TAKAFUL (ISLAMIC INSURANCE)
The renaissance in Islamic banking and finance and demand for non-interest bearing financial transactions and ethical investments has spurred the double-digit growth of the global demand for Takaful, or insurance based on principles of mutual assistance. Since the launch of the first Takaful in 1979 in Sudan, the global Takaful industry has witnessed tremendous growth, particularly in the last decade, rapidly becoming an important component of the global Islamic financial System and attracting the attention of Global financial centres and rating agencies like, the internationally acclaimed credit-rating agency, Standard & Poor.
The Middle East, South East Asia, Africa, and Europe have become key centres of this dynamic and vibrant industry, growing at a compound annual growth rate of 39% over 2005‐08 in terms of global Takaful premiums. The estimated size of the global Takaful premium was USD5.3bn in 2008 and USD8.9bn in 2010 and was expected to reach 12 billion US dollars in 2012. Globally, it is estimated that there were some 179 Takaful companies and windows (20%) in 2008, and this number in 2010 was in excess of 200 and currently, the global Takaful industry is said to be growing at 20% per year, far outstripping the 2.5% annual growth for conventional insurance premiums. In African countries with large Muslim populations, such as Nigeria, the Takaful market can be considered very much in the embryonic stage, but represents a potential customer base that no insurer can ignore.
AFRIEF can assist clients with the establishment of Takaful companies and institutions, providing them with strategy and business plan development and assist with market entry plans, operating model design, IT strategy and architecture development.