According to the Market Statsville Group (MSG), the global takaful insurance market size is expected to grow at a CAGR of 11.8%from 2023 to 2033.

Takaful is a sharia-compliant insurance system in which members mutually contribute a sum of money in  order to support each other in the event of a loss, damage, or theft. The goal of takaful is for the community to work together, live in harmony, and protect one another from unforeseeable mishaps. Takaful policyholders make regular monetary contributions that are overseen and managed by takaful management firms. Nonetheless, the excess amount invested is then used to make investments that will help policyholders earn a higher profit.

The market expansion can be attributable to the growing knowledge among Muslim and non-Muslim populations of the advantages provided by takaful insurance, such as enhanced safety and security compared to standard insurance services. Takaful is an Islamic insurance scheme in which community members contribute money or a portion of their earnings to a pooling program to protect each other from loss or damage. The surplus funds are frequently distributed among the members if no claims are filed. Furthermore, advancements in technologies like Artificial Intelligence (AI), blockchain, machine learning, and predictive analysis, which are widely used in the insurance industry, are expected to contribute to the growth of the takaful insurance market over the forecast period.

COVID-19 Impact on the Global Takaful Insurance Market

The COVID-19 pandemic has had a moderate impact on market growth. The pandemic has resulted in significant financial losses for individuals worldwide, affecting takaful insurance participants' collections. Furthermore, participants could not donate large sums to takaful insurance due to limited spending capacity during the pandemic. However, rising consumer awareness of takaful insurance policies for family takaful, health takaful, and business protection is expected to increase the growth opportunities for service providers over the forecast period.

Global Takaful Insurance Market Dynamics

Drivers: Increased Awareness About Takaful Insurance

Increased awareness regarding takaful insurance in Muslim and non-Muslim countries has increased market penetration by providing better services than conventional insurances, which is a major driving factor for market growth. Other factors influencing the industry's expansion include the deployment of innovation in the takaful insurance market and the distribution of excess investments among members in the event of no claims.

Restraints: Lack of Standardization Due To Contrast Among Countries

Lack of standardization due to differences in countries' desire to try takaful insurance regulations and limited awareness of coverages included in takaful insurance policies are two major factors impeding the growth of the takaful insurance market. On the contrary, government strategies to promote the growth of takaful insurance by making it easier for new companies to enter the market will enable new players to provide more innovative products to consumers.

Opportunities: Technological Advancements

Banking. Financial Services and Insurance (BFSI) industry took a revolutionary turn with the application of technologies like blockchain & predictive analysis. From automatic teller machines to mobile banking, the internet has facilitated it all, thus, such developments in this industry, takaful insurance, also possess the scope for expansion. New market players could introduce cutting-edge features in the insurance process to obtain a competitive advantage over other players. Hence, developments in insurance technologies such as blockchain, predictive analysis, artificial intelligence, and others are expected to boost the takaful insurance market in the coming years significantly.

Scope of the Global Takaful Insurance Market

The study categorizes the takaful insurance market based on distribution channel, type, and application at regional and global levels.

By Distribution Channel Outlook (Sales, USD Million, 2019-2033)

• Agents & Brokers
• Banks
• Direct Response
• Other

By Type Outlook (Sales, USD Million, 2019-2033)

• Family Takaful
• General Takaful

By Application Outlook (Sales, USD Million, 2019-2033)

• Personal
• Commercial

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Family takaful segment accounts for the highest CAGR during the forecast period by Type

Based on the type, the global takaful insurance market has been categorized into family takaful and general takaful. During the forecast period, the family takaful segment is expected to grow fastest. Due to heightened awareness of life insurance policies during the COVID-19 outbreak, a surge in family-type takaful insurance was witnessed. Families took and utilized the life insurance cover under the takaful insurance umbrella to cover the medical costs during the Coronavirus outbreak. Subsequently, it is observed that many people prefer the family type of takaful insurance owing to their family health concerns and responsibilities, making it the most lucrative takaful insurance policy among other types of policies.

AsiaPacific accounts for the highest CAGR during the forecast period by Region

Based on the regions, the global takaful insurance market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia-Pacific is expected to grow at the fastest CAGR during the forecast period due to new takaful insurance providers entering the market and governments in Asia-Pacific countries such as Malaysia, Indonesia, and Pakistan encouraging the banking and financial industries to implement takaful insurance offerings in the region. Due to the aforementioned factors, Asia Pacific is leading the market growth of takaful insurance.

Key Market Players in the Global Takaful Insurance Market

The global takaful insurance market is quite competitive, with key industry players adopting various strategies such as product development and expansion to strengthen their market positions.

Major players in the global takaful insurance market are:

• Abu Dhabi National Takaful Co.
• Allianz
• AMAN Insurance
• Islamic Insurance
• Prudential BSN Takaful Berhad
• Qatar Islamic Insurance
• SALAMA Islamic Arab Insurance Company
• Syarikat Takaful Brunei Darussalam
• Takaful International
• Zurich Malaysia
• HSBC Insurance
• AIG Prudential
• Tokio Marine

Key Issues Addressed

• What is the market size by various segmentation of the takaful insurance by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the takaful insurance market?
• What are the key opportunities and trends for manufacturers involved in the takaful insurance supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of takaful insurance in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.