Global Takaful Market Overview:
The Takaful Market Size was estimated at 31.65 (USD Billion) in 2022. The Takaful Market is expected to grow from 34 (USD Billion) in 2023 to 126.8 (USD Billion) by 2032. The Takaful Market CAGR (growth rate) is expected to be around 15.2% during the forecast period (2024 - 2032).
Key Takaful Market Trends Highlighted
The Takaful market is driven by increasing awareness about financial security, growing affluence, rising insurance penetration, and the growing demand for ethical investment options. Moreover, the trend of digitalization in the insurance industry is providing significant opportunities for Takaful providers to expand their reach and offer convenient policy administration.
Key market drivers include a growing Muslim population, increasing awareness of Takaful, and government support for the industry.
Opportunities for growth include expanding into new markets, developing new products, and partnering with traditional insurers. Recent trends in the Takaful market include a shift toward online distribution, the use of technology to automate processes, and the development of new products that cater to the needs of Muslim consumers. As demand continues to grow, the Takaful market is expected to witness ongoing expansion and innovation, with opportunities for both established players and new entrants.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Takaful Market Drivers
Growing Awareness of Islamic Finance Principles
Takaful, as an Islamic insurance model, aligns with the principles of Islamic finance, which prohibits interest and promotes risk-sharing. The increasing awareness of Islamic finance principles among Muslim populations worldwide has been a primary driver of the Takaful market's growth.
Governments and financial institutions in various countries actively promote Islamic finance, further boosting the demand for Takaful products. Moreover, the growing affluence of Muslim consumers and their desire for Shariah-compliant financial solutions have contributed to the market's expansion.
Increasing Demand for Ethical and Socially Responsible Investments
Investors are increasingly seeking ethical and socially responsible investment opportunities that align with their values. Takaful, by its nature, promotes social solidarity and risk-sharing, making it an attractive option for investors seeking to align their investments with their ethical beliefs.
The growing demand for ESG (Environmental, Social, and Governance) compliant investments has had a positive impact on the Takaful market, as it offers a unique combination of ethical principles and financial returns.
Expansion of Shariah-Compliant Insurance Offerings
The expansion of Shariah-compliant insurance offerings has benefited the Takaful market. Insurance companies and Takaful operators are continually developing new products to cater to the needs of Muslim consumers.
The Takaful market has seen an expansion in the introduction of new products, such as family Takaful, health Takaful, and investment-linked Takaful, which has helped widen the market’s scope, attracting a wider consumer base.
The expansion of the product range has increased the level of competition within the Takaful market, leading to better prices for products as well as improved customer service.
Takaful Market Segment Insights:
Takaful Market Product Type Insights
The Takaful Market is segmented by Product Type into Family Takaful, General Takaful, Savings Takaful, and Investment Takaful. Among these segments, Family Takaful is expected to hold the largest market share in 2023, accounting for approximately 35.2% of the Takaful Market revenue.
The growth of this segment can be attributed to the increasing demand for Shariah-compliant insurance products that cover family members, including spouses, children, and parents. General Takaful is another significant segment, capturing around 28.5% of the market share.
This segment offers coverage for various risks associated with property, vehicles, and businesses. Savings Takaful is projected to witness steady growth over the forecast period, driven by the rising popularity of Sharia-compliant savings and investment products.
Investment Takaful, which combines investment and insurance elements, is also expected to gain traction in the coming years. The increasing awareness of Shariah-compliant financial products and the growing population of Muslims worldwide are key factors contributing to the growth of the Takaful market overall.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Takaful Market Distribution Channel Insights
Agents held the leading position in the Takaful Market Distribution Channel segment in 2023, accounting for 68.2% of the market revenue. Agents provide personalized advice and support to customers, which makes them a preferred choice for complex Takaful products.
Bancassurance is expected to witness the fastest growth over the forecast period, with a CAGR of 8.7%, owing to the increasing collaboration between banks and Takaful operators. Direct Insurance and Online Insurance are gaining popularity due to their convenience and cost-effectiveness.
Takaful Market Coverage Type Insights
The Takaful Market is segmented by coverage type into Medical Takaful, Life Takaful, Education Takaful, and Property Takaful. Medical Takaful is the largest segment, accounting for over 50% of the market revenue in 2023.
This segment is expected to continue its dominance, growing at a CAGR of 7.5% to reach a value of USD 45.4 billion by 2032. The growth of this segment can be attributed to the rising demand for healthcare services and the increasing awareness of Takaful products among the Muslim population.
Life Takaful is the second largest segment, with a market share of over 30% in 2023. This segment is expected to register a CAGR of 8.0% to reach a value of USD 32.2 billion by 2032. The growth of this segment is driven by the increasing demand for life insurance and savings products among the Muslim population.
Education Takaful is a growing segment, with a market share of over 10% in 2023. This segment is expected to register a CAGR of 8.5% to reach a value of USD 10.3 billion by 2032. The growth of this segment is driven by the increasing demand for education financing and savings products among the Muslim population.
Property Takaful is the smallest segment, with a market share of under 10% in 2023. This segment is expected to register a CAGR of 7.0% to reach a value of USD 8.8 billion by 2032. The growth of this segment is driven by the increasing demand for property insurance and savings products among the Muslim population.
Takaful Market Customer Type Insights
The Takaful Market is segmented by customer type into individual, corporate, and Islamic banks. The individual segment accounted for the largest share of the market in 2023 and is expected to continue to register a CAGR of 8.1% from 2024 to 2032.
The corporate segment is expected to register a CAGR of 7.9% during the same period. Islamic banks are expected to register a CAGR of 7.7% from 2024 to 2032. The growth of the individual segment is driven by the increasing awareness of Takaful products and the growing demand for Sharia-compliant financial products.
The corporate segment is expected to grow due to the increasing demand for Takaful products from businesses looking to protect their employees and assets. The growth of the market is driven by the increasing demand for Shariah-compliant financial products and the growing awareness of Takaful products.
Takaful Market Regional Insights
The regional segmentation of the Takaful Market encompasses North America, Europe, APAC, South America, and MEA. North America holds a significant market share due to the presence of well-established insurance companies and a growing Muslim population.
Europe follows closely, driven by increasing awareness of Takaful products among Muslim communities. APAC is projected to witness substantial growth, particularly in Southeast Asia, where the Muslim population is expanding rapidly.
South America and MEA represent emerging markets with untapped potential for Takaful products.
The Takaful Market revenue in North America is estimated to reach USD 10.23 billion by 2024, while the APAC region is projected to register a CAGR of 8.2% during the same period.
These regional insights provide a granular understanding of the market dynamics and growth prospects across different geographies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Takaful Market Key Players and Competitive Insights:
To reinforce their positions in the industry, key players of industries constantly implement diverse strategic initiatives; these are M and product innovation. Similarly, the major players of the Takaful Market implement acquisitions, product innovation, and affiliation to expand their presence across the world and increase their market share.
The specific industry is highly competitive as there are several major and not very well-established players within the sector, and all these companies offer a wide array of products and services. Some of the major players of the specific industry are Salaam Takaful, Solidarity Group, and Dubai Islamic Insurance and Reinsurance Company.
The companies are integrating a variety of new products and opportunities to meet the demand of their clients, and the industry is likely to expand in the course of time because the Islamic financial market is expected to continue establishing in the countries across the globe, especially in the emerging markets.
Salaam Takaful is one of the major players in the industry and one of the prominent Islamic insurance companies operating across the entire region of the Middle East and North Africa. The company is in the UAE and offers a wide array of products and services to meet the specific demands of individuals and local businesses.
Overall, the company focuses on providing its clients with takaful family, health, and property insurance, and the company has already established its market presence in many countries, including the United Arab Emirates, Bahrain, Oman, and Qatar. Salah Takaful is likely to offer its clients with new services in the course of time, and its major competitive advantage lies in its market presence, affiliations, and focus on providing clients with Shariah-compliant innovative products.
A specific direct competitor of Salaam Takaful is Solidarity Group, another remarkable Takaful company located in the United Arab Emirates and working in many countries located across the Middle East and North Africa.
The company currently focuses on providing its clients with takaful life and health insurance as well as general insurance, and the company is one of the pioneers in the region in terms of being the first entity provider of Takaful products.
Thus, the major competitive advantage of Solidarity is its focus on being pioneer in the industry of the entire region as the Ethical and Shariah compliant company.
Key Companies in the Takaful Market Include:
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Maybank Islamic Berhad
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Dar Al Takaful
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Salama Cooperative Insurance Company
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RHB Islamic Bank Berhad
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Zurich Takaful Malaysia
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CIMB Islamic Bank
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Etiqa Takaful
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Amanah Takaful
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Bank Islam Malaysia Berhad
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AXA Affin General Takaful
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Salaam Takaful
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Great Eastern Takaful Berhad
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Takaful Malaysia Keluarga Berhad
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Al Hilal Takaful
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Al Rajhi Takaful
Takaful Industry Developments
The market growth can be attributed to rising awareness about Takaful insurance, increasing disposable income, and growing demand for Sharia-compliant financial products among the Muslim population. The penetration of Takaful insurance is particularly high in the Middle East and Southeast Asia, where it is often supported by government initiatives and regulations.
Recent news developments in the Takaful market include the launch of new products and services by major players, such as the introduction of digital Takaful platforms and the expansion of Takaful insurance coverage to new markets.
Takaful Market Segmentation Insights
Takaful Market Product Type Outlook
- Family Takaful
- General Takaful
- Savings Takaful
- Investment Takaful
Takaful Market Distribution Channel Outlook
- Agents
- Bancassurance
- Direct Insurance
- Online Insurance
Takaful Market Coverage Type Outlook
- Medical Takaful
- Life Takaful
- Education Takaful
- Property Takaful
Takaful Market Customer Type Outlook
- Individual
- Corporate
- Islamic Banks
Takaful Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
31.65 (USD Billion) |
| Market Size 2023 |
34 (USD Billion) |
| Market Size 2032 |
126.8 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
15.2% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Maybank Islamic Berhad, Dar Al Takaful, Salama Cooperative Insurance Company, RHB Islamic Bank Berhad, Zurich Takaful Malaysia, CIMB Islamic Bank, Etiqa Takaful, Amanah Takaful, Bank Islam Malaysia Berhad, AXA Affin General Takaful, Salaam Takaful, Great Eastern Takaful Berhad, Takaful Malaysia Keluarga Berhad, Al Hilal Takaful, Al Rajhi Takaful |
| Segments Covered |
Product Type, Distribution Channel, Coverage Type, Customer Type, Regional |
| Key Market Opportunities |
Shariah-compliant banking and financial services expansion.The growing Muslim population and increased awareness of Takaful.Increasing government support and initiatives.Growing demand for ethical and sustainable investment products.Digitalization and technological advancements |
| Key Market Dynamics |
Growing Muslim Population Increased Awareness and Demand Expansion into New Markets Technological Advancements Regulatory Support and Framework |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Takaful Market is expected to reach USD 34 billion in 2023 and is projected to register a CAGR of 15.2% from 2024 to 2032, reaching USD 126.8 billion by 2032.
The Asia-Pacific region is expected to be the largest market for Takaful in 2023, accounting for over 60% of the global market. The Middle East and Africa region is also expected to witness significant growth in the coming years.
Takaful is primarily used for insurance coverage in areas such as life insurance, general insurance, and health insurance.
Some of the key players in the Takaful Market include Salaam Takaful, BIMA, and Zurich Takaful.
