Dubai-listed Arabian Scandinavian Insurance Company (ASCANA), a major provider of Takaful Islamic insurance products, has undergone a rebranding to Sukoon Takaful. This shift comes after Sukoon, formerly known as Oman Insurance Company, acquired a 93% stake in ASCANA in late 2022. The rebrand signifies a strategic move for both companies, solidifying Sukoon's position in the Takaful market and offering ASCANA's customers access to a wider range of Sharia-compliant financial products.
Takaful insurance operates on the principle of mutual cooperation, where participants contribute to a shared pool that is used to compensate members in case of insured losses. ASCANA, established in 1989, carved a niche for itself in the Dubai market with its Takaful offerings. The company's robust heritage and award-winning customer service are expected to contribute significantly to Sukoon's overall strengths.
The rebranding process emphasizes the merging of strengths between the two entities. Sukoon Takaful inherits ASCANA's well-regarded reputation while leveraging Sukoon's established presence and financial resources. This consolidation is anticipated to create a more formidable Takaful player in the region, catering to a broader customer base and offering a wider array of Sharia-compliant insurance products.
For ASCANA's policyholders, the transition to Sukoon Takaful is expected to be seamless. Existing Takaful coverage will remain valid, and no changes are anticipated in the claims process. Policy documents issued after renewal will reflect the new branding, but all contractual obligations and terms established with ASCANA will be upheld by Sukoon Takaful.
Analysts suggest that this rebranding could be a significant development in the Dubai Takaful market. Sukoon Takaful's increased presence is likely to intensify competition, potentially leading to a wider range of Takaful products and more competitive pricing for customers. The combined expertise of both entities under the Sukoon Takaful umbrella is also expected to contribute to the overall growth and innovation in the Takaful sector.
Dubai has emerged as a prominent hub for Islamic finance in recent years, and the Sukoon Takaful rebranding reflects this growing trend. With a stronger presence and a broader product portfolio, Sukoon Takaful is poised to capitalize on the increasing demand for Sharia-compliant financial products in the region and beyond.