A significant surge in takaful insurance and reinsurance activity in Morocco is being hailed as a bellwether for the wider Islamic finance sector, as a new report shows remarkable growth.

The Supervisory Authority of Insurance and Social Welfare (ACAPS) reported that Morocco’s takaful market recorded a turnover of 94.9 million Moroccan dirhams (US$9.2 million) in 2024, representing a year-on-year increase of 44.1%. The growth was largely propelled by the “Family Takaful” segment, which focuses on life insurance and investment, and comprises nearly 90% of the market. The non-life takaful sector, which includes non-family products, saw a turnover of 10 million dirhams (US$969,000).

Perhaps the most notable expansion was in re-takaful, or takaful reinsurance acceptances, which soared to 18 million dirhams (US$1.7 million) in 2024 from 5 million dirhams (US$497,000) in 2023. The dramatic 260% increase indicates a rising need for the transfer of risk between takaful operators, similar to how conventional reinsurance works. This segment’s boom reflects a burgeoning market that is solidifying its foundational structure.

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These domestic findings come as a new report from Market Research Future highlights the global trajectory of the takaful industry. The report projects the global takaful market, valued at US$45.51 billion in 2024, will grow to an “impressive US$111.89 billion by 2034.” This growth is forecast at a compound annual growth rate of 9.41%.

Analysts point to several drivers for this global trend, including rising demand for Sharia-compliant financial products, government support and regulatory frameworks, and the expanding middle class in emerging markets. The integration of digital platforms and innovative new products, such as micro-takaful, is also helping to broaden the market's reach.

While Morocco’s takaful sector is still a small part of the country’s overall insurance market – which saw a turnover of 63.1 billion dirhams (US$6.1 billion) with 5.4% growth in 2024 – its rapid expansion in niche areas like reinsurance provides a clear signal of momentum.

As the market continues to mature and diversify, the dramatic growth in reinsurance suggests an industry that is building a robust foundation for future stability and expansion.

What are your thoughts on the latest findings? Share your insights in the comments below.

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