The Islamic insurance (takaful) industry in the UAE and Qatar enjoy higher average premium per capita than the global average of $554.8 (Dh27.33), according to a report by Dubai Chamber.
Malaysia and Kuwait both have premium per capita below the world average by 47 per cent and 59 per cent respectively.
The UAE Islamic insurance industry is the second fastest growing market in the Gulf after Bahrain, the report said yesterday.
Capitalising on their robust economic growth, GCC takaful model market share is rapidly growing.
Bahrain takaful market grew 64 per cent during 2005-2006, while the UAE has an average growth rate of about 46.1 per cent.
Nevertheless the market size is still small when compared with the conventional insurance market.
The percentage of takaful premiums to total insurance premiums is still low yet increasing, ranging on average between 0.5 per cent in Bahrain and 1.8 per cent in Kuwait. The exception is, the Saudi Arabia which scores the highest average percentage share of about 17.9 per cent.
In the UAE, the estimated takaful premium share to total insurance premiums for 2006 is 1.5 per cent, second after Kuwait.
The UAE and the Muslim countries insurance penetration ratios (IPR) are very low. IPR is defined as the percentage of premiums to nominal GDP. Malaysia scores the highest insurance penetration ratio among the Muslim countries of about 4.9 per cent, followed by Lebanon with 3.9 per cent, Morocco 2.99 per cent and UAE 1.83 per cent.
IPR scores of the Muslim courtiers are below the world average penetration ratio of 7.5 per cent.
UAE takaful market is rapidly growing and becoming competitive as the number of takaful insurance providers is increasing, the report said. As of September, there are four UAE Islamic compliant insurance companies listed at Dubai Financial Market.
Source : emirates business news