CENTRE OF ISLAMIC BANKING& ECONOMICSPress ReleasePakistan Takaful Industry entered in New EraInsurance Industry would Grow...
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Press release on pakistan takaful industry

Published on: Mar 4, 2016

Transcripts - Press release on pakistan takaful industry

  • 1. CENTRE OF ISLAMIC BANKING& ECONOMICSPress ReleasePakistan Takaful Industry entered in New EraInsurance Industry would Grow Rapidly By SECP Takaful Rules 2012: Zubair Mughal(Lahore) Takaful Industry is growing rapidly around the world with 230 Takaful Companies, 13 Re-Takafulcompanies with the total volume of $11 Billion. Takaful was started in 2005 in Pakistan when Securities andExchange Commission of Pakistan (SECP) introduced Takaful Rules 2005 according to which only full fledgetakaful companies had the permission to operate and in this regard, 5 Takaful companies came into beingdue to efforts of investors of Malaysia, Qatar, Kuwait, UAE, Saudi Arabia and Pakistan. Among these 5companies, 3 takaful companies are general whereas 2 takaful companies are providing the services ofShari’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 industrywould get promotion rapidly at national level.Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics hasdeclared these Takaful Rules 2012 a good step for Takaful industry which will promote takaful industryrapidly at national level and masses will have the opportunity to fulfill their insurance needs in Shari’ahcompliant manner because in Pakistan, due to the elements of Interest, Gharar and gambling in insurance,people avoid insurance. While analyzing the insurance industry, he said that there are 37 general insurancecompanies, 7 life insurance companies, 5 takaful and Re-Takaful companies are operating in Pakistan andnow, in accordance with the Takaful Rules 2012, more than 40 insurance companies can start windowoperation of takaful by fulfilling SECP laws and conventional insurance companies can be transformed intotakaful companies. He said that there are 3 types of business opportunities for takaful industry: 1) people,who do not use insurance due to interest factor; 2) people who use insurance by compulsion but they cancome to Islamic insurance when this alternate is introduced; and 3) people who do not fall under thecategory of insurance as in Pakistan, the penetration of insurance is less than 1 percent.Experts have declared Takaful Rules 2012 is a very good sign for Pakistan which has the status of milestonein Pakistan insurance industry.Head Office: 192- Ahmad Block, Ph: +92-42-35913096-8 E-mail: info@alhudacibe.comNew Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com

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