OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Salman Siddiqui, associate director of analytics, A.M. Best, said insurers that offer products that comply with Islamic religious law have had limited market success compared with more established general insurance competitors. Click on http://www.ambest.com/v.asp?v=uktakaful618 to view the entire program.
“Despite the massive potential out there, takaful companies have struggled to establish a foothold or a footprint in their respective insurance markets,” said Siddiqui. “A.M. Best believes one of the biggest factors for this struggle is the relative youth of these companies. Most takaful companies have sprung up in the last 10-15 years, and are competing directly with conventional insurance companies that were established 40-50 years ago. Additionally, they struggle in terms of getting their brand recognized, and they have not been able to differentiate themselves adequately from conventional insurance companies.”
Going forward, Siddiqui said he expects more mergers and acquisitions (M&A) to occur in the takaful market.
“One reason for these M&As is that conventional insurance companies or groups are acquiring takaful companies as an additional distribution platform and/or network,” said Siddiqui. “Takaful companies, which are struggling for size and scale, also are acquiring other companies to increase their business profile.”
To access a copy of this special report, titled, “Takaful in the MENA Region: Finding the Right Ingredients for Success”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273547.
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