Takaful Map

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Socio-Economic and Demographic Factors Impacting Insurance & Takaful

The financial loss risk-sharing of Takaful covers very valuable economic fundamentals that benefit people and businesses alike, thereby serving the society as a whole. Markets with established takaful would have long term takaful cash flows backed by long term investments fueling national economic growth with the growth of takaful.

Strong socio-economic and demographic fundamentals are therefore important for the growth and development of insurance and takaful.

 

The traditional approach to knowing the state of insurance in a market (especially of life insurance and family takaful) is to compare GDP per Capita with Insurance Density. A better measure is to understand the state of human development.

 

Takaful companies can find precise benchmarks from such demographics in developing targeted strategies for product promotion and human resource strategies.

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Source: Compiled by Sasha.K of MassesGlobal.org, adopting it for Takaful, from a paper titled “What drives the development of the insurance sector” by Erik Feyen, Rodney Lester, Roberto Rocha, a World Bank Paper , 2011

 

Human Development

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GDP

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Income Inequality

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Population

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Life Expectancy

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