An Overview of Islamic Insurance: Market Trends and Technology Considerations

by Catherine Stagg-Macey, November 29, 2006

Abstract

London, United Kingdom 29 November 2006

Technology will be key to the growth of Islamic Insurance market.

Takaful is an Islamic system of mutual insurance built around the concept of donation. In a new report from Celent, , Celent looks at some of the technology options available to support the business challenges of takaful operators.

"The potential for takaful is enormous given that insurance penetration in most Islamic countries does not exceed 1% of gross domestic product," says Catherine Stagg-Macey, senior analyst and author of the report. "Many of the challenges facing takaful operators are strategic,” she continued. "This market is trying to establish itself. While skills and resources can be borrowed from conventional insurance markets, there is significant investment required creating the business."

The takaful market is still in a formative stage, and market projections estimate growth rates between 15% and 20% over the next 10 years, reaching US$7.4 billion in premium by 2015. With challenges around customer service and productivity, technology can enable this growing industry through its formative stage.

The 20-page report contains three figures and five tables. A table of contents is available online.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

London, United Kingdom 29 November 2006

Executive Summary 3
An Overview of Takaful 4
The Global Takaful Market 8
Takaful Operators and Products 12
Role of Technology 14
Conclusion 17
Objectivity and Methodology 19

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