Bahrain Takaful sector to see steady growth in 2009
Nexus, the region’s leading financial adviser and Solidarity Family Takaful, today announced the launch of a joint marketing agreement for Takaful product in the Kingdom of Bahrain, designed to provide clients with a Shariah-compliant opportunity to protect wealth for the future.
Demand for Takaful products– products which are compliant with key Islamic tenets and based on the concept of shared responsibility – in the Middle East has increased sharply in recent months, with clients appreciating the benefits of transparency and security of such products, as well as their adherence to Islamic ethical expectations.
In 2008, the global Takaful market was estimated to be a US$2.3 billion market, with the Middle East region accounting for 46 percent of total sales, according to the Bahrain Insurance Association. International growth of the Takaful market currently stands at between15- 20 percent per annum.
Nigel Watson, General Manager of Nexus Bahrain, said: “The Takaful market is becoming increasingly sophisticated in response to customer demand, providing an equivalent level of return to conventional financial products, as well as a high level of transparency and flexibility.”
The Takaful portfolio will include takaful products such as Education, Start and Retirement plans having protection, saving and investment features, as well as takaful pure term life and other Shariah-compliant protection plans.
Gopi Rao, General Manager of Solidarity Family, said “We are seeing an increased demand for customised Takaful products in Bahrain. As part of our commitment to offering flexible products, we are working with regional insurance experts such as Nexus to further develop advanced products suitable to client requirements in Bahrain,”
Nexus is confident that Takaful will emerge as one of its most popular lines over the next 12 months. “We believe that demand for this product range will continue to rise over the coming months, particularly as customer awareness increases. We are excited to work with Solidarity Family Takaful, a company with demonstrated brand awareness and strong localised service and marketing support,” added Watson.