More than 350 key players and thought leaders in the global Takaful industry attended the opening ceremony of the two day of the 7th Annual World Takaful Conference (WTC 2012).
“The Shari-ah compliant insurance industry has witnessed significant internationalization in the last decade with the industry rapidly expanding its footprint beyond the traditional high-growth markets of the GCC and Malaysia. A number of new jurisdictions have modified their legal and regulatory frameworks and issued new guidelines in order to support the growing demand for Takaful products in their domestic markets,” David McLean, Chief Executive of the World Takaful Conference, said.
“Though the overall outlook for the global Takaful industry remains positive, it is essential that the mounting challenges posed by increasing competition not only among Takaful operators but also from conventional players entering the Takaful market space, declining underwriting profits and investment portfolios need to be immediately tackled so that the industry can maintain its current growth levels and hit the projected $25billion mark by 2015.”
The World Takaful Conference 2012 will begin with an inaugural address by Abdulla Mohammed Al Awar, Chief Executive Officer of the Dubai International Financial Centre Authority. Speaking ahead of his session Abdulla Mohammed Al Awar noted that “the global Takaful industry is continuing on its high growth trajectory with recent reports estimating that global Takaful contributions could reach US$ 25bn by 2015. Though the industry has seen a significant increase in market share in the key markets of MENA and South East Asia, driven by increasing awareness and improvements in the quality of products and services being offered, increasing competition from both local and international players remains a critical challenge.”
“With tremendous growth opportunities yet to be fully tapped, Takaful operators need to ensure that they have strong foundations in place to sustain financial performance. The annual World Takaful Conference (WTC) is regarded as one of the most important events and plays a key role in facilitating dialogues to review evolving trends and chart the future direction for the global Shari’ah-compliant insurance industry”, he added.
“Over the last few years the Takaful industry has experienced increasing prominence as a potential high-growth component of the Islamic finance industry, with the Middle East and Malaysia leading the way as the primary growth markets. Moving beyond its niche market status, the industry is steadily building roots strong enough to take its place alongside the conventional insurance industry as a valid alternative in key markets. An advantage that the conventional insurance industry enjoys is the better economies of scale that many players in the Takaful market are yet to achieve thus laying substantial importance on operating performance for Takaful players. Though the key Takaful markets are characterized by low insurance penetration rates and comparatively high rates of economic growth, leading to a positive outlook for the sector as a whole, increasing competition both from new players and established conventional players entering the Takaful segment remains a key challenge. We at Noor Takaful are dedicated and committed to the growth and development of this dynamic industry and our partnership with the World Takaful Conference highlights this,” Parvaiz Siddiq, Chief Executive Officer of Noor Takaful, said.
The inaugural session was followed by a keynote plenary session featuring Dr. Saleh Malaikah, Chairman, Rusd International Holding Group and Vice Chairman and Chief Executive Officer, 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. The session, which focuses on improving competitive performance, will assess how leading Takaful players are successfully shifting emphasis to sound underwriting profitability and operational efficiency.
The 2012 edition of the eagerly awaited World Takaful Report will also be launched exclusively on-site at the event. With a principal focus on ‘Industry Growth and Preparing for Regulatory Change’, the World Takaful Report 2012, developed in collaboration with Ernst & Young, will analyze the key trends shaping the industry, map out the strategic direction of the market leaders and probe the emerging landscape of opportunities.
WTC 2012 will feature more than 30 leading industry partners and exhibitors showcasing their latest innovations at the World Takaful Exhibition organised along the sidelines of the conference.
“Significant growth has been forecast for the Takaful industry in 2012. The Takaful market makes up just one percent of the global insurance market– so it is evident that opportunities abound. The Takaful industry like any other growing industry is facing challenges like increasing competition, the need for skilled professionals, a regulatory and prudential framework and Shariah compliant investment opportunities. The World Takaful Conference 2012 is an ideal platform to address these issues, share knowledge with other industry professionals and work towards establishing a solid foundation for the growth of the Takaful industry. As Life & Health Partner of the World Takaful Conference 2012, Takaful Emarat is pleased to raise awareness about the importance of life and health Takaful products to the industry as a whole,” Ghassan Marrouche, Chief Executive Officer of Takaful Emarat, said.