An Overview of Islamic Insurance: Market Trends and Technology Considerations
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.