Retakaful. Daniel Staib, Economic Research & Consulting Mutual insurance and takaful conference, Istanbul, 13 November 2012. Table of contents. Market potential & outlook Retakaful at Swiss Re Operating model (Wakalah-Waqf ) Challenges in retakaful. 2 Market potential & outlook. 3.
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Daniel Staib, Economic Research & ConsultingMutual insurance and takaful conference, Istanbul, 13 November 2012
Growth of Takaful has been exceptional over past four years (almost 30% p.a.), but is expected to slow in 2012
Until 2015 Takaful contribution could surpass USD 7bn.
Malaysia is leading in terms of size and development of its takaful markets
Source: Swiss Re Economic Research & Consulting
Fund Participants (e.g. AIA Takaful)
Profit Sharing Basis
Tabarru part: Mutual Pool for collection of
contributions, payments and claims &
setting up of stabilisation reserves
Swiss Re’sWakalah-Waqf model has been accepted by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the National Shari’a Advisory Council (SAC) of Bank Negara Malaysia, and National Syariah Council, Indonesia.
Wakalah-Waqf model is used in Pakistan, South Africa and the Middle East
Swiss Re Retakaful ensures complete Shari’a compliance through:
No global regulatory framework
Diversity of industry practises
Recent lack of growth of business
Price pressure from cedent companies
How to handle large commercial risks