Mutual Insurance and Takaful in a Changing World

Mutual Insurance and Takaful in a Changing World Mutual Insurance and Takaful – Tools of Financial Inclusion Presented at: World Bank / Segem, Istanbul, Turkey 12 th 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 v. Rural 60%+ / Urban 40% - § Key Occupations v. Agriculture and Animal Husbandry § Key Exports v. Commodities v. Oil v. Minerals

Africa – Key Features § Average GDP / Capita US$1, 000 § Banked Population 20 – 30 % v. Urban 40% + v. Rural 10% - § Banking Facilities v 1 Bank per 100, 000 people § Capital Markets v. Few and Rudimentary

Banking the Unbanked

Africa - Challenges § Large Infrastructure Needs § Large unbanked population § Dominant Financing Requirements v. Agricultural Finance v. Commodity Finance v. Export Finance v. Microfinance

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

§www. takafulsummit. com § 18 – 19 February 2013 §Intercontinental Citystars Cairo Al Kahira (Cairo) Egypt §info@takafulsummit. com

Contact: M Iqbal Asaria Afkar Consulting Ltd 0208 861 2012 mia@afkar. com