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December 30, 2025|Information & Technology

10 Biggest Takaful (Islamic insurance) Companies in the World | Global Growth Insights

Takaful—commonly known as Islamic insurance—is a Shariah-compliant risk-sharing model in which participants contribute to a common fund used to support members who experience losses. Unlike conventional insurance, which transfers risk to an insurer for profit, Takaful operates on mutual cooperation (Ta’awun), shared responsibility, and ethical financial conduct, ensuring that all activities comply with Islamic principles. This includes avoiding interest (riba), uncertainty (gharar), and gambling (maysir)—three elements prohibited under Islamic law.

In a Takaful model, participants pay tabarru’ (donations) into a pooled fund. Claims are paid from this fund, while surplus (if any) is either redistributed among participants or reinvested ethically. A Takaful operator manages the fund under a wakalah (agency) model, mudarabah (profit-sharing model), or a hybrid structure. The operator earns management fees instead of profiting from risk.

Takaful is one of the fastest-growing sectors in the Islamic finance industry. According to leading Islamic finance data sources, the global Takaful Market exceeded USD 30.5 billion in 2024 and is projected to reach USD 42–45 billion by 2028, driven by rising demand for ethical and Shariah-compliant financial solutions. The market has been expanding at an estimated CAGR of 12–14% over the past five years, significantly above the global conventional insurance growth rate.

The sector is heavily concentrated in the GCC region, Malaysia, Indonesia, and Pakistan, but is gaining increasing momentum in Africa (Sudan, Nigeria, Kenya) and Europe, where Muslim populations and ethical-finance-driven consumers are rising. Malaysia remains one of the world’s most mature markets, with Takaful penetration exceeding 20% of its total insurance sector, while the GCC alone contributes nearly 60% of global Takaful contributions.

Corporate and personal interest in Takaful continues to grow, driven by factors such as expanding Islamic banking networks, increasing awareness of Shariah-compliant financial planning, and the rising middle class in Muslim-majority countries. Additionally, governments in the GCC and Southeast Asia are heavily promoting Takaful as part of national economic diversification strategies.

Overall, Takaful represents a rapidly expanding ethical insurance model designed to protect individuals and businesses while upholding transparency, fairness, and mutual support—principles central to Islamic finance.

How Big Is the Takaful (Islamic Insurance) Industry in 2026?

The Takaful (Islamic insurance) industry continues to expand at one of the fastest growth rates within the global insurance landscape, supported by rising interest in ethical finance, increasing Muslim populations, and strong regulatory backing in GCC and Southeast Asia. Based on current market progression, the global Takaful industry is projected to reach USD 38–40 billion in 2026, up from approximately USD 30.5 billion in 2024, representing a robust annual growth trajectory driven by both policy uptake and new product innovation. The sector maintains a strong CAGR of 12–14%, significantly higher than the global conventional insurance market’s average growth of 3–4%.

Regionally, GCC countries account for nearly 60% of global Takaful contributions in 2026, supported by government mandates, Islamic banking integration, and high adoption in family, motor, and health Takaful lines. Saudi Arabia alone represents 37–40% of the GCC’s total Takaful volume due to compulsory motor and health insurance requirements. Malaysia, often considered the world’s most advanced Takaful framework, contributes 20–22% of global Takaful premiums, with family Takaful making up nearly 70% of all contributions in the country.

Indonesia and Pakistan are emerging as high-growth markets, each expanding at 15–18% CAGR, driven by large young populations and growing Islamic banking adoption. Indonesia’s Takaful penetration rate, although still low at around 5%, is expected to double by 2030 due to regulatory reforms and digital financial inclusion initiatives.

Takaful is also gaining traction in Africa, particularly in Sudan, Nigeria, Kenya, South Africa, and Egypt, where Islamic finance is being integrated into national financial inclusion strategies. Africa’s Takaful market is expected to cross USD 2 billion by 2026, growing at over 15% annually.

With rising demand for ethical, transparent, and Shariah-compliant financial protection products, Takaful is expected to remain a high-growth segment globally. Continued regulatory support, digital Takaful offerings, micro-Takaful products, and strategic partnerships with Islamic banks are expected to further accelerate industry expansion beyond 2026.

How Takaful Works

Takaful operates on a mutual risk-sharing model in which participants contribute to a common pool (known as the Takaful fund) designed to support members who face losses. Unlike conventional insurance, where risk is transferred to an insurer for profit, Takaful is structured on cooperation (ta’awun) and donation (tabarru’), ensuring compliance with Shariah principles and eliminating prohibited elements such as interest (riba), excessive uncertainty (gharar), and gambling (maysir).

Contribution Structure

Each participant contributes a predetermined amount into the Takaful pool. A portion is allocated as tabarru’ (donation) for claims, while the remaining may cover wakalah (management fees) or mudarabah (profit-sharing) arrangements. As per industry studies, approximately 70–80% of gross contributions in many markets—especially GCC and Malaysia—are allocated to the risk fund.

Risk Fund & Claims

Claims are paid from the pooled fund, not from the operator’s capital. If the fund faces a deficit, the operator provides an interest-free loan (qard hasan) to maintain solvency. This loan is repaid only when the fund returns to surplus. In 2024, over USD 500 million in qard hasan support was recorded across GCC operators, demonstrating the model’s financial resilience.

Surplus Distribution

If the fund generates surplus after claims and expenses, it is redistributed to participants or retained for future strengthening. In Malaysia, Takaful surplus distribution averages 5–12% annually, depending on product type and claims ratio.

Operator Models

Takaful is managed under three main operational models:

Investments

Funds must be placed in Shariah-compliant investments, such as sukuk, Islamic money market funds, and screened equities. In 2024, over 58% of global Takaful assets were invested in sukuk portfolios, reflecting growing alignment with Islamic capital markets.

Shariah Governance

A Shariah Advisory Board supervises all activities to ensure full compliance. This governance requirement differentiates Takaful from conventional insurance and ensures ethical transparency.

Overall, Takaful works as a community-driven, cooperative insurance model, rooted in fairness, social solidarity, and financial ethics—making it one of the fastest-growing components of Islamic finance.

Why Businesses & Consumers Choose Takaful

Businesses and consumers increasingly choose Takaful because it offers ethical, transparent, and Shariah-compliant financial protection aligned with principles of mutual cooperation and fairness. In contrast to conventional insurance, where risk is transferred to an insurer seeking profit, Takaful distributes risk collectively, allowing participants to support one another through a shared fund, which creates stronger trust and customer loyalty.

Studies show that consumer trust in Takaful is significantly higher in Muslim-majority markets, with surveys in Malaysia and the GCC showing over 72% of customers prefer Takaful because of its transparency in fund usage and profit-sharing mechanisms. Businesses particularly value the financial resilience of Takaful operations; for example, in 2024 alone, Takaful operators globally extended more than USD 500 million in qard hasan (interest-free loans) to maintain the solvency of risk funds, demonstrating stability even during high-claim years. Takaful also appeals to consumers seeking ethical investment options, as all funds are invested in Shariah-compliant instruments such as sukuk and Islamic money market products.

In Malaysia, nearly 58% of Takaful assets were invested in sukuk portfolios, ensuring participants’ contributions support low-risk, socially responsible projects. As awareness of ethical finance grows worldwide, Takaful has begun attracting non-Muslim customers as well—particularly in Europe and Africa—where ethical investing has become a key purchasing factor. Additionally, growing middle-class populations in Southeast Asia, the GCC, Pakistan, and Africa are driving demand for protection products, with family Takaful alone expanding at double-digit annual growth rates in these regions. Corporate sectors—especially SMEs—are adopting Takaful because contribution rates are often competitive and surplus-sharing models can effectively reduce long-term cost of protection. For consumers, the appeal also comes from the sense of community, fairness in contract terms, and the reassurance that their contributions are used responsibly and transparently. As a result, Takaful has become one of the fastest-growing components of Islamic finance, with global premiums expanding at 12–14% CAGR, significantly outpacing the growth of conventional insurance providers.

Types of Takaful (Family, General, Health) – 2026

The Takaful industry in 2026 continues to expand across three major segments—Family Takaful, General Takaful, and Health Takaful—each contributing significantly to the global market’s projected value of USD 38–40 billion. These segments collectively reflect the diverse protection needs of individuals, families, and businesses, especially in GCC countries, Malaysia, Indonesia, Pakistan, and emerging African markets. With a strong underlying CAGR of 12–14%, Takaful’s three core categories remain central to its global growth trajectory.

Family Takaful is the largest segment, accounting for approximately 55–58% of global contributions in 2026. It functions similarly to Islamic life insurance but differs through its cooperative structure and Shariah-compliant investment of participant funds. Family Takaful covers long-term protection, savings, education plans, investment-linked policies, and retirement products. Malaysia is the global leader in this segment, where Family Takaful penetration exceeds 20% of the national insurance market, driven by rising middle-class income and regulatory encouragement for Islamic financial planning. Indonesia and Pakistan also show double-digit annual growth, supported by strong demographics—over 60% of their combined populations are under age 35, fueling long-term protection demand.

General Takaful represents about 30–32% of the total Takaful market and covers non-life areas such as motor, property, marine, engineering, and business liability. GCC countries dominate this segment, with Saudi Arabia alone contributing nearly 40% of regional General Takaful premiums due to mandatory motor and health insurance requirements. General Takaful is also expanding rapidly in Africa, where countries like Kenya, Nigeria, Morocco, and Egypt are adopting Islamic insurance frameworks to promote financial inclusion. In 2026, General Takaful premiums in the MENA region are expected to surpass USD 12 billion, supported by construction growth, rising vehicle ownership, and strong SME demand.

Health Takaful is the fastest-growing segment, expanding at 15–18% CAGR in 2026 due to increasing healthcare costs and government-backed health insurance mandates. In GCC markets such as the UAE, Saudi Arabia, and Bahrain, Health Takaful penetration is rising as expatriate and corporate health coverage becomes compulsory. Malaysia and Indonesia are also witnessing strong adoption as healthcare inflation reaches 8–10% annually, pushing families and employers toward Shariah-compliant medical protection plans. Health Takaful is expected to exceed USD 6–7 billion globally in 2026, driven by demand for hospitalization cover, critical illness plans, maternity protection, and micro-health Takaful for low-income communities.

Global Adoption of Takaful Across GCC, Malaysia, Indonesia, Pakistan, Africa & Europe (2026)

Takaful (Islamic insurance) has transitioned from a niche financial service to a globally recognized ethical insurance model, with adoption expanding rapidly across the GCC, Malaysia, Indonesia, Pakistan, Africa, and increasingly Europe. This expansion is driven by demographic trends, regulatory support, growing Islamic finance ecosystems, and rising global awareness of ethical and socially responsible financial products. In 2026, the global Takaful market is estimated to reach USD 38–40 billion, with these regions representing over 90% of total contributions.

GCC Countries – The Global Epicenter of Takaful Growth

The GCC region contributes nearly 60% of global Takaful premiums, making it the world’s largest Takaful hub. Saudi Arabia dominates with 37–40% of GCC contributions, supported by mandatory health and motor insurance regulations. The UAE, Qatar, Bahrain, and Kuwait also maintain strong Takaful ecosystems backed by Islamic banking networks and regulatory frameworks aligned with Shariah governance. As of 2025–2026, the GCC’s Takaful market value is estimated at USD 22–24 billion, expanding at 10–12% annually. Family Takaful, General Takaful, and Health Takaful all show high uptake due to strong corporate demand, expatriate insurance requirements, and government-supported diversification agendas (Vision 2030, Vision 2050).

Malaysia – The World’s Most Mature and Structured Takaful Market

Malaysia remains the global benchmark for a structured and well-regulated Takaful industry. With a 20%+ penetration rate—the highest globally—Malaysia’s Takaful contributions are projected to reach USD 4.5–5 billion in 2026. Family Takaful dominates with nearly 70% market share, driven by rising middle-income households, Islamic financial literacy programs, and integration with Islamic banking products (Bancatakaful). Malaysia has recorded consistent double-digit Takaful growth for over a decade, supported by Bank Negara Malaysia’s progressive regulatory frameworks and consumer-centric Takaful innovation.

Indonesia – One of the Fastest-Growing Takaful Markets Globally

Indonesia, home to the world’s largest Muslim population (over 240 million Muslims), is witnessing rapid Takaful expansion. The Indonesian Takaful industry is projected to grow at 15–18% CAGR between 2025 and 2030, supported by digital Islamic finance platforms, strong Islamic banking penetration, and government commitment to Shariah-compliant economic development. Indonesian Takaful contributions are expected to exceed USD 2.5–3 billion in 2026, with both Family and General Takaful expanding as financial inclusion accelerates.

Pakistan – Strong Growth Driven by Demographics and Islamic Banking

Pakistan is another high-potential market, with 97% of its population identifying as Muslim, creating strong demand for Shariah-compliant financial protection products. The Pakistani Takaful market is valued at USD 1.5–1.7 billion in 2026, growing at 14–16% CAGR, one of the highest globally. The rise of Bancatakaful, regulatory support under the Securities and Exchange Commission of Pakistan (SECP), and rapid adoption among SMEs and middle-income families are driving growth. Health Takaful and Family Takaful are particularly strong segments.

Africa – Rising Financial Inclusion Driving Takaful Adoption

Africa is emerging as a significant growth frontier for Takaful, driven by Islamic finance expansion and financial inclusion strategies. Countries such as Sudan, Nigeria, Kenya, Tanzania, South Africa, Senegal, and Egypt are adopting Takaful frameworks to meet the needs of their Muslim populations and low-income communities. Africa’s Takaful industry is expected to surpass USD 2 billion in 2026, growing at 15%+ annually. Sudan remains the largest African Takaful market, while Nigeria and Kenya are seeing strong demand due to population growth and micro-Takaful innovation.

Europe – Ethical Finance Adoption Driving Non-Muslim Demand

Europe represents a growing market where Takaful is embraced not only by Muslim populations but also by consumers seeking ethical, transparent, and socially responsible insurance alternatives. The UK, Luxembourg, France, Germany, and Ireland are leading European hubs for Islamic finance. Europe’s Takaful market, though smaller in size, is valued at USD 600–800 million in 2026, growing at 8–10% CAGR. Demand is driven by micro-Takaful, international Islamic banks, and ethical investment frameworks aligning with ESG (Environmental, Social & Governance) principles.

Global Growth Insights unveils the top List global Takaful (Islamic insurance) Companies:

Company Headquarters Revenue (Past Year) CAGR (2023–2025) Geographic Presence Key Highlight Latest Update (2025)
Takaful Malaysia Kuala Lumpur, Malaysia USD 780 Million 12.5% Malaysia, ASEAN Leading Family Takaful provider with strongest digital adoption in Malaysia Launched fully digital Family Takaful onboarding platform in 2025
Salama Islamic Arab Insurance Company Dubai, UAE USD 650 Million 10.2% UAE, GCC, Egypt Largest listed Takaful operator in the UAE Increased motor & health Takaful premiums by 15% due to regulatory reforms
Allianz Takaful (Indonesia) Jakarta, Indonesia USD 480 Million 14.8% Indonesia, ASEAN Strong hybrid Takaful model backed by global Allianz expertise Launched micro-Takaful for low-income families through mobile apps
Prudential BSN Takaful Berhad Kuala Lumpur, Malaysia USD 920 Million 13.6% Malaysia Market leader in Family Takaful with strong Bancatakaful network Recorded 20% growth in savings-linked Family Takaful products
Etiqa Takaful Kuala Lumpur, Malaysia USD 1.1 Billion 11.4% Malaysia, Singapore, Brunei Top regional operator with leading digital claims management system Expanded Health Takaful coverage with AI-based underwriting
Qatar Islamic Insurance Company Doha, Qatar USD 580 Million 9.8% Qatar, GCC Strong in corporate and marine/general Takaful lines Secured major corporate contracts in energy and logistics sectors
Dar Al Takaful Dubai, UAE USD 440 Million 10.5% UAE, GCC Growing operator specializing in retail and SME Takaful Completed merger integration and expanded digital claim capabilities
AMAN Insurance Manama, Bahrain USD 210 Million 8.9% Bahrain, GCC Strong General Takaful portfolio with corporate partnerships Introduced new Shariah-compliant cyber risk Takaful product
Dubai Islamic Insurance & Reinsurance Co. (AMAN) Dubai, UAE USD 300 Million 9.5% UAE, GCC, Africa One of the oldest Takaful companies in the UAE Expanded into Africa through cross-border Retakaful partnerships
Kuwait Takaful Insurance Company Kuwait City, Kuwait USD 190 Million 7.8% Kuwait, GCC Focused on General and Health Takaful markets Introduced mobile-first Takaful policy management solution

Opportunities for Startups & Emerging Players (2025–2026)

The Takaful industry in 2025–2026 presents one of the strongest openings for startups and emerging insurers, driven by accelerating digital adoption, a young demographic base across Muslim-majority markets, and rising demand for ethical and Shariah-compliant financial protection. With the global Takaful market reaching USD 38–40 billion in 2026 and maintaining a 12–14% CAGR, new players can tap into a rapidly expanding ecosystem that is still underpenetrated in several major regions.

Startups have a significant opportunity in digital Takaful, as nearly 60–65% of Takaful customers in ASEAN and GCC markets prefer mobile-first insurance solutions. This shift is pushed by increased smartphone penetration—over 90% in the GCC and 75% in Southeast Asia—making digital-only Takaful providers an attractive and scalable business model. Platforms offering instant onboarding, AI-powered underwriting, and automated claims settlement can compete effectively without the heavy infrastructure of traditional insurers.

Another major opportunity lies in micro-Takaful, an underserved segment ideal for low-income populations in Indonesia, Pakistan, Bangladesh, Sudan, Nigeria, and Kenya. These markets have over 400 million potential micro-insurance customers who lack access to formal financial protection. Affordable micro-Takaful products for agriculture, livestock, life protection, and health can achieve high-volume adoption, especially when distributed through mobile money ecosystems like M-Pesa (Kenya) or Easypaisa (Pakistan).

The Health Takaful segment is growing faster than any other, with 15–18% CAGR, driven by rising medical inflation and higher demand for family healthcare coverage. Startups focusing on telehealth-linked health Takaful, AI-driven preventive care, and digital health assessments can differentiate themselves and create new revenue models. Bundling Takaful products with digital wellness platforms is emerging as a profitable strategy.

Family Takaful is another promising space for new entrants, especially in Malaysia, Indonesia, and Pakistan, where family protection and long-term savings products maintain extremely high demand. Startups can benefit from designing transparent, flexible, investment-linked Takaful plans that appeal to young Muslim professionals seeking ethical financial planning alternatives.

Retakaful (Islamic reinsurance) remains one of the least-served sectors. As Takaful expands globally, demand for Shariah-compliant reinsurance is rising. New Retakaful players—especially those operating digitally—can secure market share in Africa, GCC, and Southeast Asia.

There is also strong opportunity in ESG-aligned Takaful for markets like the UK, Europe, and Malaysia. Ethical finance is gaining traction, with surveys showing 40% of European millennials prefer socially responsible financial products. Takaful naturally aligns with ESG principles, giving startups an advantage in non-Muslim markets as well.

Additionally, startups can target niche or emerging categories such as cyber Takaful, SME liability Takaful, and Shariah-compliant travel insurance, which are expected to grow significantly by 2030 due to digitalization and global mobility trends.

Overall, the Takaful sector’s strong growth, low penetration in many regions, and global shift toward ethical, digital, and transparent financial products make 2025–2026 an excellent period for startups to enter and scale. With the right combination of technology, Shariah governance, and customer-centric design, emerging Takaful companies can unlock substantial market potential across developing and developed economies.

FAQ – Global Takaful (Islamic Insurance) Companies

  1. How big is the global Takaful industry in 2026?

The global Takaful (Islamic insurance) market is projected to reach USD 38–40 billion in 2026, growing from USD 30.5 billion in 2024. The sector continues to expand with a strong CAGR of 12–14%, far outpacing conventional insurance.

  1. Which regions dominate the Takaful market?
  1. What types of Takaful are most popular?

The top three categories are:

Demand for Family Takaful is especially high in Malaysia and Indonesia.

  1. Why do customers choose Takaful over conventional insurance?

Consumers choose Takaful for:

  1. Who are the top Takaful companies globally?

Key players include:
Takaful Malaysia, Salama Insurance, Etiqa Takaful, Prudential BSN Takaful, Allianz Takaful (Indonesia), Qatar Islamic Insurance Company, Dar Al Takaful, AMAN, Dubai Islamic Insurance & Reinsurance, Kuwait Takaful Insurance Company.

These companies dominate contributions in GCC and Southeast Asia.

  1. Which Takaful segment is growing the fastest?

Health Takaful, expanding at 15–18% CAGR, driven by rising healthcare costs (8–10% inflation) and mandatory health insurance policies in GCC countries such as the UAE, Qatar, and Saudi Arabia.

  1. What investment instruments do Takaful operators use?

Takaful funds invest only in Shariah-compliant instruments such as:

  1. How does Takaful manage claims and crisis years?

If the Takaful pool experiences a deficit, the operator provides an interest-free loan (Qard Hasan).
GCC-based operators extended over USD 500 million in Qard Hasan support in 2024, enhancing fund stability.

  1. What role does technology play in Takaful growth?

Digital Takaful is expanding rapidly:

  1. Which markets present the strongest new opportunities?

High-growth opportunities exist in:

  1. Are non-Muslims eligible for Takaful?

Yes.
Takaful is not religiously restrictive; it is an ethical, cooperative insurance model.
In Europe, nearly 30% of Takaful users are non-Muslims choosing it for ethical and transparent risk-sharing.

  1. What is the long-term outlook for the Takaful market?

The global market is expected to surpass USD 55–60 billion by 2030, driven by regulatory expansion, digital transformation, micro-Takaful, and rising global awareness of ethical insurance.

Conclusion

The global Takaful (Islamic insurance) industry has entered a new phase of accelerated growth, driven by rising demand for ethical financial protection, expanding Islamic banking ecosystems, and strong regulatory support across GCC countries, Malaysia, Indonesia, Pakistan, Africa, and parts of Europe. With the market projected to reach USD 38–40 billion in 2026 and maintaining a robust 12–14% CAGR, Takaful continues to outperform the growth rate of conventional insurance worldwide.

Family Takaful remains the backbone of the industry—representing 55–58% of total global contributions—supported by Malaysia’s mature regulatory environment and rising middle-class populations in Southeast Asia. General Takaful and Health Takaful together form the second major pillar of growth, especially in the GCC, where compulsory motor and health insurance drive high annual premium volumes. Health Takaful, growing at 15–18% CAGR, stands out as the fastest-expanding segment in 2026 due to medical inflation and employer-driven health protection demand.

Geographically, the industry is strongly anchored in the GCC, which accounts for nearly 60% of global market contributions, followed by Malaysia, Indonesia, and Pakistan—countries that have long adopted Takaful as an integral part of their Islamic finance architectures. Meanwhile, Africa’s Takaful landscape is advancing at 15%+ annual growth, propelled by financial inclusion strategies and micro-Takaful innovations. Europe, although still a smaller contributor, is witnessing rising interest among both Muslim and non-Muslim consumers drawn to the ethical and socially responsible nature of Takaful products.

Leading companies—including Takaful Malaysia, Etiqa, Salama Insurance, Qatar Islamic Insurance Company, Prudential BSN Takaful, Dar Al Takaful, AMAN, Dubai Islamic Insurance & Reinsurance, Allianz Takaful Indonesia, and Kuwait Takaful—continue to invest in digital transformation, AI-based underwriting, online claims processing, and Shariah-governed investment portfolios. These advancements strengthen fund transparency, improve customer experience, and reduce claim-cycle inefficiencies.

Startups and emerging Takaful players are also well-positioned to capture new market share, especially in digital-first Takaful, micro-Takaful, ESG-aligned protection products, and health and SME Takaful solutions. With over 400 million underserved users across South Asia, Africa, and MENA, the opportunity for inclusive, low-cost Islamic insurance is larger than ever.

As global consumers become increasingly conscious of ethical finance and transparent risk-sharing, Takaful stands out as a competitive, future-proof alternative to traditional insurance. With strong demographic support, Shariah-compliant investment mechanisms, and expanding digital innovation, the Takaful industry is positioned to continue its upward trajectory well beyond 2026—evolving into a major pillar of the global Islamic finance ecosystem.