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Cooperative Insurance and
 
          Takaful
 
  Takaful Forum July 20-21 2005
 
  
      Overview of presentation
 
• Cooperative and mutual insurance principles
 
• The global cooperative and mutual movement
 
• Similarities and differences with Takaful
 
• Opportunities for collaboration
 
  
        Cooperative definition
 
”A cooperative is an autonomous association of
 
  persons united voluntarily to meet their common
 
  economic, social, and cultural needs and
 
  aspirations through a jointly-owned and
 
  democratically controlled enterprise”.
 
                      Source: International Cooperative Alliance (ICA)
 
  
      Cooperative/mutual values
+
== Top 20 FREQUENT WORDS ==
• Self-help, self-responsibility
+
cooperative 26
• Democracy, equality, equity
+
takaful 22
• Solidarity
+
insurance 18
• Honesty, openness
+
mutual 16
• Social responsibility, caring for others
+
muslim 14
 +
countries 10
 +
principles 7
 +
sector 7
 +
microinsurance 6
 +
population 6
 +
financial 5
 +
islamic 5
 +
model 5
 +
products 5
 +
providing 5
 +
reinsurance 5
 +
social 5
 +
community 4
 +
cooperation 4
 +
council 4
 +
development 4
 +
education 4
 +
insurers 4
 +
joint 4
 +
member 4
 +
members 4
 +
policyholders 4
 +
possibilities 4
 +
poverty 4
 +
responsibility 4
 +
source 4
 +
surplus 4
 +
technical 4
  
          Cooperative principles
 
• Voluntary and open membership
 
• Democratic member control
 
• Member economic participation
 
• Autonomy and independence
 
• Education, training and information
 
• Cooperation among co-operatives
 
• Concern for community
 
                          Source: International Cooperative Alliance (ICA)
 
  
          Cooperative v Mutuals
 
Cooperative principles          Mutual principles
 
Open and voluntary membership  Free association
 
One member, one vote            User must be member
 
Limited interest on shares      "Not for profit”
 
For the benefit of user-members Quality products
 
Cooperative education          Personal development
 
Cooperation among cooperatives  Solidarity
 
  
                                                                  ESTIMATES
+
== DOCUMENT KEY POINTS ==
      Worldwide importance of mutual insurers, 2001
+
*cooperative definition a cooperative is an autonomous association of persons united voluntarily to meet their common economic social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise
                        Percent of total premiums
+
*source international cooperative alliance ica
                100% = 2416 bio USD
 
                                                    USA
 
                                                              32
 
                                                    EUR
 
                                                            21
 
                                                    CAN
 
                                                25        19
 
                                                    JAP
 
                                                        16
 
                                                    KOR
 
                                                        14
 
Source: Swiss Re for worldwide total premium; ICMIF
 
  
                                                                                                                      VERY ROUGH
+
*very rough europe importance of mutual insurance sector estimates percentage of gross direct domestic premium a cmut coop joint stock written a cmut joint stock finland luxembourg a ccoop joint stock sweden netherlands france belgium germany uk austria italy slovenia ireland spain hungary czech rep
  Europe, importance of mutual insurance sector*, 2002                                                                  ESTIMATES
+
*denmark mutual and cooperative insurers mutual insurers controlled by mutual holding except luxembourg and ireland domestic and foreign source national supervisory authorities industry associates company websites annual reports aisam and acme analysis
    Percentage of gross direct domestic** premium                                                                     •Mut + Coop +
 
                                                                                                                        Joint Stock
 
                                                  written                                                               •Mut + Joint
 
                                                                                                                        Stock
 
      Finland                                      ~69          Luxembourg                ~16                          •Coop + Joint
 
                                                                                                                        Stock
 
      Sweden                            ~45                      Netherlands              ~15
 
      France                          ~40                        Belgium                  ~15
 
      Germany                    ~30                            UK                      ~12
 
      Austria                ~22                                Italy                  ~12
 
      Slovenia              ~21                                Ireland              ~8
 
      Spain                  ~20                                Hungary              ~8
 
      Czech Rep.          ~17                                  Denmark              ~8
 
      * Mutual and cooperative insurers; mutual insurers controlled by mutual holding
 
    ** Except Luxembourg and Ireland: domestic and foreign
 
Source: National supervisory authorities; Industry associates; Company websites / annual reports, AISAM and ACME analysis
 
  
Similarities and differences
+
*technical cooperation a c industry development a c takaful companies are members icmif a c takaful network a c takaful xchange a c policyholder participation a c disseminating information www dot icmif
  between Cooperative
+
*org takaful
  Insurance and Takaful
 
  
      Cooperative/mutual values
+
*million netherlands germany million uk million
• Self-help, self-responsibility
+
*takaful in non muslim countries is there a need country est
• Democracy, equality, equity
 
• Solidarity
 
• Honesty, openness
 
• Social responsibility, caring for others
 
  
          Principles of Takaful
+
*ruling by the european council of fatwa and research a it is well known that in most non islamic countries there are cooperative and mutual insurance companies
• Solidarity and joint guarantee
+
*so it is unlawful for a muslim living in a country where there is such a cooperative insurance company to make an agreement with a commercial insurance companya
• Self reliance and self sustaining for community well being
 
• Assist those that need assistance
 
• Community pooling system
 
• Shari’ah approved investments and products
 
              “Bear ye one another’s burden”
 
  
  Fiqh Academy Resolution 1985
+
*the possibilities in non muslim countries there is a growing awareness and demand for islamic financial instruments including insurance in non muslim countries
• Commerical insurance is prohibited
+
*in particular the shari ah ruling presents an opportunity for cooperative and mutual insurers to penetrate this niche market with minimal costs
• 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
 
  
        Takaful model in Sudan
+
*the similarities in principles with the established cooperative and mutual insurance sector provides an opportunity for cooperation which will benefit existing and potential policyholders in the muslim world
• Surplus belongs to policyholders
+
*conclusion the takaful sector is experiencing phenomenal growth and is facing a multitude of challenges and issues in its present development cycle
  – proportionally distributed
 
  – special reserve
 
  – invested on behalf of policyholders
 
• Policyholders represented on the board of directors
 
• Shareholders share of investment income
 
  
            Differences between
 
      Cooperative and Takaful
 
• Takaful is not insurance
 
• Shariah compliant investments and products
 
• Sharholder surplus participation
 
• Shareholder governance
 
  
”A cooperative and mutual scheme providing
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
  Shariah approved products and investments
+
== DOCUMENT WORD ANALYSIS ==
  is permissible under Islamic Law”.
+
=== Main Category ===
 +
: AlHuda Material\takaful
  
Opportunities for
 
Collaboration
 
  
      Technical Cooperation
+
=== KeyWords ===
• Industry development
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
• 13 Takaful companies are members ICMIF
 
• Takaful Network
 
• Takaful Xchange
 
• Policyholder participation
 
• Disseminating information www.icmif.org/takaful
 
  
  
                      Retakaful
 
• Preferred reinsurance is proportional (quota share or
 
  surplus)
 
• Non proportional permissible on a strict profit commission
 
• If takaful reinsurance is unavailable then it is permissible to
 
  use a conventional reinsurer
 
  
            Reinsurance capacity
+
== RELATED DOCUMENTS ==
“If there is a need to turn to the conventional
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
  reinsurance market then the Takaful
+
:[[Agency Management,Training and Incentive Programme]]
  operator should first try and obtain coverage
+
:[[Audit Issue of Islamic Banking]]
  from the cooperative and mutual
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
  reinsurance sector.
+
:[[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]]
  
Takaful for the low-income
 
          sector
 
  
    Can insurance assist poverty
 
                    alleviation?
 
• The poor are the most vulnerable
 
• The impact of losses are more severe
 
• They have minimum means of recovery
 
• Success of microfinance schemes show the poor can and
 
  want to save
 
• Savings and credit are used unproductively
 
• The poor need a safety net to escape poverty
 
  
“Insurance is recognized as an
+
== DOCUMENT REFERENCES ==
    important tool for poverty
 
          alleviation”
 
  
      Providing microinsurance
 
                The challenges
 
• Coverage
 
• Regulation
 
• Moral hazard and Fraud
 
• Adverse selection
 
• Education and trust
 
• Technical expertise
 
• Affordability
 
• Retention
 
• Sustainability
 
  
      Providing microinsurance
+
=== Number of Pages ===
              The possibilities
+
40
• The cooperative microinsurance model
 
   History of organising the poor
 
   Operate for the interest of members by
 
    members
 
   Trust
 
   Ownership and loyalty
 
   Peer pressure
 
   Surplus reinvested or redistributed
 
  
      Providing microinsurance
 
              The possibilities
 
• The partner agent model
 
   No-risk fee for microinsurance provider
 
   Better coverage for policyholder
 
   Access to new market
 
   Pooling of risks between informal and formal
 
    sector
 
  
      Providing microinsurance
+
=== Published Date ===
              The possibilities
+
2016-09-17 01:17:34
• The donor agent model
 
   Access to expertise
 
   Financial sustainability
 
   Guiding hand
 
  
  The need in Muslim countries
 
• Social services inadequate or unavailable
 
• Large sectors of poverty in many Muslim countries
 
• Over half of world’s lowest developed countries have a
 
  majority Muslim population
 
• Increasing inequality in Middle East and Gulf countries
 
  
“Takaful is the second most important social
+
== Full Document ==
institution to counter poverty and
 
deprivation”
 
                              Omar Fisher,1999
 
  
        How can microtakaful be
 
                    provided?
 
• Establish informal cooperative microtakaful schemes
 
• Encouragement of pro-poor organisations
 
• Education of government and donor agencies
 
• Involvement of Takaful sector
 
   Technical expertise
 
   Financial assistance
 
   Partner-agent model
 
  
Takaful in Non-Muslim
+
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Co-Operative%20Insurance%20and%20Takaful.pdf Read the Full Document]
      countries
 
  
  Takaful in Non-Muslim Countries
 
          Is there a need?
 
Country  Est. Muslim  Country  Est. Muslim
 
            population            population
 
Argentina    800,000      Italy    600,000
 
  Brazil    1 million  Japan    1.3 million
 
Canada      500,000    Kenya    8.4 million
 
France    4.8 million Netherlands  500,000
 
Germany      3 million    UK      2 million
 
  
  Takaful in Non-Muslim countries
+
[[Category:Islamic Finance]]
                  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
 
• Development of Islamic financial sector
 
  
  Takaful in Non-Muslim countries
+
[[Category: Takaful]]
                The challenges
 
• Dispersed population
 
• Capital requirements
 
• Regulation
 
• Awareness
 
• Credibility
 
• Technical expertise
 
 
 
Ruling by the European Council of Fatwa
 
                      and Research
 
“… It is well known that in most non-Islamic countries there
 
  are cooperative and mutual insurance companies. There is
 
  no harm from the Shari`ah point of view to participate in
 
  these services. So, it is unlawful for a Muslim living in a
 
  country where there is such a cooperative insurance
 
  company to make an agreement with a commercial
 
  insurance company…..”
 
 
 
  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
 
 
 
The Possibilities in Non-Muslim countries
 
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 presents an opportunity for cooperative
 
and mutual insurers to penetrate this niche market with
 
minimal costs.
 
 
 
                    Conclusion
 
“The Takaful sector is experiencing phenomenal growth
 
  and is facing a multitude of challenges and issues in
 
  its present development cycle. The similarities in
 
  principles with the established cooperative and mutual
 
  insurance sector provides an opportunity for
 
  cooperation which will benefit existing and potential
 
  policyholders in the Muslim world”
 
 
 
    Thank you
 
www.icmif.org/takaful
 

Latest revision as of 04:53, 10 November 2017


Top 20 FREQUENT WORDS

cooperative 26 takaful 22 insurance 18 mutual 16 muslim 14 countries 10 principles 7 sector 7 microinsurance 6 population 6 financial 5 islamic 5 model 5 products 5 providing 5 reinsurance 5 social 5 community 4 cooperation 4 council 4 development 4 education 4 insurers 4 joint 4 member 4 members 4 policyholders 4 possibilities 4 poverty 4 responsibility 4 source 4 surplus 4 technical 4


DOCUMENT KEY POINTS

  • cooperative definition a cooperative is an autonomous association of persons united voluntarily to meet their common economic social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise
  • source international cooperative alliance ica
  • very rough europe importance of mutual insurance sector estimates percentage of gross direct domestic premium a cmut coop joint stock written a cmut joint stock finland luxembourg a ccoop joint stock sweden netherlands france belgium germany uk austria italy slovenia ireland spain hungary czech rep
  • denmark mutual and cooperative insurers mutual insurers controlled by mutual holding except luxembourg and ireland domestic and foreign source national supervisory authorities industry associates company websites annual reports aisam and acme analysis
  • technical cooperation a c industry development a c takaful companies are members icmif a c takaful network a c takaful xchange a c policyholder participation a c disseminating information www dot icmif
  • org takaful
  • million netherlands germany million uk million
  • takaful in non muslim countries is there a need country est
  • ruling by the european council of fatwa and research a it is well known that in most non islamic countries there are cooperative and mutual insurance companies
  • so it is unlawful for a muslim living in a country where there is such a cooperative insurance company to make an agreement with a commercial insurance companya
  • the possibilities in non muslim countries there is a growing awareness and demand for islamic financial instruments including insurance in non muslim countries
  • in particular the shari ah ruling presents an opportunity for cooperative and mutual insurers to penetrate this niche market with minimal costs
  • the similarities in principles with the established cooperative and mutual insurance sector provides an opportunity for cooperation which will benefit existing and potential policyholders in the muslim world
  • conclusion the takaful sector is experiencing phenomenal growth and is facing a multitude of challenges and issues in its present development cycle


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

40


Published Date

2016-09-17 01:17:34


Full Document

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