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About us 

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Overview

The global takaful market reached US$ 19 Billion in 2017; the market is further projected to exceed US$ 40 Billion by 2023, at a CAGR of 13% during 2017-2023. The insurance ecosystem is enduring transformation and innovation at an incredible pace. Leveraging technology to achieve cost efficiency and productivity is the growing concern within the Takaful Industry. Both, traditional and takaful insurance sectors are facing constant disruption, which is compelling the industry to evolve. Technology is changing the insurance industry, creating new opportunities and needed skills in this previously tradition-bound industry, and also putting an end to the old-fashioned person-to-person customer service. Corresponding to these trends, the 14th Annual World Takaful Conference has been repositioned as the World Takaful & InsurTech Conference (WTIC).

 

WTIC 2019 will allow participants to better understand market influencers, growth factors and global Takaful opportunities, and at the same time, provide Takaful practitioners with insights into the underlying issues and challenges facing the industry. WTIC 2019 is the definitive forum to meet leading minds from Takaful, InsurTech and Insurance Innovation, with representation from over 35 countries, ranging from key markets for Takaful such as the GCC and South East Asia to emerging markets such as Africa and Europe.

 

The 14th WTIC offers an unmatched opportunity for dialogue and interaction that serves as a catalyst for the transformation of the entire insurance ecosystem.
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Key Features to Watch Out For at the WTIC 2019

14th world takaful & insurtech conference

Objectives

The World Takaful & InsurTech Conference 2019 aims to

Why You Should Attend!

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A solution-focused approach targeting the biggest market challenges

Takaful operators have operated in relatively under-regulated markets that have led to a divergence of practices that erode perceptions of market stability. For instance, investment portfolios of many operators have high concentration of risky assets and there is a tendency to underwrite risk based on pricing rather than proper assessment. Clear and strict guidelines in these two key areas are needed to help in improving the stability of the Takaful operators.
Key recommendation
Develop diversified distribution channels particularly digital and Bancassurance, focus on customer needs and explore new segments such as pension products and products for SMEs.
Takaful operators have operated in relatively under-regulated markets that have led to a divergence of practices that erode perceptions of market stability. For instance, investment portfolios of many operators have high concentration of risky assets and there is a tendency to underwrite risk based on pricing rather than proper assessment. Clear and strict guidelines in these two key areas are needed to help in improving the stability of the Takaful operators.
Key recommendation
Develop diversified distribution channels particularly digital and Bancassurance, focus on customer needs and explore new segments such as pension products and products for SMEs.
The Takaful industry is fragmented and the major reason for disintegration of the various markets is the absence of uniformity in the regulatory frameworks. Although absolute regulatory harmony cannot be achieved however, increased cooperation between regulators could make it less challenging for Takaful companies to operate internationally. In addition to cross border cooperation, the standard setters and regulators need to work hand-in-hand to enable full enforcement of robust regulations produced by the standard settings’ bodies that are currently not being practiced in the industry.
Key recommendation
Encourage regulatory harmonization for regional Takaful operators to spread their risk more widely and support Takaful market development beyond core markets (Saudi Arabia and Malaysia).
Takaful operators (mostly in the GCC) are continuously incurring underwriting losses but are still managing to stay profitable due to returns on investment. These losses are attributed to lack of underwriting discipline and increased focus on top line that comes at the expense of profit margins. Moreover, intense competition, fragmented markets, and price-based competition are responsible for diminishing profits. In order to become more profitable, the operators need to strictly adhere to risk-based pricing, focus on bottom line and change their market strategy to compete on the basis of the unique features of Takaful.
Profitability could also be achieved by expanding into other markets thereby easing competition in local markets however, that requires sufficient scale which most of the operators currently lack. Operators also need to explore new segments such as SMEs, cyber insurance and pension products.
Key recommendation
Encourage consolidation within the industry to form large-scale operators, tap into the potential of rapid growth markets and achieve underwriting discipline.
Takaful operators tend to follow a product-centric approach as opposed to identifying customer needs and addressing them through enhancement to the value chain including product innovation. Due to lack of specialized products, intense competition and inability to offer the unique features of Takaful such as surplus distribution, operators are left with no other choice but to compete on the basis of price. In a highly saturated market where their counterparts are deeply entrenched and have more cost-efficient business models, this leads to smaller market share and lower profitability.
Additionally, the distribution channels used by the operators are undiversified and predominantly brokers and agency (mostly in GCC). Most of these brokers also sell conventional insurance and are mainly motivated by commissions so they tend to push conventional products due to higher margins.
Key recommendation
Develop diversified distribution channels particularly digital and Bancassurance, focus on customer needs and explore new segments such as pension products and products for SMEs.

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