GLOBAL VIEW OF TAKAFUL INDUSTRY:
According to Islamic Finance Development Report 2018 total assets of Takaful and re-Takaful are USD 46 billion which is only 2% of total Islamic finance industry with total 324 Takaful operators in 47 countries. The growth of Takaful industry assets has positive trend which is shown in the figure below. Although Takaful contribution is very less but has great potential to grow as huge number of population is untapped yet. Not only Muslim population is the target market but non-Muslims as well as interest based activities are not permitted in other religions. Moreover, interest free economy is more stable and effective than that of interest based. Premium wise Takāful industry is growing around at the rate of 19%. Major shares i.e. more than 62% contributed by the Middle Eastern economies. Among the Middle East countries Kingdom of Saudi Arabia is the major contributor in Takāful industry.
With the expanding demographics of Islamic countries and that of the Islamic population globally, the prospect of Takāful looks promising. The Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI) has been playing a key role in framing and reviewing the regulatory standards governing Takāful companies. With improved standards of living and increasing awareness of Takaful, the market is expected to see steady growth in per capita spend on Takaful premiums and also in terms of market share in comparison with conventional insurance.