Takaful Primer 2015

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TAKAFUL T H E I N T E R N A T I O N A L

S U M M I T

THE 9 T H INTERNATIONAL TAKAFUL SUMMIT 2015

The 9th International Takaful Summit 2015

17-18 February 2015 • The Savoy Hotel • London.....................................................

Re-Thinking the Takaful Model

2. Summit Sponsors. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Welcome Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4-5. Speakers. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6-9. Programme. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Risk Management Standards for Islamic Insurers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .12. FAA Learning Standards:

Building Blocks for Talent Development in the Takaful Sector

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .18. Growth Potential of

Takaful for the UK Real Estate Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . .20. Awards Dinner Partner

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .21. Diamond Partners

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .30. Platinum Partners

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .33. Technology partner

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .34. Gold Partner

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .36. Silver Partners

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .44. Supporters

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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AW A R D S D I N N E R P A R T N E R

D I A M O N D P A R T N E R S

P L AT I N U M P A R T N E R S

S I LV E R P A R T N E R S

T E C H N O L O G Y P A R T N E R G O L D P A R T N E R

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W e are very pleased to welcome you to the 9th International

Takaful Summit. Afkar Consulting Ltd inaugurated the first Inter-

national Takaful Summit in London in 2007. Over nine years the

International Takaful Summits have grown to become the premier thought

leadership forum for the industry.

We decided to bring the 9th International Takaful Summit back to the UK

after a break of two years to reflect the growing interest in Takaful provision

from the premier London insurance market.

There are three developments which can galvanise the growth of the Takaful and re-Takaful

industry. There is a mismatch between the growth of Islamic Finance assets and Takaful Contribu-

tion pools. This is primarily due to the lack of Takaful provision for large commercial risks. We now

have a potential solution for the provision of Re-Takaful for large real estate and construction

projects. We also have the beginning of re-thinking on the merits of mutuals and their potential

contribution to Takaful provision in many markets. Finally, we have a need to meet the emerging

challenge of pensions provision in which Takaful will need to play a pivotal role. Each of these devel-

opments creates potential for new entrants to the field and enriching the scope of available

solutions.

We also note that there is a divergence emerging in the range of acceptable Takaful provision

models in many countries. As a result of recent experience, there is a fundamental re-think of the

key underlying principles of Takaful that were enunciated over thirty years ago. Thus, issues like the

balance between risk sharing and risk transfer and provision of Qard Al Hassan by Takaful opera-

tors are coming back to the fore. Hitherto, these subtleties have been addressed non-transpar-

ently, via Wakala fees, performance incentives and the like. Now many jurisdictions and regulators

are keen on addressing these in a more transparent manner. The process is also expected to be

assisted by the emergence of standards for the industry, especially efforts of bodies like the

Financial Accreditation Agency (FAA) of Malaysia. In this Summit we have tried to further debate on

this re-thinking and re-tooling in the Takaful world.

The 9th International Takaful Summit builds on the eight successful events: in London,

November 2007, July 2008, July 2009, July 2010, July 2011, July 2012; in Cairo, February 2013; in Abu

Dhabi, February 2014. At the International Takaful Summits we endeavour to enable market

participants from all over the world to capture the potential for Islamic Finance and Insurance in the

world. At every Summit, we strive to offer robust thought leadership and the most informed plat-

forms and opportunities for our participants to get maximum benefit from these interactions.

We welcome you to the 9th International Takaful Summit and hope that you will become one

of our many regular participants and supporters.

Prof. M Iqbal Asaria, CBEConvenorInternational Takaful Summit 2015


W E L C O M E M E S S A G E

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Max TaylorChairman

Islamic Insurance Associa�onof London

Cameron MurrayHead of UK, Ireland, Middle East & Africa

Lloyd’s

Dr. Amat Taap ManshorCEO

Finance Accredita�on Agency

Dr. Terry MastersCEO

ReSolu�ons AON Benfield

Richard BishopCEO

Cobalt Underwri�ng

Omar GoudaManaging Director

Africa Retakaful

Ramlie KamsariCEO

CIMB-Principal Islamic AssetManagement Sdn Bhd

Majed M. Al-SorourGeneral Manager

Amana Coopera�ve Insurance

Susan DingwallPartner

Norton Rose Fulbright

Mahomed AkoobManaging Director

Hannover ReTakaful

Sohail JafferGroup Partner &

Head of IBD FWU

David AnthonyDirector, Lead Analyst,

FI InsuranceStandard & Poor's Ra�ngs

Services

Safder JafferMD & Consul�ng Actuary

Milliman

James BagshaweCOO


Prof. M Iqbal AsariaAssociate

A�ar Consul�ng Ltd

John GilbertConsultant

Hogan Lovells Interna�onal LLPM&G Advisory Services

Sam ThanviTakaful Execu�ve

Dr. Alberto BrugnoniManaging Partner

ASSAIF

Imran Ali COO

Centegy Technologies

Mahesh MistryDirector, Analy�cs

A.M. Best

Muhammad ZubairCEO

AlHuda Centre of IslamicBanking & Economics

Salah Eldin Musa Mohamed Vice President,IFTI

Director, ICMIFChair, ICMIF Takaful Network Managing Director, Shiekan Insurance & Reinsurance Co.

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Ffion FlockhartPartner

Norton Rose Fulbright

Ajmal Bha�yCEO

Alinma Tokio Marine - KSA

Daud Vicary AbdullahPresident & CEO

INCEIF

Dawood TaylorSenior Regional Execu�ve -

Takaful, Middle EastPruden�al Corpora�on Asia

Zainal Kassim FIASenior Partner

Actuarial Partners Consul�ngSdn Bhd

Bindesh ShahCo-CEO

Amiri Capital LLP

Azman IsmailPresident

IIFIN Consul�ng Sdn Bhd

Lawrie Chandler Director

Edale Group and Salam PaxSICAV

Prof. Robin EllisonVisi�ng Professor in

Pensions Law and EconomicsCass Business School, London

Dr. Aqsa AzizFinance Lecturer

Coventry University

Dawud Abdus-SaboorCo-Founding Partner &

DirectorTakaful Outsource Ltd

Dr. Nehad Khanfar Lecturer

Islamic College

Sabbir Patel Senior Vice-President,

Emerging Markets ICMIF

Tuan Haji Tarmidzi AhmadNordin

SpecialistFinance Accredita�on Agency

Anass PatelPresident

570 Asset Management

Faizal KarbaniCEO & FounderSimply Sharia

Datuk Noripah KamsoBoard Member

BIMB Investment - Malaysia

Faisal KhanFounder & PrincipalAmanah Technology

Consul�ng

Shabbir RazviManaging Director

Interna�onal Finance Solu�ons Associates

Shaikh Faizal ManjooLecturer

MIHE

Chakib AbouzaidGroup Chief Marke�ng Officer

- Reinsurance, GroupMedReinsurance Brokers

Ali KarakuyuAssociate Director,

Financial Services Group:EMEA Standard & Poor’s

Ra�ngs Services


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Re-Thinking the Takaful ModelP R O G R A M M E

DAY ONE TUESDAY, 17 FEBRUARY, 2015

08.30 - 09.00 Arrival & Registra�on

09.10 - 09.20 Inaugural AddressChair Dr. Alberto Brugnoni, Managing Partner, ASSAIF

Welcome RemarksSalah Eldin Musa Mohamed, Vice President, IFTI | Director, ICMIF | Chair, ICMIF Takaful Network | Managing Director, Shiekan Insurance and Reinsurance Co. Ltd

Opening RemarksProf. M Iqbal Asaria, Associate, Afkar Consulting Ltd

09.20 - 09.30 Launch of the Finance Accreditation Agency Learning StandardsLaunch AddressDr. Amat Taap Manshor, CEO – Finance Accreditation Agency

09.30 - 10.15 Keynote Session: Re-Thinking the Takaful ModelModerator Safder Jaffer, MD & Consulting Actuary, Milliman

Middle East Takaful: Re–Thinking the Model and Implementation Chakib Abouzaid, Group Chief Marketing Officer – Reinsurance, GroupMed Reinsurance Brokers

Building a Sustainable Takaful Model Aligned to the Needs of Stakeholders in Both Growth and Developed MarketsSohail Jaffer, Group Partner & Head of IBD, FWU

10.15 - 10.30 Coffee Break & Networking

10.30 - 11.30 SESSION I Leveraging on the London Market for the Next Stage of Takaful

Moderator Prof. M Iqbal Asaria, Associate, Afkar Consulting Ltd

Historic Position of Takaful in LondonDr. Terry Masters, CEO – ReSolutions, AON Benfield

Takaful Insurance – Time to Get SeriousRichard Bishop, CEO, Cobalt Underwriting

Takaful Today and Tomorrow – a Lloyd's Market ViewCameron Murray, Head of UK, Ireland, Middle East & Africa, Lloyd's

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11.30 - 12.30 SESSION II Regulatory, Rating and HR Challenges for Takaful Providers

Moderator Daud Vicary Abdullah, President & CEO – INCEIF

Bridging the Gap: Enhancing the Quality of Talent in the Takaful IndustryDr. Amat Taap Manshor, CEO – Finance Accreditation Agency

Takaful – Regulatory UpdateSusan Dingwall, Partner, Norton Rose Fulbright

Prospects for Sharia–Compliant Insurers & Reinsurers in The GCC In 2015 as Oil Prices FallDavid Anthony, Director, Lead Analyst, FI Insurance, Standard & Poor's Ratings Services

A.M. Best's Approach to the Rating of Takaful EntitiesMahesh Mistry, Director – Analytics, A.M. Best

12.30 - 14.00 Lunch & Prayers

14.00 - 15.00 SESSION II I Taking a Fresh look at Mutuals and their Potential Role in Takaful Provision

Moderator Tuan Haji Tarmidzi Ahmad Nordin, Specialist, Finance Accreditation Agency

How the Mutual Model can be Adapted for Takaful: Addressing the Weakness of Current Takaful ModelsZainal Kassim FIA, Senior Partner, Actuarial Partners Consulting Sdn Bhd

Potential Role of Mutuals in Providing Takaful ServicesAzman Ismail, President, IIFIN Consulting Sdn Bhd

The Ethics of Friendly Takaful SocietyAjmal Bhatty, CEO, Alinma Tokio Marine – KSA

15:00 - 16.00 SESSION IV Bringing Re-Takaful Up to Speed to Meet EmergingChallenges in Takaful Provision

Moderator Chakib Abouzaid, Group Chief Marketing Officer – Reinsurance, GroupMed Reinsurance Brokers

Retakaful Operators: Driving for Takaful Growth Omar Gouda, Managing Director, Africa Retakaful

Thoughts on Retakaful Partner SelectionMahomed Akoob, Managing Director, Hannover ReTakaful

Bringing simplicity and transparency to the insurance processJames Bagshawe, COO, Cobalt Underwriting




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16.15 - 17.15 SESSION V Country Panel – Mature Takaful Markets Moderator Dawood Taylor, Senior Regional Executive – Takaful, Middle East, Prudential

Corporation Asia PanelistsMalaysia Tuan Haji Tarmidzi Ahmad Nordin, Specialist, Finance Accreditation Agency

Sudan Salah Eldin Musa Mohamed, Vice President, IFTI | Director, ICMIF | Chair, ICMIF Takaful Network | Managing Director, Shiekan Insurance and Reinsurance Co.

KSA Majed M. Al-Sorour, General Manager, Amana Cooperative Insurance

UAE Ali Karakuyu, Associate Director – Financial Services Group: EMEA, Standard & Poor’s Ratings Services

19.30 - 22.00 THE INTERNATIONAL TAKAFUL AWARDS 2015 CEREMONYPresided by Prof. M Iqbal Asaria, Associate, Afkar Consulting Ltd

Keynote Max Taylor, Chairman, Islamic Insurance Association of London

SUMMIT DAY 2 WEDNESDAY, 18 FEBRUARY, 2015

08.30 - 09.00 Arrival & Registration

09.15 - 10.00 SESSION VI Investment and Takaful Contribution PoolsModerator Ramlie Kamsari, CEO, CIMB-Principal Islamic Asset Management Sdn Bhd

Approaches to Prudent Management of Takaful Contribution PoolsDatuk Noripah Kamso, Board Member, BIMB Investment – Malaysia

Structuring a Shariah Compliant Real Estate Class for Takaful Contribution PoolsBindesh Shah, Co-CEO, Amiri Capital LLP

New Capital Instruments for UK Mutual Insurers – An Opportunity for Islamic InvestorsJohn Gilbert, Consultant, Hogan Lovells International LLP | M&G Advisory Services

10.00 - 11.00 SESSION VII Developing Takaful Based Pensions and Savings Platforms

Moderator Faizal Karbani, CEO & Founder, Simply Sharia

Exploring Pension Takaful PropositionSafder Jaffer, MD & Consulting Actuary, Milliman

Nomination clause in Islamic Pension and Takaful arragements: A legal andfiqhi analysisShaikh Faizal Manjoo, Lecturer, MIHE

Pension changes in the UK 2015 and their impact on sharia opportunitiesProf. Robin Ellison, Visiting Professor in Pensions Law and Economics, Cass Business School – London

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11.30 - 12.30 SESSION VII I Potential for Innovative Technology for Takaful Provision

Moderator Shabbir Razvi, Managing Director, International Finance Solutions Associates

Global Trends in Sales Growth and Customer SatisfactionImran Ali, COO, Centegy Technologies

Re-Thinking the Takaful Technology 'Copy/Paste' ParadigmDawud Abdus-Saboor, Co-Founding Partner & Director, Takaful Outsource Ltd

The Role of Technology in ReThinking the Takaful ModelFaisal Khan, Founder & Principal - Amanah Technology Consulting

12.30 - 13:30 SESSION IX Country Panel – Newer Takaful MarketsModerator Sam Thanvi, Takaful Executive

The Takaful industry in Palestine: Hopes, reality and prospective expectations!!Dr. Nehad Khanfar, Lecturer, Islamic College

Panelists France Lawrie Chandler, Director, Edale Group and Salam Pax SICAV

Pakistan Muhammad Zubair, CEO, AlHuda Centre of Islamic Banking & Economics

Afghanistan Dr. Alberto Brugnoni, Managing Partner, ASSAIF

13.30 - 14.30 Lunch & Prayers

14.30 - 15.45 SESSION X Financial Inclusion, Micro Takaful and Innovative Use of Zakat

Moderator Sabbir Patel, Senior Vice-President, Emerging Markets, ICMIF

Modalities for Empowering the Unbanked through Micro TakafulProf. M Iqbal Asaria, Associate, Afkar Consulting Ltd

Closing Remarks




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The global financial crisis highlighted

the weaknesses in existing risk

management processes throughout the

financial services industry. Conventional

insurers have not been immune from those

concerns and, in recent years, they have

been the focus of increased regulatory

scrutiny.

International Financial Services Board (IFSB)

In comparison, the Islamic insurance industry is less

mature. However, Islamic insurers recognise the

need for effective risk management and the fact

that their processes and procedures will inevitably

need to stand up to the same level of scrutiny as

their conventional counterparts. To meet this

need, the IFSB (which is an international standard-

setting organisation for the Islamic financial serv-

ices industry) issued a global standard (No. 14) on

risk management for Islamic insurers which seeks

to establish certain minimum standards. It is impor-

tant to appreciate that the standard is not pro-

scriptive. This is because, as a practical matter,

Islamic insurers operate in different regulatory

environments across a number of jurisdictions

worldwide and so a detailed proscriptive set of

standards simply would not work.

Unsurprisingly, the IFSB found that the majority

of risks faced by Islamic insurers are the same as

those faced by conventional insurers (such as oper-

ational risk, underwriting risk, market risk, credit

risk, liquidity risk and legal risk) but there are a

number of specific risks, set out below, that are rel-

evant only to Islamic insurers.

Shariah non-compliance

The interpretation of Shariah compli-

ance differs between scholars, which

raises the possibility that a particular

product marketed across various juris-

dictions is ruled compliant in one juris-

diction but not in another. The same is

true for investment decisions. Breaching

Shariah standards can also have a different effect

in different jurisdictions.

For example:

• it may invalidate contracts under Shariah law;

• it may deprive a policyholder (or participant) of

cover; or

• it may expose an Islamic insurer to regulatory

action and reputational damage.

Shariah non-compliance risk is an operational

risk that requires processes and controls to detect

and correct any instances that do manifest them-

selves. An Islamic insurer will need to establish sys-

tems and controls to ensure Shariah compliance of

its products, its selection of investments (and their

administration) and the segregation of funds. The

Shariah Supervisory Board will be key in providing

guidance to the business, auditing compliance and

reporting to the main board of the Islamic insurer.

Maintaining segregation of participants’ funds

In conventional insurance, policyholders pay a pre-

mium to the insurer in order to transfer their risk of

loss. Under an Islamic insurance structure, every

participant pays a charitable donation to help

those who suffer a loss. These contributions are


Risk Management Standardsfor Islamic Insurers

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Head of Norton Rose Fulbright LLP’s Islamic insurance practice


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then pooled and the risk is shared among the par-

ticipants. The pool (known as the “Participants’

Risk Fund”) is managed and kept separate to the

Shareholders’ Fund.

The requirement to separate the Participants’

Risk Fund from other funds can lead to risks asso-

ciated with governance and management of the

funds including misattribution of expenses and rev-

enues, resulting in expenses being borne or income

being received by the wrong fund. Islamic insurers

should ensure that the allocation of expenses and

revenues as between funds complies with applica-

ble law, that it is approved by those responsible for

corporate governance and that it is clearly set out

both in marketing materials and in relevant con-

tracts to ensure complete transparency. In this

way, participants will be aware before

entering into the contract exactly what rev-

enues and expenses are credited or charged

to the various funds.

Islamic reinsurance

The risks arising out of the use of conven-

tional reinsurance, such as basis risk and the

risk of excessive concentration of risk to a

particular counterparty, apply equally to

Islamic reinsurance. However, in addition

to these considerations, there are particular

risks for the Islamic insurance industry.

Shariah scholars hold differing views about

the validity of an Islamic insurer utilising

conventional reinsurance. Islamic insurers

may seek to rely on the concept of “daru-

rah” (or necessity) to justify their use of con-

ventional reinsurance. They may argue that

a Shariah compliant alternative is unavailable.

However, that argument holds less weight now

that capacity in the Islamic reinsurance market has

expanded considerably. A strict Shariah Supervi-

sory Board is likely to insist that Islamic reinsurance

is purchased and that “darurah” is no longer a good

reason to continue to use the conventional rein-

surance markets.

Different methods of effecting Islamic reinsur-

ance contracts have developed and Islamic insur-

ers need to be alive to those differences and the

need for transparency in relation to how revenues

and expenses under such contracts are attributed

between funds. As with the risks relating to main-

taining segregation of participants’ funds, Islamic

insurers must ensure that the attribution of rev-

enues and expenses is fully transparent to partici-

pants and that proper objective consideration has

been given to the fairness of the apportionment

concerned.

Where an Islamic insurer is risk sharing with

other cedant Islamic insurers, it will need to con-

sider the quality of risk selection and pricing by the

Islamic reinsurer so as to best limit its exposure to

losses from the operations of the other Islamic

insurers in the same risk pool.

Conclusion

A global standard on risk management for Islamic

insurers has been a significant step forward for an

industry that has faced criticism for the lack of stan-

dardisation in regulation. A well understood set of

principles that everyone can buy into will also ulti-

mately lead to the growth of the Islamic insurance

industry as it will be seen as a safe and prudent

environment in which to do business. ***


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Shariah non-compliance risk is anoperational risk that requiresprocesses and controls to detectand correct any instances that domanifest themselves. An Islamicinsurer will need to establish systems and controls to ensureShariah compliance of its products,its selection of investments (andtheir administration) and the segregation of funds.

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The Takaful industry has growntremen dously over the last

decade. With its current penetra�onrate in the world’s fast-growing Islamicpopulace, there is every reason tobelieve that this trend will con�nue ata higher and more accelerated pace.The industry should con�nue contri -bu�ng a double-digit growth ofabout 14% and by 2017, theglobal Takaful industry is expectedto surpass USD20 billion. Takafulmarket contributors are currentlybeing led by Saudi Arabia at48%, followed by the Associa -�on of South East Asian Na�on(ASEAN) countries such asMalaysia, Indonesia, Singaporeand Thailand at 30% and the Gulf Coopera�onCouncil (GCC) countries at 15%. In Malaysia,experts predict that the Takaful industry willgrow by 20% per annum from 2015.

The Ernst & Young (E&Y) Global TakafulInsights 2014 report provides five megatrendswhich underpin the prospects and challenges ofthe Takaful industry. A careful look at all themegatrends leads to one conclusion, that is,having a sufficient pool of skilled workforce iskey to success. This same point was alreadynoted in the Yurizk Global Islamic Financial

Educa�on Report 2013 on Human CapitalDevelopment in Islamic Finance.

However, the E&Y report alsohighlights the lack of skilled andknowledgeable workforce as one of thetop Takaful business risks in 2013. As ama�er of fact, the Report of the IslamicFinance Task Force of the COMCEC

Capital Market Regulator 2013 reveals that 63%of the respondents surveyed experienced ashortage of talent in this sector. To some extent,the seriousness of such shortage can be seenfrom the strong recommenda�on for the Takafuloperators to “put their house in order” inan�cipa�on of future compe��on. Unfortunately,one of the conclusions from the Middle EastTakaful Forum 2014 is that Takaful is not anappealing industry for those seeking employment.

In Malaysia, the implementa�on of theIslamic Financial Services Act 2013 has further

THE 8TH INTERNATIONAL TAKAFUL SUMMIT 2014

A careful look at all the megatrendsleads to one conclusion, that is,having a sufficient pool of skilledworkforce is key to success.

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FAA Learning Standards:Building Blocks for

Talent Development in theTakaful Sector

D R A M AT T A A P M A N S H O RFinance Accredita�on Agency


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intensified the exis�ng talent shortage in theTakaful industry where players are required toseparate the two business lines and groups oftalent for life and general Takaful. Firms withcomposite licenses covering both sectors haveun�l 30 June 2018 to comply.

Such shortage of talent, defined as having theright number of employees with the right skillsin the right place, is undoubtedly a bo�leneck inthe a�ainment of desirable growth.

The previous World Takaful Report 2012 byE&Y noted the addi�onal risk of inadequatetraining, where employees sellingTakaful products were not able todifferen�ate between Takaful andInsurance pro ducts. This is plausiblywhy 59% of the respondents in theFAA-IFN Human Capital Survey 2014indicated that training and develop -ment in Takaful-related areas iscri�cal in order to arrest the skills andlearning gaps.

Shariah scholars have alsoexpressed their concern that thesenior management of many Takafulcompanies come from the Insurance industryand therefore are managing a Takaful businessas they would manage an Insurance company.This has probably led 75% of the respondents inthe FAA-IFN Human Capital Survey 2014 toindicate that prac��oners without formalqualifica�ons in Islamic Finance are less capableof performing their jobs.

Aggrava�ng the issue is the extremevaria�ons in how Shariah principles areinterpreted and implemented amongst thecountries involved. This calls for an effec�veShariah governance framework and collabora�onamongst jurisdic�ons and amongst membercountries in order to strengthen and integratethe regulatory system.

Another issue iden�fied in developing theworkforce in the Takaful industry is the quali -fica�ons gap. Many countries and regions haveseen the prolifera�on of Islamic Finance training

centres and ins�tu�ons that offer academic andprofessional courses to meet the demand for alarger talent pool. The Yurizk Global IslamicFinance Educa�on Report 2013 projected thatsuch training centres may surpass 1250 by 2016.As Takaful is a new field, significant varia�ons inthe design of qualifica�ons, progression routesand achievement of learners, between and withincourses offered by academic and training ins� -tu�ons, are to be expected. As a result, adisinte gra�on of learning standards is an�cipated.

To address these issues, an integrated andcoordinated approach to global quality Takafultalent development is essen�al. These include,amongst others, the need for the developmentof learning standards for Takaful.

The Finance Accredita�on Agency (FAA)launched the first ever FAA Learning Standards(FLS) for Islamic Finance, which include Takaful,in September 2014. The objec�ve of the FLS is toensure consistency of learning content for theTakaful industry according to interna�onallybenchmarked industry requirements.

Accordingly, the FLS provides minimumstandards for learning programmes related toTakaful in seven major areas such as: (1) Shariah;(2) Claims (Family and General); (3) Underwri�ng(Family and General); (4) Marke�ng and Sales;(5) Risk Management; (6) Internal Audit; and (7) Compliance.


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Such shortage of talent, definedas having the right number ofemployees with the right skills inthe right place, is undoubtedly abo�leneck in the a�ainment ofdesirable growth.

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3. Learning programme objec�ves (LPOs) arethe breakdown of LOs according to the compe -tencies that the learner has to acquire in order toachieve the LOs. Taking the example above,

there are several LOs in each level and at leastfive LPOs at each level. The table belowillustrates the LPOs for the LO1 of Level 1 Claims(Family and General):

For each of the areas, the FLS comprises 11 components. These components are described below:

1. Learning levels depict the depth of thelearning content so as to match the targetaudience. Accordingly, there are six learninglevels, Level 1 being Basic and Level 6 beingAdvanced. The levels have been designed tomatch the tasks that Takaful employees at apar�cular level are likely to perform, taking intoconsidera�on the competencies (knowledge,skills and applica�ons of knowledge and skills)expected.

2. Learning outcomes (LOs) inform learnersabout what they are expected to learn and whatwill they be able to do upon comple�on of thelearning programme. Each learning level has itsrespec�ve LOs. An example of LOs for Claims(Family and General) at each level is illustratedbelow. Note that the statements are genericenough so that they are applicable to differentcontexts or jurisdic�ons.


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Level Learning Outcomes

1 LO1 Process se�lement of straigh�orward Takaful claims based on established company guidelines.

2 LO1 Monitor the claims handling and referral process based on established guidelines.

3 LO1 Supervise the implementa�on of the claims handling and referral process based on established guidelines.

4 LO1 Direct the claims opera�ons of respec�ve por�olios including monitoring the claims cost, Retakaful recoveries, and decide on large or complex claims.

5 LO1 Implement the company’s policies on claims cost, service quality, compliance with legisla�ve and regulatory procedures, and op�mise recovery from a Retakaful programme.

6 LO1 Align claims to the company’s strategic direc�on and corporate objec�ves.

Level Learning Outcome Learning Programme Objec�ves

1 LPO1 Understand the basic claims administra�on process from start to finish.

LPO2 Register claims.

LPO3 Recall basic informa�on and documenta�on to process or inves�gate claims.

LPO4 Recollect referral procedures for claims exceeding authority limits/complexity.

LPO5 Outline the relevant scope of cover provided by Takaful company.

Process se�lementof straigh�orwardTakaful claimsbased onestablishedcompanyguidelines.


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4) Body of knowledge (BoK) consists of coreteachings and skills in a par�cular area. The BOKfor each level is sufficient to achieve the LPOsand relevant in mee�ng the expecta�ons of, inthis case, the Claims department of any Takafulcompany. For instance, the BOK for LPO1includes claims administra�on; the BOK for LPO2comprises claims registra�on and reserving,while the BOK for LPO3 consists of basic claimsdocumenta�on and inves�ga�on.

5) Learning topics show the content required tomeet the LPOs of any learning programme.Taking the example above, claimsadministra�on includes topics such asclaims philosophy, roles of the Claimsdepartment, major types of claims,basic claims administra�on process,roles of loss adjusters/claim inves� -gators and awareness of thelegis la�ons, regula�ons and industrycode of prac�ce pertaining to theclaims process.

6) Learning methodologies refer tothe delivery methods used to achievethe LPOs. Some of the examples in theFLS for Claims (Family and General)include lectures, interac�ve discussion,case studies and prac�cal exercises.

7) Assessment methods are a crucialaspect of quality assurance. Anassessment is one of the measures toshow the achievement of LOs whichmeans the learner has obtained therequired knowledge and skills. The achievementof the LPOs s�pulated for the learningprogramme is the basis for which qualifica�onsare awarded. Depending on the levels of the FLSfor Claims (Family and General), the assessmentmethods may include ques�ons and answers,mul�ple-choice ques�ons, case discussions,group discussions, scenario analysis, calcula�onexercises and presenta�ons.

8) Learning hours refer to the �me allocated foreach LPO. The alloca�on should be sufficient tocover the depth and understanding of therequired learning topics and assessment. Thelearning hours to cover each LPO in the FLS forClaims (Family and General) range from 3 to 8hours.

9) Entry requirements comprise prior knowledgeand skills in related learning areas or years ofexperience or a par�cular qualifica�on prior toenrolling in the learning programme. Forexample, a par�cipant who enrols in a Level 1

Claims learning programme should possess ‘O’Level qualifica�ons or the equivalent, whilethose who enrol in a Level 2 programme shouldpossess a Level 1 Claims or equivalent quali -fica�ons.

10) Relevant resources show the resourcesrequired for a learning programme or topic,including the hardware or so�ware used,


.................

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Assessment methods are acrucial aspect of qualityassurance. An assessment is one of the measures to showthe achievement of LOs whichmeans the learner has obtainedthe required knowledge andskills. The achievement of theLPOs s�pulated for the learningprogramme is the basis forwhich qualifica�ons areawarded.

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reference materials, financial calculators andothers.

11) Descrip�on of trainers specify the minimumacademic qualifica�ons and professionalexperience or qualifica�ons required of a trainerin order to deliver the learning programmeeffec�vely and efficiently. Generally, a trainer forLevel 1 Claims learning programme is expectedto possess at least 5 years of experience in amanagement role in Life/Family/General Takafuland be knowledgeable in Life/Family/GeneralTakaful concepts, principles, terminologies andrelevant regulatory guidelines with aminimum of 3 years’ experience as atrainer. The require ments differ ateach level.

With the FLS for Takaful in place,the issues highlighted in this paperhave been addressed. The FLS isintended to ensure consistency oflearning content and as such, it couldaddress the skills and learning gaps.Likewise, the learning level whichcorresponds with the competenciesof Takaful employees could be usedas a guide by training providers inlevelling learning program mes. As such, itovercomes the issue of quali fi ca�ons gap. FAAhas also developed the Finance Qualifica�onsStructure (FQS) which aims to map professionalqualifica�ons in Takaful according to the sixlevels of the FLS. Efforts are under-way to mapthe FQS to academic frameworks, thus furthersuppor�ng the consistency in learning levels andcontent.

The FLS could also be used by trainingproviders for the design, development anddelivery of learning programmes for Takafulemployees. For exis�ng learning programmes,the FLS could serve as a means forenhancement. As the FLS represents minimumstan dards, training providers are encouraged to

enhance and enrich their curriculum content toserve the specific needs of their Takaful industry.

To overcome the issue of varia �ons inShariah interpreta�on, the FLS for Shariah isdeveloped to take into considera�on varyingjurisdic�ons and as such, meets interna�onalstandards. Each of the FLS has undergone arigorous modera�on process which involvednotable and relevant subject ma�er expertsfrom different regions of the world.

The FLS for Takaful also serves as a usefulsource of reference for the Human Resourcedepartment of Takaful companies in deter -

mining the learning needs required for theiremployees at various posi�ons and/orcompetency levels. This leads to focused andstructured learning interven�ons in the respec -�ve areas to minimise cost and maximiseinvestments, whilst mee�ng the needs of regula -tors and Takaful employees.

It is apparent that the FLS for Takaful carriesmany obvious benefits for regulators, acade m ics,training providers, human resource depart mentsand Takaful prac��oners par�cularly in over -coming the challenges described. The dearth ofqualified Takaful talent requires close colla -bora�on between stakeholders if the higheststandards are to be met in order to furtheradvance the Takaful profession.


*** *** ***

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The dearth of qualified Takafultalent requires close collabora -�on between stakeholders if thehighest standards are to be metin order to further advance theTakaful profession.

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Driving Quality Excellence in the Financial Services Industry


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The current tide of overseasinstitutional investment into UK

real estate is by no means a newphenomenon. A lack of institutional realestate in the overseas investors’ homemarkets, coupled with a huge spendingpower, means geographical diversi -fication is necessary. Investors havelong appreciated the diverse, transparent andliquid real estate markets that the UK has tooffer. An equally important draw, certainlyfrom more emerging markets, is theknowledge that any investment would begoverned by the rule of law – and insurableunder that rule of law.

Whilst many overseas investors demon -strate some form of cultural traits in theirinvestment practices, few are as distinctive asIslamic or Shari’ah-compliant finance.Increasingly unders tood in the UK markets, theUK has even changed laws in order to providea level playing field for Shari’ah-compliantinvest ment structures alongside their‘conventional’ counterparts.

One of the last steps towards providing afull Shari’ah-compliant investment solution inthe UK is the provision of takaful; Islamic insur-ance. Limited in its provision to date, the insur-ance industry appears to be awakening to boththe concept but also the potential market. Towhom then, might this product be attractive?

The most apparent answer is that ofinvestors based in the Middle East. CBRE esti-mated US$13 billion of overseas real estate

investments were made by MiddleEastern investors in 2013, with some44% of this destined for London.

The vast majority of Middle East-ern investors seek long-term wealthpreservation from strong, preferablyhigh income-producing assets. Giventhe sheer size of the investments

being made, it perhaps not surprising that thecommercial real estate sector predominates,with residential investments also a significantasset class of choice. Though residentialinvestments may once have been solelyfocused on Knightsbridge, Mayfair and Bel-gravia, forays into Fulham and South Bank arenow increasingly common, CBRE suggest.

Notable residential transactions by MiddleEastern investors include:

• ADIA, along with Finchatton, is behind there-development of 20 Grosvenor Square;

• Saudi investors Jadwa partly funded thedevelopment of CIT’s Southbank Tower;

• Qatari Diar are particularly active, funding arange of London schemes including theShell Centre, Grosvenor Waterside and theformer Olympic site (East Village).

Of the investments made, a dominant andincreasing percentage are from SovereignWealth Funds (SWF). Many of the SWFs foundequity markets to be too volatile and the bond

Growth Potential of Takafulfor the UK Real Estate Market

S T U A R T J A R V I SSenior Analyst – Amiri Capital LLP

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markets to be too low yielding. Hence, directreal estate presented an enormous opportu-nity. Middle Eastern SWFs will want to investUS$130-140 billion in global real estate overthe next decade, CBRE argue. Combined withHNWI investment, over the next 10 years, theexpected spending of Middle Eastern investorsin global commercial real estate outside theirhome market equates to around US$170-180billion. Europe will remain a clear favouritewith around 80% allocation.

It is perhaps a statement of the obvious butclearly the majority of the real estate investorsfrom the Middle East, both UHNWI and SWFs,are at least Shari’ah-inclined, if not fullyShari’ah-compliant.

Colliers’ Global Investor SentimentReport 2015 notes Asian investmentinto UK markets remains a clear focus:56% of their Asia based respondentssaid the UK would be one of their targetinvestment countries. Diverging fromthe investment commentary for MiddleEastern investors, the report explainsthat most Asian investors (58%) indi-cated that they were likely to take onmore risk over the next 12 months in order toachieve superior returns. Similar to last year,almost half (49%) of the respondents are tar-geting IRRs above 15%, with a smaller per-centage, 11%, targeting IRRs in excess of 20%.

Of those Asian nations most likely to beShari’ah-compliant or inclined investors,Malaysia, Brunei and Indonesia are the mostnotable. The latter, Indonesia, home to theworld’s largest Muslim population, is yet tostrike meaningfully upon the world invest-ment stage as exporters of capital. Malaysiaand Brunei, however, are now renownedinvestors. The massive Battersea Power Stationdevelopment is an example on a grand scaleof Malaysia’s investment might. Funded bythree of Malaysia’s largest real estateinvestors, SP Setia, Sime Darby and theEmployees Provident Fund, not only has the

development been funded by Malaysian insti-tutions, they have had significant success inselling the new development back to con-sumers in their native Malaysia.

Asian SWFs and private investors are there-fore a further deep pocket of potential take-up of takaful for their real estate develop mentsinvestments.

A final potential investor group, for whomtakaful may also be a welcome product, arethe ethical investment community. An initialunfamiliarity with the tenets of Islamic financemay mean ethical investors would not seetakaful as relevant to them. However, the co-

operative nature of takaful and the assurancethat any proceeds will not be invested in sectors such as weapons, tobacco and gambling, all of which are proscribed underShari’ah, may be well suited to the interests ofethical investors.

In conclusion, therefore, there is a signifi-cant group of major real estate investors fromthe Middle East and Asia, to name but twogeographies, who are Shari’ah compliant or atleast Shari’ah inclined. It is these investors,and their now multi-million, if not multi-bil-lion, pound exposure to UK real estate, whoare the obvious first clients for takafulproviders. The ethical investment communitytoo, though they may not realise it, are also astrong potential client base. With the marketpotential clear, we await to see if 2015 is theyear that this potential is harnessed. ***

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… but clearly the majority of thereal estate investors from the Mid-dle East, both UHNWI and SWFs,are at least Shari’ah-inclined, if notfully Shari’ah-compliant.

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WILLIS REAL ESTATE PRACTICE

Willis retains one of the largest teams dedicated to serving the insurance and risk management needs of theproperty sector in the UK with strong capabilities across Europe.

Our commitment is to deliver innovative risk solutions which enable you to manage the risks to your performance more effectively. In 2014 we launched the UK’s first Shariah compliant commercial real estateinsurance in response to growing demand from property investors. The cover, based on our market leadingpolicy wording, offers real estate investors and companies access to insurance which is compliant with theprinciples of Shariah law.

SPECIALIST AREASOur depth of understanding and insight into how organisations in the property sector create and maintainvalue allows us to provide innovative solutions in the specialist areas outlined below.

• Property and real estate insurance.• Construction.• Legal Indemnities.• Environmental liabilities.• Transactional liabilities.• Delivery of service across Europe.

WHO WE WORK WITHWe work with organisations involved in the investment, construction, development, repair and managementof residential and commercial property.

Whether you are a global organisation or a local company, we understand the complexities of your businessand risk profile and can help you identify, analyse, manage and control your exposures.

For more information email [email protected] or visit www.willis.com

FP1811

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Lloyd’s is the world’s specialist insurance market and conducts business in over200 countries and territories. We’re o�en the first to insure new or complex risks, providing tailored risksolu�ons locally and globally.

Lloyd’s unique market structure gives businesses of any size fast access to specialist exper�se that’s backedby excellent financial strength and ra�ngs (A ra�ng from A.M. Best, A+ from Standard & Poor's and AA- fromFitch). So Lloyd’s policyholders can have confidence that Lloyd’s can meet valid claims.

Lloyd’s has been developing new insurance products to meet the changing needs of its policyholders for over325 years. Today, Lloyd’s skilful and empowered underwriters con�nue to offer tailored cover using theirexperience and exper�se.

Learn more about what makes Lloyd’s experts at www.lloyds.com or follow us on Twi�er @LloydsofLondon or LinkedIn www.lloyds.com/linkedin

Norton Rose Fulbright is a global legal prac�ce. We provide the world’spre-eminent corpora�ons and financial ins�tu�ons with a full business law service. We have more than 3800lawyers based in over 50 ci�es across Europe, the United States, Canada, La�n America, Asia, Australia, Africa,the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial ins�tu�ons;energy; infrastructure, mining and commodi�es; transport; technology and innova�on; and life sciences andhealthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity.We aim to provide the highest possible standard of legal service in each of our offices and to maintain thatlevel of quality at every point of contact.

Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton RoseFulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is aseparate legal en�ty, are members (‘the Norton Rose Fulbright members’) of Norton Rose Fulbright Verein,a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the ac�vi�es of the Norton Rose Fulbrightmembers but does not itself provide legal services to clients.Visit: www.nortonrosefulbright.com


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CIMB-Principal Islamic Asset Management (CIMB-Principal Islamic) provides ins�tu�onal global investors with an extensive range of Islamic investment solu�ons. The firm offersseparately managed por�olios as well as collec�ve investment trust funds. A partnership between the CIMBGroup Sdn Bhd. and Principal Global Investors, allows CIMB-Principal Islamic to leverage on the strong Islamicfinance background of CIMB Group (via CIMB Islamic) while Principal Global Investor’s lends its exper�se inglobal asset management.

With its strategic loca�on within a complete Islamic financial system opera�ng that is in parallel to the con-ven�onal banking system, CIMB-Principal Islamic is able to leverage on Malaysia’s full-fledged Islamic finan-cial infrastructure and its adopted global regulatory, legal and Shariah best prac�ces.

The Finance Accredita�on Agency (FAA) is responsible for the consistency andquality assurance of professional learning and development in the financial services industry. As an advocatefor the highest quality in interna�onally benchmarked standards for learning programmes, FAA aims to cre-ate highly skilled and interna�onally mobile professionals for the global financial services industry.

Through the accredita�on of financial learning programmes across the globe, we are developing a consistentlearning and development experience for finance professionals that elevate the industry by crea�ng sustainable prac�ces and globally accepted learning standards.

FAABerhad

www.facebook.com/FAABerhad

URL: www.faa.org.my

Aon Benfield, a division of Aon plc (NYSE: AON), is the world’s leading reinsuranceintermediary and full-service capital advisor. We empower our clients to be�er understand, manage andtransfer risk through innova�ve solu�ons and personalized access to all forms of global reinsurance capitalacross treaty, faculta�ve and capital markets. As a trusted advocate, we deliver local reach to the world’smarkets, an unparalleled investment in innova�ve analy�cs, including catastrophe management, actuarial andra�ng agency advisory. Through our professionals’ exper�se and experience, we advise clients in making op�-mal capital choices that will empower results and improve opera�onal effec�veness for their business. Withmore than 80 offices in 50 countries, our worldwide client base has access to the broadest por�olio of inte-grated capital solu�ons and services.

To learn how Aon Benfield helps empower results, please visit aonbenfield.com.

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Hannover ReTakaful B.S.C. (c)Al Zamil Tower, Government AvenueManama, Kingdom of BahrainTel. + 973 17 214-766

www.hannover-re.comMember of the Hannover Re Group

The first major reinsurance group to devote itself to Sharia compliant solutions.Hannover ReTakaful B.S.C. (c), the Group‘s Sharia-compliant subsidiary, established in 2006 transacts all lines of business from its main office in Bahrain and its branch in Labuan.

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Licensing and Registra�on Hannover ReTakaful B.S.C. (c) is licensed by the Central Bank of Bahrain to pro-vide fully Sharia compliant Reinsurance (ReTakaful), and operate as a ReTakaful Company in Bahrain for bothFamily and General ReTakaful. The company provides Retakaful for Takaful companies around the globe.

Capital The company was formally registered on 3 October 2006 in Bahrain. The company has an authorisedcapital of BHD 50 million (US $ 135 million) and a fully paid up capital of BHD 20 million (US $ 54 million).

Security Hannover ReTakaful is a 100% subsidiary of Hannover Re Germany and therefore an integral partof the Group. The Hannover Re Group has a gross premium of around EUR 10.2 billion and is one of the lead-ing reinsurance companies in the world. The Group has a Standard and Poor’s financial strength ra�ng of AA-(Very Strong) and an A.M. Best ra�ng of A (Excellent). Hannover ReTakaful independently has been assigneda ra�ng by Standard & Poor’s of “A” with stable outlook.

The establishment of a fully owned subsidiary for ReTakaful business shows the commitment of Hannover ReGroup for this market and the importance it has given to Sharia based products.

In recogni�on of its contribu�ons to the Industry, Hannover ReTakaful received the Innova�on Award 2007in the Interna�onal Re-Takaful category by Middle East Insurance Forum, the Best ReTakaful Company 2008,2009, 2011 and 2012 Awards from the Interna�onal Takaful Awards and the Best ReTakaful Operator 2008and 2009 from the Islamic Business & Finance Awards.

Sharia Board The Sharia Advisory Board of the company consists of eminent scholars from around the worldnamely, Dr. Mohammad Elgari, Mu�i Abdunabi Hamidi and Mu�i Hassan Kaleem. The Sharia Advisory Boardsupports and underpins the development of the company and its products offerings.

ReTakaful Business Hannover ReTakaful has already started providing General ReTakaful and Family ReTaka-ful business since its incep�on with great success.

General Takaful Hannover ReTakaful provides financially sound Retakaful solu�ons on all classes of Propertyand Casualty Business, on a treaty and faculta�ve basis. The capacity is offered on both propor�onal andnon-propor�onal basis.

Family Takaful We are providing Family Takaful Operators with Sharia Compliant Retakaful solu�ons for alltheir products and supplementary benefits. This includes both Individual and Group Family Takaful.

Team We have a resident based dedicated team of professionals for both Family and General ReTakafulOpera�ons that will provide clients with expert and efficient solu�ons for all their business needs.

The team at Hannover ReTakaful will also enjoy the full technical support from the parent company, HannoverRe Germany.

Visit: www.hannover-re.com


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Africa Retakaful – Member of Africa Re Group

• Africa Retakaful has been Established in 2010 and commenced opera�ons in 2011.

• Africa Retakaful is 100% owned, supported and guaranteed by Africa Re.

• Africa Retakaful has been established in response to increasing needs of African Takaful industry for a

specialized Regional Retakaful Operator.

• Africa Retakaful provides all types of Retakaful products which are fully sharia’a complaint.

• Africa Retakaful adopts mix of Wakala & Mudaraba models.

• The Retakaful opera�on of the company is based on Wakala model with management expenses as actual.

• Investment of par�cipants’ funds is based on Mudaraba model.

Business Philosophy

• Africa Retakaful supports the Takaful products even if run by a conven�onal player to enhance the

concept of Takaful.

• The company’s Sharia’s Supervisory Board is con�nuously examining the products to ensure compliance

with the Sharia’a principles.

Business

• Our Main Focus is African Takaful Business and extended to Middle East and Asia, providing Sharia’a

complaint products.

Vision

• To establish a leadership posi�on as a regional Retakaful operator commi�ed to Africa and Asia, by

providing services in accordance with interna�onal standards.

Mission

• To provide a complete range of Retakaful products in order to meet our clients’ business requirements.

Objec�ves

• To establish a strong Retakaful provider in Africa and Asia.

• To meet the increasing need for Sharia’a compliance products.

• To increase the Takaful awareness in our target markets.

• To establish a strong Takaful industry with focus on Africa.

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Africa Retakaful Business Model:

• Wakala Model for Opera�ons:

Africa Retakaful applies the Wakala Model for its opera�ons with management expenses as actual.

Thus the risk is shared among the par�cipants, where the underwri�ng results belong only to par�cipants

as surplus or deficit.

• Mudaraba Model For investments

Africa Retakaful applies the Mudaraba model for the investments of the par�cipants’ funds.

Thus the net investment income is shared between the par�cipants and Africa Retakaful.

Products and Services

Africa Retakaful provides various Retakaful products, which are essen�al to meet the increased business

needs of the takaful industry. All our Retakaful products are approved by the Sharia’a Supervisory Board.

Africa Retakaful range of products are available by all means of Retakaful, faculta�ve or trea�es, propor-

�onal or non-propor�onal for all classes such as:

• Engineering Retakaful.

• Marine Retakaful (Hull, Cargo and Liabili�es).

• Oil and Energy Retakaful.

• Property Retakaful.

• All classes of Miscellaneous Accidents.

• Avia�on Retakaful.

• Family Takaful and all related products.

All classes are wri�en according to the underwri�ng policy and the guidelines of the company.

For further informa�on contact:

African Takaful Reinsurance Company,

7th ElKhalily St., Plot No.1149,

Massaken Sheraton Heliopolis,

Postal code 11361 Cairo, Egypt.

Tel: 00202 22685668 | Fax: 00202 22685667

[email protected] | [email protected] | [email protected] | [email protected]

www.theafricaretakaful.com | www.africa-re.com


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Shiekan Insurance & Reinsurance Co. Ltd. is a Sudanese company, incorporated in 1983as a limited company to transact all classes of insurance (General and Life).

Shiekan is the leading insurer in Sudan with a market share of more than 50%.

The company’s authorized capital is SDG 10M and a paid up capital of SDG 5M.

Shiekan conducts its opera�ons on the basis of co-opera�ve insurance in accordance with Shariah rules andprinciples.

The company has a countrywide network of 75 well established and staffed branches and offices.

The insurance business of the company is backed by an outstanding reinsurance programme with 1st classinterna�onal reinsurance companies.

Shiekan has a specialized Loss Preven�on Department staffed with qualified technicians and engineers whoclosely work with our clients to improve safety and security in insured proper�es.

Our Vision To be The World’s Foremost Takaful Provider.

Our Mission To provide first class innova�ve Takaful products and services to all our stakeholders.

Our values We are commi�ed to:

• A strong, disciplined and consistent rela�onship with our policyholders, striving to deliver ever be�erIslamic financial solu�ons.

• The personal and professional development of our employees, encouraging them to maximize their truepoten�al.

• Teamwork to achieve pre-eminent and ever improving delivery in all areas of our business.

Contact Details

Shiekan Insurance & Reinsurance Co Ltd,P.O. Box: 10037 Khartoum, SudanTel: +249.183.78.16.56 | +249.183.784.479 | +249.183.784.469Fax: +249.183.776.849

Email: [email protected] Website: www.shiekanins.sd



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Tokio Marine Middle East (TMME) aims to build stable and secure insurance and taka-ful businesses for the Tokio Marine Group, delivering comprehensive solu�ons to its customers, aligned withlocal cultural values and ethics. The company adheres to and emulates all group policies including corporatephilosophy and corporate social responsibility.

Regulated by the Financial Services Authority of the DIFC (DFSA), Tokio Marine Middle East provides techni-cal and management services to its Direct Opera�ng Units (DOUs) comprising of exis�ng and new companiesof the Group. The current DOUs are opera�ng in the UAE, Saudi Arabia and Egypt. The main 'new business'focus is to research and seek out opportuni�es in Takaful, and to establish and support Takaful companieswithin the MENA region and further a field. The company is Takaful Centre of Excellence within the Group,opera�ng with a core team of highly professional individuals and u�lizing group synergy in providing com-prehensive support to its DOUs.

Tokio Marine Insurance was established in 1879. The Group today is a triple-A rated insurer, widely recog-nized for its financial strength and as a respected insurance innovator. The Group aspires to be the Corpo-rate Group of choice playing an indispensable role worldwide through programs Social Development includingmicro-insurance.

TMME welcomes entrepreneurs, investors and industry players for collabora�on for the development, ra�on-aliza�on, consolida�on and durability of takaful and insurance industry.For more informa�on contact [email protected] | Group websites: www.tokiomarinehd.com/en


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Alahli Takaful Company (ATC)

• ATC was founded in 2007 and was amongst some of the first Insurance Companies licensed by SAMA. • ATC is a specialist Life company – offering both Retail and Corporate programs. • ATC has a Paid-Up capital of SR 167m and a wide-ranging and specialist range of Founding Shareholders

including local and interna�onal shareholding. • Profit and GWP Sta�s�cs 2014 vs 2013:

• ATC by end of 2014 underwrites and insures in the range of 550,000 lives which places us at the lead whencompared to local Life insurers in the market in this area as well as market leader in terms of GWP for theperiod.

• The company is fully Shariah compliant and is subject to an annual Shariah audit on its compliance andapplica�on.

General Takaful

General Takaful was established in 2008 as a subsidiary of “Qatar General Insurance & Reinsurance Co.” totransact insurance business in the State of Qatar as per Sharia’h principles and Takaful concept.

Since its incep�on ”General Takaful” has been commi�ed to maintaining the highest standards of service toits clients. The company has its principal asset a highly experienced and professional management team whocan offer expert advice based on their understanding of the unique needs of each individual client. Our strongcustomer rela�on and competent claims se�lement program shall be our brand name and our mo�o is to beconsultants rather than an Insurer to our valued clients.

Y E A R - E N D Variance %SAR”000” 2014 2013Profit 30,247 8,045 276%GWP 251,562 140,192 79.4%Assets 997,559 797,141 25.1%

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With a rich history spanning 25 years, Centegy Technologies, formerly Sidat Hyder Mor-shed Technologies, is regarded as one of the most trusted informa�on systems providers in the region. Ourreputa�on is built on helping our customers achieve success, skillfully and diligently. We measure ourselvesby the success of our clients and this con�nues to drive our behavior, every day. Today, we service over 85customers in 21 countries across Middle East, Africa, and the Americas.

Centegy Technologies success across its Insurance/Takaful solu�ons is built upon a powerful suite of policyadministra�on so�ware for Individual, Group Life, General and Medical Insurance including Takaful. Theseare complemented by front end sales tools for distribu�on channels such agents and partners (e.g. Bancas-surance), execu�ve dashboards and portals for customer interac�on, among others. The inherent strengthof this combina�on is one that gives insurance organiza�ons a modern integrated 360 degree model to serv-ice and enhance customer engagement.

Recently, as part of its innova�on pipeline and ‘customer engagement’ focus, Centegy has successfully part-nered with customers to roll out mobile insurance to tap emerging customer segments and empoweredagents to generate business using an Android applica�on.

Our values call for ‘Going further…everyday’ and that is why we consider ourselves a solu�on partner withcustomers we work with. Let us partner with you.

For more informa�on, please send us an email on [email protected] or

call +971 55 187 3343.

You can also visit us at centegytechnologies.


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Amiri Capital LLP – creating compelling real asset investments to match your investment objectives

Who we areAmiri Capital is authorised and regulated by the Financial Conduct Authority as an investment adviser andmanager with proven experience and in-depth understanding of real asset investments.

We have advised on investments for sovereign wealth funds, institutions and family offices, many of whichare based in the GCC and Southeast Asia.

With a specialist focus on larger transactions in the real estate market, we’ve advised on over £1bn of successful private equity investments into UK and European assets.

What we doBy combining our bespoke, client-focused approach and innovative thinking, we identify strategic real assetinvestment opportunities and match them to your specific, and ultimately unique, investment objectives.

The strong relationships that we hold across the investment community provide us with deep marketaccess into UK and European real estate, clean energy and global forestry.

Through every aspect of an investment we strive always to act with integrity and in the best interests ofour clients. If we believe an investment is unsuited to a client’s particular investment profile we will adviseaccordingly.

How we workADVISEBy taking a strategic, structural and cyclical view we are able to assess objectively any real asset investment opportunities that may arise.

MATCHEvery investment is matched with a client’s specific risk, capital and timing preferences.

STRUCTUREWe optimise the structure of investments, taking into account any capital structure and tax requirements.

DELIVEROur team’s focus is on every aspect of the investment process; from initial consultation and transactionright through post investment management to maturity or exit.

Islamic finance structuringOur investment professionals have an average 15 years’ experience in finance, investing and business development. We are highly skilled in Islamic finance and therefore where required, are able to structureinvestments in accordance with Shari’ah.

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Syarikat Takaful Malaysia Berhad (Takaful Malaysia)

Being the country’s pioneer in Islamic insurance, Syarikat Takaful Malaysia Berhad (Takaful Malaysia) hasestablished a strong foothold in the local insurance industry. Incorporated on 29 November 1984 with anauthorised capital of RM500 million and a paid up capital of RM162.8 million, the Company was listed on theMain Board of the Malaysian Stock Exchange on 30 July 1996 and is the sole listed Islamic Insurance playerin Malaysia. Takaful Malaysia has 30 service centres na�onwide with a solid financial background of RM6.8billion Group Assets and Shareholder’s Equi�es of close to RM500 million.

With over 29 years of experience in serving Malaysians with a wide range of Family and General takaful prod-ucts, Takaful Malaysia is the number one player in Group Family Takaful capturing approximately 40% mar-ket share. Ranking number two out of the eleven Takaful Operators in the local market, Takaful Malaysia todate has over 2 million policies in force.

Takaful Malaysia has consistently recorded net profit cumula�ve annual growth rate of more than 30% since2008 with a double digit sales growth over and above the industry performance. Another important factorthat gives the company a compe��ve advantage over its compe�tors is its unique selling proposi�on of beingthe only insurance company to offer a 15% Cash Back to its valued customers if no claims are made withinthe year of coverage. For the past 5 years, Takaful Malaysia has paid out approximately over RM27 millionyearly as Cash Back payments to its valued customers and this projects a con�nuous posi�ve growth for thecompany’s General Takaful por�olio. Apart from the individual customers, more than 5,000 mul�na�onals,small and medium industries’ entrepreneurs have also gained from this privilege.

Takaful Malaysia also edged another milestone to its accolades in September 2013 when it was awarded the‘Best Performing Stock–Highest Returns to Shareholders over Three years’ under the Finance Sector at theEdge Billion Ringgit Club Corporate Awards 2013. This recogni�on brings honour and pres�ge to TakafulMalaysia as the company has been acknowledged as the first ever Islamic Financial Ins�tu�on to have wonthis award by The Edge Billion Ringgit Club (BRC) Corporate Awards. This achievement further endorses Taka-ful Malaysia’s industry leadership and market posi�on in addi�on to strengthening its brand posi�on amongstthe public.

As Malaysia’s FIRST Takaful operator, Takaful Malaysia is the industry leader, shaping the industry with cre-a�ve innova�ons and se�ng standards that have become the industry benchmarks.

Vision We want to be the preferred choice for insurance.

Mission We aim to exceed customer expecta�ons through: • Opera�onal Excellence. • Technology Driven Capabili�es. • Product Innova�on. • Performance Oriented Culture. Whilst delivering superior shareholders’ value.



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Standard & Poor's, a subsidiary of The McGraw-Hill Companies(NYSE:MHP), is the world's foremost provider of independent credit ra�ngs, indices, risk evalua�on, invest-ment research and data. With offices in 23 countries and markets, Standard & Poor's is an essen�al part ofthe world's financial infrastructure and has played a leading role for 150 years in providing investors with theindependent benchmarks they need to feel more confident about their investment and financial decisions.

For more informa�on, visit www.standardandpoors.com

The Interna�onal Underwri�ng Associa�on of London (IUA) is the focal representa-�ve and market organisa�on for non-Lloyd’s interna�onal and wholesale insurance and reinsurance com-panies opera�ng in the London Market.

The IUA’s London Company Market Sta�s�cs Report shows that premium income for the company marketin 2013 was £17.445bn with a further £6.831bn controlled by London but wri�en elsewhere. These resultsare based on a comprehensive survey of 57 companies and combined give an overall intellectual and eco-nomic premium total of £24.276bn for the London company market.

Mission StatementThe IUA exists to promote and enhance the business environment for interna�onal insurance and reinsur-ance companies opera�ng in or through London.

Key Priori�es

Process Efficiency and Business A�rac�on to London The IUA promotes the design and implementa�on of all aspects of market modernisa�on, including processreforms and electronic interfaces across the market. This includes working on new processes for placing,claims and accoun�ng and se�lement using ACORD standards as the preferred format for data, in conjunc-�on with leading organisa�on in the market.

Promo�ng Exper�se and Innova�on in Underwri�ng and Claims

A full secretariat service is maintained to support the numerous underwri�ng and claims commi�ees whichprovide valuable technical input and ideas of best prac�ce to the benefit of the whole membership.

Influencing Public Policy and Compliance

In recogni�on that insurance and reinsurance regula�on is strengthening locally and converging globally, theIUA monitors and responds as necessary to regulatory developments. The consequent compliance ac�vi�esare linked to the overall public policy work.

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Khalij Islamic Corporate (KI), established in 2008, is an Islamic finance invest-ment and advisory bou�que with a presence in the United Kingdom, the United Arab Emirates and the Kingdomof Bahrain. Khalij Islamic (UK) is authorised and regulated by the Financial Conduct Authority (FCA) in the UK.

KI offers strategic consul�ng, and specialized exper�se for developing, structuring, sourcing and placingbespoke shari’a compliant financial products focusing on ‘true asset’ investment products as well as Islamicliquidity and risk management solu�ons.

KI, adds value by providing a broad range of professional and reliable world class end to end shari’a servicesby harnessing the skills and collec�ve intellectual capabili�es of a seasoned management team that boastsover 100 years of collec�ve investment banking and consul�ng experience, together with the connec�vitywith highly respected world-renowned Shari’a scholars and affilia�on and collabora�on with influen�al indus-try bodies in the Islamic finance space.

KI focuses on bringing new asset classes and high quality Islamic investment products to Islamic investors. Thisnot only gives Islamic investors increased opportuni�es to invest in high quality investment products but alsohelps them to diversify their por�olios from the tradi�onal asset classes.

As one of the largest consul�ng and actuarial firms in the world, we are recog-nized leaders in the markets we serve including Middle East. For over 60 years, Milliman has pioneered strate-gies, tools and solu�ons worldwide. Milliman insight reaches across global boundaries, offering specializedconsul�ng services in life insurance and financial services, employee benefits & Investment Consul�ng, health-care, and property and casualty insurance.

At Milliman, we help clients make business sense of complex and technical situa�ons, with prac�cal intelli-gence that yield results. Our consultants in the Middle East have global creden�als, interna�onal experienceand local knowledge.

With Shariah based and compliant financial products expected to grow in double digits over the coming years,crea�ng commercially viable and Shariah compliant solu�ons will be a challenge that must be addressed.Aligning the interests of operators, par�cipants and shareholders of Takaful opera�ons is another challengethat requires fundamental thoughts. At Milliman, we have the world’s best actuaries, business consultants,and financial analysts and are best placed to develop and assist you with new solu�ons or enhance exis�ngbusiness proposi�on. Plus, we have access to world-class Shariah advisors.

Whether you are a Takaful or Re-Takaful operator, regulator, global player, conven�onal insurance player orinvestor, Milliman is here to provide you with a range of services right at the heart of Middle East.Visit: www.milliman.com



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KHALIJ ISL AMIC �KI�, established in 2008, is an Islamic finance investment andadvisory boutique with a presence in the United Kingdom, the United Arab Emi-rates, and the Kingdom of Bahrain.

KI specialises in bringing new asset classes and high quality Islamic investment products to Islamic investors. This not only gives Islamic investors increased oppor-tunities to invest in high quality investment products but also helps them to diver-sify their portfolios from the traditional asset classes.

Khalij Islamic offers end-to-end Shari'a advisory services, including:

• Strategic Consulting • Islamic Structuring & Consulting • Deal Sourcing & Placement • Islamic Liquidity

Khalij Islamic adds value by providing a broad range of professional andreliable world class Shari’a services by harnessing:

• A seasoned management team that boasts over 100 years of collective invest-ment banking and consulting experience

• Connectivity with highly respected and world-renowned Shari’a scholars

• Affiliation and collaboration with influential industry bodies in the Islamicfinance space

[email protected]

Khalij Islamic (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the UK.

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A.M. Best is a leading provider of ra�ngs, financial data and news with a spe-cialist focus on the worldwide insurance industry. Best’s Credit Ra�ngs are recognised as the benchmark forassessing the financial strength of insurance-related organisa�ons and the credit quality of their obliga�ons.

In recent years, A.M. Best has greatly expanded its coverage in MENA, becoming the pre-eminent ra�ngagency for insurers in the region. A.M. Best’s MENA, South & Central Asia office, is established in the DubaiInterna�onal Financial Centre, to service clients throughout the region, and develop new rela�onships.

Overview

• Established in the US in 1899 and pioneered the concept of insurer Financial Strength Ra�ngs (FSR) in1906.

• Worldwide headquarters in New Jersey, U.S.; regional centres in London (serving Europe, Middle East &Africa), Hong Kong & Singapore (serving Asia Pacific & Oceania) and Mexico City (serving La�n America).Representa�ve office in Dubai (serving MENA, South & Central Asia).

• Only interna�onal ra�ng agency dedicated to the (re) insurance sector.

• World’s leading provider of insurer Financial Strength Ra�ngs by company coverage.

• Full-service global ra�ngs capabili�es.

• Over 3,500 ra�ngs in 80 countries worldwide.

• Extensive marke�ng and publishing capability to promote corporate ra�ngs in local and interna�onalinsurance markets.

• Largest and most comprehensive insurance database providing unique insights by segment and line ofbusiness.

• Data and research covering over 16,000 insurance companies worldwide.

Market CoverageInsurance-related companies opera�ng in various markets, including:

• Property/casualty (non-life) insurers.

• Life insurers and annuity writers.

• Health insurers.

• Reinsurers.

• Mutual insurers and Protec�on & Indemnity (P&I) clubs.

• Lloyd’s and its syndicates.

• Takaful, Re-takaful and co-opera�ve insurers.

• New company forma�ons (“start-ups”).

• Alterna�ve Risk-Transfer (ART) vehicles (including cap�ves, pools and risk reten�on groups).

• Catastrophe bond issuers and other Insurance-Linked Securi�sa�ons (ILS).

A.M. Best has won the Reac�ons award for “Best Global Ra�ng Agency” for six consecu�ve years (2009-2014), and is also the winner of “Intelligent Insurer Best Ra�ng Agency Award” for the third year in a row.

The Global Symbol of Financial Strength.

www.ambest.com



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In 2012, Cobalt Insurance Holdings Ltd and its two specialist opera�ons, Cobalt Underwri�ng Services Ltdand Cobalt Advisory Services Ltd were formed with the objec�ve of establishing London as a leading globalcentre for Shariah-compliant insurance capacity. Cobalt provide specialist Shariah-compliant products andservices to support the commercial ac�vi�es of the global Islamic finance industry, and act as a single focusfor London in the distribu�on of Shariah-compliant insurance business around the world.

Cobalt Advisory provide Shariah Audit, Training and Cer�fica�on to any associated third party and will, in thefullness of �me, help develop and promote new liquid Shariah compliant investment products to supportthe funds created by Cobalt Underwri�ng and the wider Takaful industry.

We provide, amongst other things:

• Assurance of Shariah Compliance.

• Global Centre of Shariah Exper�se & Knowledge.

• Bespoke policy documenta�on.

• A surplus sharing pla�orm.

• A single focus for the development of Shariah-compliant investments.

Visit: www.cobaltuw.com

AMANA Coopera�ve Insurance

AMANA, in Arabic language, means honesty and keeping covenant, which represents one of the solid foun-da�ons that Amana Coopera�ve Insurance Company relies on in planning its business strategy. The companyadopted this defini�on as a principle of its culture for developing business in order to accomplish sustainableresults for its shareholders on the long run, as well as to meet their needs and achieve security and protec-�on for them.

We offer a wide range of insurance solu�ons designed to meet the requirements of our individual and cor-porate clients. Amana’s por�olio includes a variety of products covering health (medical), motor, property,fire, marine, engineering and other specialized insurance that covers the ac�vi�es of various business sectorssuch as industry, trade and service.

Amana was established in 2010 as a Saudi Public Joint Stock Company with a paid up capital of 320 MillionSaudi Arabian Riyals to prac�ce the ac�vity of general insurance and health insurance. Amana has floated 40%of its capital in IPO during the first quarter of 2010.

Amana was founded by an alliance of leading companies in the region, such as Al-Seif Commercial InvestmentCo. Ltd, FAL Holdings Arabia Co. Ltd, FALCOM Financial Services and Libano Suisse Insurance Company, inaddi�on to a group of reputable companies and major investors.

Visit: www.amana-coop.com.sa

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THE 9 T H INTERNATIONAL TAKAFUL SUMMIT 201542 brochure design: [email protected]

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Freedom of Debt-Burden

Global Horizon

O F F I C I A L A R A B I C N E W S B R O A D C A S T E R

Wherever you are, you’re never that far from world-class advice on takaful and retakaful.

Norton Rose Fulbright is a global legal practice with award-winning capabilities in takaful and retakaful. We advise on all aspects including:

Structuring Regulation Policy and contract wordings Authorisations and passporting

Investment management agreementsDistribution OutsourcingDispute resolution

Winner of “Best Takaful Law Firm” at the International Takaful Summit every year since 2008

These awards to Norton Rose (now Norton Rose Fulbright) pre-date the combination of Norton Rose and Fulbright & Jaworski LLP on June 3, 2013.

Law around the world nortonrosefulbright.com/takaful

Financial institutions | Energy | Infrastructure, mining and commodities Transport | Technology and innovation | Life sciences and healthcare

LondonSusan DingwallNorton Rose Fulbright LLPTel +44 (0)20 7444 2349

Dubai Mohammed ParachaNorton Rose Fulbright (Middle East) LLPTel +971 (0)4 369 6311

Hong KongDavide BarzilaiNorton Rose Fulbright Hong KongTel +852 3405 2543

Takaful Primer 2015

Documents

Transcript of Takaful Primer 2015