Abu Dhabi, UAE— The gross subscriptions written by all Takaful insurance companies in the UAE reached AED4.35 billion in 2021, marking a growth rate of 0.51 percent over AED4.32 billion in 2020, the Central Bank of the UAE said in a report.
These subscriptions accounted for 9.82 percent of the gross premiums written in the insurance sector in 2021.
The report highlights the growing importance of the Takaful insurance sector in the local market, as well as the expansion of its various financial indicators from 2018 to 2021.
Takaful is Sharia compliant insurance wherein members contribute money into a pool system to guarantee each other against loss or damage.
The health Takaful insurance activity represented the largest share, accounting for 43.6 percent of the gross subscriptions written in the Takaful insurance sector in the UAE in 2021.
This was followed by Takaful insurance activity on assets and liabilities at 38.3 percent, and family Takaful insurance activity and fund accumulation operations at 18.1 percent.
At the end of 2021, 12 Takaful insurance companies were operating in the UAE, all of which are national companies. However, there is a possibility that this number could decrease over the coming period due to merger and acquisition activities, the report said.
The report also revealed that there are 62 national and foreign insurance companies operating in the UAE’s insurance sector. In 2021, the number of written Takaful insurance policies increased significantly to 992,106, compared to 820,517 policies in 2020.
Furthermore, the report covered several other aspects related to the business of the Takaful insurance sector, including sustainability operations, Emiratization, and the prospects of digital transformation. The report highlighted that all Takaful insurance companies have specific strategies for digital transformation.