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    Second International
 
Symposium on Takaful 2006
 
                  Takaful Products
 
Family Takaful Linked Investment Plans
 
      21- 22 February 2006 The Andaman, Langkawi, Malaysia
 
                            Sohail Jaffer
 
                        Partner, FWU Group
 
  FWU group won the 2005 Euromoney Islamic Finance Award
 
  for being the "Best Islamic white label service provider“.
 
  
Contents
 
 Family Takaful Product and Highlights, Main Partners
 
  (pages 2-8)
 
 Open Investment Architecture (pages 11-13)
 
 POS and Administration System (pages 15-19)
 
 Value added for the Bank Distribution Partner (pages
 
  21-23)
 
 Appendix
 
  (1) Global Takaful Industry Overview
 
  (2) FWU Group Profile
 
                                                      2
 
  
  Transaction Overview
 
  FWU Group‘s "White Label" Islamic Savings, Education & Retirement Plans
 
                                                                                              Group
 
  Main players:                              Bank Distribution Partner
 
  Bank Distribution Partner: Distribution                        Branch
 
  of “own brand” Savings Plan, selection                                     Product design and
 
  of top quartile Islamic mutual funds and
 
                                                                  Customers  process management
 
  custody of all customer assets                                             Dynamic Funds Select
 
                                                                              and Allocation
 
  - Local LifeTakaful Product supplier and                                    Management Model
 
  administrator                              Bank Financial Planners       Systems Provider
 
                                                                             Partnership Manager
 
  FWU – Product design and process
 
  management, Dynamic Funds Select
 
                                                Bank Distribution Partner      Strategic Alliance
 
  and Allocation Mgt Model,Systems
 
  provider and Premium Assurance
 
  Networks Manager
 
                                                                            Local licensed Life
 
                                                  Custodian Bank            Takaful Company
 
                                                for all customer funds      “Wakeel”/Trustee and
 
                                                                            local Takaful
 
                                                                            Product Supplier and
 
                                                                            Administrator
 
    “Open Investment Architecture”          Life Takaful Company to
 
                                            establish a corporate bank
 
FWU’s Dynamic Funds Select and
 
                                                account with Bank              Retakaful Agreement
 
Allocation Management Model
 
                                                Distribution Partner          Hannover Re
 
                                                                                        “AAA Rated”
 
                                                                            FWU’s Exclusive
 
                                                                            ReTakaful Partner 3    3
 
  
    FWU Group‘s international Bank distribution and
+
== Top 20 FREQUENT WORDS ==
    strategic product partners
+
takaful 33
    FWU Group‘s "White Label" Islamic Savings, Education & Retirement Plans
+
insurance 22
                                    Bank Distribution Partners
+
august 17
                                                                     FWU's existing distribution partners
+
pakistani 12
Al Safat Takaful                                                    include: NCB in KSA and ADCB in
+
challenges 7
    Company                                                          UAE
+
cont 7
      Kuwait
+
opportunities 7
                                            Bank Customers
+
pakistan 7
EFU Life Insurance                                                                    Aman Insurance
+
risk 7
                                                                                              UAE
+
financial 6
      Pakistan
+
shariah 6
    Takaful Ikhlas                                                                      Al Ahli Takaful
+
compliant 5
                                                                                          Company
+
ethical 5
      Malaysia                  Bank is Custodian of all customer
+
differences 4
                                                                                            KSA
+
gdp 4
                                    funds in the Savings Plan
+
lack 4
 Processing customer
+
protection 4
  applications                                                               Product design,
+
religious 4
 Product administration,                                                     Product launch support
+
benefits 3
  valuation and                                                               Product management,
+
contract 3
                                    Local Licensed                            Marketing & Training
+
govt 3
  claims management,                  Life Takaful                            support
+
ideology 3
 Customer reporting                  Company                               Dynamic Funds Select
+
islamic 3
 Financial accounting                                                        and Allocation Mgt Model
+
knowledge 3
                                                                             Systems support to
+
mitigation 3
 Communication with local                                                    Strategic Product Partner
+
overview 3
  regulatory authorities                              FWU Group              and Bank Distribution
+
population 3
                                                      Dubai/Munich            Partner
+
products 3
                                                                             Product and Shari’ah
+
profits 3
                                                                              Compliance
+
regulations 3
                                                                                                        4
+
sales 3
  
Main product features and customer benefits
 
FWU Group‘s "White Label" Islamic Savings, Education and Retirement Plans –
 
Product Highlights
 
              Product features                            Customer Benefits
 
   Plan benefits are available to all bank
 
                                                 All bank customers are insurable
 
    customers
 
   No medical examination of bank
 
                                                 Eliminates important psychological
 
    customer required (up to a defined
 
                                                    barrier
 
    limit)
 
   Transparent and cost efficient
 
                                                 Greater customer comfort
 
    structure
 
   Accelerated sales process using
 
                                                 Immediate risk cover for bank
 
    FWU’s Point of Sale and
 
                                                    customer
 
    Administration technology
 
   Plan benefits are available
 
                                                 Bank customer convenience
 
    immediately to all bank customers
 
                                                                                      5
 
  
Flexible features of the “white label”
 
Takaful investment linked plan
 
 Payments:
 
  – 3 currencies available (local currency, EUR, USD)
 
  – Regular or lump sum contributions
 
  – Decrease or increase of regular contributions any time
 
  – Payment deferral up to 12 month (Takaful benefits stay)
 
  – Partial investment or disinvestment at any time given a mimimum
 
    account size (2500 EUR) without affecting Takaful benefits
 
 Calendar:
 
  – Choice of Hijri or Gregorian calendar
 
 Beneficiaries:
 
  – Appointment of personal and institutional beneficiaries in
 
    accordance with Shari'ah law
 
                                                                    6
 
  
Main product innovation
+
== DOCUMENT KEY POINTS ==
   Sophisticated Internet based Point of sales and Administration system
+
*it is an ideology which promotes solidarity and joint guarantee self reliance and self sustainability for community well being assistance to those that need it community pooling system th august
   Dynamic Funds Select and Allocation Management Model used for
+
*takafula product and an ideology takaful comes from the arabic root word a kafala guarantee takaful is not only a tool to mitigate loss or to make halal profits
    customised investment strategies/portfolios
 
   Unique Retakaful arrangements with “AAA” rated top 3 global re-
 
    insurance company based on Shari’ah principles
 
   FWU group’s Shari'ah Board including prominent and leading Islamic
 
      scholars:
 
        – Dr. Mohamed Ali Elgari, Chairman
 
        – Dr. Abdulsattar Abu Guddah
 
        – Dr. Nazih Kamal Hammad
 
                                                                          7
 
  
Bank Annuity Income: Attractive Dynamics
+
*differences between takaful insurance what is insurance a tool for risk mitigation and financial protection a tool to enable people to save life insurance key differences between takaful and insurance are risk sharing vs
                                  Bank Income Growth – 5 year period
+
*owner different type of contract th august
                          7,000
 
                          6,000
 
            USD ('000)
 
                          5,000
 
                          4,000
 
                                                                                          Conservative
 
                          3,000                                                          Average
 
                          2,000                                                          Best
 
                          1,000
 
                          -
 
                                  Year 1  Year 2    Year 3      Year 4      Year 5
 
                                                                              Conservative  Average    Best
 
  Base Assumptions:
 
  Number of Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    25,000        40,000  50,000
 
  Average duration                            15 years
 
  Average monthly contribution                $ 200
 
  Lapsation rate                              2 to 10 % p.a
 
  Fund growth rate                            7 % p.a
 
                                                                                                                  8
 
  
Cumulative Bank Income over a 5 year period
+
*issue conventional takaful insurance basis risk transfer co operative risk sharing laws secular regulations shariah prudential regulations ownership shareholders participants mgmt status company management operator form of contract contract of sale cooperative wakala or mudarbah with tabar ru contributions investments interest based shariah compliant surplus shareholders account participants account
                      20
+
*differences between takaful insurance cont
    US $ in Millions
 
                      15
 
                      10
 
                        5
 
                        0
 
                      Conservative  Average  Best  9
 
  
Contents
+
*the pakistani market a an overview cont pakistan a insurance market penetration of insurance pakistan
 Family Takaful Product and Highlights, Main Partners
+
*of gdp india more than of gdp iran approx
  (pages 2-8)
 
 Open Investment Architecture (pages 11-13)
 
 POS and Administration System (pages 15-19)
 
 Value added for the Bank Distribution Partner (pages
 
  21-23)
 
 Appendix
 
  (1) Global Takaful Industry Overview
 
  (2) FWU Group Profile
 
                                                      10
 
  
Open Investment Architecture for Regular Savings Plans:
+
*the pakistani market a challenges for takaful resistance to insurance and its benefits due to different reasons conservative spending habits ignorance of its benefits products which do not meet buyers needs religious reasons tawakkul issue tie your camel first then put your trust in allah swt
Three investment portfolios with differentiated risk profiles
+
*tirmidhi it is better for you to leave your heirs wealthy rather than poor and asking others for their needs
              FWU‘s Dynamic Fund Select and
 
                    Asset Allocation Model
 
              Investment in External Islamic Mutual Funds
 
      Portfolio 1            Portfolio 2                Portfolio 3
 
    Conservative              Balanced                    Growth
 
        Portfolio              Portfolio                  Portfolio
 
                      Launched as internal funds of
 
                  FWU‘s local Takaful product partner
 
                                                                      11
 
  
Investment objective of FWU Group’s
+
*government regulations untested human resources for the sector shortage of trained human resources in insurance negligible knowledge of takaful present amongst the public few training programs available for takaful and insurance insurance has generally never been the occupation of first choice for new graduates th august
Dynamic Funds Select and Allocation Approach
+
*the pakistani market a challenges for takaful cont
 Superior risk-adjusted returns
 
  – Tactical fund allocation
 
  – Fund allocation designed to pick winners, eliminate losers and
 
    maintain neutral fund weightings
 
 Dynamic fund allocation model
 
  – Regular asset allocation (stocks vs. Sukuk and Murabaha) and
 
    fund picking by using a Dynamic Funds Select and Allocation
 
    Management Model
 
 Risk control on multiple levels
 
  – Asset allocation
 
  – Diversification
 
  – Portfolio construction
 
 Shari’ah compliance
 
  – Portfolio investment policies comply with Shari’ah rules
 
                                                                    12
 
  
Portfolio Back Testing Results
+
*education and awareness lack of knowledge about takaful and insurance amongst the masses ignorance of takaful amongst the ulema significant budget required just to ensure that knowledge permeates to all segments levels of society marketing sales issues poor impression of insurance sales persons amongst the public generally poor ethical standards amongst insurance sales persons general lack of faith on insurance companies meeting their obligation in a efficient and polite manner th august
Jan 2002 to June 2005
+
*the pakistani market a challenges for takaful cont
                                  Annualized Returns (Gross)
 
  Particulars            Conservative            Balanced              Growth            MSCI World
 
                            Portfolio            Portfolio            Portfolio          (USD) Index
 
  Returns                    5.66%                9.85%                14.33%              3.93%
 
  Volatility                  2.62%                5.49%                9.23%              14.18%
 
  Sharpe
 
                                1.02                  1.25                1.23              0.07
 
  Ratio
 
  All data in US $ and gross of fees. Past performance is no guarantee for future results.
 
  The value of an investment may rise as well as fall.
 
                                                                                                      13
 
  
Contents
+
*will need to ensure that they do prudent underwriting thus eating into the possibility of having a larger number of customers th august
 Family Takaful Product and Highlights, Main Partners
+
*as compared to insurance ones to be competitive takaful co
  (pages 2-8)
 
 Open Investment Architecture (pages 11-13)
 
 POS and Administration System (pages 15-19)
 
 Value added for the Bank Distribution Partner (pages
 
  21-23)
 
 Appendix
 
  (1) Global Takaful Industry Overview
 
  (2) FWU Group Profile
 
                                                      14
 
  
FWU’s Internet based Point of Sale &
+
*quality education is beyond the reach of the average citizen and the institutions provided by the govt
Administration System
+
*the pakistani market a opportunities for takaful economic social conditions in pakistan make takaful a necessity lack of govt
 Tailored online system for use by Bank Distribution Partner
 
  – Processing applications for Takaful & Savings Programme
 
  – Professional sales management and monitoring
 
  – Storing and retrieving customer's Plan information
 
 Customised for the needs of bank distribution partners
 
  – Logo of Bank Distribution Partner
 
  – Tailored Investment strategies selected by the Bank
 
  – Attractive customer benefits, convenience and transparency
 
                                                                15
 
  
Convenient, fast & easy
+
*strong growth in the islamic financial sector provides takaful with a natural market islamic banks and mutual funds will need takaful to package with their other products islamic financial institutions presently have no family coverage for their staff massive untapped market in pakistan for risk mitigation tools given the necessity of these tools insurance has not even touched the surface given the a plain vanilla menu provided to customers there is a great opportunity for innovation th august
 Convenient to use on each PC with Internet access at any of the
+
*the pakistani market a opportunities for takaful cont
  bank's branches
 
  (Sales process conducted and data input by Bank‘s Financial Planner not by the
 
  customer)
 
 Immediate, fast and easy application during one customer visit
 
  – No need for further documents (except customers ID card)
 
  – No need for medical examinations
 
  – No need to wait for the results of any manual verification by back
 
      office employees
 
                                                        Including:
 
                                            the transfer of the first premium
 
                                              and printing the certificate      16
 
  
Main competitive advantage
+
*ethical and shariah compliant model for risk mitigation and financial protection large number of people who stay away from insurance due to religious beliefs large number of our population can be considered as a religious and so takaful will be in line with their beliefs educated citizens although not religious would prefer to use an ethical model than one which is built on making profits by trying to avoid having to pay claims th august
 Internet based application
+
*the pakistani market a opportunities for takaful cont
  – No installation of new software required, ready-to-start solution
 
  – Available on any PC in the world with Internet access
 
  – Accessible 7 days a week, 24 hours a day
 
 Immediate online individual risk assessment (for Takaful benefits)
 
 Learner's mode available
 
 Feedback messages during application process
 
 FWU-Internet-Training academy available
 
 FWU Group provides local service and systems support
 
  – A GCC regional presence in the Dubai Internet City (DIC).
 
                                                                      17
 
  
Process Innovation
+
*this is especially important when the people are living at a level where income equals expenses convey the critical nature of financial protection to others explain the benefits of getting financial protection introduce the new concept which is not only ethical but also shariah compliant just start from those around youa
 Simplify and improve quality of sales process
+
*takaful a what should you do about it as educated professionals we have a responsibility to our fellow citizens to guide them to what is good for them
 Online risk assessment for Takaful benefits
 
 Monitor any number of bank branches and financial planners
 
  with one tool from any web linked PC
 
 Economic and efficient solution
 
 Convenient access to customer data
 
 Faster and easier completion of a Customer Plan
 
   Earlier start of a Customer Plan
 
         Earlier payment and therefore earlier additional income
 
            streams for bank distribution and product partners
 
            involved
 
                                                                18
 
  
  Functions of the Main Partners
+
*jazak allah khair for further information contact to info pakqatar dot com
  FWU Group‘s "White Label" Islamic Savings, Education & Retirement Plans - Overview
+
*pk launching soon th august
                                    FWU Group (Systems provider and Strategic
 
Bank Distribution Partner            Product Partner)                                    Local Life Takaful Operator
 
 Distribution                      • Product development and management                 Financial accounting
 
     Risk profiling of                   Product design & development                 Communication with local
 
      customer                           Product management                              regulatory authorities
 
     Organise marketing                 Product profitability simulation             Shari‘ah Advisory Board
 
      literature                         Product training
 
     Market the product                 Internet based Point of Sale &               Process applications/
 
     Collect customer                      underwriting system                          issue Takaful plan certificate
 
      application forms                                                                 Product administration
 
     Collection of lump sum        • Asset management
 
      and regular contributions                                                               Splitting of contributions
 
     Customer relationship               Dynamic Funds Allocation                           Calculation of
 
      management                          Management Model                                    fees/charges
 
     Funds Selection of 3rd             Risk control                                       Net asset valuation
 
      party external Islamic             Reporting on investment portfolios
 
      mutual funds from major                                                                 Claims management
 
      investment brands by                                                                   Operational & systems
 
      Bank Distribution Partner    • Compliance and monitoring
 
                                                                                                support
 
                                           Shari’ah Advisory Board
 
    Note: Distribution Partner                                                           Customer reporting
 
    is the custodian bank for              Product compliance
 
                                                                                         Customer communications
 
    the Family Takaful linked             Sales monitoring & controlling
 
    investment plans business
 
                        Ongoing implementation and post
 
                                                                    FWU is the outsourcing partner
 
                        launch support by local FWU team                                                              19
 
  
Contents
 
 Family Takaful Product and Highlights, Main Partners
 
  (pages 2-8)
 
 Open Investment Architecture (pages 11-13)
 
 POS and Administration System (pages 15-19)
 
 Value added for the Bank Distribution Partner (pages
 
  21-23)
 
 Appendix
 
  (1) Global Takaful Industry Overview
 
  (2) FWU Group Profile
 
                                                      20
 
  
The value added for the distribution
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
partner and its customers
+
== DOCUMENT WORD ANALYSIS ==
Value added for Bank Distribution partner
+
=== Main Category ===
   Enhance retail product offering with own brand Islamic
+
: AlHuda Material\takaful
    Savings, Education and Retirement Plans
 
   Low cost entry into a new consumer market segment
 
   Increase fee based annuity revenues
 
   Expand and retain customer relationships over a
 
    significantly longer period
 
   Rapid sales process through an online internet based
 
    Point of Sale and Administration system
 
   Maximise synergy between customer and different
 
    bank product groups
 
                                                          21
 
  
The value added for the distribution
 
partner and its customers
 
Consumer Value Proposition
 
   Availability of Long-term Savings Plan with
 
    protection benefits
 
   Customer friendly product with transparent
 
    terms and conditions and charging structure
 
   Benefit of a Dynamic Funds Select and
 
    Allocation Mgt Model targeted at investing in
 
    quality external Shari’ah compliant funds
 
                                                  22
 
  
The value added – why FWU Group
+
=== KeyWords ===
        ENTREPRENEURIAL                          INNOVATIVE
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
    EXPERIENCED PARTNER                          PRODUCT
 
 Flexibility in customised product   State of the art Internet based
 
  design & administration              sales and administration system
 
                                     Attractive investment options
 
 Takaful product training and sales
 
                                      including an innovative dynamic
 
  support (incl. FWU Online
 
                                      funds select and allocation
 
  Academy)
 
                                      management model
 
 Robust business simulation and
 
                                     Cost efficient Wakala structure
 
  profitability analysis model
 
                                     Unique Shari'ah compliant
 
 Regional presence in Dubai
 
                                      Retakaful arrangement
 
                                                                      23
 
  
Contents
 
 Family Takaful Product and Highlights, Main Partners
 
  (pages 2-8)
 
 Open Investment Architecture (pages 11-13)
 
 POS and Administration System (pages 15-19)
 
 Value added for the Bank Distribution Partner (pages
 
  21-23)
 
 Appendicies
 
  I) FWU Group Profile
 
  II) Global Takaful Industry Overview
 
                                                      24
 
  
Appendicies
 
I) FWU Group Profile (page 26 to 31)
 
II) Global Takaful Industry Overview (page 32 to 37)
 
                                                    25
 
  
  Appendix I: FWU-Group Structure
+
== RELATED DOCUMENTS ==
                                                        FWU-GROUP
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
                    an entrepreneurial and institutional partnership
+
:[[Agency Management,Training and Incentive Programme]]
                                                Dr. Manfred J. Dirrheimer and
+
:[[Audit Issue of Islamic Banking]]
                                                                  Partners
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
                                                                          95%                                    GE Insurance Solutions,
+
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
                                                                                                            5%
+
:[[Calculated Risks, Measurable Results]]
                                                                                                                          Munich
+
:[[Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz ]]
                                                                FWU AG
+
:[[Co-Operative Insurance and Takaful]]
                                          Munich, Luxembourg, Dubai
+
:[[Current Achievements of Takaful by Dr. S. J Malaikah]]
            74,9%                  80%            100%                    100%                100%              100%                  13,125%
+
:[[International Cooperative & Mutual Insurance Federation]]
ATLANTICLUX Lebens-      PREMIUM SELECT    PREMIUM Invest        FWU Provisions-        FWU Payment      FWU Unterstützungs-      Al Ahli Takaful
+
:[[Islamic Banking And Finance Malaysia’s Experience And Achiev]]
  versicherung S.A.         LUX S.A.        LUX S.A.          Factoring GmbH        Services GmbH          kasse GmbH          Company, i.F.
+
:[[Islamic Finance & Investment Symposium by Sohail Jaffar]]
      Luxembourg            Luxembourg      Luxembourg              Munich              Munich                Munich            Jeddah, KSA
+
:[[Islamic Insurance in 21st Century by Ahmad Feizal]]
                    25,1%  20%                                                  13,125%                30%                                7,5%
+
:[[Islamic Insurance Opertunities and Challenges]]
                                VHV                    IFC International                    National Commercial                      VHV
+
:[[Issues and Challenges in Retakaful by Azman Ismail]]
  Institutional            Versicherungen,            Finance Cooperation                            Bank,                      Versicherungen,
+
:[[Leveraging BancaTakaful as a Key Growth Channel by Mr. Rohai]]
    Partners                  Hanover                    Washington                            Jeddah, KSA                        Hanover
+
:[[Life Family Takaful by Mr. P Ahmed]]
                                                                                                                                              26
+
:[[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]]
  
Appendix I: FWU-GROUP
 
        Assurance - Asset Management - Factoring
 
              Germany
 
    Luxembourg
 
                    Austria      The group is poised to
 
    Italy                        meet the life assurance,
 
            France              investment and pension
 
                    Saudi-Arabia needs of institutional and
 
                                  private clients in Europe,
 
      United Arab Emirates
 
                                  Middle East and Asia with
 
                        Kuwait
 
            Pakistan            traditional bancassurance
 
                                  and Shari‘ah Life Takaful
 
            South Africa        products.
 
                                                            27
 
  
Appendix I: FWU-Group Takaful Universe
 
                                                                            Hannover Re
 
                                                                              („AAA rated“,
 
                                                                                3rd largest
 
                                                                            life Reinsurance)
 
    FWU – GROUP
 
                                          Retakaful
 
              Administrator              Pooling            Wakeel
 
              -Data processing        Arrangement            - Fee  Basis
 
                and administration                            - 100% profit redistribution
 
                (Retakaful, Takaful)                          - Quard Hasna
 
              - Asset Management                              - Shari‘ah compliant Investments
 
  Establishment of insurance provider through joint venture or cooperation agreement
 
                                Dubai Islamic                    Eastern
 
Insurance      Al Ahli Takaful
 
                  Company      Insurance &  Al Safat Takaful    Federal
 
                                                                                  Takaful
 
                                                                                    Ikhlas
 
Partners        NCB/FWU / IFC  Reinsurance      Company        Union Life
 
                                                                                  SDN BHD
 
                                  AMAN                            EFU
 
        Acquisition of banks as distribution partner in the following regions
 
                      KSA          UAE          Kuwait Pakistan              Malaysia
 
Distribution-    The National    Abu Dhabi
 
                Commercial Bank  Commercial      Major Bank    Major Bank    Major Bank
 
Partners            Jeddah          Bank
 
                                                                                              28
 
  
Appendix I: FWU Group – Profile
+
== DOCUMENT REFERENCES ==
 The FWU Group is an entrepreneurial financial services group with
 
  headquarters in Munich, Germany.
 
 Further offices are located in Luxembourg and Dubai Internet City (DIC).
 
 Group shareholders include GE Frankona Re AG, an international re-
 
  insurer, and European banks and insurance companies.
 
 Core activities are Life Insurance, Savings & Pension Plans, Takaful
 
  Products and Asset Management.
 
 Group subsidiaries include:
 
  – an Asset Management Company (PREMIUM SELECT LUX S.A.)
 
  – a Life Insurance Company (ATLANTICLUX S.A.)
 
  Both are based and regulated in Luxembourg.
 
                                                                        29
 
  
Appendix I: FWU Group – Activities
 
 FWU offers customised design and white label distribution of:
 
  – Unit-linked investments,
 
  – Shari'ah compliant Life Takaful family of products with unique Retakaful
 
      arrangement,
 
  – Multi Manager investments and innovative fund allocation model,
 
  – Savings & pension plans.
 
 Main distribution channels are
 
  – Financial institutions (such as banks, insurance companies and corporate
 
      plan sponsors)
 
  – Independent financial advisers, portfolio managers and broker networks
 
 Priority markets are:
 
  – Europe (Germany, France and Italy)
 
  – Middle East (UAE, Saudi Arabia,Kuwait and Pakistan)
 
  – Asia (Malaysia, Indonesia and China)
 
                                                                              30
 
  
Appendix I      FWU‘s Business Approach
+
=== Number of Pages ===
    Product                                Distribution  Individual
+
18
    Partners                                Partners    Customers
 
                    • Customised product
 
                          development
 
  Life Insurance  • Online insurance sales
 
                      and administration      Banks
 
  Companies
 
                        • Dynamic Fund
 
                        allocation model
 
  Investment-                                Financial
 
    managers                              Intermedaries
 
  Reinsurance                                Broker
 
  Companies                                Networks
 
                      Administration of
 
                          unit-linked        Alternative
 
    Custodian            investments        distribution
 
      Banks        Payment- transactions      channels
 
                      Sales Commision
 
                            Factoring
 
  
Appendix II: Global Takaful Industry Overview
 
                    2006 Total Takaful Premiums
 
        $1,7 billion = 60 Takaful companies in 30 countries worldwide
 
                          Asia / Pacific Europe / USA
 
                                9%            1%
 
          Malaysia
 
            27%
 
                                                              GCC
 
                                                              63%
 
Total estimated Takaful premiums of US$ 1.7 billion (growing at 15 to 20% p.a)
 
Source: Salama Arabic Islamic Insurance Company
 
                                                                              32
 
  
Appendix II: Global Takaful Industry Overview
+
=== Published Date ===
                                  2015 Forecast
+
2016-09-17 01:20:59
    48%
 
                                                                52%
 
                      Total Takaful premiums of US$ 7.4 billion
 
  Source: Salama Arabic Islamic Insurance Company
 
                                                                    33
 
  
Appendix II: Global Takaful Industry Overview
 
                                      2015 Forecast
 
                  Total Takaful Premiums US $7,4 billion
 
                      31 %
 
                                                                            27 %
 
                                  *** Europe
 
                                    $2.3bn                *GCC $2bn
 
                                        **Asia Pacific $3.1 bn
 
                                                  42 %
 
        *GCC $2bn (KSA $900 million, UAE $480 million and Egypt 467 million)
 
        **Asia/ Pacific $3,1 bio (Malaysia/Indonesia $1.4 bio)
 
        ***Europe, Turkey, China, India & USA $2,3 bio
 
Source: Salama Arabic Islamic Insurance Company
 
                                                                                  34
 
  
Appendix II: Consumer Banking Opportunity for Islamic Banks
+
== Full Document ==
   According to the 2005-06 World Islamic Banking Conference
 
    (WIBC) Competitiveness report authored by McKinsey and
 
    Company,
 
   “Consumer banking will be the main source of steady profits.
 
    Capturing the consumer banking opportunity and appealing to
 
    a broader consumer base is key for Islamic Banks. So far
 
    Islamic banks have managed to capture customers who have a
 
    strong preference for Sharia compliant products.
 
   Going forward, they will have to broaden their appeal to
 
    customers who are interested in Sharia compliant products but
 
    are not ready to sacrifice returns, service or convenience.
 
   To do so, Islamic banks need to improve their service levels,
 
    network convenience and staff knowledge while developing
 
    critical enablers (i.e. operations, risk management and people
 
    management)”.
 
                                                                  35
 
  
Appendix II: Consumer Banking Opportunity for Islamic Banks
 
The report findings include:
 
 “Successfully delivering against customers’ expectations
 
  requires a complete rethink of the bank’s approach
 
 Islamic banks will strongly need to improve their quality of
 
  service and distribution network
 
 Islamic product offering presents major gaps and customers
 
  want to see some of these gaps closed
 
 Customers would like to see an improvement in price/returns of
 
  banking products”
 
                                                                  36
 
  
Appendix II: Consumer Banking Opportunity for Islamic Banks
+
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Takaful%20Opperunities%20and%20Challenges%20By%20Azeem%20Pirani.pdf Read the Full Document]
 According to the WIBC Competitiveness report “Islamic banks
 
  will need to make substantial efforts to meet expectations. To
 
  capture the growth thrust in Consumer banking, Islamic banks
 
  will have to:
 
 Focus the offering and develop wider product range
 
 Expand network and use branch channels
 
 Step up service quality and knowledge
 
 Ensure competitive pricing”
 
                                                                  37
 
  
Contact
+
 
                                          Mr. Sohail Jaffer
+
[[Category:Islamic Finance]]
                                          Partner, FWU Group
+
 
                                          2, Rue Sainte Zithe
+
[[Category: Takaful]]
                                          L-2763 Luxembourg
 
                                        Tel: +352 – 2 61 97 700
 
                                      Fax: +352 – 2 61 97 800
 
                                  Email: S.jaffer@fwugroup.com
 
The information in this presentation does not constitute a sales offer, investment advice or an offer for the
 
acquisition of financial products or instruments, and shall not in this regard imply legal obligations for the
 
FWU Group or anybody else towards the readers of this presentation.
 
This presentation is solely intended to provide information on matters of interest for the readers and such
 
information is not meant to replace the knowledge and the judgment of the readers who should make all
 
appropriate inquiries.
 
                                                                                                              38
 

Latest revision as of 03:59, 11 November 2017


Top 20 FREQUENT WORDS

takaful 33 insurance 22 august 17 pakistani 12 challenges 7 cont 7 opportunities 7 pakistan 7 risk 7 financial 6 shariah 6 compliant 5 ethical 5 differences 4 gdp 4 lack 4 protection 4 religious 4 benefits 3 contract 3 govt 3 ideology 3 islamic 3 knowledge 3 mitigation 3 overview 3 population 3 products 3 profits 3 regulations 3 sales 3


DOCUMENT KEY POINTS

  • it is an ideology which promotes solidarity and joint guarantee self reliance and self sustainability for community well being assistance to those that need it community pooling system th august
  • takafula product and an ideology takaful comes from the arabic root word a kafala guarantee takaful is not only a tool to mitigate loss or to make halal profits
  • differences between takaful insurance what is insurance a tool for risk mitigation and financial protection a tool to enable people to save life insurance key differences between takaful and insurance are risk sharing vs
  • owner different type of contract th august
  • issue conventional takaful insurance basis risk transfer co operative risk sharing laws secular regulations shariah prudential regulations ownership shareholders participants mgmt status company management operator form of contract contract of sale cooperative wakala or mudarbah with tabar ru contributions investments interest based shariah compliant surplus shareholders account participants account
  • differences between takaful insurance cont
  • the pakistani market a an overview cont pakistan a insurance market penetration of insurance pakistan
  • of gdp india more than of gdp iran approx
  • the pakistani market a challenges for takaful resistance to insurance and its benefits due to different reasons conservative spending habits ignorance of its benefits products which do not meet buyers needs religious reasons tawakkul issue tie your camel first then put your trust in allah swt
  • tirmidhi it is better for you to leave your heirs wealthy rather than poor and asking others for their needs
  • government regulations untested human resources for the sector shortage of trained human resources in insurance negligible knowledge of takaful present amongst the public few training programs available for takaful and insurance insurance has generally never been the occupation of first choice for new graduates th august
  • the pakistani market a challenges for takaful cont
  • education and awareness lack of knowledge about takaful and insurance amongst the masses ignorance of takaful amongst the ulema significant budget required just to ensure that knowledge permeates to all segments levels of society marketing sales issues poor impression of insurance sales persons amongst the public generally poor ethical standards amongst insurance sales persons general lack of faith on insurance companies meeting their obligation in a efficient and polite manner th august
  • the pakistani market a challenges for takaful cont
  • will need to ensure that they do prudent underwriting thus eating into the possibility of having a larger number of customers th august
  • as compared to insurance ones to be competitive takaful co
  • quality education is beyond the reach of the average citizen and the institutions provided by the govt
  • the pakistani market a opportunities for takaful economic social conditions in pakistan make takaful a necessity lack of govt
  • strong growth in the islamic financial sector provides takaful with a natural market islamic banks and mutual funds will need takaful to package with their other products islamic financial institutions presently have no family coverage for their staff massive untapped market in pakistan for risk mitigation tools given the necessity of these tools insurance has not even touched the surface given the a plain vanilla menu provided to customers there is a great opportunity for innovation th august
  • the pakistani market a opportunities for takaful cont
  • ethical and shariah compliant model for risk mitigation and financial protection large number of people who stay away from insurance due to religious beliefs large number of our population can be considered as a religious and so takaful will be in line with their beliefs educated citizens although not religious would prefer to use an ethical model than one which is built on making profits by trying to avoid having to pay claims th august
  • the pakistani market a opportunities for takaful cont
  • this is especially important when the people are living at a level where income equals expenses convey the critical nature of financial protection to others explain the benefits of getting financial protection introduce the new concept which is not only ethical but also shariah compliant just start from those around youa
  • takaful a what should you do about it as educated professionals we have a responsibility to our fellow citizens to guide them to what is good for them
  • jazak allah khair for further information contact to info pakqatar dot com
  • pk launching soon th august


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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


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DOCUMENT REFERENCES

Number of Pages

18


Published Date

2016-09-17 01:20:59


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