Noor Takaful - amongst the first Takaful insurance companies to be established in the UAE - has reported significant double-digit percentage profit growth for 2018 even as early next year it crosses a significant milestone of celebrating 10 years of increasing customer base.
With close to 300,000 members, Noor Takaful, a sister company of Noor Bank, provides ethical, Sharia'a compliant, innovative, unique and comprehensive Takaful (Islamic insurance) products aggregating close to AED550 million in business this year.
The company also reported an increase in premium value of 5 percent over last year (2017). The statement from Noor Takaful came on the sidelines of a grand event held at Mina Al’salam celebrating its 10th year anniversary. Many of the Board of Directors that include names such as Raed Mohammad Khalifa Kajoor AlNuaimi, Vice Chairman; Essa Abdulfattah Kazim AlMulla; Edris Mohammad Rafi Mohammad Saeed AlRafi; Mahomed Akoob; Farrukh Seer and John Iossifidis, attended the event.
Rajesh Sethi, CEO, Noor Takaful, said: “The Takaful industry has grown over the last 10 years in the UAE with greater awareness among residents about Sharia’a compliant insurance that follows the highest ethical standards. This provides our customers with great value and peace of mind. Our pricing within the sector has improved and hence the margin to grow too has improved. With new regulations and greater enforcement by authorities in the country, the sector will see greater consolidation and scrutiny which will benefit end-users.”
Speakers and analysts at the World Takaful Conference held earlier in Dubai this year said that UAE and Saudi Arabia are at the centre of the Takaful sector growth with an estimated US$11.5 billion (AED42.24 billion). The region’s Takaful market has grown at a compounded annual growth rate of 18 percent from 2012 and accounts for nearly 44 per cent of the GCC insurance sector. Preference towards Sharia-compliant financial solutions and an expanding non-life market are the factors aiding growth.
“Noor Takaful has committed itself to being at the forefront of the Takaful sector in the Middle East. As we celebrate our 10th year anniversary we look forward to 2019 as a year of continued growth, especially for our General and Medical business which we believe will have a double-digit growth,” explained Sethi.
Noor Takaful’s operations is split into Life and Medical insurance which is around 80 percent of the business while the remaining 20 percent covers general insurance. Its customer base has 50,000 buildings of all types (residential, warehouse, commercial); 20,000 cars; 200 yachts; 200,000 medical customers and 10,000 life insurance.
“This year we introduced a new pension programme which will benefit a lot of residents in the UAE even as the government has relaxed visa rules for people retiring in the country which enables them to stay on and enjoy the benefits of living in the country,” said Sethi.
Noor Takaful’s contemporary approach to Islamic insurance has seen it provide a series of innovative products and services for its customers, including Motor Takaful, Medical Takaful, Travel Takaful, Commercial Takaful and Personal Takaful supported by the GCC’s first e-Takaful service providing instant quotes and online payment facilities. The company seeks to offer a broad suite of general products with affordable prices to cater to the entire stream of individual customer segments, in addition to packages for corporate sectors clients.
Industry trends state that it is normal to have a price increase due to inflation and new types of procedures in terms of regulations. Medical insurance price is expected to grow due to modern technology and new procedures.
Sethi cited the example of the Dubai Health Authority that has requested for cancer treatment to be included in the medical insurance cover. “Various cover demands, latest regulations and new treatments being offered will always see an inflation in prices by 6% to 8%. Having said that, not all medical insurance products will see such a surge in prices.”
While Noor Takaful has demonstrated adherence to the latest market trends it also has ensured several employee and customer friendly experiences. The company has been recognized through several industry awards from Insurance Authority and independent organizations. The awards for this year include;
· Happiness Centre Initiative Award by the Insurance Authority
· Best Takaful Company UAE 2018 by the Global Banking & Finance Review, London
· International Business Excellence Award 2018 in the Financial Services, Banking & Investment Category
· Best Customer Service Takaful 2018 by the International Business Magazine
· Excellence in Personal Accident Service by the Global Business Insight Awards
· Takaful Provider of the Year, by Yallacompare
The company also follows an ‘ethical sustainable campaign’ where all bags, papers and marketing material are developed by either recycled or non-biodegradable material. The pencils used by staff has seeds at the end so they can be planted for trees when used up. The offices have been audited by DEWA for sustainability and measure have been taken to reduce carbon footprint.
Along with the Ethical Insurance Initiative, Noor Takaful’s Sustainable Marketing Practices were also appreciated and recognized by the International Business Magazine.