Approach to the Integration of Takaful Insurance in the Algerian Market

Abstract

Objective

The purpose of this chapter is to provide a description of the integration of Takaful in the domestic market, based on experiences in regional markets, focusing on the explanation of factors that could enhance the position of Takaful in certain areas.

Methodology

The chapter describes the evolution of Takaful insurance in international and regional markets, and explains the articulation of this product in these markets. The chapter also provides an analysis of the Algerian market characteristics related to the Takaful product.

Value

This work will be based on an analytical research of emerging markets and their success factors; then it will be necessary to provide an overview of the product containing Takaful; and finally we will try to follow the experience of the national insurance market with the new product, supplied by the Salama Company, and determine the potential of Algeria in this area.

Findings/Prospects

This work offers an opportunity to understand the mechanisms needed to activate the local market and opens the prospects for effective integration of Islamic financial products gradually, in order to prepare for changes that would provide more financial products suited to the requirements of social development in the Algerian economy.

Citation

Bouzaher, N., Necira, O. and Kerdoudi, S. (2014), "Approach to the Integration of Takaful Insurance in the Algerian Market", The Developing Role of Islamic Banking and Finance: From Local to Global Perspectives (Contemporary Studies in Economic and Financial Analysis, Vol. 95), Emerald Group Publishing Limited, Leeds, pp. 73-87. https://doi.org/10.1108/S1569-3759(2014)0000095012