11 & 12 April 2017 | Dusit Thani, Dubai, UAE
Stability, Authenticity and Technological Transformation
“In line with Dubai’s determination to become the global capital of the Islamic Economy, the Dubai Islamic Economy Development Centre is committed to creating an enabling environment to reignite the growth of the Takaful sector, as part of an integrated vision. The World Takaful Conference (WTC), will play a significant role in shaping the global Takaful industry and I look forward to discussing new strategies that will unlock the true potential of the sector.”
“We are very happy to see strengthening the Retakaful industry as one of the key areas covered at this year’s World Takaful Conference and we are delighted to be supporting this prestigious gathering of international Takaful leaders as a Platinum Strategic Partner.”
“SALAMA has been a partner of the annual World Takaful Conference since its inception almost a decade ago and we are once again delighted to be supporting this important gathering of global Takaful leaders. We hope that this year’s WTC serves as a great platform for leaders in the international Takaful industry to generate quality ideas on taking Takaful to its next growth phase.”
“The sector is still poised to sustain impressive double-digit growth in the coming years, although we have recently seen some companies struggling for scale and face increasing competition from existing or new entrants. As we get together at the world’s largest gathering of influential Takaful leaders in the global Islamic insurance industry, I hope discussions at this year’s 9th Annual World Takaful Conference (WTC 2014) will provide meaningful insights on how Takaful market share can be further expanded while strengthening profitability and RoE. We are delighted to be a part of this prestigious gathering.”
World Takaful Conference (WTC) is the leading global forum for Takaful and has played an instrumental role in the development of the industry for more than a decade by facilitating thought-provoking discussions, producing quality research and generating actionable insights.
Though still at a nascent stage of development, the Takaful industry has witnessed rapid growth over the past 7 years with its total assets doubling in the last 5 years. As the industry navigates through the complex global insurance landscape, there is a greater need for its leaders to share insights and deliberate on new strategies to help it grow beyond its niche status.
WTC serves as a platform to facilitate idea-sharing among industry leaders gathered from diverse parts of the world ranging from key markets for Takaful such as the GCC and South East Asia to emerging markets such as Africa and Europe.
The 12th edition of WTC will take place on 11 and 12 April at the Dusti Thani Hotel, Dubai.
Connect fragmented Takaful markets by uniting the leaders in these markets on one platform
Equip Takaful leaders with actionable insights to aid in their strategic decision-making
Explore and analyze the latest trends in the industry
Facilitate dialogue between regulators and Takaful practitioners
Provide a roadmap for the future course of the industry to achieve its growth agenda
Transforming the industry through actionable insights and recommendations:
WTC takes a pragmatic approach in finding solutions to the major issues in the industry by carefully analyzing the Takaful landscape and leveraging in-house research insights and engaging renowned experts to come up with actionable points that can be implemented by the Takaful operators in the near-future.
Key challenges faced by the Takaful industry
Source: E&Y Takaful Report 2014
A solution-focused approach targeting the biggest market challenges
Robust Regulatory Regime
Increased Growth and Profitability
Takaful operators have operated in relatively under-regulated markets that have led to a divergence of practices that erode perceptions of market stability. For instance, investment portfolios of many operators have high concentration of risky assets and there is a tendency to underwrite risk based on pricing rather than proper assessment. Clear and strict guidelines in these two key areas are needed to help in improving the stability of the Takaful operators.
Encourage cooperation amongst regulators to ensure regulatory harmonization relating to investment and underwriting practices
Lack of consistency in properly following the underlying principles of mutuality and Shariah which would offer a clearer value proposition is a major reason Takaful faces stiff competition from conventional insurance. For instance, it’s prevalent in the industry to partly invest in non-Shariah compliant instruments, insure risk with Re-insurers instead of Re-Takaful operators, infrequently or never redistribute profits and not maintaining separation of risk between shareholders and policyholders. This affects the true essence of Takaful that is purely based on risk sharing.
Support best practices in usage of ‘qard’ to limit risk shifting from policyholders to shareholders
The Takaful industry is fragmented and the major reason for disintegration of the various markets is the absence of uniformity in the regulatory frameworks. Although absolute regulatory harmony cannot be achieved however, increased cooperation between regulators could make it less challenging for Takaful companies to operate internationally. In addition to cross border cooperation, the standard setters and regulators need to work hand-in-hand to enable full enforcement of robust regulations produced by the standard settings’ bodies that are currently not being practiced in the industry.
Encourage regulatory harmonization for regional Takaful operators to spread their risk more widely and support Takaful market development beyond core markets (Saudi Arabia and Malaysia).
Takaful operators (mostly in the GCC) are continuously incurring underwriting losses but are still managing to stay profitable due to returns on investment. These losses are attributed to lack of underwriting discipline and increased focus on top line that comes at the expense of profit margins. Moreover, intense competition, fragmented markets, and price-based competition are responsible for diminishing profits. In order to become more profitable, the operators need to strictly adhere to risk-based pricing, focus on bottom line and change their market strategy to compete on the basis of the unique features of Takaful.
Profitability could also be achieved by expanding into other markets thereby easing competition in local markets however, that requires sufficient scale which most of the operators currently lack. Operators also need to explore new segments such as SMEs, cyber insurance and pension products.
Encourage consolidation within the industry to form large-scale operators, tap into the potential of rapid growth markets and achieve underwriting discipline.
Takaful operators tend to follow a product-centric approach as opposed to identifying customer needs and addressing them through enhancement to the value chain including product innovation. Due to lack of specialized products, intense competition and inability to offer the unique features of Takaful such as surplus distribution, operators are left with no other choice but to compete on the basis of price. In a highly saturated market where their counterparts are deeply entrenched and have more cost-efficient business models, this leads to smaller market share and lower profitability.
Additionally, the distribution channels used by the operators are undiversified and predominantly brokers and agency (mostly in GCC). Most of these brokers also sell conventional insurance and are mainly motivated by commissions so they tend to push conventional products due to higher margins.
Develop diversified distribution channels particularly digital and Bancassurance, focus on customer needs and explore new segments such as pension products and products for SMEs.
Our Confirmed Speakers at the World Takaful Conference
What makes us Unique
WTC brings groundbreaking research into the industry in the Finance Forward Middle East Takaful Outlook Report 2016, that was launched exclusively at WTC 2016. The findings of the report helped industry leaders to make key strategic decisions and capitalize on emerging opportunities
In addition to having the participation of major stakeholders in the regional insurance industry, WTC attracts a wide range of global insurance and Takaful leaders that helps in the transfer of best practices from the global insurance markets
In order to engage and enable participants to actively take part in the discussions, WTC adds technological enhancements such as real time voting and a live social media feed that will provide an immersive and truly memorable experience
International and Regional
Shariah Scholars Debate
Industry Leaders Session
Country Focus Sessions
Exclusive Onstage Interview
Prospective delegate? Here's why you should attend!
Be the first to learn about new visions and initiatives by regulators and policy makers in exclusive keynote speeches
Explore how global trends in insurance and macroeconomic developments in the region will influence the Takaful industry
Learn from distinguished and influential speakers, and engage with them in lively discussions
Meet more than 400 senior executives from the global Takaful industry
Network with key decision makers and leaders in the global Takaful industry
Why Partner with us?
Contribute to historic conversations and have your say in thought-provoking discussions that serve to determine the direction of the industry
Stay ahead of your competitors and showcase your leadership to various industry stakeholders using our highly effective marketing system reaching far and wide into global markets.
Showcase your unique value proposition to the Takaful industry and interact with prospective clients and other industry professionals in the conference exhibition
Interact with key decision makers, forge new business connections and develop partnerships leading to enhanced growth opportunities
WTC 2017 Partners
MIDDLE EAST MEDIA PARTNER
Regional Business Magazine Partner
CHINESE BROADCAST PARTNER
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