Takaful should be at forth-front of Islamic finance industry


Observer Report


Global Takaful Forum (GTF) was successfully concluded at Double Tree by Hilton Hotel, Istanbul, Turkey. The forum was inaugurated by Chief Guest H.E. Husnu Tekin, Division Director from Presidency Finance Office – Turkey. The objective of the event was to provide adequate knowledge and benefits of Takaful industry to the relevant market. It is also pertinent to mention that the forum was handful to promote, strengthen and unite the organizations of Islamic Insurance (Takaful) with the theme of product outreach strategies and innovations. The platform helped to analyze the problems hindering rapid development of Takaful globally that would surely help to increase financial inclusion. Prominent Speakers and industry professionals from well serving organizations related to Takaful, Insurance and Islamic Finance participated in the event. They discussed the outreach strategies and Innovative products development with stakeholders under one roof. The forum was organized by AlHuda Centre of Islamic Banking and Economics in partnership with multilateral organization Islamic Corporation for Development of Private Sector (ICD) – Saudi Arabia and Milliman LLP – UK. Muhammad Zubair Mughal, CEO, AlHuda Centre of Islamic Banking and Economics (CIBE) said that Takful is neglected area of the Islamic finance industry with merely 2% contribution. Takaful industry in dire need to develop new and innovative products to penetrate in the market. Alongside with the innovative product development the distribution mechanism should be addressed by focusing its outreach through banca-Takaful and Micro-Takaful etc. Moreover, re-Takaful products should be developed to strengthen the Takaful industry in global financial markets.
He further said that Takaful product of one country/region should not be implemented in another country/region. The bases and indicators of one country would be different in term of GDP, religious sensitivity, regulation framework etc. with the other country while the development of Takaful products. The social, economic and religion dynamics could also be different. So, Takaful products should be designed keeping in view the country/region dynamics and indicators mentioned above for the successful implementation.
He was also delighted to highly distinguished speakers and policy advisors to bring forth exceptionally handful of ideas to implement Takaful as a substitute to conventional insurance for the poverty alleviation especially for under developing countries.

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