In terms of revenue, the Global Takaful Insurance Market is expected to reach USD 55.6 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 14.2% from 2022 to 2028.
The Takaful Insurance Market boom may be attributed to the growing attention of the various Muslim and Non-Muslim populace to the blessings supplied via means of takaful coverage, inclusive of higher protection and protection as compared to standard coverage services.
Key Highlights from Report:
- In 2020, the Agents & Brokers sub-segment led the Takaful Insurance Market in the Distribution Channel segment, and it is expected to retain its supremacy in the forecast period. With the increasing demand for customized and personalized Takaful Insurance coverage, independent brokers and agents are using various websites and online sales platforms, which has become a significant trend in the market.
- The Direct Response sub-segment is also expected to grow substantially over the forecast period, thanks to developing alternatives for clients without delay buying of takaful coverage and developing quantity of gain of direct income, which encompasses the meager value of the product and others.
- Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. Takaful is hastily gaining momentum, mainly within the region, due to a big Muslim populace. Muslims presently amount to a 5th of the overall international population, and those factors are anticipated to support the market's growth in the future.
Muslim majority nations, including the UAE, Saudi Arabia, Oman, Malaysia, and others, consider takaful coverage to be morally consistent with Islamic law. Therefore, these nations have better penetration of Takaful Insurance compared to the traditional range, as standard coverage is considered unethical and consistent with the Islamic law. Therefore, its miles less complicated for the market players to penetrate the various Muslim majority market. Furthermore, authorities' projects towards Takaful Insurance are assisting the market to flourish in nations that include Saudi Arabia, Malaysia, and UAE. Thus, these elements propel the increase of the Takaful Insurance Market.
According to Islamic law, the top premium gathered needs to be pooled and used when the contributors face any emergency along with clinical issues, enterprise losses, and others. Therefore, if the declaration arises, the insured receives the specified quantity to cover the risk. In addition, in case no such declaration is made, the excess amount is sent to a few contributors, in contrast to traditional coverage. Therefore, the probabilities of economic losses are drastically decreased. Furthermore, these elements appeal to many new contributors to make donations withinside the Takaful Insurance. As a result, that is a chief aspect boosting the increase of the Takaful Insurance Market.
Asia Pacific held the most significant shares in 2021 as the region has a vast and affluent Muslim population. Other regions include Southeast Asia, Africa, and others.