The two-day event, co-located with the 2nd Annual Middle East Islamic Finance and Investment Conference (MEIFIC 2012), will feature critical discussions on successfully tackling the challenges of an increasingly competitive global Takaful market and will analyse practical strategies that can effectively translate market potential into real growth.
However, the increasing number of players entering the Takaful market, together with over-concentration in certain business lines, has resulted in the current state of Takaful operators achieving a lower return-on-equity than conventional insurers.”
“Comparatively poor profitability and over-reliance on investment income were highlighted as key challenges for Takaful operators in the Ernst and Young World Takaful Report 2011, which was launched at the World Takaful Conference last year,” McLean added.
“Held under the theme “Improving Competitive Performance: Shifting to Sound Underwriting Profitability", the 7th Annual World Takaful Conference (WTC 2012) will set the stage for discussions that will seek to improve the competitive performance of Takaful players and map new growth horizons in an increasingly competitive global Takaful landscape,” he said.
The 7th Annual World Takaful Conference (WTC 2012) will be inaugurated on April 16 by a special inaugural address by Abdulla Mohammed al Awar, Chief Executive Officer of the Dubai International Financial Centre Authority (DIFC).
The inaugural session will be immediately followed by a keynote plenary session featuring Dr Saleh Malaikah, Chairman, Rusd International Holding Group and Vice Chairman and Chief Executive Officer, Salama Group; Hussein al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN); and Hans De Cuyper, Executive Director and Chief Executive Officer, Mayban Ageas.
The session, which focuses on improving competitive performance, will assess how leading Takaful players are successfully shifting emphasis to sound underwriting profitability and operational efficiency.
Dr Saleh Malaikah commented: “With an expanding global footprint, the Takaful industry is well placed to further capitalise on the industry’s tremendous growth potential.
However in order to ensure that we sustain the impressive growth rate which the Takaful industry has enjoyed over the last few years, it is essential to resolve certain critical issues which may hamper the industry’s long-term growth. ”
Hussein al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN), stated: “The global Takaful market has shown strong growth in the last few years, with the Takaful sector estimated to outpace the conventional insurance market in some of the key markets in the coming years.”
“Though the volume of total global Takaful contributions has increased sharply, most companies operating in the sector are finding it challenging to maintain their profitability levels.”
“In order to ensure that the industry achieves its growth potential, it is essential to improve competitive performance and shift to sound underwriting profitability.”
source: Oman observer