Takaful: Potential Demand and Growth

Abstract. Takaful is an alternative form of financial instrument to insure assets, liabilities and other personal interests of individuals and organizations. Almost 30 years later, takaful has grown at such a rapid rate and the market has expanded from Western Asia, South Asia, South East Asia, Africa which are predominantly Muslim populated countries and recently has made its appearance in parts of Europe and North America. The impressive growth world wide and potential expansion into new western markets has a strong implication to would-be takaful operators to gear themselves with innovative takaful products and to match the service quality of the traditional insurance market to cater to the close to a billion Muslim market scattered in many parts of the world