Value of takaful assets worldwide 2012-2021
What are takaful assets?
Takaful is an Islamic insurance which operates according to Islamic law. In this type of insurance, members contribute money into a pool system to guarantee each other against loss or damage. Those insurances were introduced as an alternative to conventional insurances as they avoid interest, high risk investments, and high uncertainties. Takaful is within the global insurance sector a niche product considering that in that time period the total asset value of the worldwide insurance sector was worth around 33 trillion U.S. dollars. Within the Islamic finance sector, Takaful is not as well established as other products if considering that during the same time period the total value of all Islamic financial assets were worth more than 1.76 trillion U.S. dollars.
The majority of takaful operators issue general insurances, followed by composite and life insurances. Indonesia is the leading operator of takaful operators worldwide, followed by Saudi Arabia and Iran. The Gulf Cooperation Council region generated the majority of takaful assets, worth over 19 billion U.S. dollars.