Page 13 - March 2022 Issue 604 Part 2

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Third Panel: The Takaful Debate – Review of the Market with Africa Re

Inherent issues with the Takaful model – including a conflict between
funds held for participants and shareholder funds – continue to hinder the
market’s development in the GCC market. This was the conclusion of the

participants speaking on the Takaful Debate Roundtable discussion. The

panel included Gamal Sakr Regional Director, Cairo Office Africa Re,

Saxon East Session Moderator, Global Reinsurance, Tamer Saher

Director – Business Development, RGA, Yousif El Lazi Gamma

Managing Director of Africa Retakaful and Africa Re Local Representative

in Sudan, Mohamed Saad FCII-Chartered Insurer, SEO, Africa Re DIFC,

Gautam Datta CEO of National Takaful Company, Watania, Chakib Abouzaid

General Arab Insurance Federation Secretary General.

The discussion, sponsored by Africa Re DIFC, considered why Takaful

insurance had failed to mature despite being around for 40 years or

more. Most speakers agreed that ultimately, it was the design of the

model that was to blame, because it poses a challenge for regulators. ,ôgÉ°S ôeÉJ ,∫ƒ∏ZR ~©°S ~ªëe ,ô≤°U ∫ɪL :ø«ª«dG øe ô¡¶jh πaÉμàdG ∫ƒM πªY á°ù∏L
The slow growth of the underlying market is also the reason why so
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much retakaful capacity has disappeared from the market in recent

years. The appearance of “retakaful windows” is helpful, but dedicated

subsidiaries are what is needed, thought the speakers. They pointed to Takaful models in Morocco and Turkey, which have simplified the model and incorporat-

ed some of the lessons of the past. Takaful operators in these markets are also focusing on personal lines, where there is a clear business case and purpose.

“Takaful needs to be about risk sharing rather than risk transfer”, thought Datta, adding that the model needs to change.

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AL BAYAN ECONOMIC MAG - ISSUE 604 - MARCH 2022