The Islamic insurance sector demonstrated sustained growth momentum in 2024, significantly outpacing the broader insurance industry, according to the "Islamic Financial Services Industry Stability Report 2025" published by the Islamic Financial Services Board (IFSB).
Islamic insurance assets reached $54.4bn by 3Q2024 while Gross Written Contributions (GWC) reached $28.6bn, marking 16.9% and 15.1% year-on-year growth respectively. These figures substantially outperformed the broader insurance market’s 3.20% premium growth.
However, structural challenges persist, particularly the limited availability of Islamic financial instruments and concentration risks in investment portfolios.
Varying market maturity levels characterised the Islamic insurance landscape, with distinct development patterns emerging across markets.
The GCC region dominated the global Islamic insurance market, accounting for 59.9% of the total GWC, supported by consolidation activity and comprehensive regulatory frameworks in major jurisdictions. MENA (excluding GCC) and the East Asia and Pacific (EAP) regions accounted for 19.3% and 17.0% of global GWC respectively.
South Asia (SA) and Sub-Saharan Africa (SSA) regions are at earlier stages of market development, prioritising regulatory framework enhancement and infrastructure building.
Europe and Central Asia (ECA) experienced the highest growth rate (47.5%), through the strengthening of the broader Islamic financial system, driven by increased demand and regulatory reforms.
Breakdown of general and family branches
A breakdown by business line reveals distinct regional patterns shaped by regulatory frameworks and consumer needs.
The non-life business line dominates GCC, MENA (excluding GCC), and ECA regions (exceeding 89.9% of contributions), driven by mandatory motor and health coverage requirements.
These markets demonstrated product evolution beyond traditional coverage, particularly in the motor line with electric vehicle protection and usage-based insurance models, while medical lines show accelerated growth through mandatory schemes and specialised health solutions.
The sector is increasingly addressing emerging risks through environmental coverage and natural catastrophe protection, reflecting the growing risk assessment capabilities. Conversely, the family business line (life) is more predominant in the EAP and SA regions, accounting for over 70.2% of contributions, driven by sophisticated product development focusing on ethical financial planning, retirement solutions, and education protection. Developments in distribution infrastructure varied among jurisdictions, reflecting market maturity and institutional capacity.
The GCC region and parts of EAP have successfully integrated bancassurance and digital platforms into their distribution frameworks, supported by established financial sector infrastructure and high digital adoption rates. SA, MENA (excluding GCC), and SSA regions primarily rely on traditional agency networks, reflecting the importance of direct customer engagement in markets where insurance concepts and product understanding require detailed explanations.
While digital transformation offers significant market development potential through improved reach and accessibility, its implementation varies based on market readiness factors, including digital infrastructure maturity, regulatory frameworks, and consumer preferences.