Difference between revisions of "Islamic Insurance Opertunities and Challenges"

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    Islamic Insurance
 
Challenges & Opportunities
 
  Financial Services Research
 
      Forum June 28th 2005
 
  
      Overview of presentation
 
• Why conventional insurance is not allowed
 
• Principles of Takaful
 
• Models of Takaful
 
• The global sector
 
• Challenges for the future
 
• Insurance for the low-income sector
 
• Takaful in Non-Muslim countries
 
  
  Why is conventional insurance
 
                not permissible?
 
• Uncertainty (Gharar)
 
• Gambling (Maisir)
 
• Interest (Riba)
 
  
Earlier forms of Islamic insurance
+
== Top 20 FREQUENT WORDS ==
• Dawania – Mutual indemnification amongst officers during
+
takaful 23
  the rule of Umar Ibn Al Khattab (2nd Caliph)
+
insurance 20
• Diyyah and Aquilah – Blood money and concept of
+
muslim 17
  removing hardship from victims family by payment of
+
countries 14
  Diyyah, on a mutual basis, by relatives of offender
+
sector 9
• Marine Insurance – Early second century – mutual fund to
+
model 8
  cover robberies and mishaps
+
cooperative 7
 +
islamic 6
 +
microinsurance 6
 +
mutual 6
 +
population 6
 +
challenges 5
 +
poverty 5
 +
awareness 4
 +
council 4
 +
established 4
 +
financial 4
 +
growing 4
 +
possibilities 4
 +
providing 4
  
  Fiqh Academy Resolution 1985
 
• Commerical insurance is prohibited
 
• Alternative contract confirming to principles of Islamic
 
  dealings is the contract of cooperative insurance, which is
 
  founded on the basis of charitable donation and Shariah
 
  compliant dealings
 
  
          Principles of Takaful
 
• Solidarity and joint guarantee
 
• 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”
 
  
    Takaful models in practice
+
== DOCUMENT KEY POINTS ==
• Not for profit model
+
*million netherlands germany million uk million
• Ta’awuni model – “cooperative insurance”
+
*takaful in non muslim countries is there a need country est
• Al Mudharabah model – profit sharing
 
• Al Wakala model – agency agreement
 
  
    The Global Takaful sector
+
*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
• 1979 First Takaful Company established
+
*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
• 1996 – 30 Institutions transacting Takaful
 
• 2002 – 50 Takaful operators and four Retakaful providers
 
• 2004 – 80 Takaful operators, 200 Takaful windows and 12
 
  Retakaful providers
 
Source: IBB Solicitors, UK – (2005)
 
  
The Global Takaful sector
+
*the possibilities in non muslim countries there is a growing awareness and demand for islamic financial instruments including insurance in non muslim countries
    Source: Bhatty (2001)
+
*in particular the shari ah ruling presents an opportunity for cooperative and mutual insurers to penetrate this niche market with minimal costs
  
    Challenges for the future
 
• Dynamic Growth
 
• Harmonization
 
• Best practices
 
• Awareness
 
• Reinsurance
 
• Governance
 
• Low-income sector
 
• Non-Muslim countries
 
  
Insurance for the low-
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
    income sector
+
== DOCUMENT WORD ANALYSIS ==
 +
=== Main Category ===
 +
: AlHuda Material\takaful
  
    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 being recognized
+
=== KeyWords ===
    as an important tool for
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
      poverty alleviation”
 
  
      Providing microinsurance
 
              The challenges
 
• Coverage
 
• Regulation
 
• Moral hazard and Fraud
 
• Adverse selection
 
• Education and trust
 
• Technical expertise
 
• Affordability
 
• Retention
 
• Sustainability
 
  
    Providing microinsurance
 
            The possibilities
 
• 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
+
== RELATED DOCUMENTS ==
            The possibilities
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
• The partner agent model
+
:[[Agency Management,Training and Incentive Programme]]
  No-risk fee for microinsurance provider
+
:[[Audit Issue of Islamic Banking]]
  Better coverage for policyholder
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
  Access to new market
+
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
  Pooling of risks between informal and formal
+
:[[Calculated Risks, Measurable Results]]
    sector
+
:[[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]]
  
    Providing microinsurance
 
            The possibilities
 
• 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
+
== DOCUMENT REFERENCES ==
important social institution to
 
counter poverty and
 
deprivation”
 
              Omar Fisher,1999
 
  
      How can microtakaful be
 
                  provided?
 
• Establish informal microtakaful schemes
 
• Encouragement of pro-poor organisations
 
• Education of government and donor
 
  agencies
 
• Involvement of Takaful sector
 
  Technical expertise
 
  Financial assistance
 
  Partner-agent model
 
  
Islamic Insurance in Non-
+
=== Number of Pages ===
    Muslim countries
+
30
  
  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
+
=== Published Date ===
              Is there a need?
+
2016-09-17 01:18:12
• 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
 
              The challenges
 
• Dispersed population
 
• Capital requirements
 
• Regulation
 
• Awareness
 
• Credibility
 
• Technical expertise
 
  
Ruling by the European Council of Fatwa
+
== Full Document ==
                      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 obliged 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
+
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Islamic%20Insurance%20Opertunities%20and%20Challenges.pdf Read the Full Document]
• 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.
 
  
                      Conclusions
+
[[Category:Islamic Finance]]
• Takaful sector is firmly established
 
• Growing rapidly
 
• Micronsurance/takaful is an important tool for poverty
 
  alleviation
 
• Increasing awareness of Takaful in Non-Muslim countries
 
• Development of Takaful in Non-Muslim countries can
 
  encourage greater participation into insurance market
 
  
    Thank you
+
[[Category: Takaful]]
www.icmif.org/takaful
 

Latest revision as of 15:29, 8 November 2017


Top 20 FREQUENT WORDS

takaful 23 insurance 20 muslim 17 countries 14 sector 9 model 8 cooperative 7 islamic 6 microinsurance 6 mutual 6 population 6 challenges 5 poverty 5 awareness 4 council 4 established 4 financial 4 growing 4 possibilities 4 providing 4


DOCUMENT KEY POINTS

  • 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


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

30


Published Date

2016-09-17 01:18:12


Full Document

Read the Full Document