Turkey's share in global Islamic insurance (takaful) sector has jumped form a mere 1.5% in 2014 to 5% in 2019, according to a report released by the Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC).
Yusuf Dinc, who teaches Islamic Economics and Finance in Istanbul Sabahattin Zaim University estimates that the market size of global Islamic insurance sector is at $28 billion.
"There are four Islamic insurance and eight conventional companies operating in Turkey with a conventional understanding of Islamic approach,'' Dinc said, adding that in terms of the demand for Islamic finance, Turkey has great potential.
"New companies who adhere to Islamic insurance are expanding rapidly and increasing their market share, thus giving stiff competition to traditional insurance companies who face competition among themselves as well," he said.
Dinc also stated that the global Islamic finance market has reached $2.2 trillion.
"In the 11th Development Plan of the Turkish government, it is stated that strategic investments will be made in this field," he said.
In Takaful or Islamic insurance system, members pool money in order to guarantee each other against loss or damage.
Takaful-branded insurance is based on sharia or Islamic jurisprudence, which explains how individuals are responsible to cooperate and protect one another. Takaful policies cover health, life, and general insurance needs.
