Takaful providers face low penetration rates across the MENA region

In a panel discussion on ‘challenges facing the Takaful industry’ at the Dubai World Insurance Congress 2020, it was highlighted that demand for Takaful products still remains low in many markets.

The discussion revealed that low consumer awareness is a key issue impacting demand, where the perception of the majority is that Takaful is a standard insurance product. Other challenges identified by industry experts include; the structure of Takaful companies where little or no surpluses are shared with policy holders, poor marketing and sales, among others.

The panel agreed that education and awareness about Takaful products should be increased, focusing on the factors that make Takaful products unique and different to...