United Arab Emirates – Takaful Suffers from a Lack of Transparency and Product Differentiation
Tuesday, 05 19 2015, Category: Insurance and Reinsurance, Country: U.A.E
According to Royal & Sun Alliance Insurance Group (RSA), the global Takaful industry is facing intense competition and has been suffering from a decline in profit margins, operational efficiency and expansion capabilities noting the lack of transparency in explaining Takaful insurance to customers. There is also a failure in distinguishing between Sharia-compliant insurance products and traditional insurance products.
RSA mentioned to “Emarat Alyoum” newspaper that the local insurance market, which it described as “overcrowded”, will experience a wave of change after the lay down of modern regulatory laws relating to capital and investment. It also pointed out that the UAE market is the fast growing insurance market in the Gulf region achieving a cumulative annual average growth of 17% over the past six years.
RSA also predicts a 14% growth in the local insurance market this year, supported by medical insurance, and mentions that the price of some insurance products, especially motor and health insurance, have decreased and reached below-profit levels.
Source: Emarat Alyoum