Mutual Insurance and Takaful in a Changing World Mutual Insurance and Takaful – Tools of Financial Inclusion Presented at: World Bank / Segem, Istanbul,

Mutual Insurance and Takaful in a Changing World

Mutual Insurance and Takaful –Tools of Financial Inclusion

Presented at:World Bank / Segem, Istanbul, Turkey

12th November 2012

But in many cases, the problem is lack of insurance, particularly among the world’s poorest. Part of what keeps them in poverty is that their livelihoods are so vulnerable to natural disasters or other misfortune. Millions could be released from poverty traps by deeper and broader insurance markets.Financial Times 09/11/2012

Takaful and Financial Inclusion

Microfinance and Microtakaful Technology

• Africa Case Study

New Zakat Model for Seed Capital• Malaysia• Indonesia

Subsidy Reduction Policies• India, Bangladesh• Iran, Egypt, Nigeria

Africa – Deserts and Forests

Africa - Internet Connectivity

Africa – Internet Backbone

Africa – Key Features Mostly Rural Population

Rural 60%+ / Urban 40% -

Key OccupationsAgriculture and Animal Husbandry

Key ExportsCommoditiesOilMinerals

Africa – Key Features

Average GDP / Capita US$1,000 Banked Population 20 – 30 %

Urban 40% +Rural 10% -

Banking Facilities1 Bank per 100,000 people

Capital MarketsFew and Rudimentary

Banking the Unbanked

Africa - Challenges Large Infrastructure Needs Large unbanked population Dominant Financing Requirements

Agricultural FinanceCommodity FinanceExport FinanceMicrofinance

Africa -Innovations [1]

Delivery Methods Overcoming Handicaps Use of Mobile Phone Technology Kenya and M-Pesa Other Options

Africa Innovations [2] Islamic Finance – Back to Roots African Food Production Potential Salaam [Spot Sale / Deferred Delivery] Arbun [Deferred Delivery] Modarabah [Risk Sharing Contract] Original Agricultural Contracts Easy to Adapt to African Requirements Micro-Takaful Needs

Opportunities

Potential Market Size Agricultural Finance Microfinance Microtakaful Risk-Sharing Infrastructure

Finance Sustainable Finance Ethical Finance

Takaful Resources

International Takaful Summit Archives• www.takafulprimer.com• ITS 2009, ITS 2010, ITS 2011, ITS 2012

World Takaful Reports • http://www.ey.com/UK/EN/home/library• WTR 2009, WTR 2010, WTR 2011, WTR 2012

Intercontinental Citystars Cairo Al Kahira (Cairo) Egypt

[email protected]

18 – 19 February 2013

www.takafulsummit.com

Contact:

M Iqbal AsariaAfkar Consulting Ltd

0208 861 2012

[email protected]