Seen in an Insurance Journal article reporting on S&P’s assessment of the creation/expansion of takafuls (insurance entities operated in accordance with Halal principles) into the Persian Gulf region:
“The opportunities for increased uptake of takaful in the GCC are positive because the considerable economic growth in the region, coupled with a sizable, underinsured population, means that there are substantial prospects for further development of personal lines cover,” explained S&P credit analyst Jelena Bjelanovic. “The ability of the industry to demonstrate the need for and benefits of insurance, as well as to successfully meet customer demands, remains unproven, however.”
The report also indicates that “if the world average insurance premium of $550 per capita is achieved and applied to the Gulf states, the GCC insurance market has a potential size of $20 billion (currently $4.6 billion).
Someone’s going to find a way to make a profit, I think.