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Opportunities in Islamic
 
        Insurance
 
Insurance Institute of London
 
      November 14th 2006
 
  
      Overview of presentation
 
• About ICMIF
 
• What is Islamic Insurance (Takaful)?
 
• Growth and outlook
 
• Takaful in Non-Muslim countries
 
• Potential in the United Kingdom
 
  
                  About ICMIF
 
• Established in 1922
 
• 174 members from 69 countries
 
• Member driven services
 
• 17 Takaful members since 2002
 
  
  Why is conventional insurance
+
== Top 20 FREQUENT WORDS ==
                not permissible?
+
takaful 32
• Uncertainty (Gharar)
+
fund 19
• Gambling (Maisir)
+
waqf 17
• Interest (Riba)
+
participant 11
 +
operational 10
 +
profit 8
 +
surplus 8
 +
investment 7
 +
model 7
 +
wakala 7
 +
based 6
 +
expenses 6
 +
profits 6
 +
shareholders 6
 +
operator 5
 +
business 4
 +
policyholders 4
 +
attributable 3
 +
funds 3
 +
management 3
 +
mudharabah 3
 +
paid 3
 +
waqif 3
  
Earlier forms of Islamic insurance
 
• Dawania – Mutual indemnification amongst officers during
 
  the rule of Umar Ibn Al Khattab (2nd Caliph)
 
• Diyyah and Aquilah – Blood money and concept of
 
  removing hardship from victims family by payment of
 
  Diyyah, on a mutual basis, by relatives of offender
 
• Marine Insurance – Early second century – mutual fund to
 
  cover robberies and mishaps
 
  
  Fiqh Academy Resolution 1985
 
• Commerical insurance is prohibited
 
• Alternative contract confirming to principles of Islamic
 
  dealings is the contract of cooperative insurance, which is
 
  founded on the basis of charitable donation and Shariah
 
  compliant dealings
 
  
          Principles of Takaful
+
== DOCUMENT KEY POINTS ==
• Solidarity and joint guarantee
+
*presented by m vaqaruddin ceo pak qatar general takaful ltd
• Self reliance and self sustaining for community well being
+
*karachi
• Assist those that need assistance
 
• Community pooling system
 
• Shari’ah approved investments and products
 
                “Bear ye one another’s burden”
 
  
    Takaful models in practice
+
*mudharabah based takaful a c in this model a clear distinction is made between the business of takaful or insurance and the business of investing funds mobilized from policyholders and or the shareholders
• Not for profit model
 
• Ta’awuni model – “cooperative insurance”
 
• Al Mudharabah model – profit sharing
 
• Al Wakala model – agency agreement
 
  
        Growth of the sector
+
*wakala based takaful a c in the wakala based model the takaful operator acts as the wakil or agent of the policyholders
• 1979 First Takaful Company established
+
*it incurs all the operational expenses on behalf of its principal
• 1996 – 30 Institutions transacting Takaful
 
• 2002 – 50 Takaful operators and four Retakaful providers
 
• 2006 – 80 Takaful operators, 120 Takaful windows,12
 
  Retakaful providers and premiums of $3billion
 
  
        Future growth factors
+
*a c the waqif can put conditions at the time of waqf
• High potential for growth of insurance sector
+
*a c waqf charity religious endowment testamentary bequest of real estate
• Retakaful capacity being established
 
• Increase in Shariah compliant investment products
 
• Harmonization of models and regulation
 
• Increase in technical expertise and consumer awareness.
 
  
            Future Outlook
+
*wakala waqf based takaful a c some of the shariah scholars have critically analyzed the wakala system and have suggested to incorporate the concept of waqf into the wakala model
• Ajmal Bhatty (2001) – USD$ 7.14 bn by 2015
 
• Dr Malaikah (2006) – Double digit growth over
 
  next ten years
 
• Atlas Business Magazine (2006) – USD$ 12-14bn
 
  by 2015
 
  
Islamic Insurance in Non-
 
    Muslim countries
 
  
  Takaful in Non-Muslim Countries
+
  ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
          Is there a need?
+
== DOCUMENT WORD ANALYSIS ==
  Country  Est. Muslim  Country  Est. Muslim
+
=== Main Category ===
            population            population
+
: AlHuda Material\takaful
Argentina    800,000      Italy    600,000
 
  Brazil    1 million  Japan    1.3 million
 
Canada      500,000      USA      10 million
 
France    4.8 million Netherlands  500,000
 
Germany      3 million    UK      2 million
 
  
  Takaful in Non-Muslim countries
 
              Is there a need?
 
• Fasting growing immigrant population
 
• Belief in will of God
 
• Acceptance that insurance is not allowed
 
• First and second generations are
 
  purchasing insurance
 
• Increased availability of information
 
• Growth of Islamic banking sector
 
  
      Potential for Takaful in the UK
+
=== KeyWords ===
• Established Islamic financial services providers
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
• Potential consumers are first and second generation
 
• Greater disposable income
 
• Growing awareness and demand for Takaful
 
• Regulatory openness
 
• Ethical positioning
 
• HSBC Property Takaful already launched
 
• British Islamic Insurance Holdings
 
• Lloyds syndicate
 
  
          Challenges in the UK
 
• Dispersed population
 
• Capital requirements
 
• Investment restrictions
 
• First to market
 
• Credibility
 
• Technical expertise
 
• Competitive pricing and service
 
  
  Possibilities for Takaful in the UK
 
• Affinity marketing of statutory products by cooperative and
 
  mutual insurers.
 
• Takaful window by existing conventional insurers
 
  
  Affinity Marketing by Cooperative and
+
== RELATED DOCUMENTS ==
                      Mutual Insurers
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
“… It is well known that in most non-Islamic countries there
+
:[[Agency Management,Training and Incentive Programme]]
  are cooperative and mutual insurance companies. There is
+
:[[Audit Issue of Islamic Banking]]
  no harm from the Shari`ah point of view to participate in
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
  these services. So, it is unlawful for a Muslim living in a
+
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
  country where there is such a cooperative insurance
+
:[[Calculated Risks, Measurable Results]]
  company to make an agreement with a commercial
+
:[[Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz ]]
  insurance company…..”
+
:[[Co-Operative Insurance and Takaful]]
  Ruling by the European Council of Fatwa and Research
+
:[[Current Achievements of Takaful by Dr. S. J Malaikah]]
 +
:[[International Cooperative & Mutual Insurance Federation]]
 +
:[[Islamic Banking And Finance Malaysia’s Experience And Achiev]]
 +
:[[Islamic Finance & Investment Symposium by Sohail Jaffar]]
 +
:[[Islamic Insurance in 21st Century by Ahmad Feizal]]
 +
:[[Islamic Insurance Opertunities and Challenges]]
 +
:[[Issues and Challenges in Retakaful by Azman Ismail]]
 +
:[[Leveraging BancaTakaful as a Key Growth Channel by Mr. Rohai]]
 +
:[[Life Family Takaful by Mr. P Ahmed]]
 +
:[[Micro Insurance Co-Operative and Takaful]]
 +
:[[Micro Takaful by Shabir Patal]]
 +
:[[Microinsurance and Takaful]]
 +
:[[Microinsurance, cooperatives and Takaful]]
 +
:[[MicroTakaful – the way forward by Capt. M. Jamil Akhtar]]
 +
:[[Opertunities in Islamic Insurance]]
 +
:[[Present Scenario and Future Potentials of Takaful by Kazi Md]]
 +
:[[ReTakaful by Rohail Ali Khan]]
 +
:[[Syariah Compliant General Takaful Products by Sami Guellouz]]
 +
:[[Takaful and Mutuality by Mohd. Masua Billah]]
 +
:[[Takaful by Abdul Rahim]]
 +
:[[Takaful for Microfinance]]
 +
:[[Takaful Opperunities and Challenges By Azeem Pirani]]
 +
:[[Takaful Products Family Takaful Linked Investment Plans by S]]
 +
:[[Takaful World Prospective Middle East & North Africa]]
 +
:[[Takaful]]
 +
:[[Takful - Zubair Mughal]]
 +
:[[Takful Report]]
 +
:[[The Islamic Vision Presentation]]
 +
:[[The Success of Retakaful by Farid Benbouzid]]
  
  Ruling by the European Council of Fatwa
 
                  and Research
 
Muslims are directed to purchase their statutory
 
insurance requirements from the cooperative and
 
mutual insurer if there is no Takaful company in the
 
country
 
  
    The case of Folksam - Sweden
 
• 350,000 Muslim population
 
• Fastest growing immigrant community
 
• Collaboration with Swedish Muslim Council
 
• Marketing of Folksam products through
 
  representatives of Council in communities and
 
  mosques
 
• Insurance committee has been established
 
  
                Takaful Window
+
== DOCUMENT REFERENCES ==
• Separate division
 
• Shariah board
 
• Islamic compliant investments
 
• Surplus distribution
 
• Policy wording
 
  
                      Conclusion
 
There is a growing awareness and demand for Islamic
 
financial instruments including insurance in non-Muslim
 
countries. There is a great potential for established
 
financial institutes to set up Takaful windows. In particular
 
the Shari’ah ruling by the European council presents an
 
opportunity for cooperative and mutual insurers to be the
 
first to penetrate this niche market with minimal costs.
 
  
 +
=== Number of Pages ===
 +
9
  
    Thank you
+
 
www.icmif.org/takaful
+
=== Published Date ===
 +
2016-09-17 01:18:35
 +
 
 +
 
 +
== Full Document ==
 +
 
 +
 
 +
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Operational%20Mechanism%20of%20Takaful%20by%20Mr.%20M.%20Vaqaruddin.pdf Read the Full Document]
 +
 
 +
 
 +
[[Category:Islamic Finance]]
 +
 
 +
[[Category: Takaful]]

Latest revision as of 05:10, 10 November 2017


Top 20 FREQUENT WORDS

takaful 32 fund 19 waqf 17 participant 11 operational 10 profit 8 surplus 8 investment 7 model 7 wakala 7 based 6 expenses 6 profits 6 shareholders 6 operator 5 business 4 policyholders 4 attributable 3 funds 3 management 3 mudharabah 3 paid 3 waqif 3


DOCUMENT KEY POINTS

  • presented by m vaqaruddin ceo pak qatar general takaful ltd
  • karachi
  • mudharabah based takaful a c in this model a clear distinction is made between the business of takaful or insurance and the business of investing funds mobilized from policyholders and or the shareholders
  • wakala based takaful a c in the wakala based model the takaful operator acts as the wakil or agent of the policyholders
  • it incurs all the operational expenses on behalf of its principal
  • a c the waqif can put conditions at the time of waqf
  • a c waqf charity religious endowment testamentary bequest of real estate
  • wakala waqf based takaful a c some of the shariah scholars have critically analyzed the wakala system and have suggested to incorporate the concept of waqf into the wakala model


Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\takaful


KeyWords

taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme


RELATED DOCUMENTS

A Review of Takaful by Prof. Khawaja Ahmed Saeed
Agency Management,Training and Incentive Programme
Audit Issue of Islamic Banking
Banca Takaful by Faisal Shahzad Abbassi
Best Practices from e- Insurance to e-Takaful by Sami Guello
Calculated Risks, Measurable Results
Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz
Co-Operative Insurance and Takaful
Current Achievements of Takaful by Dr. S. J Malaikah
International Cooperative & Mutual Insurance Federation
Islamic Banking And Finance Malaysia’s Experience And Achiev
Islamic Finance & Investment Symposium by Sohail Jaffar
Islamic Insurance in 21st Century by Ahmad Feizal
Islamic Insurance Opertunities and Challenges
Issues and Challenges in Retakaful by Azman Ismail
Leveraging BancaTakaful as a Key Growth Channel by Mr. Rohai
Life Family Takaful by Mr. P Ahmed
Micro Insurance Co-Operative and Takaful
Micro Takaful by Shabir Patal
Microinsurance and Takaful
Microinsurance, cooperatives and Takaful
MicroTakaful – the way forward by Capt. M. Jamil Akhtar
Opertunities in Islamic Insurance
Present Scenario and Future Potentials of Takaful by Kazi Md
ReTakaful by Rohail Ali Khan
Syariah Compliant General Takaful Products by Sami Guellouz
Takaful and Mutuality by Mohd. Masua Billah
Takaful by Abdul Rahim
Takaful for Microfinance
Takaful Opperunities and Challenges By Azeem Pirani
Takaful Products Family Takaful Linked Investment Plans by S
Takaful World Prospective Middle East & North Africa
Takaful
Takful - Zubair Mughal
Takful Report
The Islamic Vision Presentation
The Success of Retakaful by Farid Benbouzid


DOCUMENT REFERENCES

Number of Pages

9


Published Date

2016-09-17 01:18:35


Full Document

Read the Full Document