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−
                                Takaful
 
−
                Opportunities & Challenges
 
−
                  for the Pakistani Market
 
−
                                  Azeem Pirani
 
−
                  Head of Marketing & Alternate Distribution
 
−
                          Pak-Qatar Family Takaful
 
−
11th August 2007      August 11th, 2007 – Avari Hotel, Lahore 1
 
  
−
Agenda
 
−
          Takaful – A product and an ideology
 
−
          Differences between Takaful & Insurance
 
−
          The Pakistani Market
 
−
                Overview
 
−
                Challenges
 
−
                Opportunities
 
−
          Our responsibility
 
−
          Conclusion
 
−
11th August 2007                                  2
 
  
−
Takaful- A product and an Ideology
 
−
      Takaful comes from the Arabic root-word ‘kafala’-
 
−
      guarantee
 
−
      Takaful is not only a tool to mitigate loss or to make
 
−
      halal profits. 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
 
−
11th August 2007                                                3
 
  
−
Differences between
+
== Top 20 FREQUENT WORDS ==
−
Takaful & Insurance
+
takaful 41
−
      What is Insurance?
+
business 15
−
            A tool for Risk Mitigation and Financial
+
insurance 13
−
            Protection
+
islamic 11
−
            A tool to enable people to save (Life Insurance)
+
companies 8
−
      Key differences between Takaful and Insurance are:
+
mudarabah 7
−
            Risk Sharing Vs. Risk Transfer
+
pakistan 7
−
            Wakeel Vs. Guarantor
+
countries 6
−
            Ameen Vs. Owner
+
losses 6
−
            Different type of Contract
+
participants 6
−
11th August 2007                                              4
+
policyholders 6
 +
based 5
 +
contract 5
 +
funds 5
 +
investment 5
 +
loss 5
 +
model 5
 +
shariah 5
 +
banking 4
 +
basis 4
 +
concept 4
 +
contributions 4
 +
conventional 4
 +
expenses 4
 +
fee 4
 +
financial 4
 +
models 4
 +
principle 4
 +
profit 4
 +
wakalah 4
  
−
Differences between
 
−
Takaful & Insurance (cont.)
 
−
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
 
  
−
The Pakistani Market –
 
−
An Overview
 
−
      Pakistan - Overall
 
−
            Population: 6th amongst global nations. 166 m.
 
−
            Population in 2015: Still 6th . 193 m.
 
−
            Urbanization: Presently at 33%
 
−
            Urbanization by 2015: 39%
 
−
            GDP Per Capita: $753
 
−
11th August 2007                                            6
 
  
−
The Pakistani Market –
+
== DOCUMENT KEY POINTS ==
−
An Overview (cont)
+
*the contemporary jurists acknowledge that the foundation of shared responsibility or takaful was laid down in the system of a aaqilah which was an arrangement of mutual help or indemnification customary in some tribes at the time of the holy prophet pbuh
−
      Pakistan – Insurance Market
+
*notwithstanding the belief of all muslims in qadha o qadr islam provides that one must find ways and means to avoid such catastrophes and disasters wherever possible and to minimize his or his family s financial losses should such events occur
−
            Penetration of Insurance
 
−
                Pakistan: 0.7% of GDP
 
−
                India: more than 3% of GDP
 
−
                Iran: approx. 1% of GDP
 
−
            Family & General Companies
 
−
            Few Innovative Products. Very recent change in
 
−
            this area
 
−
11th August 2007                                            7
 
  
−
The Pakistani Market –
+
*the legal framework in other islamic countries normally does not allow this arrangement and takaful companies work as separate entities on the basis of mudarabah as in malaysia and on the basis of wakalah as in the middle east region
−
Challenges for Takaful
+
*how much of the contribution is meant for mortality liability and how much for investment account is based on a sound technical basis of mortality tables and other actuarial requirements
−
      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”.
 
−
                Non-Shariah compliant elements
 
−
11th August 2007                                                              8
 
  
−
The Pakistani Market –
+
*as reported in the press pak kuwait investment corporation has recently been allowed by the sec to establish a takaful company in pakistan under the name of first takaful insurance company limited with authorized capital of rs million
−
Challenges for Takaful (cont.)
+
*takaful products are available to meet the needs of all sectors of the economy both at individual as well as corporate levels to cater for short and long term financial needs of various groups of the society
−
      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
 
−
11th August 2007                                              9
 
  
−
The Pakistani Market –
 
−
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
 
−
11th August 2007                                                  10
 
  
−
The Pakistani Market –
+
''Please note, This is an auto generated summary based on sentances position in the document and other factors''
−
Challenges for Takaful (cont.)
+
== DOCUMENT WORD ANALYSIS ==
−
      Operational Issues
+
=== Main Category ===
−
            Limited avenues for revenue at Takaful co. as
+
: AlHuda Material\takaful
−
            compared to insurance ones
 
−
            To be competitive Takaful co. will need to use effective
 
−
            IT systems – heavy investments
 
−
            New Takaful co. will need to ensure that they do
 
−
            prudent underwriting; thus eating into the possibility
 
−
            of having a larger number of customers
 
−
11th August 2007                                                    11
 
  
−
The Pakistani Market –
 
−
Opportunities for Takaful
 
−
    Economic/Social conditions in Pakistan make
 
−
    Takaful a NECESSITY
 
−
            Lack of govt. social safety net
 
−
            Negligible provision of reliable health care
 
−
            by the govt.
 
−
            Quality education is beyond the reach of the
 
−
            average citizen and the institutions provided
 
−
            by the govt. lack the required standards
 
−
11th August 2007                                          12
 
  
−
The Pakistani Market –
+
=== KeyWords ===
−
Opportunities for Takaful (cont.)
+
taka islam insur malaysia productdeferred shariah countries muslim financial retakaful model growth custom partner developed service mutual bankable provided scheme
−
    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 ‘plain vanilla’ menu provided to customers
 
−
            there is a great opportunity for innovation
 
−
11th August 2007                                                  13
 
  
−
The Pakistani Market –
 
−
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 ‘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
 
−
11th August 2007                                                14
 
  
−
Takaful –
 
−
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. 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 you….
 
−
11th August 2007                                                  15
 
  
−
Conclusion
+
== RELATED DOCUMENTS ==
−
    Takaful is not only here to stay; it’s going to GROW!
+
:[[A Review of Takaful by Prof. Khawaja Ahmed Saeed]]
−
    It’s ethical and Shariah compliant nature allows
+
:[[Agency Management,Training and Incentive Programme]]
−
    Takaful to overcome the inherent problems with
+
:[[Audit Issue of Islamic Banking]]
−
    Insurance
+
:[[Banca Takaful by Faisal Shahzad Abbassi]]
−
    The Pakistani market has challenges but also has a
+
:[[Best Practices from e- Insurance to e-Takaful by Sami Guello]]
−
    lot of opportunities
+
:[[Calculated Risks, Measurable Results]]
−
    There are a lot of opportunities for Takaful operators
+
:[[Challenges & Issues Faced by Takaful Industry by Mr. Imtiaz ]]
−
    to make healthy profits in Pakistan
+
:[[Co-Operative Insurance and Takaful]]
−
    Although Insurance coverage is not the norm in
+
:[[Current Achievements of Takaful by Dr. S. J Malaikah]]
−
    Pakistan we need to work to make Takaful
+
:[[International Cooperative & Mutual Insurance Federation]]
−
    something everybody uses
+
:[[Islamic Banking And Finance Malaysia’s Experience And Achiev]]
−
11th August 2007                                            16
+
:[[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]]
  
−
Conclusion (cont.)
 
−
11th August 2007  17
 
  
−
Jazak-Allah khair
+
 
−
For further information contact:
+
== DOCUMENT REFERENCES ==
−
      (021) 438-0357 to 61
+
 
−
      info@pakqatar.com.pk
+
 
−
      www.pakqatar.com.pk  (launching soon!)
+
=== Number of Pages ===
−
11th August 2007                            18
+
3
 +
 
 +
 
 +
=== Published Date ===
 +
2003-12-10 13:22:03
 +
 
 +
 
 +
== Full Document ==
 +
 
 +
 
 +
[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/Takaful/Takaful%20Muhammad%20Ayub.pdf Read the Full Document]
 +
 
 +
 
 +
[[Category:Islamic Finance]]
 +
 
 +
[[Category: Takaful]]

Latest revision as of 04:56, 10 November 2017


Top 20 FREQUENT WORDS

takaful 41 business 15 insurance 13 islamic 11 companies 8 mudarabah 7 pakistan 7 countries 6 losses 6 participants 6 policyholders 6 based 5 contract 5 funds 5 investment 5 loss 5 model 5 shariah 5 banking 4 basis 4 concept 4 contributions 4 conventional 4 expenses 4 fee 4 financial 4 models 4 principle 4 profit 4 wakalah 4


DOCUMENT KEY POINTS

  • the contemporary jurists acknowledge that the foundation of shared responsibility or takaful was laid down in the system of a aaqilah which was an arrangement of mutual help or indemnification customary in some tribes at the time of the holy prophet pbuh
  • notwithstanding the belief of all muslims in qadha o qadr islam provides that one must find ways and means to avoid such catastrophes and disasters wherever possible and to minimize his or his family s financial losses should such events occur
  • the legal framework in other islamic countries normally does not allow this arrangement and takaful companies work as separate entities on the basis of mudarabah as in malaysia and on the basis of wakalah as in the middle east region
  • how much of the contribution is meant for mortality liability and how much for investment account is based on a sound technical basis of mortality tables and other actuarial requirements
  • as reported in the press pak kuwait investment corporation has recently been allowed by the sec to establish a takaful company in pakistan under the name of first takaful insurance company limited with authorized capital of rs million
  • takaful products are available to meet the needs of all sectors of the economy both at individual as well as corporate levels to cater for short and long term financial needs of various groups of the society


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

3


Published Date

2003-12-10 13:22:03


Full Document

Read the Full Document