Increased awareness of Takaful benefits key to growth

17/04/2012 23:50 AST

The increased level of awareness on the significant benefits and advantages of using Takaful products and services has become a major factor in the industry segment's growth in the Middle East region, according to Hussein Al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN).

Meeza's statement complements the recent Ernst and Young World Takaful Report, which shows that global Takaful contributions since 2010 has jumped by 19 per cent in the last two years, reflecting a total value of over $8.3 billion.

During his keynote address at the World Takaful Conference 2012, AMAN's CEO proposed a three point plan of action to help improve the business of local Takaful providers and maintain continuous growth for the Takaful segment. Meeza's three-point proposal includes the call to continue raising the level of awareness on the immense potential of using Takaful products; tap into newer markets and industry verticals and to invest more into research and development.

"The success encompassed by the Takaful segment can widely be attributed to the strategic management and adoption of today's economic realities. The recent economic gridlock has given birth to new found consumer and corporate behaviour-demonstrating a need to be well-versed on a product or service before making a purchase or sale decision," said Meeza. "This new consumer challenges the Takaful segment to roll out products and services with more intensity, coupled with more information and value additions. This is a new age for the Takaful market, where we have gone beyond investment income goals and thriving on intense competition. Today, as it should have always been, we give light to the needs and demands of our customers, with better understanding and empathy."

CPI Financial