Takaful industry challenges in focus

Held under the theme "Islamic Insurance: Managing Risk, Innovating Products and Driving Growth," the conference was opened with a keynote inaugural address by Marwan Ahmad Lutfi, deputy chief executive officer and head of business development, Dubai International Financial Centre Authority.
The address was immediately followed by a special opening keynote plenary session. The session, which featured Salama Group Vice Chairman and CEO Saleh Malaikah, Dubai Islamic Insurance and Reinsurance Company (AMAN) CEO and Managing Director Hussein Al-Meeza and Etiqa Takaful Berhad CEO Shahril Azuar Jimin, reassessed the growth prospects for the global Takaful industry and reviewed the growth opportunities in key Takaful product segments.
Al-Meeza highlighted that "Takaful companies must focus on developing their core business and concentrate more on quality underwriting, which can lead to profitability." He also said that Takaful operators must focus on developing products and services that are tailored to Shariah sensitive customers and avoid just replicating the products and services offered by conventional insurers."
The eagerly anticipated 2011 edition of the World Takaful Report was also launched at the event. The report developed in collaboration with Ernst & Young, was presented at a specially convened session at the conference. With a principal theme of "Transforming Operating Performance," the report indicated that majority of the key players in the industry are focused on Transforming Operating Performance for their businesses over the coming months. The report said that the primary focus of this transformation is increasing customer acquisition, albeit selectively, while maintaining a more flexible cost structure. According to the report, the cost-effective availability of operational expertise across underwriting, claims, actuarial, finance and investments will determine the success of this strategy.
The World Takaful Exhibition, which was held along the sidelines of the conference, showcased the latest products, services and innovations from over 25 exhibitors.
Ahmed Al-Janahi, managing director of Noor Takaful and deputy group CEO of Noor Investment Group, said: "The global expansion of Takaful still faces a number of challenges which we must deal with as an industry if we are to become a powerful competitor to conventional insurance. Over the next year, we will have a renewed opportunity to address challenges, capitalize on opportunities and implement strategies that would advance the Takaful industry to record levels. The World Takaful Conference continues to bring together a tremendous number of very insightful and influential people trying to tackle the many obstacles hindering the true expansion of this sector globally, and we at Noor Takaful promise to continue to contribute to the development of this vital sub-sector."
Expressing a similar view, Malaikah said: "Salama has been a partner of the WTC since the inception of the conference 6 years ago. As a pioneer in the industry, and as a leading provider of Shariah-compliant insurance solutions, Salama is proud to be once again a 'Platinum Strategic Partner' of the WTC 2011." He said: "The WTC has been successfully showcasing the achievements and innovations of the international Takaful industry for the past 6 years, bringing together the key players and market leaders in the global Takaful industry to meet and debate the most pressing and critical issues of the industry."
Ghassan Marrouche, general manager of Takaful Emarat, was of the view that with global Takaful premiums predicted to grow to $7 billion by 2015, there is a pressing need to engage in a meaningful dialogue on the development of the rapidly expanding Takaful industry. The WTC presents a unique opportunity to address issues of regulation, changing affluence trends, and the human resources shortfall in the Islamic financial sector, "which will ensure we create a robust foundation for the industry's continued growth."
"As Life & Health Partner of the World Takaful Conference 2011, Takaful Emarat is pleased to raise awareness about the importance of life and health Takaful products to the industry as a whole", he added.