RSS Feed
Takaful is growing 35 percent faster than conventional insurance worldwide with over 133 Takaful operators and US$ 4.3 billion market size, which is expected to increase by $8 billion in 2012.
These views were presented by CEOs of Pak-Qatar Family Takaful and Pak-Qatar General Takaful while addressing the members of Banking and Insurance Sub-Committee of Karachi Chamber of Commerce and Industry (KCCI).
CEO, Pak-Qatar Family Takaful . Ahmed said that Takaful is a Halal and ethical alternate to conventional insurance, which is based on the concept of brotherhood and mutual solidarity.
He informed that Takaful is a transparent community-pooling system in which participants contributes their savings into the common fund to help those who need it most in times of financial difficulty. For this to happen Takaful operator creates the Waqf Fund or the “Taburru Fund” where Participants contribute their premiums/contributions on the basis of “Taburru” into Waqf Fund and claims are paid by the Waqf Fund.
P Ahmed said that there is a desperate need as well as potential for Takaful in Pakistan as only about 0.6 percent of our GDP goes towards insurance whereas in India that figure hovers around the 3.5 percent mark. Pakistan is ranked third in the list of 11 most developed or developing economies around the world in terms of low national savings. National savings, as per cent of GDP, declined from 20.8 per cent in FY03 to 14.3 per cent in FY 09.
He said that following the introduction of Takaful Rules by the SECP in 2005, five Takaful Operators have entered the local insurance market; three in General and two on the Family side. These numbers are scheduled to increase in coming years which shall bring in the much-needed vitality in the insurance industry.
He said that risk mitigation and financial protection is something that everybody needs to be concerned about.
Posted in 
