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

Contact:

M Iqbal AsariaAfkar Consulting Ltd

0208 861 2012

mia@afkar.com