Islamic Shariah law prohibits interest earnings hence a challenge for marketer to push Financial Services product in the Islamic region of the word. It is a bigger challenge in the middle-east where Shariah reign supreme. However, as per WAM News Agency (Dubai), innovative Insurance Products are being manufactured within the strict Islamic laws for the region and it is gaining ground.

With an estimated annual growth rate of 20 percent, the 3rd Annual World Takaful Conference on mutual insurance will be held in Dubai on April 14-15. With experts predicting a Takaful boom, this year’s theme is : Expanding the International Market for Islamic Insurance- Product Innovation and New Growth Opportunities. The world Takaful market is expected to grow $7.4 billion in global annual contributions by 2015.

The conference is organized in partnership with Dubai International Financial Centre (DIFC), which will feature industry heavyweights such as HSBC, Amanah Takaful and Islamic Arab Insurance Co. (Salama). It will focus on exploring the international market for Shari’ah-compliant insurance products, WAM news agency reported Friday.

Takaful is an Islamic insurance system based on the principle of mutual assistance. It provides mutual protection of assets and property and offers joint risk-sharing in the event of a loss by one of the participants. Takaful is similar to mutual insurance in that members are the insurers as well as the insured.

Parvaiz Siddiq, general manager of Salama, said: “The World Takaful Conference is the ideal platform to spread and educate the market about Takaful and its principles, since awareness is still low in the Middle East.”

Total premiums written by takaful insurers are projected to reach around nine percent of the world’s insurance market share by 2010. The Middle East market is reported to be growing at 15 to 20 percent a year. The event will provide practical insights into the next phase in the development of this rapidly growing industry. More than 200 international delegates will participate in the event.

Manish Jaiswal

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