Financial Outlook of the OIC Member Countries 2017
38
Composite; 116
General; 107
Family; 57
ReTakaful; 25
3.5 TAKAFUL
Although takaful has a small volume and it is rather an underdeveloped segment of Islamic
finance, its popularity has increased recent years and becoming an important component of
Islamic financial industry. This small, yet growing, industry is served by 305 takaful providers
including 25 re-takaful companies.40 With 116 companies, composite takaful dominates the
global takaful industry. In addition to the composite takaful, 107 general and 57 family takaful
companies are operating in the industry (Figure 37).
Figure 37: Number of Takaful Operators and Windows Globally (2015)
Source: IFSB
With a series of challenging global economic conditions in the past decade, the global takaful
sector has witnessed an average annual growth of 16% during the period of 2008–2015.41
Global takaful assets reached to USD 38 billion in 2015 and were mainly driven by the top 3
countries: Saudi Arabia, Iran and Malaysia. These three countries hold 85% of total takaful
assets. Saudi Arabia is the biggest takaful market as its insurance market is based fully on a
cooperative insurance model. Besides Saudi Arabia, Iran and Malaysia are the prominent
players in takaful industry that Iranian takaful sector stands at USD 10.5 billion and Malaysian
is USD 7.3 billion (Figure 38).
Figure 38: Top Countries in Takaful Assets (2015) (USD MN)
Source: Thomson Reuters
The insurance penetration in most OIC countries is rather low and takaful industry is growing
by the support of the Islamic finance industry. In this context, there is an important market
potential for market shareholders.
40 IFSB Stability Report 2017
41 IFSB Stability Report 2017
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000