The Non-Bank Financial Institutions Service Line of FPD’s Capital Markets Practice organized a conference on Mutual Insurance and Takaful in a Changing World, which was held on November 12-13, 2012 in Istanbul. The conference was jointly organized with the Turkish Treasury's Insurance Training Center.
The conference provided an overview of mutual insurance structures (including the Christian and Jewish examples) and other hybrid models, presenting feasible ideas for moving forward with Takaful structures. It also explored avenues for further development-oriented opportunities, including the application of Takaful structures to microinsurance markets in emerging economies with large Muslim populations.
Opening the conference, World Bank Managing Director, Mahmoud Mohieldin, emphasized that “The development of the takaful market is critical both for social inclusion as well as for economic development.” Access to insurance is especially important for poor households who are then better able to absorb financial shocks, and manage risks associated with unpredictable events. However, traditional insurance products are inhibiting in some cultural settings. For this reason, the entry of Takaful to insurance markets is to provide access to people who have religious/ethical objections to conventional commercial insurance models.
During the conference, a new World Bank book entitled “Mutual Insurance and Takaful: Alternative Approaches to Managing Risk” was launched. “The book seeks to increase the understanding, appreciation, and discussion of the challenges and solutions needed for the active development and implementation of takaful,” said Serap. “It attempts to develop a hybrid model of takaful - benefiting from existing models established around the world and bearing in mind compliance with Sharia rules and consistency with the culture of Muslim communities.”
The conference brought together global players in the insurance industry, regulators and supervisors, actuaries, and academics interseted in learning about and facilitating the establishment of Takaful operations in their countries.
Listed below are presentations available for distribution (not all speakers provided presentations). To access presentations, please click on the corresponding speaker's name below. Click here to see the full agenda.
Monday, Novermber 12
- Mahmoud MOHIELDIN, Managing Director, World Bank
- Burhanettin AKTAS, - Deputy Undersecretary, Republic of Turkey Prime Ministry Undersecretariat of Treasury
Address: Dynamics of the Cooperatives, Mutual Insurance and Takaful
Sabir PATEL, Vice President and CFO, International Cooperative and Mutual Insurance Federation
Panel Discussion I: Mutual Insurance &Takaful: Tools of Financial Inclusion
- Iqbal ASARIA- Associate, Afkar Consulting Ltd.
- Rodney LESTER- Insurance Specialist
- Kamarudin SHARIF- Professor of Takaful and Wealth Planning, International Centre for Education in Islamic Finance (INCEIF)
Address: Recent Developments in the Turkish Insurance Industry
Dr. Ahmet GENÇ- Director General, General Directorate of Insurance Republic of Turkey Prime Ministry Undersecretariat of Treasury & President of the Administrative Board, Insurance Training Center
Panel Discussion II: Implementation of Mutual Insurance & Takaful
Panel Discussion III: Hybrid Insurance Structures
Panel Discussion IV: Microtakaful: The Missing Piece to Microfinance
- Susan DINGWALL- Partner, Norton Rose LLP
- Sabbir PATEL- Senior Vice President & CFO, International Cooperative and Mutual Insurance Federation (ICMIF)
- Ahmed Mohamed Tawfick ROSTOM- Financial Sector Specialist, World Bank
Tuesday, November 13
Book Launch and Authors’ Overview - “Mutual Insurance and Takaful: Alternative Approaches to Managing Risk”
Serap GONULAL and co-authors
Panel Discussion V: Regulatory Framework for Takaful
- Wan Mohd Nazri bin Wan OSMAN- Director, Islamic Banking and Takaful, Bank Negara Malaysia
- Kartina Md Ariffin- Member of the Secretariat, Technical and Research, Islamic Financial Services Board (IFSB), Malaysia
- Gökhan KARASU- Head of Unit, General Directorate of Insurance, Republic of Turkey Prime Ministry Undersecretariat of Treasury
Address: Investment Policy in Mutual Insurance & Takaful: The Asset Side of Takaful and Implications on Product Design
Hassan Scott ODIERNO- Partner, Actuarial Partners, Malaysia
Panel Discussion VI: Retakaful
- Chakib ABOUZAID- Vice Chairman, Global Takaful Group
- Ismail MAHBOB - Retired-Past President / Chief Operating Officer, MNRB Retakaful, Malaysia.
- Dr. Ludwig STIFTL- Head, Center of Competence for Retakaful at Munich Re and former head of Munich Re’s Retakaful unit
- Daniel STAIB- Senior Economist, Swiss Re
Address: Governance Challenges in Takaful: Is there a Solution to the Agent-Operator-Principal-Participant Conundrum?
Zainal Abidin Mohd KASSIM- Senior Partner, Actuarial Partners, Malaysia
Address: S&P’s Overview of Takaful and Rating Factors
Ali KARAKUYU- Associate Director, Standard & Poors
Business Challenges in Mutual Insurance & Takaful
Serap GONULAL- Senior Financial Sector Specialist, World Bank
For further information, contact Uloaku Oyewole