Mutuality, cultural diversity and sustainable development

1
Mutuality, cultural diversityandsustainable
development
21 May 2004 Tunis, Tunisia
2
UNIVERSAL MUTUALITY AND SOCIAL ETHICSIslamic
Insurance and Takaful
21 May 2004 Tunis, Tunisia
3
A viewpoint on the developmentof the global
Takaful sector R.
Farid BENBOUZID
21 May 2004 Tunis, Tunisia
4
PRESENTATION
THE MOVEMENT THAT SUPPORTED THE CREATION AND
DEVELOPMENT OF INSURANCE ACTIVITIES GROUPED
TOGETHER UNDER THE GENERIC NAME OF TAKAFUL IS
TODAY EXPERIENCING A VERY FAST GROWTH
ECONOMICALLY AND INSTITUTIONALLY. THESE RECENT
EVOLUTIONS ARE WORTH OBSERVING AND ASSESSING AS
REGARDS FURTHER DEVELOPMENTS OF THE SECTOR AS
WELL AS ITS CONTRIBUTION TO THE PROGRESS OF
INSURANCE MARKETS IN EMERGING COUNTRIES.
5
SUMMARY

• HISTORICAL CONTEXT
• MOVEMENT ORIGINS
• STAGES OF GROWTH
• RECENT EVOLUTIONS
• MATURITY
• TAKAFUL AND INSURANCE MARKET DEVELOPMENT

6
BACKGROUND

• BIRTH IN THE FIFTIES
• ANSWER TO A QUESTION OF ETHICAL ADEQUATION
• POST COLONIAL ECONOMY RELATED CONSTRAINTS
• POLITICAL LIMITATIONS

7
ORIGINS

• IN SEARCH OF LICEITY
• INSTITUTIONAL DEFICIT OF MUTUALITY
• INSURANCE NEEDS
• ISLAMIC FINANCIAL MOVEMENT
• LIFTING ECONOMIC AND POLITICAL RESTRICTIONS

8
STAGES

• SPONTANEOUS GROWTH
• PRESSURE OF ISLAMIC BANKS
• INSTITUTIONAL GROWTH (Case of MALAYSIA)
• GEOGRAPHICAL EXPANSION

9
RECENT EVOLUTIONS

• GENERALISATION OF THE PHENOMENON IN MOST ISLAMIC
  COUNTRIES
• INSURANCE ACTIVITIES IN SAOUDI ARABIA IN THE
  PROCESS OF INSTITUTIONALISATION
• AWARENESS TO THE IMPORTANCE OF LIFE INSURANCE

10
MATURITY

• FAST INTEGRATION OF NEW COMPANIES INTO THEIR
  COUNTRY MARKETS
• ROLE OF COMMERCIAL EMULATION
• PROGRESSIVE IMPACT ON TWO MAJOR MARKETS PERSONAL
  INSURANCE AND LIFE INSURANCE

11
TAKAFUL AND DEVELOPMENT

• UNDISPUTABLE ACTOR OF MARKET DEVELOPMENT
• STRONG PREDILECTION FOR A FAST EVOLUTION OF
  BANCASSURANCE
• POSSIBLE BRINGING OF NEW CLIENTELES IN PERSONAL
  INSURANCE AND NON OBLIGATORY RISK COVER

12
CONCLUSION
THE EVOLUTION OF TAKAFUL ACTIVITIES IN THE TWO
MAJOR FIELDS WHERE THEY ARE DEVELOPING HAS NOW
COME TO REAL MATURITY. TAKAFUL HAS NOW GOT TO
THE POINT WHERE IT IS PART OF THE WORLD WIDE
MUTUAL AND COOPERATIVE INSURANCE SECTOR. HOPE
LIES IN THE FACT THAT THIS MOVEMENT CAN BRING
FURTHER GROWTH TO THE DEVELOPMENT OF EMERGING
MARKETS AND CONTRIBUTE TO SUSTAINABLE
DEVELOPMENT.