Buletin Takaful

Source: Bernama, 16th January 2008

HONG KONG: Fitch Ratings is eyeing to rate Malaysian takaful issuers as the growth of the Islamic insurance sector remains on an upward trend globally.

Jeffrey Liew, head of insurance for Fitch Ratings (Asia-Pacfic), said Wednesday that Malaysia was in the forefront in the region with nine takaful providers and a lot of startups were getting ready to be rated.

“We are looking at three or four with potential but we cannot give the names. While there are some differences, the risk investment performances share many similarities with conventional insurance,” he told Bernama on the sidelines of a two-day Islamic finance seminar organised by the Hong Kong Monetary Authority and Malaysia-based Islamic Financial Services Board.

A rating by a recognised international rating company would make a company more attractive to foreign investors.

Liew said takaful was growing at 15 percent a year and the market was estimated at US$4 billion for family and general, accounting for one percent of global insurance premiums.

“So there is potential for growth with also migration from conventional to takaful. I think it will moderate but it will not drop significantly and would be close to double digits,” he said, adding that growth was still strong in Saudi Arabia and Sudan.

He also said that takaful growth was also expected to moderate in Malaysia because premiums had peaked due to rapid growth in recent years.