IslamicFinance.de

A few weeks ago we saw the launch of a Sharia-compliant mobile phone-based loan service. The new service, called Trust Network Finance was rolled out by Allianz in Indonesia. TNF reflects the big opportunities in Indonesia for mobile money and for Sharia-compliant services.
Although roughly 60% of Indonesians have a mobile phone, only 3% of the population is reportedly aware of mobile money. Indonesia has the world’s largest Muslim population, and Sharia-compliant finance has grown over the past few decades in the country; however by the end of 2016 Islamic financial institutions in Indonesia are only expected to hold 5% of the nation’s total banking assets.
Of the country’s roughly 250 million citizens, 60% are unbanked. It’s estimated that there are 50 million MSMEs in Indonesia, which make up about 97% of the country’s enterprises.

Allianz SE believes that it is not economically viable to enter into Malaysia's domestic takaful market just yet, board member Manuel Bauer said. He believes that growth in the Islamic insurance sector is beginning to cool down and would therefore be a struggle to justify any major investments to its shareholders. Bound by Bank Negara Malaysia's restrictions that caps foreign ownership at 70% in a local insurers, he said, Allianz's is answerable to its shareholders if it decides to take certain acquisition risk. Bauer also argued that the domestic takaful market has been stagnant and not performing as well as one thought it to be. Bauer said that taking into account Allainz's position in Malaysia as market leaders in both life and general business, the takaful potential figures are not convincing.

International insurers seeking a bigger share of the potentially lucrative Gulf market need to adapt quickly to regulatory changes and tap into growth areas like Islamic finance or risk being muscled out of consolidation.
With a penetration rate of around 1 percent of gross domestic product, the overall Middle Eastern insurance sector lags mature markets but its huge growth potential has already attracted global heavyweights such as AXA and Allianz.
However, the sector’s regulatory framework is transforming rapidly and some multinationals remain cautious in developing their Islamic product offering, giving domestic competitors such as Abu Dhabi National Insurance Company, Saudi’s Tawuniya and Qatar Insurance Company the chance to build a dominant position.
Within insurance, the life segment and takaful in particular holds the biggest potential in the region. Premium income in life insurance in Saudi Arabia, for example, soared 61 percent last year, boosted by strong demand for sharia-compliant products, while non-life grew 25 percent according to Swiss Re’s “World insurance in 2009” report.

International insurers seeking a bigger share of the potentially lucrative Gulf market need to adapt quickly to regulatory changes and tap into growth areas like Islamic finance or risk being muscled out of consolidation.
The overall Middle Eastern insurance sector lags mature markets but its enormous growth potential has already attracted global heavyweights such as AXA and Allianz.
However, the sector's regulatory framework is transforming rapidly and some multinationals remain cautious in developing their Islamic product offering, giving domestic competitors such as Abu Dhabi National Insurance Company, Saudi's Tawuniya and Qatar Insurance Company the chance to build a dominant position.
Foreign insurers have discovered the region in recent years, lured by its large population and the untapped potential, but with 180 firms jostling for space in the market, they need to get their acts together.

Allianz Indonesia grew by 8.5 % and is the fourth biggest life insurer in the country. In 2008 the MENA region has proven to be one of Allianz's growth powerhouses. Revenues from the region grew to 2.4 billion euros, an increase of 40 percent from last year. In Asia Pacific Property and casualty business (P&C) remains growth driver, unique opportunities to strengthen distribution.

Allianz offers conventional and Islamic coverage.

Allianz Re has announced that Allianz SE Life Reinsurance Branch Labuan (ARLL), recently recieved regulatory approval to establish a separate fund to support the life and health retakaful business (Family Retakaful). As a branch office of Allianz SE, ARLL enjoys an S&P rating of "AA" and A.M.Best rating of "A ". ARLL will offer retakaful solutions to Family Takaful providers.