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