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−
Calculated Risks, Measurable
 
−
Results
 
  
−
Sylvain Goulet, fcia, fsa
 
−
Developing New Risks,
 
−
Developing New Solutions
 
  
−
New Reinsurance Solutions
 
−
  • 1 - Retakaful
 
−
    – From “Takaful” or Shari’ah compliant
 
−
      insurance
 
−
    – How can reinsurance help?
 
−
  • Traditional Risks, New Reinsurance
 
−
    – 2 - Increasing client retention
 
−
    – 3 - Vary Reinsurance portions (e.g. CI
 
−
      products)
 
−
    – 4 - Reinsurance derivatives
 
  
−
New Reinsurance Solutions
+
== Top 20 FREQUENT WORDS ==
−
  • New Insurance Risks, New
+
reinsurance 18
−
    Reinsurance Solutions?
+
insurance 15
−
    – 5 - Avian Inluenza / Pandemic Risk
+
takaful 15
 +
retention 11
 +
amount 10
 +
risk 10
 +
shari 9
 +
derivatives 8
 +
increasing 8
 +
pandemic 8
 +
avian 7
 +
client 7
 +
influenza 7
 +
cedant 6
 +
costs 6
 +
mortality 6
 +
deaths 5
 +
gains 5
 +
potential 5
 +
reinsurer 5
 +
risks 5
 +
solutions 5
  
−
1 - Takaful Insurance - Potential
 
−
  • Muslim Population
 
−
    – Between 1/5 and 1/4 of the world
 
−
      population
 
−
    – Mainly Asia, Africa and Middle East
 
−
    – About 1.6 million Muslims in Canada (5%)
 
−
    – About 3.0 million Muslims in the USA (1%)
 
−
  • Growth
 
−
    – One of the fastest growing segments in
 
−
      North America, particularly Canada
 
  
−
1 - Takaful Insurance
 
−
  • Insurance in Compliance with Shari’ah
 
−
    Law (Islam)
 
−
  • Shari’ah Law
 
−
      – Legal framework based on Muslim
 
−
        principles of jurisprudence
 
−
      – Legal theory established before the 19th
 
−
        century, or
 
−
      – Changing body and reflect current politics
 
−
        and economic realities
 
  
−
1 - Takaful Insurance
+
== DOCUMENT KEY POINTS ==
−
  • Insurance that is permissible under
+
*new reinsurance solutions a c retakaful a from takaful or shari ah compliant insurance a how can reinsurance help a c traditional risks new reinsurance a increasing client retention a vary reinsurance portions e
−
    Shari’ah Law
+
*ci products a reinsurance derivatives
−
  • Takaful
 
−
      – Arabic word: “joint guarantee” or
 
−
        “guarantee each other”
 
−
      – Although “insurance” is technically
 
−
        forbidden because it includes uncertainty,
 
−
        “mutual cooperation” and “pool
 
−
        contributions” are allowed for mutual
 
−
        benefits
 
  
−
1 - Takaful Insurance
+
*million muslims in the usa a c growth a one of the fastest growing segments in north america particularly canada
−
  • Non-Permissible Elements
+
*takaful insurance potential a c muslim population a between and of the world population a mainly asia africa and middle east a about
−
    – Uncertainty (“Gharar”): timing of payment,
 
−
      amount, or whether made or not
 
−
    – Gambling (“Maisir”): premiums could be
 
−
      seen as small when compared to the
 
−
      potential payout
 
−
    – Usury (“Riba”): not permitted under
 
−
      Shari’ah Law (note: does not contradict
 
−
      profits & capital gains)
 
  
−
1 - Takaful Insurance
+
*takaful insurance a c some structural solutions a uncertainty gharar ensure that some payments are made in one form or another a gambling maisir factor in some guarantees return of premiums participation in profits etc
−
  • Some Structural Solutions
+
*a usury riba use shari ah compliant funds increasingly available
−
    – Uncertainty (“Gharar”): ensure that some
 
−
      payments are made in one form or another
 
−
    – Gambling (“Maisir”): factor in some
 
−
      guarantees, Return of Premiums,
 
−
      participation in profits, etc.
 
−
    – Usury (“Riba”): use Shari’ah compliant
 
−
      funds (increasingly available)
 
  
−
1 - Takaful Insurance
+
*increasing client s retention a c increasing client s retention a by calendar year built in annual recapture a reduce reinsurance costs a increase the partnership between the ceding co
−
  • Other Characteristics of Takaful
+
*and the reinsurer
−
    – Must have a Shari’ah Board to uphold
 
−
      Islamic Law, and connection with an
 
−
      external Islamic Institute
 
−
    – Full disclosure of contract terms and profits
 
−
      distribution between the participants and
 
−
      the “Operator”
 
−
    – Reinsure with a Retakaful if available
 
−
    – “Window Operations” may be permitted
 
  
−
1 - Takaful Insurance - Potential
+
*avian influenza pandemic risk a c mortality losses a however an avian influenza pandemic could easily eliminate mortality gains a a gamble the two risks are essentially different a c normal day to day mortality improving chances slow process or a c abnormal spike in death rates that last years spanish flu in million deaths in countries incl
−
                  Potential Takaful Distribution
+
*americans that s a death rate or in
−
                                    Malaysi
 
−
                                      a           Pakista    Singapor
 
−
                                                    n            e
 
−
      Indonesi                                                  Thailand
 
−
        a                                                       1% Sri Lanka
 
−
                                                                          0%
 
−
                                                                        Bahrain
 
−
                                                                          1%
 
−
                                                                        Jorda
 
−
                                                                          n
 
−
                                                                        Kuwait
 
−
                                                                            3%
 
−
                                                                          Oma
 
−
                                                                            n
 
−
                                                                          Qata
 
−
                                                                            r
 
−
                                                        Saudi Arabia
 
−
            Bangladesh      United                      17%
 
−
                6%      Yemen                Syria
 
−
                              Arab          3%
 
−
                        0%
 
−
                              Emirate
 
  
−
1 - Takaful Insurance - Wakalah Model
 
−
1 - Takaful Insurance - Mudharabah
 
−
1 - Takaful Insurance - Potential
 
−
  • Opportunities for Reinsurance
 
−
    – Takaful has been small but growing rapidly
 
−
      abroad
 
−
    – Growing demand because of “Shari’ah
 
−
      compliance” and increasing wealth
 
−
    – If Retakaful is available, then must use it
 
−
    – Retakaful has been almost non-existent,
 
−
      and therefore limiting the growth of Takaful
 
−
    – Canadian banks and credit unions already
 
−
      working on Shari’ah-compliant investments
 
  
−
Traditional Risks,
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
−
New Solutions
+
== DOCUMENT WORD ANALYSIS ==
 +
=== Main Category ===
 +
: AlHuda Material\takaful
  
−
2 -Increasing Client’s Retention
 
−
  • Increasing Client’s Retention
 
−
      – By calendar year (built-in annual
 
−
        recapture)
 
−
      – Reduce reinsurance costs
 
−
      – Increase the partnership between the
 
−
        ceding co. and the reinsurer
 
  
−
2 -Increasing Client’s Retention
+
=== KeyWords ===
−
                                2,200
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
−
                                            Traditional Net Amount at Risk "A"
 
−
                                2,000
 
−
                                1,800
 
−
                                1,600
 
−
  Funds & Face Amount ($000)
 
−
                                1,400
 
−
                                1,200
 
−
                                1,000
 
−
                                800
 
−
                                600
 
−
                                400                                            Ceded Amount
 
−
                                                                                Cedant Retention
 
−
                                200                                            Fund
 
−
                                  0
 
−
                                        50  55  60  65  70  75  80  85    90      95
 
  
−
2 -Increasing Client’s Retention
 
−
                                2,200
 
−
                                            Projection of Net Amount at Risk "A"
 
−
                                2,000
 
−
                                1,800
 
−
                                1,600
 
−
  Funds & Face Amount ($000)
 
−
                                1,400
 
−
                                1,200
 
−
                                1,000
 
−
                                800
 
−
                                600
 
−
                                400                                              Ceded Amount
 
−
                                                                                  Cedant Retention
 
−
                                200                                              Fund
 
−
                                  0
 
−
                                        50    55  60  65  70  75  80  85    90      95
 
  
−
2 -Increasing Client’s Retention
 
−
                                    4,500
 
−
                                                Projection of Net Amount at Risk "B"
 
−
                                    4,000
 
−
                                    3,500
 
−
  Funds & Face Amount ($000,000)
 
−
                                    3,000
 
−
                                    2,500
 
−
                                    2,000
 
−
                                    1,500
 
−
                                    1,000
 
−
                                                                                      Ceded Amount
 
−
                                                                                      Cedant Retention
 
−
                                    500                                              Fund
 
−
                                      0
 
−
                                            50    55  60  65  70  75  80  85  90      95
 
  
−
2 -Increasing Client’s Retention
+
== RELATED DOCUMENTS ==
−
  • For the Cedant:
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
−
    – Reduce reinsurance costs
+
:[[Agency Management,Training and Incentive Programme]]
−
    – Retain participation in future mortality
+
:[[Audit Issue of Islamic Banking]]
−
      gains
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
−
  • For the Reinsurer
+
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
−
    – Increase the commitment of the reinsurer
+
:[[Calculated Risks, Measurable Results]]
−
      towards the cedant over the long-term
+
:[[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]]
  
−
3 - Vary Reinsurance Portions
 
−
  • For Example: Critical Illness
 
−
    – Reduce reinsurance costs
 
−
        • Higher incidence, more predictable costs
 
−
          (Heart Attack, Stroke, Cancer)
 
−
        • Cedant could retain more
 
−
    – Reduce uncertainty
 
−
        • Lower incidence, more variable costs
 
−
          (Alzheimer’s disease, Renal disease,
 
−
          Parkinson’s disease)
 
  
−
3 - Vary Reinsurance Portions
 
−
3 - Vary Reinsurance Portions
 
−
  • For Example: Critical Illness
 
−
    – Could migrate to the same basis over time
 
−
      (10 years)
 
−
        • Can afford more risk over time
 
−
        • Create more harmonization over time
 
−
        • Develop more company experience
 
  
−
3 - Vary Reinsurance Portions
+
== DOCUMENT REFERENCES ==
−
4 - Reinsurance Derivatives
 
−
  • Derivatives - Oxford:
 
−
      – (of a financial product) having a value
 
−
        deriving from an underlying variable asset :
 
−
        equity-based derivative products
 
−
      – (often derivatives) an arrangement or
 
−
        instrument (such as a future, option, or
 
−
        warrant) whose value derives from and is
 
−
        dependent on the value of an underlying
 
−
        asset
 
−
  • “Reinsurance” is a derivative
 
  
−
4 - Reinsurance Derivatives
 
−
          Insurer “A”                        Insurer “B”
 
−
        Reinsures with                    Reinsures with
 
−
      “R” Positive CFs                  “R” Negative CFs
 
−
              Reinsurer “R” mixes CFs from “A”
 
−
                & “B”, optimizes ALM, and return
 
−
                    better derivatives in costs
 
−
                Reinsurer “R” retains profit as well
 
  
−
4 - Reinsurance Derivatives
+
=== Number of Pages ===
−
  • Any Other Ideas of Reinsurance
+
34
−
    Derivatives:
 
−
    – Designed for Capital Efficiency
 
−
    – To optimize buying power
 
−
    – Use of captive capital markets (off-shore)
 
−
    – Etc.
 
  
−
New Insurance Risks,
 
−
New Reinsurance Solutions
 
  
−
5 - Avian Influenza / Pandemic Risk
+
=== Published Date ===
−
  • pan=all / demos=people
+
2016-09-17 01:17:29
−
  • Past Pandemics
 
−
      – Spanish Flu in 1918-19: ~40 m deaths
 
−
      – Asian Flu 1957: 1 million deaths
 
−
      – Hong Kong Flu 1968: 700,000 deaths
 
−
  • SARS
 
−
      – 8,098 people infected in 25 countries
 
−
      – 774 deaths
 
−
      – Large economic impact
 
  
−
5 - Avian Influenza / Pandemic Risk
 
−
  • 3 Conditions for a Pandemic
 
−
      – A new influenza virus for which there is no
 
−
        immunity among people
 
−
      – It must infect humans and cause illness
 
−
      – It must spread easily and be sustainable
 
−
        among humans
 
  
−
5 - Avian Influenza / Pandemic Risk
+
== Full Document ==
−
  • Mortality Gains
 
−
    – With possible cure of cancer and other
 
−
      critical illnesses, life expectancy could
 
−
      reach 120 years or more
 
−
    – Reinsurers can potentially realize huge
 
−
      mortality gains by deferral of payment or
 
−
      lapses
 
−
    – Huge asset base (reserves) on which to
 
−
      earn investment income
 
  
−
5 - Avian Influenza / Pandemic Risk
 
−
  • Mortality Losses
 
−
    – However, an Avian Influenza / Pandemic
 
−
      could easily eliminate mortality gains
 
−
    – A Gamble? The two risks are essentially
 
−
      different:
 
−
        • “Normal” day-to-day mortality, improving
 
−
          chances, slow process, or
 
−
        • “Abnormal” spike in death rates that last 2-3
 
−
          years (Spanish Flu in 1918-19:~40 million
 
−
          deaths in 60 countries, incl. 700,000
 
−
          Americans - that’s a 7/1000 death rate, or 1 in
 
−
          150!)
 
  
−
5 - Avian Influenza / Pandemic Risk
+
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Calculated%20Risks,%20Measurable%20Results.pdf Read the Full Document]
−
  • Because of lower financial resources,
 
−
    low to medium income may be more
 
−
    affected
 
−
      – Smaller life insurance policies
 
−
      – Significant portion below retention
 
−
  • Can it be reinsured?
 
−
      – Much like “catastrophe” risks
 
  
−
THANK YOU !
+
 
 +
[[Category:Islamic Finance]]
 +
 
 +
[[Category: Takaful]]

Latest revision as of 07:31, 11 November 2017


Top 20 FREQUENT WORDS

reinsurance 18 insurance 15 takaful 15 retention 11 amount 10 risk 10 shari 9 derivatives 8 increasing 8 pandemic 8 avian 7 client 7 influenza 7 cedant 6 costs 6 mortality 6 deaths 5 gains 5 potential 5 reinsurer 5 risks 5 solutions 5


DOCUMENT KEY POINTS

  • new reinsurance solutions a c retakaful a from takaful or shari ah compliant insurance a how can reinsurance help a c traditional risks new reinsurance a increasing client retention a vary reinsurance portions e
  • ci products a reinsurance derivatives
  • million muslims in the usa a c growth a one of the fastest growing segments in north america particularly canada
  • takaful insurance potential a c muslim population a between and of the world population a mainly asia africa and middle east a about
  • takaful insurance a c some structural solutions a uncertainty gharar ensure that some payments are made in one form or another a gambling maisir factor in some guarantees return of premiums participation in profits etc
  • a usury riba use shari ah compliant funds increasingly available
  • increasing client s retention a c increasing client s retention a by calendar year built in annual recapture a reduce reinsurance costs a increase the partnership between the ceding co
  • and the reinsurer
  • avian influenza pandemic risk a c mortality losses a however an avian influenza pandemic could easily eliminate mortality gains a a gamble the two risks are essentially different a c normal day to day mortality improving chances slow process or a c abnormal spike in death rates that last years spanish flu in million deaths in countries incl
  • americans that s a death rate or in


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
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Number of Pages

34


Published Date

2016-09-17 01:17:29


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