Opportunities and Challenges For Takaful in North America

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Opportunities and Challenges For Takaful in North
America

• Presented By
• Pervez Nasim
• Chairman
• Islamic Co-operative Housing Corp.
• Ansar Financial Group
• Toronto, Canada

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Introduction

• Like any business, insurance business is also
  market driven
• Demand for Islamic Financing and Insurance
  (Takaful) is growing in many parts of the World
• Insurance Companies have to respond
• Mutual and Co-operative Insurance concept already
  exists in many countries including North America

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• Transformation of conventional products
• Innovations in
• Property Insurance
• New products
• Family Takaful

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Transformation of Conventional Insurance Products
into Sharia Compliant Products is a challenge

• Technical hurdles
• Regulatory hurdles
• Lack of Sharia Compliant Investment options
• Institutions own policy issues
• Current Corporate Structure

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Restructuring the Products

• Devise various Takaful Products
• Mechanism to share the Surplus between
  Policyholders and Takaful Operators
• Short-term vs. Long-term Solutions

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Restructuring the Products

• Devise Various Family Takaful Products
• Competitive Alternate for Life Insurance Schemes
• Health Travel Insurance
• Real Estate Title Insurance
• Overall Compliance with the Current Statute and
  Regulations

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PROGRESS FOR TAKAFUL IN CANADA
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North AmericasFirst Islamic Financial
InstitutionIslamic Co-operative Housing
Corporationand Ansar Co-operative Housing
CorporationEstablished Home Auto Takafulfor
Co-op Membersin Partnership with second largest
Insurance Company in CanadaThe Co-operators
Insurance Group
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Challenges

• Lack of Canadian Fixed Income Investment
  Products
• (A Regulatory Requirement 70)
• Lack of Sharia Compliant Investment Opportunities
  in Canada
• Lack of Competent local Sharia Scholars

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Challenges

• Shortage of Trained and experienced staff
• Need experience and understanding of both
• Religious side
• Insurance side

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Immense Rewards

• Growing local and continental demand
• Great potential for Overseas Investors Takaful
  Operators
• Canada has tremendous Takaful Industry Potential
  with 1.2 Million Muslims and other ethically
  inclined customers
• Big US Market next door

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3RD INTERNATIONAL ISLAMIC BANKING, FINANCE
INSURANCE (TAKAFUL) CONFERENCE "Islamic Banking,
Finance Insurance (Takaful) in North
America Opportunities Challenges" Held at
Ottawa Congress Centre, Ottawa, Canada in May
2007 Website www.ansargroup.com/conference
Password to Download Presentations 2007ansar883

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• THANK YOU FOR YOUR PATIENCE!
• www.ansargroup.com
• www.ansarhousing.com