m iqbal asaria: managing growth with integrity - embedding mutuality
DESCRIPTION
Takaful Masterclass: Afkar ConsultingTRANSCRIPT
M Iqbal Asaria / Afkar Consulting
Masterclass, ITS 2009, London30th June 2009
Managing Growth With Integrity - Embedding Mutuality
Global Dimensions of the Takaful / Re-Takaful Industry
Number of Providers – 143 (179 Including Windows)Contributions Pool – US$3.4 BillionGeneral / Life Split – Moving Towards Life TakafulGrowth Potential – Difficult Present Landscape with Significant Growth Opportunities (US$7.7 Billion end 2012)
The Rationale for TakafulCommunity Based Risk SharingMutual / Co-Operative in SpiritEnhanced Role of MembersSocial ProvisionExamples
• Co-Operative Societies• Friendly Societies• Qard al Hashanah “Banks”
Is this Translated in Present Takaful Provision?
The Evolving Takaful ModelMudarabahWakalaWaqfHybrids
• Mudarabah for Asset Management
• Wakala for Takaful Provision• Surplus Sharing Wakala
Implications• Mutual / Co-Operative?• Hybrid?
Emerging Issues
The Takaful Affinity Community– Scope & Issues
Can Takaful be Truly Mutual? Embedding Mutuality -
Transparency Gaps in Takaful Provision
The Takaful Affinity Community
Muslim ParticipantEthical ParticipantSRI ParticipantGeographical Dispersion - ImplicationsCross Border Issues
• Logistical• Regulatory
Can Takaful be Truly Mutual?
Hybrid Nature of Takaful Provision Shareholder / Members’ InterestsConflicts of InterestRegulators & OmbudsmanThe Unique Selling Point (USP) of Takaful?Developing a Mutual-Oriented Hybrid
Embedding Mutuality - Transparency
Reporting StandardsSafeguarding Members’ InterestsClear Policy DocumentationEducation on Sharing of Underwriting SurplusBenchmarking against best practice in Industry
Gaps In Takaful Provision No Focus on the Poor and Disadvantaged
Sections Models of Micro Takaful
• Vital Supplement to Micro Finance Methods of Micro Takaful Provision Islamic Finance as an Enabling Partner
• IDB• Islamic Banks
Opportunities Potential Market Size Investment Linked Takaful Savings & Pensions Provision Cohesion & Stability of Societies Community Ownership of
Society’s Goals and Development Enabling role of the Shari’ah
