Islamic insurance growth faces roadblocks: report

While the Gulf Arab states increased market penetration with Takaful, Malaysia continues to lead the global Takaful industry, said the 2nd Takaful report by consultancy Deloitte released here on Sunday. However, Takaful operators face the problem of over-regulation and resource scarcity. The lack of resources such as qualified staff, missing research capabilities and low demand for life insurance products, in the Middle East in particular, have slowed down the growth of Takaful. Oversupply is another obstacle. In Kuwait alone, there are 30 Takaful operators which means many can't generate sufficient profits simply because the market is too small.