Session VI

The Pure Mutual Route to Takaful

Session Summary

The Takaful Hybrid was born from the need for a commercially viable model. However, present models have led to dilution of the key features of mutuality. Is there a role for having a vibrant sector of the Takaful industry based on "pure" mutual foundations?

Session VI: 23 February 2016
Presentation: Takaful - Are we on the right path? The Discretionary Mutual alternative
Presented By: Zainal Kassim FIA
Designation: Senior Partner, Actuarial Partners Consulting Sdn Bhd

Takaful - Are we on the right path? The Discretionary Mutual alternative:

Topics covered:

- Afflictions affecting takaful operators
- Are the existing takaful models the 'right' Model?
- The questions we need to ask ourselves
- Discretionary Mutual -The basis of a new takaful model?
- Who manages a Discretionary Mutual?
- Business Structure

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Session VI: 23 February 2016
Presentation: The Mutual Route to Takaful
Presented By: John Gilbert
Designation: Partner, M&G Advisory Services Limited

Standardising Takaful / Retakaful Provision

Key Points:

The case for mutuality:
I: The Academic Argument
II: The Practical Argument

The case against mutuality:
- Capital Constraints
- Possibility of contamination through haraam investments in existing funds

The Answer: Mutual Deferred Shares

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azman-presentation

Session VI: 23 February 2016
Presentation: The Pure Mutual Route to Takaful
Presented By: Azman Ismail
Designation: President, IIFIN Consulting Sdn Bhd

Key Points:

- Market share of mutuals very significant
- Demutualisation 'encouraged/ enfored' by regulators - IAIS ICPs
- Dark side of demutualisation
- European Mutual Growth
- Old Mutuals in the UK
- The 3 S of Mutuals?
- Why Demutualisation?
- Insurance Failures
- Reasons compiled by Battilani & Schröter
- Phases of demutualisation
- Is Demutualisation Good or Bad?
- Are The Arguments of Demutualisation Valid?
- RBC/ Solvency Issues
- Remutulisation? (benefits of Mutuals)
- NFU Mutual
- Legal Maxims
- Access to capital
- Crowdfunding & examples
- Issues Facing Regulators
- What Next? - Possible Options

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