Takaful Global Market Report 2024

The takaful market size has grown rapidly in recent years. It will grow from $29.54 billion in 2023 to $33.14 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The expansion during the historical period can be credited to the growth of Islamic finance, increasing awareness of Islamic insurance, government backing and regulation, ethical and social responsibility, and partnerships in Islamic banking.

The takaful market size is expected to see rapid growth in the next few years. It will grow to $51.75 billion in 2028 at a compound annual growth rate (CAGR) of 11.8%. The anticipated growth in the forecast period can be credited to several factors, including the continuous expansion of the global Islamic finance industry, the diversification of takaful products, the incorporation of takaful into financial planning strategies, the increase in the affluent Muslim population, and international collaboration along with standardization efforts.

The takaful market's future growth is being propelled by the substantial and increasing Muslim population. Muslims, adherents of Islam who follow the teachings of Prophet Mohammad, form a significant demographic that actively engages in the concept of takaful. This insurance practice aligns with Islamic principles, emphasizing shared responsibilities among its participants. According to the 2023 Muslim Population by Country Report from the World Population Review, Islam is the world's second-largest religion, with over two billion followers. Predictions suggest that by 2050, Muslims will outnumber Christians. Indonesia, hosting more than 231 million Muslims, constituting about 86.7% of its population, stands as a prominent example. This substantial and expanding Muslim population is anticipated to be a driving force for the takaful market in the future.

The increasing significance of Takaful insurance is another factor expected to boost the takaful market's growth. Takaful insurance operates on Islamic cooperative principles, adhering to Sharia guidelines. Participants contribute premiums to a common fund, supporting each other in times of loss or damage. This approach aligns with Islamic principles by providing risk coverage through cooperative means. In 2022, the Central Bank of the United Arab Emirates reported that gross subscriptions written by Takaful insurance companies in the UAE amounted to $1.18 billion (Dhs 4.35 billion) in 2021, reflecting a growth rate of 0.51% compared to the previous year. These subscriptions constituted 9.82% of the gross premiums written in the insurance sector in 2021. Notably, Takaful health insurance comprised the largest sector, representing 43.6% of total underwriting in 2021, followed by assets and liability Takaful insurance at 38.3%, family Takaful insurance activities, and fund accumulation operations at 18.1%. Consequently, the growing significance of Takaful insurance plays a pivotal role in propelling the takaful market's expansion.

Product innovation has emerged as a prominent trend in the takaful market, with major companies actively introducing new offerings to maintain and enhance their market positions. A notable example is ETAP, a Nigeria-based insurance company, which, in April 2023, launched Takaful, the first digital car insurance product in Africa. Takaful operates on the Islamic insurance model, where users contribute to a pool to insure members against loss. The digital application, ETAP, enables users to set up their car insurance within a swift 90 seconds. At the end of a specific period, any surplus in the pool is redistributed to policyholders.

Companies in the takaful market are placing an increased emphasis on introducing innovative solutions, particularly in the digital realm, to gain a competitive advantage. An illustration of this is Ouch!, a Malaysia-based insurance company, which, in August 2023, introduced a digital takaful product named Pusara Pro in Malaysia. Pusara Pro is a straightforward term-life product providing participants with a death benefit of up to $120 million (RM500,000). It is an entirely digital product, directly purchasable, viewable, and serviceable through the Ouch! mobile app. The app also serves as an educational tool for younger Malaysians, featuring a coverage calculator and a referral program allowing participants to earn rewards.

In July 2022, Dar Al Takaful, a UAE-based takaful insurance company, engaged in a merger with the National Takaful Company. This strategic move is expected to fortify the positions of both entities in the insurance market and facilitate the development of technologies that enhance their offerings. The National Takaful Company is another UAE-based takaful insurance company involved in this merger.

Major companies operating in the takaful market report are Allianz SE, Zürich Versicherungs-Gesellschaft AG, Securities & Exchange Commission of Pakistan, Standard Chartered PLC, Gulf Insurance Group, The Company for Cooperative Insurance Tawuniya, Bupa Arabia, Howden Takaful Brokers Sdn. Bhd., Walaa Cooperative Insurance Company, Al Etihad Cooperative, SALAMA Islamic Arab Insurance Company, Allied Cooperative Insurance Group, Al Sagr Cooperative, Buruj Cooperative, Al Ain Ahlia Insurance Co., Qatar Islamic Insurance Company, Takaful Re Limited, AMAN Insurance Company, Islamic Insurance Company, Chubb Arabia Cooperative Insurance Company, Alrajhi Takaful, Takaful International Co. Ltd., Abu Dhabi National Takaful Co., Noor Takaful Family PJSC, Alimna Tokio Marine Co., Prudential BSN Takaful Berhad, Syarikat Takaful Brunei Darussalam, Re-Takaful Company, Mediterranean & Glf Cprtv nsrnc nd Rnsrn, Arabia Insurance Cooperative, LIVA Insurance Co., Amana Cooperative Insurance Company.

Asia-Pacific was the largest region in the takaful market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global takaful market during the forecast period. The regions covered in the takaful market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the takaful market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Takaful, an Islamic insurance concept, has two main types family takaful and general takaful. Family takaful serves as a protection fund for the dependents of a deceased person. It is distributed through various channels such as agents, brokers, banks, and direct response, with applications in personal and commercial contexts.

The takaful market research report is one of a series of new reports that provides takaful market statistics, including takaful industry global market size, regional shares, competitors with a takaful market share, detailed takaful market segments, market trends and opportunities, and any further data you may need to thrive in the takaful industry. This takaful market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The takaful market includes revenues earned by entities by providing services such as insurance and guidance, consultation, and claim settlement. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.