post 7pc growth in Bahrain

MANAMA, October 14, 2014

Increasing demand for Sharia-compliant insurance in Bahrain has led to takaful premiums growing more than seven per cent last year, it has emerged.

According to Central Bank of Bahrain (CBB) executive director of financial institutions supervision Abdul Rahman Al Baker, the takaful (Islamic insurance) market has grown by almost 14 times in terms of premiums compared with the 2003 level, said a report in the Gulf Daily News (GDN), our sister publication.

Speaking at the opening of the third annual Middle East Takaful Forum (METF 2013) at the Gulf Hotel yesterday, Al Baker said total takaful premiums rose to BD57.2 million ($147.2 million) last year from BD53.7 million in 2012.

“Takaful premiums contribute to 22 per cent of overall gross premiums of Bahrain's insurance industry,” he added.

Al Baker said family takaful has become a key line of business, with its share of gross takaful contribution increasing to 20 per cent last year from 15 per cent in 2010.

“The outlook for the takaful industry in the wider Middle East region also continues to look positive, with forecasts projecting double-digit growth rates,” he said.

Global takaful contribution is estimated to reach $14 billion this year, a growth of 14 per cent compared to the previous year.

“At around $8.9 billion, the GCC market contributes more than 63 per cent of global takaful contributions,” he said.

According to Al Baker, the CBB's initiative for a new takaful model would help reaffirm Bahrain as the jurisdiction of choice for all takaful and retakaful companies globally.

The new model brings in changes with regard to solvency, capital adequacy and disclosure requirements, all aimed at attracting new entrants to the market, fostering competition as well as protecting the interest of all stakeholders, he said. - TradeArabia News Service




Tags: Takaful | premium | grow | Sharia |

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