A comparative study of the historical and current development of the GCC insurance and takaful industry

Purpose: This paper aims to present a comparative examination of the historical and current profiles of the insurance and takaful industry in the Gulf region. Meanwhile, it will provide overview and insightful information of Gulf Cooperation Council (GCC) countries for insurance and takaful provider...

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Main Authors:	Alshammri, Ahmad Alrazni, Syed Jaafar Alhabshi, Syed Musa, Saiti, Buerhan
Format:	Article
Language:	English English English
Published:	Emerald Group Publishing Ltd. 2018
Subjects:	HG8011 Insurance HG8719 Islamic Insurance Takaful
Online Access:	http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/1/64753_A%20comparative%20study%20of%20the%20historical%20and%20current.pdf http://irep.iium.edu.my/64753/2/64753_A%20comparative%20study%20of%20the%20historical%20and%20current_SCOPUS.pdf http://irep.iium.edu.my/64753/13/64753_A%20comparative%20study%20of%20the%20historical%20and%20current%20development%20of%20the%20GCC%20insurance%20and%20takaful%20industry.pdf

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recordtype	eprints
spelling	iium-647532018-10-15T07:42:26Z http://irep.iium.edu.my/64753/ A comparative study of the historical and current development of the GCC insurance and takaful industry Alshammri, Ahmad Alrazni Syed Jaafar Alhabshi, Syed Musa Saiti, Buerhan HG8011 Insurance HG8719 Islamic Insurance Takaful Purpose: This paper aims to present a comparative examination of the historical and current profiles of the insurance and takaful industry in the Gulf region. Meanwhile, it will provide overview and insightful information of Gulf Cooperation Council (GCC) countries for insurance and takaful providers for their marketing strategy purpose. Design/methodology/approach: This paper uses insurance and takaful sectors in Gulf region as an exploring area where the data are extracted from the regulators’ annual reports and other reports issued by research houses and market players, e.g. Islamic Financial Services Industry, Swiss Re and Milliman. Findings: The comparative analysis reveals that insurance activities penetrated the Gulf region through foreign institutions. After independence and booming oil prices, local institutions established the industry in an unregulated environment. As the industry grew and matured, the sector gradually became regulated. This supported the growth of the industry, leading to the emergence of the biggest takaful market in the world, with 72 takaful operators. Almost half of the takaful operators operate in the Saudi market. Regarding business lines, general lines dominated because of compulsory motor insurance for all cars and health insurance for expatriates. Insurance penetration and insurance density recorded a low figure in GCC compared to the global market because of a lack of product development, especially in family line, which many people think the life insurance contradicts Islamic law. Furthermore, it is low due to the poor channel of distributions with depend heavily on insurance agents that fails to reach the customers. Research limitations/implications: Interestingly, the takaful market share is considered very low, e.g. 9 per cent in Oman 9 and 9.2 per cent in UAE, where the majority of population is Muslim, indicating that takaful providers should focus in these countries to grab better market shares. Originality/value: As takaful business is an emerging area in Islamic finance and many insurance players are interested in it, this paper provides an overview and marketing insights of insurance and takaful industries in the GCC region. © 2018, Emerald Publishing Limited. Emerald Group Publishing Ltd. 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/64753/1/64753_A%20comparative%20study%20of%20the%20historical%20and%20current.pdf application/pdf en http://irep.iium.edu.my/64753/2/64753_A%20comparative%20study%20of%20the%20historical%20and%20current_SCOPUS.pdf application/pdf en http://irep.iium.edu.my/64753/13/64753_A%20comparative%20study%20of%20the%20historical%20and%20current%20development%20of%20the%20GCC%20insurance%20and%20takaful%20industry.pdf Alshammri, Ahmad Alrazni and Syed Jaafar Alhabshi, Syed Musa and Saiti, Buerhan (2018) A comparative study of the historical and current development of the GCC insurance and takaful industry. Journal of Islamic Marketing, 9 (2). pp. 356-369. ISSN 1759-0833 https://www.emeraldinsight.com/doi/pdfplus/10.1108/JIMA-05-2016-0041 doi.org/10.1108/JIMA-05-2016-0041
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG8011 Insurance HG8719 Islamic Insurance Takaful
spellingShingle	HG8011 Insurance HG8719 Islamic Insurance Takaful Alshammri, Ahmad Alrazni Syed Jaafar Alhabshi, Syed Musa Saiti, Buerhan A comparative study of the historical and current development of the GCC insurance and takaful industry
description	Purpose: This paper aims to present a comparative examination of the historical and current profiles of the insurance and takaful industry in the Gulf region. Meanwhile, it will provide overview and insightful information of Gulf Cooperation Council (GCC) countries for insurance and takaful providers for their marketing strategy purpose. Design/methodology/approach: This paper uses insurance and takaful sectors in Gulf region as an exploring area where the data are extracted from the regulators’ annual reports and other reports issued by research houses and market players, e.g. Islamic Financial Services Industry, Swiss Re and Milliman. Findings: The comparative analysis reveals that insurance activities penetrated the Gulf region through foreign institutions. After independence and booming oil prices, local institutions established the industry in an unregulated environment. As the industry grew and matured, the sector gradually became regulated. This supported the growth of the industry, leading to the emergence of the biggest takaful market in the world, with 72 takaful operators. Almost half of the takaful operators operate in the Saudi market. Regarding business lines, general lines dominated because of compulsory motor insurance for all cars and health insurance for expatriates. Insurance penetration and insurance density recorded a low figure in GCC compared to the global market because of a lack of product development, especially in family line, which many people think the life insurance contradicts Islamic law. Furthermore, it is low due to the poor channel of distributions with depend heavily on insurance agents that fails to reach the customers. Research limitations/implications: Interestingly, the takaful market share is considered very low, e.g. 9 per cent in Oman 9 and 9.2 per cent in UAE, where the majority of population is Muslim, indicating that takaful providers should focus in these countries to grab better market shares. Originality/value: As takaful business is an emerging area in Islamic finance and many insurance players are interested in it, this paper provides an overview and marketing insights of insurance and takaful industries in the GCC region. © 2018, Emerald Publishing Limited.
format	Article
author	Alshammri, Ahmad Alrazni Syed Jaafar Alhabshi, Syed Musa Saiti, Buerhan
author_facet	Alshammri, Ahmad Alrazni Syed Jaafar Alhabshi, Syed Musa Saiti, Buerhan
author_sort	Alshammri, Ahmad Alrazni
title	A comparative study of the historical and current development of the GCC insurance and takaful industry
title_short	A comparative study of the historical and current development of the GCC insurance and takaful industry
title_full	A comparative study of the historical and current development of the GCC insurance and takaful industry
title_fullStr	A comparative study of the historical and current development of the GCC insurance and takaful industry
title_full_unstemmed	A comparative study of the historical and current development of the GCC insurance and takaful industry
title_sort	comparative study of the historical and current development of the gcc insurance and takaful industry
publisher	Emerald Group Publishing Ltd.
publishDate	2018
url	http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/ http://irep.iium.edu.my/64753/1/64753_A%20comparative%20study%20of%20the%20historical%20and%20current.pdf http://irep.iium.edu.my/64753/2/64753_A%20comparative%20study%20of%20the%20historical%20and%20current_SCOPUS.pdf http://irep.iium.edu.my/64753/13/64753_A%20comparative%20study%20of%20the%20historical%20and%20current%20development%20of%20the%20GCC%20insurance%20and%20takaful%20industry.pdf
first_indexed	2023-09-18T21:31:53Z
last_indexed	2023-09-18T21:31:53Z
_version_	1777412566083960832

A comparative study of the historical and current development of the GCC insurance and takaful industry

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