Background. Latest Development. Moving Forward

Transcription

1 Background The 3 rd Annual General Meeting of GTG held in Dubai on April 7, 2008 endorsed the GTG Strategic Roadmap (the Roadmap). The Roadmap identified 4 strategic initiatives to be undertaken by GTG during the years These initiatives are in line with the agreement between GTG and Labuan FSA (LFSA), the custodian of RM 2 million Malaysian Government Grant. Latest Development Effective from July 1, 2011 Brighton Management Limited (BML) has taken over the management of GTG Secretariat. During the GTG Board Meeting in Colombo on 22 November, 2011 the Board has instructed the Secretariat to undertake a review of the Roadmap to be in line with the latest developments in the industry and to focus on a number of implementable projects. Moving Forward Taking the queue from the GTG Board decision in Colombo, the Secretariat undertook a review on the Roadmap and listed below are suggested activities to be carried out in the immediate future, as follows: 1 P a g e

2 1. Resource Centre 1.1 The portal for exchanging facultative business developed by Merimen did not have critical mass supports from GTG members and as such this project would be put on hold until such time when sufficient interest is shown. 1.2 There are already available a number of portals providing information and statistics on takaful business (free or by subscription) such as ISM, ICMIF and Ernst and Young. As such, development of a separate portal on takaful statistics with ISM, as recommended by the original Roadmap would be duplication and incur unnecessary cost. The Secretariat would explore the possibility of linking such available websites to the GTG portal which is now being revamped so that GTG members would be able to access these sites to get information and statistics on takaful industry. 1.3 The GTG web-site when ready would be used to update members information, news on training schedules etc. The site would also be linked to a number of related sites such as ICMIF Takaful Xchange ( a platform for discussion on takaful related subjects. This site, managed by ICMIF would provide on-line public discussion forum to facilitate better exchange of ideas between takaful operators. 2 P a g e

3 1.4 Another effort to increase availability of takaful resources is by sharing information with ICMIF. In particular, GTG would pursue certain initiatives as a result of Colombo Resolution. 2. Human Capital Development 2.1 GTG would continue to provide assistance in the form of financial support (sponsorship) and sourcing for speakers and teaching faculty to members who wish to organize their own training and seminars. Recent examples are: Collaborating with FOIITC and ICMIF in organizing Takaful Network Seminar in Colombo, Sri Lanka hosted by GTG member, Amanah Takaful Sri Lanka; Sponsoring and assisting in getting teaching faculty from Malaysian Insurance Institute (MII) in conducting training in Dubai for UAE takaful / insurance market in collaboration with UAE Insurance / Takaful Association and a local GTG member, The Islamic Insurance & Reinsurance Dubai (AMAN); Part sponsorship of a family takaful seminar in Bali organized by GTG member, MNRB Retakaful, for members from 6 Asian / Middle East markets; 3 P a g e

4 2.1.4 Part sponsorship of a Malaysian guest speaker in a takaful seminar / workshop in Sudan for aspiring takaful operators in the north and east African regions. The speaker is the President / CEO of Malaysian GTG member, Takaful Ikhlas Sdn. Bhd.; and Joint actuarial seminar in Jakarta with Asosiasi Asuransi Shariah Indonesia (AASI), a local national takaful association. 2.2 It is also proposed that the GTG Technical Committee be reestablished to organize and conduct technical training for GTG members. This Committee would also responsible for facilitating internship, staff exchange and attachment programmes amongst GTG members. The Technical Committee will be tasked for bringing together GTG members at least once a year to attend technical training/workshop on various subjects related to takaful/retakaful matters as well as facilitating a number of staff attachment with certain takaful operators. A budget would be allocated for this purpose. 2.3 As part of continued international collaboration with other takaful related associations, GTG will bid to host, in 2013 a similar series of seminar on takaful network along the proven successful format of the 2011 Takaful Network 4 P a g e

5 Seminar held in Colombo, Sri Lanka (refer to para 2.1.1). A budget of USD 25,000 is required to host such event. 2.4 Malaysia will be hosting the East Asia Insurance Congress (EAIC) on 29 October- 1 November, The Congress, which is held every 2 years would be a meeting place for insurers/reinsurers and brokers all over the world. The last time Malaysia hosted such an event was in GTG would participate in the event by sponsoring a small hi-tea event as well as opening a booth to showcase achievements of takaful industry world-wide. A budget of USD20,000 would be allocated. 2.5 In November/December 2012, a Malaysia/Sudan trade and educational exhibition will be held in Khartoum, Sudan. The exhibition will be organized by MASUFO (Malaysian Sudan Friendship Organisation) and Tun Dr Mahathir Mohamad is expected to be the key-note speaker. GTG would team up with FOIITC a regional takaful association based in Sudan to showcase the development in the takaful industry. A budget of USD 20,000 would be required for this purpose. 3. Capacity Development 5 P a g e

6 3.1 The initiative to increase takaful/retakaful capacity amongst the GTG members through a facultative business exchange portal has been shelved due to poor response from members. NB: Takaful operators tend to focus on small personal lines business which does not require significant retakaful support. A study is being initiated to develop industry capacity to underwrite high value industrial and specialized risks that are financed via Shariah-compliant instruments by Islamic Financial Institutions (IFIs) so as to complete the Shariah-compliant supply chain in the Islamic financial system. 3.2 The feasibility study on the proposal to set up a Retakaful Syndicate at Lloyds has been completed and has received an approval in principle from Lloyds Corporation. Efforts are now being made to convince certain interested members and a number of corporations including Islamic Development Bank (IDB) to be capital providers for this initiative. 3.3 As part of collaboration with FOIITC and ICMIF, a new exciting initiative is proposed. It is suggested a small budget be provided in GTG 2012 Budget to cooperate with ICMIF in undertaking a feasibility study on the development of microtakaful. Towards this, ICMIF has established Micro-takaful Support Centre (MSC) to spearhead the development. GTG 6 P a g e

7 would give resources and technical supports to the centre in promoting micro-takaful amongst GTG members. 4. Excellence Culture 4.1 When the GTG Roadmap was formulated, it was envisaged that GTG would be a conduit for members to get access to various standards such as takaful models, policy wordings and Shariah opinions. As such standards are now readily available through various regulatory, associations and public portals, a search and link exercise of the relevant portals to the GTG web-site will be initiated to enable members to access. The Secretariat would inform members as and when these portals are linked. 4.2 Through collaboration efforts with other associations in the takaful industry, GTG would continue to engage regulatory and standard-setting bodies to discuss various issues affecting the takaful industry in general and GTG members in particular. In November, 2011 representatives from IFSB were invited to present their views and discuss issues related to Standard on Solvency Requirements for Takaful (Islamic Insurance) Undertakings during Takaful Network Seminar in Colombo. Moving forward, such invitation to selected regulatory or standard-setting bodies would be part of the technical training to be organized by the 7 P a g e

8 GTG Technical Committee. It is proposed that accounting standard boards, national / international, will be engaged to keep members abreast with the development in the areas of financial reporting standards, especially those that have impacts on takaful / retakaful operations. 4.3 GTG plans to subsidize distribution of Takaful Basic Examination book (currently being developed by IBFIM and MTA) to overseas members and relevant stakeholders such as regulatory authorities and national industry associations to assist members in spreading the takaful concept as operationalized and practiced by Malaysia. Conclusion When GTG submitted a proposal for a Government Grant in 2007, it was with a very clear objective of spearheading the development of the takaful industry world-wide capitalizing on the Malaysia s success story. Realizing the importance of building human resources capabilities to assist in the development of takaful industry, GTG took initiative to hold training sessions for member companies as well as other takaful operators around the world. Substantial budget allocation has been used to provide subsidy to member companies for holding in-house 8 P a g e

9 training/workshops and sponsoring international seminars and conferences. 9 P a g e