Malaysia: Islamic insurance sector likely to see some consolidation

Analysts expect to see some consolidation in Malaysia's takaful sector as a result of the Financial Services Act and the Islamic Financial Services Act. Under the new rules, composite insurers and takaful players are required to operate their life and nonlife units under separate licenses and have until 2018 to meet the requirement. Industry observers said that those affected should start looking for mergers and acquisitions instead of waiting for four more years to split their businesses.