Turkey: Doga plans to enter takaful market
Source: Middle East Insurance Review | Apr 2015
Turkey’s Doga Group plans to enter the takaful market in the next few months with what may be the country’s first such product.
Its insurance unit, Doga Sigorta, is close to signing a cooperation deal with reinsurance companies such as Swiss Re and others from the Gulf and Malaysia, the unit’s Chairman, Mr Nihat Kirmizi, told Reuters in an interview.
Mr Kirmizi said that the Doga Group wanted to take advantage of the growing interest in Islamic finance products in the largely Muslim nation. Three Turkish state-run banks are set to launch Islamic units.
“We are doing traditional insurance activities at the moment, and preparing the infrastructure for takaful insurance. We will be completely ready by May, and we have received verbal permits from the Treasury,” Mr Kirmizi disclosed.
“Many people may not be practising Islam 100%, but they may think, ‘Why take risks when there is an Islamic option in insurance?’” he said.
He added that at least three or four other firms plan to enter Turkey’s takaful market by 2018.