The World Takaful Conference to Chart New Growth Paradigm for the Global Islamic Insurance IndustryPress Release20 Mar 2011 08:42 am
With global Takaful contributions currently less than 1% of the total insurance premium universe, there is tremendous growth potential for the global Takaful industry. With a compound annual growth rate of between 20% - 25%, Takaful is emerging as the fastest growing component in the global insurance market. While there are reasons to remain cautious about economic growth in the near term, reports are indicating that the Takaful industry will continue to grow faster than its conventional peer. Major players in the global Takaful industry are reassessing their strategies and are focusing on capitalizing on the new growth opportunities. The 6th Annual World Takaful Conference (WTC 2011) which will be held on the 10th and 11th of April 2011 at Dusit Thani, Dubai, will address the key areas that the industry needs to engage in order to fully realize the potential in the global Takaful industry.
Speaking ahead of the event, David McLean, Managing Director of the 6th Annual World Takaful Conference said that “the theme for this year’s World Takaful Conference picks up on the increasing optimism and focuses on managing risk, innovating products and driving growth in the global Takaful industry.” He continued that “these key elements will determine which Takaful players will be best placed to take advantage of strongly increasing product demand based on consumer demographics, rising income levels and an increasing appetite for Shari'ah-compliant insurance products.”
“However, to fully realize this potential, operators must initiate a rigorous review of their strategies especially in the areas of risk-return implications, business diversification and investment discipline”, he added.
A similar view was expressed by Parvaiz Siddiq, Chief Executive Officer of Noor Takaful who said that “the Takaful industry is significantly less developed than the broader Islamic finance industry. If we are to take advantage of the opportunities that are emerging on a global scale, we must perfect an industry-wide Shari’ah compliant corporate governance mechanism that people can put their trust in. A decision has to be made now to move to the next level and to pro-actively seize opportunities based on customer-centric approaches.”
“The World Takaful Conference is a strategic platform that brings us together to discuss solutions to the gaps in the industry and is a thought provoking and extremely productive conference for global industry leaders, discussing the prospects for the post global crisis era and the road ahead’, he added.
The 6th Annual World Takaful Conference is set to begin on the 10th of April with an opening keynote address by Marwan Ahmad Lutfi, Deputy Chief Executive Officer and Head of Business Development at the Dubai International Financial Centre Authority. Marwan Ahmad Lutfi said that “Takaful growth is far outstripping that of conventional insurance and is a key industry for DIFC. DIFC is committed to supporting this growth and offers industry players a single platform to operate from, within a regulated environment. The World Takaful Conference will be an invaluable opportunity for global takaful players to work towards the further advancement of the industry.”
A key highlight of the 6th Annual World Takaful Conference will be the exclusive onsite launch of the eagerly anticipated 2011 edition of the Ernst & Young World Takaful Report. The Ernst & Young World Takaful Report has over the years become a benchmark for the global Takaful industry and an essential reference source for key decision-makers in the international insurance industry. Speaking ahead of the launch of the report, Ashar Nazim, Executive Director and MENA Head of Islamic Financial Services, Ernst & Young, noted that “Takaful ranks very near the top in any active search for long-term growth sectors in the world today. The fact that global insurance majors have launched specific offerings in the Takaful market this year indicates that the gestation period that the industry went through over the last few years is now over. Takaful is poised at the take-off stage and we can be certain that industry participants and investors can look forward to a profitable and ethical decade of stable growth.”
The World Takaful Conference, which builds on 6 years of successfully meeting industry needs, will again set the stage for more than 350 industry leaders to gather to showcase cutting edge innovations, and also address the key enablers that will boost growth in the international Takaful market. Announcing their participation at the event Ghassan Marrouche, General Manager of Takaful Emarat said that “with global Takaful premiums predicted to grow to US$7 billion by 2015, there is a pressing need to engage in a meaningful dialogue on the development of the rapidly-expanding Takaful industry. The World Takaful Conference 2011 presents a unique opportunity to address issues of regulation, changing affluence trends, and the human resources shortfall in the Islamic financial sector, which will ensure we create a robust foundation for the industry’s continued growth.”
As Life & Health Partner of the World Takaful Conference 2011, Takaful Emarat is pleased to raise awareness about the importance of life and health Takaful products to the industry as a whole’, he added.