‘Insurance industry to grow rapidly with new SECP Takaful rules’
LAHORE: Takaful Industry is growing rapidly around the world with 230 Takaful companies and 13 re-Takaful companies with the total volume of $11 billion.
Takaful was started in 2005 in Pakistan when Securities and Exchange Commission of Pakistan (SECP) introduced Takaful rules 2005 according to which only full fledge Takaful companies had the permission to operate and in this regard, 5 Takaful companies came into being due to efforts of investors of Malaysia, Qatar, Kuwait, UAE, Saudi Arabia and Pakistan. Among these 5 companies, 3 Takaful companies are general whereas 2 companies are providing the services of Shari’ah compliant life insurance. But in accordance with the recently issued SECP Takaful rules 2012, conventional insurance companies can open window operations of Takaful due to which Takaful industry would get promotion rapidly at national level.
Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics has declared these Takaful rules 2012 a good step for Takaful industry which would promote Takaful industry rapidly at national level and masses would have the opportunity to fulfill their insurance needs in Shari’ah compliant manner because in Pakistan, due to the elements of interest, gharar and gambling in insurance, people avoid insurance.
While analysing the insurance industry, he said there were 37 general insurance companies, 7 life insurance companies, 5 Takaful and re-Takaful companies operating in Pakistan and now, in accordance with the Takaful rules 2012, more than 40 insurance companies could start window operation of Takaful by fulfilling SECP laws and conventional insurance companies could be transformed into Takaful companies.
He said there were 3 types of business opportunities for Takaful industry, people, who do not use insurance due to interest factor, people who use insurance by compulsion but they can come to Islamic insurance when this alternate is introduced and people who do not fall under the category of insurance as in Pakistan, the penetration of insurance is less than 1 percent.
Experts have declared Takaful rules 2012 a very good sign for Pakistan which has the status of milestone in Pakistan insurance industry.