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| Line 1: |
Line 1: |
| − | Takaful for
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| − | Microfinance
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| − | 1st International Conference on
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| − | Inclusive Islamic Financial Sector
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| − | Development
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| − | Overview of presentation
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| − | Insurance and Poverty Alleviation
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| − | Challenges providing microinsurance
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| − | Opportunities and need for microtakaful
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| − | Microtakaful in practice
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| − | Can insurance assist poverty
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| − | alleviation?
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| − | The poor are the most vulnerable
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| − | The impact of losses are more severe
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| − | They have minimum means of recovery
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| − | Success of microfinance schemes show
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| − | the poor can and want to save
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| − | Savings and credit are used
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| − | unproductively
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| − | The poor need a safety net to escape
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| − | poverty
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| − |
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| − | “Insurance is now
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| − | recognized as an
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| − | important tool for
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| − | poverty alleviation”
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| − |
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| − | Microinsurance products
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| − | Loan protection
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| − | Disability and Sickness
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| − | Savings
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| − | Health
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| − | Funeral
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| − | Property
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| − | Agriculture
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| − |
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| − | Providing microinsurance
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| − | The challenges
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| − | Coverage
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| − | Regulation
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| − | Moral hazard and Fraud
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| − | Adverse selection
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| − | Education and trust
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| − | Technical expertise
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| − | Affordability
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| − | Retention
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| − | Sustainability
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| − | Penetration
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| − | Key success factors for
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| − | introducing microinsurance
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| − | Organized group
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| − | Existing financial infrastructure
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| − | Trust
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| − | Need
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| − | Understanding
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| − | External support
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| − |
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| − | Providing microinsurance
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| − | The possibilities
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| − | The cooperative microinsurance model
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| − | History of organising the poor
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| − | Operate for the interest of members by
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| − | members
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| − | Trust
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| − | Ownership and loyalty
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| − | Peer pressure
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| − | Surplus reinvested or redistributed
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| − |
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| − | Providing microinsurance
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| − | The possibilities
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| − | The partner agent model
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| − | No-risk fee for microinsurance provider
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| − | Better coverage for policyholder
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| − | Access to new market
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| − | Pooling of risks between informal and formal
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| − | sector
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| − |
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| − | Providing microinsurance
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| − | The possibilities
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| − | The donor agent model
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| − | Access to expertise
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| − | Financial sustainability
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| − | Guiding hand
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| − |
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| − | Opportunities and need
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| − | for microtakaful
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| − |
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| − | Principles of Takaful
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| − | Solidarity and joint guarantee
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| − | Self reliance and self sustaining for community
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| − | well being
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| − | Assist those that need assistance
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| − | Community pooling system
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| − | Shari’ah approved investments and products
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| − | “Bear ye one another’s burden”
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| − |
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| − | The Global Takaful sector
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| − | 1979 First Takaful Company established
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| − | 1996 – 30 Institutions transacting Takaful
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| − | 2002 – 50 Takaful operators and four Retakaful
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| − | providers
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| − | 2004 – 80 Takaful operators, 200 Takaful windows
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| − | and 12 Retakaful providers
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| − | Source: IBB Solicitors, UK – (2005)
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| − |
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| − | The need for microtakaful
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| − | Social services inadequate or unavailable
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| − | Large sectors of poverty in many Muslim
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| − | countries
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| − | Over half of world’s lowest developed countries
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| − | have a majority Muslim population
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| − | Increasing inequality in Middle East and Gulf
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| − | countries
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| − | Religious considerations are important in villages
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| − | and small communities
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| − | Established Takaful sector neglecting low
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| − | income sector
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| − |
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| − | “Takaful is the
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| − | second most
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| − | important social
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| − | institution to
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| − | counter poverty
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| − | and deprivation”
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| − | Omar Fischer
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| − | 1999
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| − | Possibilities for microtakaful
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| − | Establish community based microtakaful
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| − | schemes
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| − | Involvement of NGOs, zakat funds, donor
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| − | agencies
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| − | Support from Takaful sector
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| − | Technical expertise
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| − | Financial assistance
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| − | Partner-agent model
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| − |
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| − | Microtakaful in practice
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| − | Agricultural Mutual Fund - Lebanon
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| − | Amana Takaful – Sri Lanka
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| − | Takaful Ikhlas
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| − | Takmin - Indonesia
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| − | Summary
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| − | Microtakaful can succeed
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| − | Microtakaful can compliment microfinance
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| − | Microtakaful is imperative to ensure productive
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| − | use of assets for the poor.
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| − | It is key to ensuring the long-term self
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| − | sustainability of the individual and his family to
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| − | stay above the poverty line.
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| − | Existing Takaful operators have a responsibility
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| − | to take a lead in this area in accordance with
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| − | the basic principles and philosophy of takaful
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| − | which is to “bear one another’s burden”.
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| − | The case of a microtakaful
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| − | policyholder
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| − | Ibu Iwit, 50 years, farmworker, earning
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| − | one dollar a day.
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| − | Took out a 6 month loan of 55 USD from
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| − | local Baitul mal Wat Tamwil
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| − | Insurance premium was taken out with
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| − | Takmin at 0.16 USD
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| − | Ibu Iwit passed away a couple months
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| − | later
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| − | Her husband, Amad, age 60 years, no
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| − | income
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| − | A Global reach for
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| − | local strength
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| − | Thank you
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| − | www.takaful.coop
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