Rising claims and costs to affect takaful insurer’s income

U.S.-based Moody’s Investors Service Inc. expects Islamic insurance providers in the Gulf of Cooperation Council nations to see a year-over-year decline in their combined net income for 2022 due to rising claims and costs, only partially offset by higher prices, Middle East Insurance Review reported. Moody’s expects intense competition to constrain future price increases, while inflation and claims normalization after COVID-19 are expected to weigh on insurers’ profitability.