There is keen interest from policymakers to support a vibrant and sustainable insurance sector, Adeel Mushtaq
“Opportunities for takaful sector in Qatar are massive. This is largely due to the fast-paced economic growth environment in Qatar, where there is a keen interest from policy makers to support a vibrant and sustainable insurance sector.”
Adeel Mushtaq Director (Assurance and Advisory) KPMG
According to him, competition, operational issues and dearth of qualified talent continue to impact the sector’s growth in the region. Profitability of takaful firms has been threatened not just by undifferentiated strategies but also the lack of uniform regulations allowing them to operate across different models. “Undifferentiated business strategies mean most operators are competing intensely and this is likely to squeeze out the under-performers. With strong competition from conventional incumbents, takaful operators are likely to continue their struggle in the medium term, although some will look at alternative customer segments and explore merger options,” he says.
In striving for scale and profitability, operators are looking at structural transformation around risk, pricing and cost efficiencies. Driving progress amidst intensifying competition, the industry is re-examining its strategies, operations and regulations in order to gear itself up for further growth and a sustainable ecosystem.
For instance, General Takaful, one of the leading Islamic insurance companies in Qatar, has fine-tuned itself to the changing situation. The firm has prioritised customer penetration, customer acquisition and profitability, growth in existing coverage and introduction of personal lines of insurance such as householders’ insurance besides expanding traditional distribution channels to stay afloat in the business.