Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 30 n° 299

Best’s Special Report: Takaful in the MENA Region: Finding the Right Ingredients for Success

Posted by fidest press agency su martedì, 15 maggio 2018

A.M. Best believes there are significant opportunities for takaful operators in most Middle East and North Africa (MENA) markets to provide sound financial protection that is in line with consumers’ religious sensibilities, taking into account the huge global Muslim population. However, these opportunities continue to remain disappointingly unrealised, with takaful companies struggling to establish strong business profiles.In a new Best’s Special Report, titled, “Takaful in the MENA Region: Finding the Right Ingredients for Success”, A.M. Best states due to a lack of sufficient differentiation, takaful providers remain subject to fierce price competition with larger, more established insurers that already benefit from greater brand awareness and established distribution networks. Furthermore, additional support from shari’a scholars in promoting Islamic financial products is essential for the growth of the takaful sector.Salman Siddiqui, associate director, said: “Given the proportion of Muslims in the MENA region, A.M. Best considers the take-up of shari’a-compliant insurance to be disappointing, especially in contrast with the Malaysian experience, which exhibits higher takaful penetration – despite the country having a lower proportion of Muslims. With the exception of Saudi Arabia, where all insurers operate under the unified co-operative insurance model, which is distinctly different from the traditional takaful model, most of the remaining Middle Eastern takaful operators have struggled to establish competitive positions in their respective markets.”The report examines market trends including merger and acquisition activity and notes despite some market consolidation, the business profiles of the majority of takaful companies remain limited. A.M. Best considers the Middle East insurance markets to be concentrated and generally a few large players dominate their respective markets, with the other market participants competing for the remaining premium.Mahesh Mistry, senior director, analytics, said: “Operators with strong business profiles and track records of good operating performance are able to attain higher credit ratings from A.M. Best. Conversely, those who struggle in establishing their franchises, and suffer from poor performance find it harder to attain strong credit ratings. Additionally, a number of takaful companies have had difficulties in meeting minimum solvency rules, which has also led to lower credit ratings.”

Rispondi

Inserisci i tuoi dati qui sotto o clicca su un'icona per effettuare l'accesso:

Logo WordPress.com

Stai commentando usando il tuo account WordPress.com. Chiudi sessione /  Modifica )

Google+ photo

Stai commentando usando il tuo account Google+. Chiudi sessione /  Modifica )

Foto Twitter

Stai commentando usando il tuo account Twitter. Chiudi sessione /  Modifica )

Foto di Facebook

Stai commentando usando il tuo account Facebook. Chiudi sessione /  Modifica )

Connessione a %s...

 
%d blogger hanno fatto clic su Mi Piace per questo: