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Takaful An emerging niche market By: Capt. M. Jamil Akhtar Khan ACII, MCIT, Master Mariner Chief Executive Officer TAKAFUL PAKISTAN LIMITED 2 Days Specialized.

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Presentation on theme: "Takaful An emerging niche market By: Capt. M. Jamil Akhtar Khan ACII, MCIT, Master Mariner Chief Executive Officer TAKAFUL PAKISTAN LIMITED 2 Days Specialized."— Presentation transcript:

1 Takaful An emerging niche market By: Capt. M. Jamil Akhtar Khan ACII, MCIT, Master Mariner Chief Executive Officer TAKAFUL PAKISTAN LIMITED 2 Days Specialized Training Workshop 10 th & 11 th August 2007. Al-HUDA CIBE

2 Outline of Presentation Introduction to Takaful Introduction to Takaful Objections to Conventional Insurance Objections to Conventional Insurance Difference b/w Conventional Insurance & Takaful Difference b/w Conventional Insurance & Takaful Takaful Through Time Takaful Through Time Takaful Models Takaful Models Takaful Types Takaful Types BancaTakaful BancaTakaful ReTakaful ReTakaful Foundations of Takaful in Pakistan Foundations of Takaful in Pakistan Takaful Prospects in Pakistan Takaful Prospects in Pakistan Challenges to Takaful Challenges to Takaful Introduction to TAKAFUL PAKISTAN LIMITED Introduction to TAKAFUL PAKISTAN LIMITED

3 Introduction to Takaful

4 Takaful comes from the Arabic root-word kafala guarantee. Takaful comes from the Arabic root-word kafala guarantee. Takaful means mutual protection and joint guarantee. Takaful means mutual protection and joint guarantee. Operationally, takaful refers to participants mutually contributing to a common fund with the purpose of having mutual indemnity in the case of peril or loss. Operationally, takaful refers to participants mutually contributing to a common fund with the purpose of having mutual indemnity in the case of peril or loss. Meaning of Takaful

5 Reference Al Quran: Help (taawan) one another in furthering virtue (birr) and Allah consciousness (taqwa) and do not help one another in furthering evil and enmity. Al Maidah: verse 2 (5:2). Help (taawan) one another in furthering virtue (birr) and Allah consciousness (taqwa) and do not help one another in furthering evil and enmity. Al Maidah: verse 2 (5:2). Takaful is a form of mutual help (taawun) in furthering good/virtue by helping others who are in need / in hardship. Takaful is a form of mutual help (taawun) in furthering good/virtue by helping others who are in need / in hardship.

6 Reference – Hadith: tie the camel first, then submit (tawakkal) to the will of Allah tie the camel first, then submit (tawakkal) to the will of Allah The hadith implied a strategy to mitigate/reduce risk. The hadith implied a strategy to mitigate/reduce risk. Takaful provides a strategy of risk mitigation/reduction by virtue of collective risk taking that distributes risks and losses to a large number of participants. This mitigates the otherwise very damaging losses, if borne individually. Takaful provides a strategy of risk mitigation/reduction by virtue of collective risk taking that distributes risks and losses to a large number of participants. This mitigates the otherwise very damaging losses, if borne individually.

7 Declaration by Shariah scholars rendering conventional insurance un- Islamic Fatwa issued in Judicial Conference held in Makkah in Shaban 1398 AH. Fatwa issued in Judicial Conference held in Makkah in Shaban 1398 AH. Verdict of Supreme Court of Egypt on Dec. 27, 1926. Verdict of Supreme Court of Egypt on Dec. 27, 1926. Unanimous resolutions and fatwa by Ulama in the Muslim League Conference in Cairo in 1965. Unanimous resolutions and fatwa by Ulama in the Muslim League Conference in Cairo in 1965. Unanimous decision by Muslim Scholars in seminar held in Morocco on May 6, 1972. Unanimous decision by Muslim Scholars in seminar held in Morocco on May 6, 1972.

8 Judicial Opinions and Fatwas confirming validity of Takaful Fatwa issued by Higher Council of Saudi Arabia in 1397 A.H. Fatwa issued by Higher Council of Saudi Arabia in 1397 A.H. Fatwa Issued by the Fiqh Council of Muslim World League in 1398 A.H. Fatwa Issued by the Fiqh Council of Muslim World League in 1398 A.H. Fatwa issued by the Fiqh Council of the OIC in 1405 A.H. (1985). Fatwa issued by the Fiqh Council of the OIC in 1405 A.H. (1985).

9 Fiqh Academy Resolution 1985 Islamic Fiqh (science of Shariah) Academy, emanating from the Organization of Islamic Conference, meeting in its Second Session in Jeddah, KSA, from 10 to 16 Rabi-ul- Thani, 1405 A.H. (Dec 1985) issued a Resolution which in summary stated the following: Islamic Fiqh (science of Shariah) Academy, emanating from the Organization of Islamic Conference, meeting in its Second Session in Jeddah, KSA, from 10 to 16 Rabi-ul- Thani, 1405 A.H. (Dec 1985) issued a Resolution which in summary stated the following: The commercial Insurance contract… is prohibited (Haraam) according to the Shariah.The commercial Insurance contract… is prohibited (Haraam) according to the Shariah. The alternative Takaful contract which conforms to the principles of Islamic dealings is Halaal, being the contract of cooperative insurance, which is founded on the basis of charitable donation and Shariah compliant dealings.The alternative Takaful contract which conforms to the principles of Islamic dealings is Halaal, being the contract of cooperative insurance, which is founded on the basis of charitable donation and Shariah compliant dealings.

10 Basic Elements of Takaful Mutuality and cooperation. Mutuality and cooperation. Takaful contract pertains to Tabarruat as against muawadat in case of conventional insurance. Takaful contract pertains to Tabarruat as against muawadat in case of conventional insurance. Payments made with the intention of Tabarru (contribution) Payments made with the intention of Tabarru (contribution) Eliminates the elements of Gharrar, Maisir and Riba. Eliminates the elements of Gharrar, Maisir and Riba. Wakalah/Modarabah basis of operations. Wakalah/Modarabah basis of operations. Joint Guarantee / Indemnity amongst participants – shared responsibility. Joint Guarantee / Indemnity amongst participants – shared responsibility. Constitution of separate Participants Takaful Fund. Constitution of separate Participants Takaful Fund. Constitution of Shariah Supervisory Board. Constitution of Shariah Supervisory Board. Investments as per Shariah. Investments as per Shariah.

11 Main drivers of Takaful Piety (individual purification) Piety (individual purification) Brotherhood (mutual assistance) Brotherhood (mutual assistance) Charity (Tabarru or contribution) Charity (Tabarru or contribution) Mutual Guarantee Mutual Guarantee Community well-being as opposed to profit maximization. Community well-being as opposed to profit maximization.

12 Objections to Conventional Insurance

13 Insurance Defined Definition of an Insurance Contract Definition of an Insurance Contract An agreement whereby one party, the insurer, in return for a consideration, the premium, undertakes to pay to the other party, the insured, a sum of money or its equivalent in kind on the happening of a specified event, which is contrary to the insureds financial interest An agreement whereby one party, the insurer, in return for a consideration, the premium, undertakes to pay to the other party, the insured, a sum of money or its equivalent in kind on the happening of a specified event, which is contrary to the insureds financial interest Subject-matter of an Insurance Contract Subject-matter of an Insurance Contract … what is it that is insured in a fire policy? Not the bricks and materials used in building the house, but the financial interest (i.e. money) of the insured in the subject-matter of insurance … (Lord Justice Brett in Castellian v. Preston – 1883) … what is it that is insured in a fire policy? Not the bricks and materials used in building the house, but the financial interest (i.e. money) of the insured in the subject-matter of insurance … (Lord Justice Brett in Castellian v. Preston – 1883)

14 Objections to Conventional Insurance Scholars view the insurance contract as an exchange contract – money is being exchanged for money over time. Scholars view the insurance contract as an exchange contract – money is being exchanged for money over time. This brings about the problem of gharrar (which leads to maisir) and in investments aspect, riba. This brings about the problem of gharrar (which leads to maisir) and in investments aspect, riba. Elements of: Elements of: Uncertainty – Gharrar Uncertainty – Gharrar Gambling – Maisir Gambling – Maisir Interest – Riba Interest – Riba UW + Investment Profit belongs to the Company UW + Investment Profit belongs to the Company Note that the Scholars do not object to insurance per se but only to certain weaknesses in the insurance contract. Note that the Scholars do not object to insurance per se but only to certain weaknesses in the insurance contract.

15 Uncertainty – Gharrar Conventional insurance contract is basically a contract of exchange (muawadat) i.e. buying and selling whereby policy (indemnity) is sold as goods, with the premium as the price or consideration. Conventional insurance contract is basically a contract of exchange (muawadat) i.e. buying and selling whereby policy (indemnity) is sold as goods, with the premium as the price or consideration. The consideration must be certain for exchange contract. The consideration must be certain for exchange contract. Gharrar in insurance contracts pertains to deliverability of subject matter, i.e. uncertainty as to: Gharrar in insurance contracts pertains to deliverability of subject matter, i.e. uncertainty as to: Whether the insured will get the compensation promised? Whether the insured will get the compensation promised? How much the insured will get? How much the insured will get? When will the compensation be paid? When will the compensation be paid? Thus, it involves an element of uncertainty in the subject matter of the insurance sales contract, which renders it void under the Islamic law. Thus, it involves an element of uncertainty in the subject matter of the insurance sales contract, which renders it void under the Islamic law.

16 Gambling – Maisir Insurance is a contract upon speculation. Good faith forbids either party from concealing what he privately knows, to draw the other into a bargain, from his ignorance of that fact, and his believing to the contrary (Lord Mansfield in Carter v. Boehm – 1766). Insurance is a contract upon speculation. Good faith forbids either party from concealing what he privately knows, to draw the other into a bargain, from his ignorance of that fact, and his believing to the contrary (Lord Mansfield in Carter v. Boehm – 1766). The insured loses the money paid for the premium when the insured event does not occur. The insured loses the money paid for the premium when the insured event does not occur. The company will be in deficit if claims are higher than premium. The company will be in deficit if claims are higher than premium.

17 Interest – Riba …. Allah has permitted trading and forbidden riba (Al Baqarah 2 : 275). …. Allah has permitted trading and forbidden riba (Al Baqarah 2 : 275). Insurance funds are invested in financial instruments which contain the element of Riba. Insurance funds are invested in financial instruments which contain the element of Riba.

18 Comparing Takaful to Conventional Insurance Issue Conventional Insurance Takaful Organization Principle Profit for shareholders Mutual for participants Basis Risk Transfer Co-operative risk sharing Value Proposition Profits maximization Affordability and spiritual satisfaction LawsSecular/Regulations Sharia plus regulations OwnershipShareholdersParticipants Management status Company Management Operator Form of Contract Contract of Sale Cooperative, Islamic contracts of Wakala or Mudarbah with Tabarru (contributions) Investments Interest based Sharia compliant, Riba-free Surplus Shareholders account Participants account

19 Takaful Through Time

20 Takaful through Time Origins in the First Constitution of Madina. Origins in the First Constitution of Madina. It evolved and continued in one form or the other throughout the Abbaside period and even later during the Ottoman empire. It evolved and continued in one form or the other throughout the Abbaside period and even later during the Ottoman empire. Serious efforts were made in modern times, in 1970s to come up with an Islamic alternative to the conventional insurance. Serious efforts were made in modern times, in 1970s to come up with an Islamic alternative to the conventional insurance. The first Takaful company was set up in Sudan in 1979, almost simultaneously followed by another one set up in Bahrain. The first Takaful company was set up in Sudan in 1979, almost simultaneously followed by another one set up in Bahrain.

21 Takaful through Time… (Contd.) There are now 85+ Takaful companies in over 25 countries. There are now 85+ Takaful companies in over 25 countries. The total insurance premium of OIC countries for 2004 was USD 50 Billion; of this, Takaful contribution accounts for 5% (i.e. USD 2.5 Billion). This is expected to increase to USD 15 Billion by 2015. The total insurance premium of OIC countries for 2004 was USD 50 Billion; of this, Takaful contribution accounts for 5% (i.e. USD 2.5 Billion). This is expected to increase to USD 15 Billion by 2015. Poor Insurance penetration in the Muslim countries (<1% of GDP). Poor Insurance penetration in the Muslim countries (<1% of GDP). Average growth rate higher than conventional insurance companies (around 25%). Average growth rate higher than conventional insurance companies (around 25%). Non–Muslims increasingly opting for Takaful products for commercial benefits. Non–Muslims increasingly opting for Takaful products for commercial benefits.

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23 Takaful Models

24 Mudaraba Model The surplus is shared between the participants with a takaful operator. The sharing of such profit (surplus) may be in a ratio 5:5, 6:4 etc. as mutually agreed between the contracting parties. Generally, these risk sharing arrangements allow the takaful operator to share in the underwriting results from operations as well as the favourable performance returns on invested premiums. The surplus is shared between the participants with a takaful operator. The sharing of such profit (surplus) may be in a ratio 5:5, 6:4 etc. as mutually agreed between the contracting parties. Generally, these risk sharing arrangements allow the takaful operator to share in the underwriting results from operations as well as the favourable performance returns on invested premiums.

25 Profits attributable to Shareholders Companys Admin. & Mangt. Expenses Takaful Contribution paid by Participant General Takaful Fund General Takaful Fund Operational Cost of Takaful Surplus (Profit) Participants Share from Surplus Companys Share from Surplus Investment By Company Profit From Investments Company Participant Mudaraba Model

26 Wakala Model Cooperative risk sharing occurs among participants where a takaful operator earns a fee for services (as a Wakeel or Agent) and does not participate or share in any underwriting results as these belong to participants as surplus or deficit. Under the Al- Wakala model, the operator may also charge a fund management fee and performance incentive fee. Cooperative risk sharing occurs among participants where a takaful operator earns a fee for services (as a Wakeel or Agent) and does not participate or share in any underwriting results as these belong to participants as surplus or deficit. Under the Al- Wakala model, the operator may also charge a fund management fee and performance incentive fee.

27 General Takaful Fund Operational Cost of Takaful/ ReTakaful Surplus (Profit) Surplus Distribution to Participants Takaful Fund Wakala Model Takaful Contribution paid by Participant Company (Capital) Mudarib's Share of PTFs Investment Income Management Expense of the Company Profit/Loss attributable to Shareholders Wakala Fee (30% to 35%) Profit From Investments Investment Income Reserves Investment by the Company Investment Income Sharing on Mudaraba Basis

28 Wakala -Waqf Model It is a WAKALAH model with a separate legal entity of WAQF in- between. The relationship of the participants and the operator is directly with the WAQF fund. The operator is the Wakeel of the fund and the participants pay contribution to the WAQF fund by way of Tabarru. The relationship of the participants and the operator is directly with the WAQF fund. The operator is the Wakeel of the fund and the participants pay contribution to the WAQF fund by way of Tabarru. The contributions received would also be a part of this fund and the combined amount will be used for investment and the profits earned would again be deposited into the same fund which also eliminates the issue of Gharar. The contributions received would also be a part of this fund and the combined amount will be used for investment and the profits earned would again be deposited into the same fund which also eliminates the issue of Gharar. Losses to the participant are paid by the company from the same fund. Losses to the participant are paid by the company from the same fund. Operational expenses that are incurred for providing Takaful services are also met from the same fund. Operational expenses that are incurred for providing Takaful services are also met from the same fund.

29 Investment Income Operational Cost of Takaful / ReTakaful Claims & ReservesSurplus (Balance) P A R T I C I P A N T S T A K A F U L F U N D (P.T.F.) Mudaribs Share of PTFs Investment Income Wakalah Fee Investmen t Income Management Expense of the Company Profit/Loss S H A R E H O L D E R S F U N D (S.H.F.) Participant WAQF Takaful Operator Share Holder Wakala-Waqf Model Investment by the Company

30 Models – The beauty of Islam lies in its plurality … !

31 ISLAM AQIDAH Faith & Belief SHARIAH Practices & Activities AKHLAQ Moralities & Ethics IBADAH Man-to-God Worship MUAMALAT Man-to-Man Activities Social Activities Economic Activities Political Activities Risk Management Takaful

32 General Takaful Types General Takaful – offers all kinds of non- life risk coverage. It is normally divided into following classes: General Takaful – offers all kinds of non- life risk coverage. It is normally divided into following classes: Property Takaful Property Takaful Marine Takaful Marine Takaful Motor Takaful Motor Takaful Miscellaneous Takaful Miscellaneous Takaful

33 Types of Family Takaful Term Life Takaful Term Life Takaful Whole Life Takaful Whole Life Takaful Endowment Takaful Endowment Takaful Universal Takaful Universal Takaful Marriage Plan Marriage Plan Education Plan Education Plan

34 Takaful Policy Document / Participants Membership Document Preamble: Preamble: This is to acknowledge that the applicant (hereinafter called the 'Participant'), as more fully described in the schedule hereto: This is to acknowledge that the applicant (hereinafter called the 'Participant'), as more fully described in the schedule hereto: i.Is accepted as a member of the Participants' Takaful Fund (hereinafter called the 'Fund') operated by Takaful Pakistan Limited (hereinafter called the 'Company'). i.Is accepted as a member of the Participants' Takaful Fund (hereinafter called the 'Fund') operated by Takaful Pakistan Limited (hereinafter called the 'Company'). ii.Being a member of the Fund, he/she is acknowledged as a beneficiary under the attached Indemnity Policy of the Fund, and of the benefits declared by the Fund from time to time under this policy, in accordance with the Waqf rules governing the Fund. ii.Being a member of the Fund, he/she is acknowledged as a beneficiary under the attached Indemnity Policy of the Fund, and of the benefits declared by the Fund from time to time under this policy, in accordance with the Waqf rules governing the Fund. iii.Subject to the participant continuing as a member of the Fund and complying with his/her undertaking under his/her declaration made in the proposal form, he/she is indemnified by the Fund as one of its beneficiaries against the perils/events described, in the manner and to the extent as stated hereunder. iii.Subject to the participant continuing as a member of the Fund and complying with his/her undertaking under his/her declaration made in the proposal form, he/she is indemnified by the Fund as one of its beneficiaries against the perils/events described, in the manner and to the extent as stated hereunder.

35 Takaful Policy Document / Participants Membership Document Duration: Duration: Normally policies are issued for the duration of twelve months. Normally policies are issued for the duration of twelve months. Extended coverage on project policies. Extended coverage on project policies. MARINE POLICY : The membership under this document shall be for the period of _________ months. However, the benefits under this document, except Surplus if any, shall cease on the arrival of goods at destination. MARINE POLICY : The membership under this document shall be for the period of _________ months. However, the benefits under this document, except Surplus if any, shall cease on the arrival of goods at destination.

36 Takaful Policy Document / Participants Membership Document Cancellation Clause: Cancellation Clause: This Policy may at any time be terminated at the option of the Company, on 14 days' notice to that effect being given to the Participant at his last known address. In that case, the Participant shall be GIVEN an amount equivalent to a ratable proportion of the contribution for the unexpired Period of Policy from the date of such cancellation. This Policy my also be terminated at any time at the request of the Participant, in which case the Participant will be PAID an amount equivalent to the actual contribution made initially by him/her, less the amount worked as per the following scale applicable to the period during which the policy has been in force: This Policy may at any time be terminated at the option of the Company, on 14 days' notice to that effect being given to the Participant at his last known address. In that case, the Participant shall be GIVEN an amount equivalent to a ratable proportion of the contribution for the unexpired Period of Policy from the date of such cancellation. This Policy my also be terminated at any time at the request of the Participant, in which case the Participant will be PAID an amount equivalent to the actual contribution made initially by him/her, less the amount worked as per the following scale applicable to the period during which the policy has been in force:

37 Takaful Policy Document / Participants Membership Document TAKAFUL OPERATOR'S FEE TAKAFUL OPERATOR'S FEE The Company shall deduct Takaful Operator's fee out of the Contribution received under this Policy. Such fee shall be based on the Wakala principle since the Company hereby acts as a Wakeel on behalf of the Fund. The Company shall deduct Takaful Operator's fee out of the Contribution received under this Policy. Such fee shall be based on the Wakala principle since the Company hereby acts as a Wakeel on behalf of the Fund. INVESTMENT MANAGEMENT SHARE INVESTMENT MANAGEMENT SHARE The Company shall act as a Mudarib for the purpose of managing the investment of the Participant's Contribution. As such, the Company stands entitled to a share in the investment income thereof as Mudarib. The Company shall act as a Mudarib for the purpose of managing the investment of the Participant's Contribution. As such, the Company stands entitled to a share in the investment income thereof as Mudarib.

38 Takaful Policy Document / Participants Membership Document SURPLUS DISTRIBUTION SURPLUS DISTRIBUTION If, at the end of the period of Policy stated in the Schedule, there is a surplus in the General Takaful Fund, the same shall be distributed among the Participants. Provided that, in case the Participant has made any claim or received any benefits under this Policy, that claimed amount shall be deducted from the net amount worked out as due to the Participant. If, at the end of the period of Policy stated in the Schedule, there is a surplus in the General Takaful Fund, the same shall be distributed among the Participants. Provided that, in case the Participant has made any claim or received any benefits under this Policy, that claimed amount shall be deducted from the net amount worked out as due to the Participant.

39 BANCATAKAFUL Background Background Range of Products Range of Products Savings Personal Accident, Homeowners Comprehensive, Credit Cards, etc. Savings Personal Accident, Homeowners Comprehensive, Credit Cards, etc. Financing, Individuals Car Ijarah, Housing Musharika, Mortgage Takaful. Financing, Individuals Car Ijarah, Housing Musharika, Mortgage Takaful. Financing, SMEs Trade Credit Takaful, Business, Office, Equipment, Assets. Financing, SMEs Trade Credit Takaful, Business, Office, Equipment, Assets. E-Commerce E-Commerce

40 BANCATAKAFUL (…Contd.) Advantages of BancaTakaful: Facilitation Desk / Equipment. Facilitation Desk / Equipment. Fast Turnaround Time. Fast Turnaround Time. One-Stop shop for Clients. One-Stop shop for Clients. Concept of Islamic Financial Supermarket. Concept of Islamic Financial Supermarket. Value Added Services. Value Added Services. Law of Large Numbers. Law of Large Numbers. Lower Contribution Rates. Lower Contribution Rates. Attraction for Depositors. Attraction for Depositors. Synergy. Synergy.

41 ReTakaful Currently few ReTakaful companies worldwide offering a relatively small capacity: Currently few ReTakaful companies worldwide offering a relatively small capacity: Sudan (1979) National Reinsurance. Sudan (1979) National Reinsurance. Sudan (1983) Sheikhan Takaful Company. Sudan (1983) Sheikhan Takaful Company. Bahamas (1983) Saudi Islamic Takaful and ReTakaful Company. Bahamas (1983) Saudi Islamic Takaful and ReTakaful Company. Bahrain/Saudi Arabia (1985) Islamic Insurance and Reinsurance Company. Bahrain/Saudi Arabia (1985) Islamic Insurance and Reinsurance Company. Tunisia (1985) B.E.S.T. Re Tunisia (1985) B.E.S.T. Re Malaysia (1997) ASEAN ReTakaful International. Malaysia (1997) ASEAN ReTakaful International. Dubai (2005) TakafulRe by ARIG. Dubai (2005) TakafulRe by ARIG. Lloyds of London to have a ReTakaful Syndicate in 2007. Lloyds of London to have a ReTakaful Syndicate in 2007. SwissRe has formed a separate ReTakaful Pool SwissRe has formed a separate ReTakaful Pool MunichRe to form a separate ReTakaful Pool MunichRe to form a separate ReTakaful Pool Provision in Takaful Rules – 2005. Provision in Takaful Rules – 2005.

42 Objectives Resolution 1949 1992 1983 Review by Council of Islamic Ideology Report by the Council 2000 Insurance Ordinance 2005 Takaful Rules T I M E L I N E – T A K A F U L I N P A K I S T A N 2006 TAKAFUL PAKISTAN LIMITED

43 Takaful Prospects in Pakistan 97% Muslim population. 97% Muslim population. Demand for insurance increasing with increase in per capita income. Demand for insurance increasing with increase in per capita income. Personal lines insurance business (leasing, health, Medicare) growing at a higher rate than other conventional classes. Personal lines insurance business (leasing, health, Medicare) growing at a higher rate than other conventional classes. Islamic banking on sound footing with support of the Govt. Islamic banking on sound footing with support of the Govt.

44 People who do not insure due to religious reasons. People who do not insure due to religious reasons. People who insure and are insensitive to religious reasons. People who insure and are insensitive to religious reasons. People who currently do not insure at all. People who currently do not insure at all. TAKAFUL - TARGET MARKET

45 Challenges to Takaful Skepticism. Skepticism. Lack of uniformity in Shariah decisions. Lack of uniformity in Shariah decisions. Windows issue. Windows issue. Regulatory issues. Regulatory issues. Capacity constraints due to inadequate ReTakaful. Capacity constraints due to inadequate ReTakaful. Limited Investment avenues. Limited Investment avenues. H.R. issues. H.R. issues.

46 Introduction to TAKAFUL PAKISTAN LIMITED

47 TAKAFUL PAKISTAN LIMITED Takaful Pakistan is a joint venture of prestigious local & foreign institutions, including: Takaful Pakistan is a joint venture of prestigious local & foreign institutions, including: House Building Finance Corporation. House Building Finance Corporation. Emirates Global Islamic Bank. Emirates Global Islamic Bank. Arif Habib Securities. Arif Habib Securities. Sitara Chemicals. Sitara Chemicals. Emirates Investment Group (Sharjah). Emirates Investment Group (Sharjah). Al-Buhaira National Insurance Co. (U.A.E.) Al-Buhaira National Insurance Co. (U.A.E.) Large initial paid-up Capital. Large initial paid-up Capital.

48 TAKAFUL PAKISTAN LIMITED … (Contd.) Managed by dedicated professionals, committed to the cause. Managed by dedicated professionals, committed to the cause. ReTakaful arrangements with a consortium of internationally reputed ReTakaful operators. ReTakaful arrangements with a consortium of internationally reputed ReTakaful operators. Shariah Board comprises of eminent scholars. Shariah Board comprises of eminent scholars. BancaTakaful and MicroTakaful products. BancaTakaful and MicroTakaful products. We intend to be the trend-setter for excellent Clients Servicing, Operational bench marks and prudent Underwriting practices. We intend to be the trend-setter for excellent Clients Servicing, Operational bench marks and prudent Underwriting practices.

49 Conclusion Takaful defined. Takaful defined. Comparison with conventional insurance. Comparison with conventional insurance. Takaful Models Takaful Models Takaful Types Takaful Types BancaTakaful BancaTakaful ReTakaful ReTakaful Takaful Pakistan Limited Takaful Pakistan Limited

50 Thank you for your attention


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