1 International Takaful Summit 2007, London The Role of Pure Retakaful Operators versus Conventional...
-
Upload
diane-tomkins -
Category
Documents
-
view
216 -
download
4
Transcript of 1 International Takaful Summit 2007, London The Role of Pure Retakaful Operators versus Conventional...
1
International Takaful Summit 2007, London
The Role of Pure Retakaful Operators versus
Conventional Reinsurers:
Envisioning the Future
2nd November 2007, London, UK
Kamsani Tati Tokio Marine Retakaful
2
Sharing of experienceand perspective
3
Business Models
• Traditional• American• Japanese
4
History & Development of Islamic Finance
Source: Islamic Financial Services Industry Development. The Ten–Year Framework and StrategiesA Joint initiative of the Islamic Research & Training Institute of IDB and IFSB
5
History & Development of Islamic Finance
Source: Islamic Financial Services Industry Development. The Ten–Year Framework and StrategiesA Joint initiative of the Islamic Research & Training Institute of IDB and IFSB
6
History & Development of Takaful
Sudan 1979Malaysia 1985
7
Family Takaful in Malaysia
New Business Business In Force
Calendar Year
Year(Period)
No. ofCertificates
Contribution(RM million)
No. ofCertificates
Contribution(RM million)
1985 1 834 0.94 792 0.91
1987 3 2,185 1.69 2,835 3.35
1990 6 3,491 4.39 11,582 17.55
1993 9 6,940 10.96 24,590 38.22
2000 16 191,726 297.30 554,809 798.10
2001 17 205,873 368.00 726,398 1057.80
2002 18 237,037 452.20 888,879 1357.60
Source: BNM, Takaful Annual Report, 2000 & 2002 and Syarikat Takaful Malaysia Bhd
8
History & Development of Takaful
Encouraging development in Malaysia createda tsunami of interest in Takaful in other regions
9
Takaful and Insurance
Twins but not identical?
10
Insurance in Islam
• Providing protection is encouraged• Elements of uncertainty (gharar) in the
contract and usury (riba) in its operations made it not in line with Islamic law
11
Sharing …….
12
Islamic Insurance
• Collectively providing protection• Modus operandi within the parameters of
Islamic law
13
Insurance in Islam
• Islam is not only a religion, it is also a belief
• In Islam, law and religion, law and morals, and law and so-called “church” are inseparable
(Gibb, Modern Trends in Islamic Law, p.87)
14
Commercial Insurance isprohibited
International Islamic Fiqh Academy’s resolution 9 (2/9)
15
Takaful
The difference with Insurance is only visible from Islamic perspective.
16
Takaful The risks that Takaful companies managed
are no different from those risks taken by conventional insurance companies.
17
Takaful
• It is the duty, responsibility and accountability of Takaful operators to ensure that their entire business operations (including Retakaful arrangements) are Shariah compliant
• Takaful operators must refrain from invoking the doctrine of necessity so easily
18
Insure the Insurer
It can be liken as the suspensions of a
car; the road remains bumpy but the
jerks experienced by the driver is
reduced.
19
Reinsurance Retakaful
• From the first dollar – Quota share– Quota share plus surplus
• In excess of retention– Surplus
• Retained portfolios– Cat XL
• Capital– Financial Re
• From the first dollar– Quota share– Quota share plus
surplus
• In excess of retention– Surplus
• Retained Portfolios– Cat XL
• Capital – Financial Re
20
Retakaful Companies
• Hire experienced & professionally qualified staff• Training & development programs match the
insurance industry• Develop core competencies matching the
insurance industry • Remuneration package within the insurance
industry standards
21
Retakaful Companies
• Capacity with attractive rates• Technical supports such as product pricing and
design etc• Technical training- actuarial, underwriting, claims
assessment etc• Inputs are in Shariah perspective• Pay zakah
22
The Role of Retakaful
Source: Islamic Financial Services Industry Development. The Ten–Year Framework and StrategiesA Joint initiative of the Islamic Research & Training Institute of IDB and IFSB
23
24
25
“AA/Stable
26
27
A Shariah compliant Takaful operator would readily submit that Retakaful providers are vital to the Takaful industry
28
Complete and Caring
• It completes the whole chain of Takaful concept
• It accelerates the growth and development of the Takaful industry
• It creates distributable fund for the needy in the form of zakah paid by Takaful and Retakaful companies
29
Envisioning the future….
30
Takaful and Retakaful
31
Thank you