Global Takaful market expected to grow by 15-20 per cent per annum

Speaking at the company organised Takaful workshop, which took place at the World Islamic Banking Conference in Bahrain, King was joined by a panel of experts to highlight the potentials of takaful and the necessary steps needed to nurture it into the 21st century.

"Takaful products are in huge demand because they rely so heavily on the virtue of fairness and are concurrent with the teachings of Islam. As many markets are so dynamic and diverse, numerous methods are causing a financial aggravation on an individual basis, so the need for these Sharia'h compliant products and services is greater than ever," said King.

"The development of takaful offers over 1 billion Muslims the opportunity to help plan for their financial future with the knowledge it is Sharia'h compliant. The potential, in a market embracing more than 20 per cent of the global population, is immense".

King called for a consolidation of takaful regulation and the need to rise to the challenge of the global competition by unleashing the creativity and entrepreneurial flair of the people who share and believe in the Islamic Financial System in general and takaful in particular.

"To take advantage of this positive climate, takaful companies need to approach the market in the most professional manner to provide confidence to the consumer in the genuineness of their products and services.

"We need to provide solutions through a variety of means that people trust and understand. The products that we are supplying, the distribution channels we are employing and the rules and regulations we adhere to must be understood by everyone".

Joining King at the workshop from Solidarity - Family takaful were Sirag El Hadi, New Business & Clients Manager, Graeme Wallis, Head of Compliance, Hanbali, Head of Marketing, Andrew P Smith, Head of Sales, and Noel D'Mello, Head of Operations. In addition to Sheikh Nizam Yaquby, Sharia'h Scholar, Anwar Al Saadah/ Executive Director of Financial Institutions Supervision, Bahrain Monetary Agency and Ahmed Al Sabbagh, General Manager Islamic Insurance Jordan.

The panel discussed a variety of issues regarding the factors concerning the growth of takaful, the elements involved in developing takaful and the legislation surrounding the successful evolution of takaful.

"With its generally superior features, compared to conventional insurance properties, it is almost impossible for takaful to be out of the mainstream," said Wallis. "One of the key factors in developing takaful is the nurturing of client confidence and trust in both the product and those who are serving it.

"The development of recognised quality standards, the ability of providers to concur and continually adapt to legislative and regulatory requirements and the guarantee that action is being taken to combat financial crime, are all principal in fostering client confidence".

The need for a total relationship marketing approach, which, as a concept, highlights a paradigm shift in marketing financial products and services, was highlighted by Hanbali.

"The need for one to understand the client's wants and preferences are paramount in implementing a successful strategy and how the importance of client retention should factor in as a corner stone to any sound marketing plan", he said.

Other areas that were discussed during the workshop were the factors contributing to low penetration rates of life assurance in many Muslim countries, the need for a drive for greater market awareness about takaful, the importance of actively seeking support of Islamic partners and conventional partners within Muslim clients and conclusive distribution methods.