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| − | combinations
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| − | 1st Asian Conference on
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| − | Microinsurance
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| − | July 25-26 2007
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| − | Overview of presentation
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| − | About ICMIF
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| − | Overview of the cooperative and mutual
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| − | sector
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| − | Microinsurance through cooperatives
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| − | Opportunities and need for microtakaful
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| − | Cooperative definition
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| − | “A cooperative is an autonomous
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| − | association of persons united
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| − | voluntarily to meet their common
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| − | economic, social, and cultural
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| − | needs and aspirations through a
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| − | jointly-owned and democratically
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| − | controlled enterprise”
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| − |
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| − | Cooperative/mutual values
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| − | Self-help, self-responsibility
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| − | Democracy, equality, equity
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| − | Solidarity
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| − | Honesty, openness
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| − | Social responsibility, caring for others
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| − |
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| − | Cooperative vs. Mutuals
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| − | Cooperative principles Mutual principles
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| − | Open and voluntary Free association
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| − | membership
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| − | One member, one vote User must be
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| − | member
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| − | Limited interest on shares "Not for profit”
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| − | For the benefit of user- Quality products
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| − | members
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| − | Cooperative education Personal
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| − | development
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| − |
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| − | Why a cooperative/mutual?
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| − | Cooperatives and Mutuals: the
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| − | hidden giants of the world
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| − | economy
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| − | The largest 300 cooperatives
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| − | and mutuals have a turnover
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| − | of
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| − | 1 trillion USD
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| − | Worldwide importance of mutual insurers, 2001
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| − | ESTIMATES
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| − | Percent of total premiums
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| − | 100% = 2416 bio USD
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| − | USA
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| − | 32
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| − | EUR
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| − | 21
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| − | CAN
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| − | 25 19
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| − | JAP
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| − | 16
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| − | KOR
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| − | 14
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| − | Source: Swiss Re for worldwide total premium; ICMIF
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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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| − |
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| − | Potential for cooperatives to
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| − | provide microinsurance
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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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| − | Cooperatives providing
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| − | microinsurance
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| − | CARD MBA – The Philippines
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| − | Sanasa Insurance Company – Sri Lanka
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| − | Centre D’Innovation Financiere – West
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| − | Africa
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| − | Columna - Guatemala
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| − | Torreon - Mexico
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| − | Challenges
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| − | for microinsurance cooperatives
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| − | Regulatory requirements
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| − | Accessing reinsurance
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| − | Technical and financial investment
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| − |
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| − | The way forward?
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| − | Maintain informal operations
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| − | Merge with other providers
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| − | Enter into a partner-agent agreement
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| − | Lobbying regulators
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| − |
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| − | Microtakaful:
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| − | Opportunities and need
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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
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| − | community 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
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| − | windows and 12 Retakaful providers
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| − | Source: IBB Solicitors, UK – (2005)
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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
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| − | countries 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
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| − | villages and small communities
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| − | Established Takaful sector neglecting low
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| − | “A noticeable lack of microinsurance
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| − | in North Africa and the Middle East.
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| − | In no other region is the absence
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| − | of microinsurance so evident”
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| − | Source: The Landscape of
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| − | Microinsurance
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| − | (The Microinsurance Centre)
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| − |
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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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| − |
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| − | “A cooperative and mutual scheme
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| − | providing Shari’ah approved
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| − | products and investments is
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| − | permissible under Islamic Law”
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| − | Possibilities for
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| − | microtakaful
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| − | Establish community based microtakaful
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| − | schemes
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| − | Involvement of NGOs, zakat funds,
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| − | donor 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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| − | 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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| − | 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
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| − | from 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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| − | Summary
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| − | Cooperatives have for many years being
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| − | providing insurance to the underserved
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| − | population.
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| − | There is a need to find avenues to facilitate
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| − | the sustainable growth of the informal sector
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| − | operators.
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| − | The philosophy and principles of Takaful are
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| − | similar to cooperatives.
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| − | Takaful requires the needy to be given
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| − | protection.
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| − | There is a need for microtakaful in many
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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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