Takaful is a concept which has gained serious traction across the world. The growth in demand for Islamic insurance over recent years has seen a proliferation of Takaful companies entering the market. This has spurred a competitive environment as companies compete for increased market share. New solutions require new ideas and fresh thinking to succeed as a company.
How can we help?
SHMA Consulting has been providing a range of services to Takaful companies in the Middle East and South Asia. Our wealth of experience in partnering with various clients in the region puts us at a significant advantage to provide a high quality service in a timely manner.
Our services include:
- Developing a Business Plan for General as well as Life (Family) Takaful Operations and assistance in setting up of a Life / General Takaful Insurance Company operations
- Carrying out Model Office Financial Projections for a proposed operator to determine the expected cash flows, Return on Investment on product cash flows, and Return on Equity for shareholders. The projections may include development of a sales force model, an expense model, a product strategy and modeling of product cash flows based on competitive pricing. All the cash flows merge into a single set of cash flows and produce the projected revenue account for the company.
- Defining an organizational structure, procedures, etc.
- Designing and costing of a compensation structure for the sales force
- Advising on Re-Takaful arrangements for all products
- Defining an Investment Strategy
- Designing and Profit testing for the Takaful products, including development of premium rates, policy documents, etc.
- Setting up administration systems and procedures (including development/implementation of computer software)
- Developing and setting up underwriting guidelines and procedures
- Setting up the marketing infrastructure
- Setting up of other departments, procedures, etc.
- Advice on the choice of Takaful model to be used by the Takaful Operator
- Calculation of Wakala and Mudharib fees based on the Takaful model
- Valuation to determine reserve requirements
- Designing and costing of compensation structure for the sales force, expense analysis and developing underwriting guidelines and procedures
- Determination of retention levels on Re-Takaful basis and assistance with Re-Takaful treaty negotiations
- Advice on investment in Participant Takaful Fund
- Assistance with preparing product approval documents to be filed with the regulators
- Assistance with conducting ongoing operations of a company, including product enhancement and re-pricing of Takaful products
- Assistance in ongoing operations of the Company
- Performance evaluation and monitoring
- Ongoing product certifications and updates
- Systems Support