Banking and Insurance Special: Takaful and the insurance industry
Leaders within the takaful insurance industry have predicted continued high rates of growth within the sector ranging between 15% to 20% over the next several years. This has enabled the sector to secure high profits as demand increases for financial services in Egypt’s banking industry. However, takaful insurance companies also suffer from many of the same problems plaguing commercial insurance companies, such as an overall decrease in the amount of salaries and wages, in addition to other factors associated with the general slowdown of Egypt’s economy. Since 2003, five takaful property insurance companies and three takaful life insurance companies have been established. These companies combined have come to represent nearly 30% of the Egyptian insurance market.