Takaful Market Report 2025 (Global Edition)

Global Takaful Market Report 2025 Market Size Split by Product Type (Life/Family Takaful, General Takaful), by Distribution Channel (Agents & Brokers, Banks, Direct Response, Others), by End-User (Ind...

Takaful Market Report Description

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Takaful Market Insights Video

Competitive Landscape of the Takaful Market

The competitive landscape of the takaful market is characterized by a diverse array of providers vying for market share. Companies strive to differentiate themselves through innovative product offerings, superior customer service, and effective distribution channels, amidst evolving consumer preferences and regulatory dynamics.

• In May 2022, Coface and Al Rajhi Takaful forged a strategic partnership in Credit Insurance. This collaboration empowers Al Rajhi Takaful to fortify its foothold in the Saudi market, augmenting its array of insurance offerings. Through this alliance, Saudi companies gain access to innovative products and services, enabling efficient trade development by mitigating non-payment risks.

(Source: https://www.coface.com/news-economy-and-insights/coface-and-al-rajhi-takaful-enter-a-strategic-partnership-in-credit-insurance)

Top Companies Market Share in Takaful Industry: (In no particular order of Rank)

• Islamic Insurance Company
• JamaPunji
• AMAN
• Al-Rajhi
• Salama
• Standard Chartered
• Takaful Brunei Darussalam Sdn Bhd
• Allianz
• State Life Insurance Corporation of Pakistan
• Prudential BSN Takaful Berhad
• Zurich Malaysia
• Takaful Malaysia
• Qatar Islamic Insurance Company
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

North America dominated the market in 2024 and accounted for around 40% of the global revenue

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to increasing awareness and acceptance of Islamic finance principles among a diverse population. Regulatory support and the presence of affluent Muslim communities contribute to robust growth. Additionally, strategic partnerships with conventional financial institutions enhance market reach. Technological advancements and a growing desire for ethical financial solutions further drive takaful sales in this region.

Asia-Pacific is the fastest-growing region, fuelled by a burgeoning population, rising disposable incomes, and a deepening understanding of Sharia-compliant financial services. Government initiatives supporting Islamic finance, coupled with expanding middle-class demographics, contribute to the surge. Furthermore, innovative digital platforms and Insurtech adoption cater to diverse customer needs, propelling the region's takaful industry forward.

The current report Scope analyzes Takaful Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Takaful Market Analysis

According to Cognitive Market Research, the global takaful market size was estimated at USD 33415.2 Million out of which North America held the major market of around 40% of the global revenue with a market size of USD 13366.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031. Strategic partnerships with conventional insurers expand distribution channels, enhancing market accessibility. The region's robust technological infrastructure facilitates the adoption of digital platforms, driving sales further. Notably, takaful providers leverage innovative product offerings tailored to the unique needs of North American consumers, such as hybrid insurance products combining takaful with conventional coverage options. With general takaful holding the major market share, its growth is fuelled by partnerships with leading banks, tapping into their extensive customer base and credibility, solidifying its dominance in the region.

Europe Takaful Market Analysis

According to Cognitive Market Research, with a market value of USD 33415.2 million in 2024 and projected to expand at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031. Europe accounted for a share of around 30% of the global market size of USD 10024.56 million. Rising acceptance of Islamic finance principles among mainstream populations fuels the demand for takaful products. Regulatory frameworks supporting Sharia-compliant finance facilitate market expansion. Moreover, partnerships with local financial institutions and insurers enhance product distribution. Insurtech innovations cater to the tech-savvy European market, facilitating online purchases and claims processing. Takaful providers also emphasize ethical investment strategies, resonating with European consumers' values. With life/family takaful as the fastest-growing segment, its growth is propelled by tailored offerings catering to the diverse familial structures and financial needs prevalent in Europe.

Asia Pacific Takaful Market Analysis

According to Cognitive Market Research, the global Takaful market size was estimated at USD 33415.2 Million out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 7685.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031. Government initiatives promoting Islamic finance drive market development. Technological advancements facilitate the adoption of digital distribution channels, reaching underserved rural areas. Moreover, rising healthcare costs and the desire for comprehensive protection fuel demand for health and medical takaful. Innovative micro-takaful products cater to the region's large unbanked population. Notably, the direct response segment emerges as the fastest-growing category, fuelled by the region's tech-savvy population and increasing smartphone penetration. With banks holding a prominent market share, their extensive branch networks and established customer trust contribute to the segment's growth, leveraging Banca-takaful partnerships to reach a wider customer base.

South America Takaful Market Analysis

According to Cognitive Market Research, the global Takaful market size was estimated at USD 33415.2 Million out of which Latin America market of around 5% of the global revenue with a market size of USD 1670.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031. Economic stability and government initiatives promote foreign investment, facilitating market growth. Tailored takaful products addressing the region's unique risks, such as natural disasters and political instability, resonate with consumers. Moreover, strategic alliances with local insurers and financial institutions enhance market penetration. The region's youthful demographics and increasing urbanization drive demand for personal insurance products like motor and personal accident takaful. Notably, corporate customers emerge as the fastest-growing segment, driven by businesses seeking comprehensive risk management solutions. With direct response witnessing rapid growth, its accessibility through online platforms and mobile apps meets the evolving needs of tech-savvy Latin American consumers.

Middle East Takaful Market Analysis

According to Cognitive Market Research, the global Takaful market size was estimated at USD 33415.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 668.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2031. Increasing GDP per capita and infrastructure development drive market expansion. Takaful providers leverage digital platforms and mobile apps to cater to the region's young and tech-savvy population. Moreover, the region's large expatriate population seeks Sharia-compliant financial solutions, boosting demand for takaful. Notably, corporate customers drive market growth as businesses prioritize employee welfare and risk management. With general takaful holding the major market share, its growth is propelled by partnerships with leading banks, tapping into their extensive customer base and credibility, solidifying its dominance in the region.

Takaful Market Analysis

Product Type Segment Analysis

According to Cognitive Market Research, general takaful held the major market share over the forecast period owing to its broad applicability across various sectors like property, motor, and health. Increasing awareness of risk mitigation among businesses and individuals fuels the demand. Moreover, regulatory mandates mandating insurance coverage drive sales. Technological advancements in claims processing and underwriting enhance operational efficiency, further boosting market penetration. Additionally, growing partnerships with non-takaful entities broaden distribution channels, solidifying the general takaful position.

Life/family takaful is the fastest-growing category over the forecast period due to increasing emphasis on long-term financial planning and protection among individuals and families. Rising disposable incomes and shifting demographics drive demand for life coverage, including savings and retirement plans. Additionally, a heightened awareness of mortality risks and the desire for financial security propel sales. Innovations in product design, such as customizable coverage options and investment-linked policies, cater to evolving customer needs, further accelerating growth in this segment.

• Life/Family Takaful
• General Takaful

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Takaful Industry. Request a Free Sample PDF!

Distribution Channel Segment Analysis

According to Cognitive Market Research, banks hold a prominent market share due to their extensive customer base, trustworthiness, and established distribution networks. Integration of takaful products with banking services, especially Banca-takaful, enhances accessibility and customer convenience. Moreover, banks' robust marketing efforts and cross-selling strategies contribute to higher sales. Their expertise in financial advisory services strengthens product penetration, consolidating their position in the market.

Direct response is the fastest-growing category over the forecast period driven by technological advancements and changing consumer preferences for digital interactions. Increasing internet and smartphone penetration facilitate direct sales channels, offering convenience and instant access to takaful products. Insurtech innovations streamline the purchase process, simplifying policy issuance and claims handling. Moreover, targeted online marketing campaigns and personalized offerings enhance customer engagement and loyalty, driving rapid growth in this segment.

• Agents & Brokers
• Banks
• Direct Response
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Takaful End-User Segment Analysis

According to Cognitive Market Research, individual customers hold a prominent market share due to their sheer numbers and diverse insurance needs. Increasing awareness of personal financial planning and risk mitigation drives demand for individual takaful products like life, health, and personal accident coverage. Customizable plans tailored to specific needs attract individual buyers. Moreover, regulatory mandates requiring insurance coverage for individuals, such as mandatory health insurance in some regions, contribute to the segment's prominence.

Corporate customers are the fastest-growing category over the forecast period. Growing recognition of the importance of safeguarding business operations against unforeseen risks propels demand for takaful solutions. Group takaful schemes offering comprehensive coverage and cost-effective premiums appeal to corporate clients. Additionally, regulatory requirements mandating insurance coverage for employees and assets further drive sales in this segment. The increasing adoption of takaful by corporations seeking ethical and Sharia-compliant alternatives also fuels growth.

• Individual Customers
• Corporate Customers

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion