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assistance,
Takaful
must do more. This underscores the importance of
Takaful
operators to be accessible, empathetic, fast and reliable. Not just when selling,
but also when providing after-sales service and processing claims.
c.
The
Takaful
industry needs to be innovative and develop its own products rather
continuing mimicking conventional products. Furthermore, the industry should
move beyond retail consumer and should look at trade and entrepreneur
customers with diversification to another value chain in the production, not just
focusing on credit.
Finally, they added, for the
Takaful
industry to offer its potential that is yet untapped,
the industry has to have the right people with the right competence. Strong leadership
and quality talent are needed to steer the industry forward to reach greater heights.
Three experts from Turkey commented that the participation insurance premium
production in Turkey grew 6 times over the last 5 years reaching TRY 2.2 billion at the
end of 2018. In the same period, it increased its market share from 1.48% to 4%.
Although these developments are not sufficient, the experts elaborated, they are
promising for the future of the
Takaful
industry. The experts are optimistic that this rate
of growth will increase further with the development of legal regulations, attractive
incentives, education, and infrastructure. The experts cautioned that
Takaful
practice
started with good ethical and
Shari'ah
based principles and sincere purposes, but in
practice it has been converging with the conventional insurance. Such a trend if left
unchecked can erode public confidence in the long run in
Takaful
products. The three
experts suggest that countries and institutions applying
Takaful
should trust in the
system in every aspect and make the necessary legal, technical and technological
investments for the system to grow and develop on a solid foundation and they should
train enough human resources.
The three experts from Saudi Arabia are also optimistic that the future of the
Takaful
industry is bright and promising. They believe that it is growing and will expand its
market share and double its growth in the near future. They say
Takaful
is the reflection
of solidarity in a society and that its impact including the impact of
Re-Takaful
on the
economies of Muslim countries is huge if managed. The experts explained that the
‘Financial Sector Development Program (FSDP)’ initiated by the Kingdom is one of the
delivery programs towards the realization of Saudi Vision 2030. FSDP includes various
KPI’s which will spur the growth of the insurance industry in Saudi Arabia. The three
experts also cautioned that they see little progress if regulators do not give the
Takaful
industry what it deserves to sustain its growth.