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Period Developments
product disclosure, delivery channels and market practices. Once finalised, the
initiatives will be reflected in the relevant policy documents to be issued under the
Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA).
2013: Insurers in Indonesia await a new draft law that proposes a spin-off of their
Shari'ah-compliant units. Indonesia reshapes its capital requirements.
2013: The Takaful sector expands outside its core markets. In the GCC, for example, the
growth potential of the industry in Oman is illustrated by the successful IPOs of
operators such as Al Madina Takaful and new entrant, Takaful Oman.
2013: Nigeria, which aims to become a hub for Islamic finance in Africa, issues
guidelines for the centralised oversight of its fast-expanding Takaful industry. In April,
the vice-chairman of the Chartered Insurance Institute of Nigeria (CIIN) is quoted as
saying that Takaful has now attained a 70% penetration level in the country’s
insurance industry.
2013: First Family Takaful operator Katilim Pension and Life initiated its operations in
Turkey.
2014/15: Some (general) Re-Takaful operations in Malaysia are closed or reshuffled.
2014: With the historical introduction of Islamic Financial Services in Oman, Capital
Market Authority (CMA) granted licenses to Al Madina Takaful Insurance Company and
Takaful Oman company.
2016: In Nigeria, the National Insurance Commission licenced two Takaful companies –
Noor Takaful and Jaiz Takaful.
2017: Two Takaful companies - Bereket Insurance (for General Takaful) and Bereket
Pension and Life (for Family Takaful) – were incorporated in Turkey.
2019: In Turkey, Bereket Participation Insurance and Bereket Participation Pension
and Life registered and applied for Takaful operating licenses based on new models.
2019: In Nigeria, the National Insurance Commission licenced two Takaful companies –
Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance
Company Limited.
Source: Adopted from IFSB-WBG-2017 report
4.3. Takaful : An Underexplored Market
Despite the trends at the international landscape of Takaful and some efforts made in some
advanced jurisdictions such as Malaysia, Saudi Arabia, and Turkey, the potential of the Takaful
market remains untapped. Despite the large population of Muslims in countries like Indonesia
and Nigeria, the rate of Takaful penetration remains insignificant trending below 5% in both
jurisdictions. Other untappedmarkets could be found in North America, Europe and Africa. With
nearly two billion Muslims in the world with numerous insurable interests, one would have
expected the Takaful sector to have grown beyond the 2% of the global Islamic financial services
industry (Milliman, 2017). It is where major financial centres may play some roles in ensuring