Takaful Insurance Market Size, Share & Trends Analysis Report By Distribution Channel, By Type, By Application, By Region, And Segment Forecasts, 2021 To 2028

The global takaful insurance market is expected to witness significant growth over the forecast period. The market growth can be attributed to the increasing awareness among the Muslim and Non-Muslim population of the benefits offered by takaful insurance, such as better safety and security compared to conventional insurance services. Takaful is an Islamic insurance scheme wherein community members contribute money or a portion of their earnings to a pooling program to guarantee each other against any loss or damage. In case no claims arise, the surplus funds are often distributed among the members. Furthermore, advancements in technologies such as Artificial Intelligence (AI), blockchain, machine learning, and predictive analysis, which are widely adopted by the insurance sector, are expected to contribute to the growth of the takaful insurance market over the forecast period.

Takaful Insurance Market Segmentation

Many takaful insurance service providers are partnering with banks to help enhance their offerings and improve customer experience. For instance, in August 2020, Noor Takaful, an Islamic insurance company, announced its strategic partnership with Ajman Bank. This partnership has increased the overall reach of life takaful savings, protection, and investment products across Ajman Bank's portfolio, ensuring that customers' Takaful requirements are efficiently met.

The outbreak of the COVID-19 pandemic has moderately impacted the market growth. The pandemic has caused substantial financial losses to individuals globally, affecting the collections made by takaful insurance participants. Moreover, due to the limited spending capacity during the pandemic, participants could not afford to donate large amounts to takaful insurance. However, the rising awareness among consumers regarding takaful insurance for family takaful, health takaful, and business protection policies is expected to increase growth opportunities for service providers over the forecast period.

Governments across the globe are taking initiatives to support new entrants and expand the insurance market in their respective countries. For instance, in June 2021, the Insurance Regulatory Authority of Uganda proposed expanding its takaful and retakaful insurance market. The authority has also committed to supporting all efforts aimed at providing better takaful and retakaful insurance in the country.

The key players in the market include Abu Dhabi National Takaful Company PSC, Allianz, AMAN Insurance, Takaful International, Qatar Islamic Insurance, and Zurich Malaysia. These players are focusing on adopting growth strategies such as partnerships, mergers & acquisitions, and new product development to further expand their global market presence. For instance, in April 2021, Takaful International, an Islamic insurance provider, announced the launch of AFYA, a health insurance product, in partnership with Hannover ReTakaful to provide better health insurance coverage and services. Through this launch, the company expanded its product portfolio.