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The region's real estate and mortgage industries need to change their approach to making takaful and insurance-related decisions if they are to survive into the future, according to a leading Bahrain-based takaful expert.
"Takaful and insurance-related buying decisions in this part of the world seem to be largely made as an afterthought," said Gopi Rao, general manager of Solidarity General Takaful Company, a subsidiary of Solidarity Group Holding. "This is a particularly dangerous practice that leaves everyone involved open to completely unnecessary risk," he said.
Mr Rao, who was speaking at the GCC Mortgage Summit at the Gulf Hotel, urged both mortgage lenders and borrowers to adopt a more prudent approach and to consider their takaful or other insurance-related options at the earliest stage possible.
"Managing insurable risks in the mortgage industry is an all-important key to success," said Mr Rao. "The first step in that direction, for both lenders and borrowers, is to accurately assess and fully appreciate all the key insurable exposures faced, as well as the various coverage options and benefits.
"In addition to the perhaps obvious risks to property, such as the risk of loss or damage by, for example, fire, natural perils, riot, strike, malicious damage or collapse, the industry must also consider risks during construction - including the risks faced by contractors."
