Magazine date:
Dec 2013 Cost reduction has been the main theme of the annual meeting of takaful insurers held in mid-November in Kuala Lumpur. While growth continues in the islamic insurance segment, profitability varies considerably according to companies. Whereas Malaysian takaful insurers have little margin to improve profitability, those in the Gulf countries can further reduce their overhead costs.
The speakers also highlighted the need to improve underwriting quality. Takaful insurers are primarily focused on personal line insurance, overlooking commercial and industrial risks.