M Iqbal Asaria: Managing Growth With Integrity - Embedding Mutuality

Managing Growth With Integrity ­ Embedding Mutuality M Iqbal Asaria / Afkar Consulting

Masterclass, ITS 2009, London 30th June 2009

Global Dimensions of the Takaful / Re­ Takaful Industry Number of Providers – 143 (179 Including Windows) Contributions Pool – US$3.4 Billion General / Life Split – Moving Towards Life Takaful Growth Potential – Difficult Present Landscape with Significant Growth Opportunities (US$7.7 Billion end 2012)

The Rationale for Takaful Community Based Risk Sharing Mutual / Co­Operative in Spirit Enhanced Role of Members Social Provision Examples • Co­Operative Societies • Friendly Societies • Qard al Hashanah “Banks”

Is this Translated in Present Takaful Provision?

The Evolving Takaful Model Mudarabah Wakala Waqf Hybrids • Mudarabah for Asset Management • Wakala for Takaful Provision • Surplus Sharing Wakala

Implications • Mutual / Co­Operative?

• 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 Participant  Ethical Participant  SRI Participant  Geographical Dispersion ­ Implications  Cross Border Issues  Logistical • Regulatory •

Can Takaful be Truly Mutual?

Hybrid Nature of Takaful Provision  Shareholder / Members’ Interests  Conflicts of Interest  Regulators & Ombudsman  The Unique Selling Point (USP) of Takaful?  Developing a Mutual­Oriented Hybrid 

Embedding Mutuality ­ Transparency Reporting Standards Safeguarding Members’ Interests Clear Policy Documentation Education on Sharing of Underwriting Surplus Benchmarking 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 Asaria Afkar Consulting Ltd 0208 861 2012 mia@afkar.com