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Abdul Rahman Al Baker Executive Director - Financial Institutions Supervision 5 th May, 2009

Takaful Industry – Challenges & the Way Forward. Abdul Rahman Al Baker Executive Director - Financial Institutions Supervision 5 th May, 2009. Overview. Takaful Industry Globally & in Bahrain The Main Factors for Growth of Takaful The Current & Future Challenges The Way Forward.

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Abdul Rahman Al Baker Executive Director - Financial Institutions Supervision 5 th May, 2009

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  1. Takaful Industry – Challenges & the Way Forward Abdul Rahman Al Baker Executive Director - Financial Institutions Supervision 5th May, 2009

  2. Overview • Takaful Industry Globally & in Bahrain • The Main Factors for Growth of Takaful • The Current & Future Challenges • The Way Forward

  3. Average Annual Growth of 35% per annum The Global Takaful Contributions US$ millions Year Source: Ernst & Young

  4. Asian Countries • Malaysia 12 • Indonesia 3 • Pakistan 4 GCC countries • Bahrain 7 • UAE 6 • Kuwait 12 • KSA 37 North Africa • Egypt 3 • Algeria 1 • Libya 1 • Sudan 15 The Takaful Industry Globally 124 Takaful Companies Globally Source: Ernst & Young

  5. Average Annual Growth of 30% per annum The Gross Takaful Contributions in the GCC US$ millions GCC (CAGR) • Bahrain 98% • Qatar 50% • Kuwait 22% • UAE 62% • KSA 26% Year Source: Ernst & Young

  6. 7 Takaful companies & 2 Retakaful Co. The Takaful Industry in Bahrain Solidarity Family Takaful Solidarity General Takaful Allianz Takaful Takaful International CBB Legal & General Gulf Takaful AIG Takaful Enaya Hannover Retakaful T’azur Company ACR Retakaful

  7. The Takaful Industry in Bahrain

  8. The Takaful Industry in BahrainChange in Mix of Takaful Contributions

  9. The Significant Growth of the Islamic Banking The Major Infrastructure & Construction Projects in the region Low Insurance Penetration in the Mena region Muslim Population & Demography Significant Economic Growth in the region Regulatory Initiatives The Main Factors Contribute to the Growth of Takaful Industry

  10. Challenges facing Takaful Industry • Corporate Governance issue regarding Policyholders • Standardization of Takaful Accounting Standards & Disclosure. • Lack of Human Resources

  11. Challenges facing Takaful Industry • Development of Islamic Instruments Market • Limited Retakaful Capacity • Banc-takafulassurance & Micro-takaful • Misconception

  12. The Way Forward……. • To Establish appropriate Corporate Governance for Takaful Companies • Enhance the Business Conduct of Takaful Companies • Appropriate Distribution Channels

  13. The Way Forward……. • AAOIFI & IFSB need to update Takaful Standards and to Contribute to Development of Consistent Standards • Proper Risk Management & Investment Framework • Enhance the Public awareness of Takaful

  14. Thank You

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