Focus on Customer Service will enable Further Growth of Takaful Market, say Experts
22 March 2008
Global interest in the potential of Islamic insurance or Takaful has been high at the 2008 World Insurance Forum, which closed on Thursday.
Figures revealed at the Forum show that
Shariah-compliant insurance is growing at a far faster rate than conventional
insurance in the
Globally, Takaful insurance that is based
on the concept of collective insurance and is currently estimated to be a US$2.3
billion market, with the
However, increasing levels of consumer demand will need to be supported by higher levels of consumer support and more tailored products, if the market is to achieve its full potential, according to experts from the regions largest financial advisor.
What we are seeing in the market is that more consumers are being drawn to Islamic financial products because of ethical reasons, and also because they sometimes offer better protection than standard policies, said Bashar Khatib, sales director at Nexus.
For the consumer to benefit fully from the increase in the market size, such growth will need to be accompanied by an increasingly sophisticated product range, as well as the provision of the level of customer support that is provided with conventional insurance packages, he added.
Nexus is increasingly engaged in helping to introduce more sophisticated Shariah-compliant products onto the market. At the end of 2007, the financial advisor signed a key agreement with the Munich-based FWU Group and the Dubai Islamic Insurance and Reinsurance Company (AMAN).
Based on the agreement, Nexus is a
distributor of AMAN Unit Linked Takaful and saving plans, both for regular
and lump sum contributions. It is the first time that FWU Group has elected to
work with a financial adviser rather than a bank, reflecting the depth of
Nexus understanding of the market.
Mahmoud Nodjoumi, owner and CEO of Nexus said: A major part of Nexus approach is to combine our strong understanding of the needs of the local market with international standards of service and support. Takaful insurance is an area where this approach is particularly important.