1 / 11

The International Takaful Summit 2007 1 – 2 November 2007 Langham Hotel, London

The International Takaful Summit 2007 1 – 2 November 2007 Langham Hotel, London. Organized by: Islamic Banking and Finance Institute Malaysia Afkar Consulting. Rating for Takaful / Retakaful Companies. By: Jamal Abbas Zaidi, CEO Islamic International Rating Agency (IIRA), Bahrain.

chill
Download Presentation

The International Takaful Summit 2007 1 – 2 November 2007 Langham Hotel, London

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The International Takaful Summit 2007 1 – 2 November 2007 Langham Hotel, London Organized by: Islamic Banking and Finance Institute Malaysia Afkar Consulting Rating for Takaful / Retakaful Companies By: Jamal Abbas Zaidi, CEO Islamic International Rating Agency (IIRA), Bahrain

  2. Takaful Industry • The Takaful industry provides insurance service in legitimate cooperative manner free of ‘Gharar’ (uncertainty) and ‘Riba’ (interest). To evolve and grow the industry needs to be efficient. Efficient Takaful industry must be: • a) Well managed, financially sound and strong • b) Fully Shari’a compliant 2

  3. IIRA uses different tools to assess – • a) Insurer Financial Strength Rating (IFSR) • b) Shari’a Quality Rating (SQR) • IFS Rating is an independent assessment of the company’s financial strength and its capacity to meet obligations to policy holders and other contract holders. • SQ Rating aims to provide an independent assessment regarding level of compliance of the activities of the company with Shari’a guidelines and principles. 3

  4. Assessment of markets • Political stability • Size of the economy • Demographics • Muslim preferences • Drivers of growth 4

  5. Regulatory Framework • Country’s legal system • Government regulations • Reporting regimes and examination programs 5

  6. Competition • Local and international providers • Life cycle status of principal peers • Relative market share, pricing power, changing patterns 6

  7. Targeted lines of business Distribution strategy Product and geographical diversification Investment strategy Business Plan & Strategy 7

  8. Senior executives and middle management Organizational framework and succession Corporate governance Operational controls Management considerations 8

  9. Financial history Capitalization Asset quality Underwriting performance Investment performance Fund flows Capacity of operator to cover underwriting shortfalls Financial Performance 9

  10. Shari’a Quality Assessment • Shari’a Committee (S.C) • Internal Shari’a control mechanism • Training programme in Islamic Insurance • Investment methods of Takaful funds • Treatment of surplus • How to deal with deficit • Re-insurance arrangements • Identity and corporate image • Mechanism for dealing with Non-Shari’a compliant income, any other violations 10

  11. Thank You Please visit our website www.iirating.com for information on rating methodologies and rating scales Contact Details: Jamal Abbas Zaidi Chief Executive Officer Islamic International Rating Agency Telephone: +973 17211606 Fax: +973 17 211605 Email: jamal.zaidi@iirating.com Webpage: www.iirating.com Address: P.O. Box 20582 Manama Kingdom of Bahrain 11

More Related