David McLean, Chief Executive of the World Takaful Conference ahead of 7th Annual World Takaful Conference (WTC 2012) in a statement said the increasing number of players entering the takaful market, together with over-concentration in certain business lines, has resulted in the current state of Takaful operators achieving a lower return-on-equity than conventional insurers.
Despite all growth projects, the experts believe competitive pressures and declining RoE remain critical challenges for the global takaful industry.
“Comparatively poor profitability and over-reliance on investment income were highlighted as key challenges for Takaful operators in the Ernst & Young World Takaful Report 2011, which was launched at the World Takaful Conference last year,” McLean added.
The two day event, co-located with the 2nd Annual Middle East Islamic Finance and Investment Conference (MEIFIC 2012), to be held on the 16th and 17th of April 2012 at the Dusit Thani, Dubai will feature critical discussions on successfully tackling the challenges of an increasingly competitive global Takaful market and will analyse practical strategies that can effectively translate market potential into real growth.
“Held under the theme “Improving Competitive Performance: Shifting to Sound Underwriting Profitability”, the 7th Annual World Takaful Conference (WTC 2012) will set the stage for discussions that will seek to improve the competitive performance of Takaful players and map new growth horizons in an increasingly competitive global Takaful landscape”, he said.
The 7th Annual World Takaful Conference (WTC 2012) will be inaugurated on the 16th of April by a special inaugural address by Abdulla Mohammed Al Awar, Chief Executive Officer of the Dubai International Financial Centre Authority (DIFC). The inaugural session will be immediately followed by a keynote plenary session featuring Dr. Saleh Malaikah, Chairman, Rusd International Holding Group and Vice Chairman and Chief Executive Officer, Salama Group; Hussein Al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN); and Hans De Cuyper, Executive Director and Chief Executive Officer, Mayban Ageas. The session, which focuses on improving competitive performance, will assess how leading Takaful players are successfully shifting emphasis to sound underwriting profitability and operational efficiency.
“With an expanding global footprint, the Takaful industry is well placed to further capitalize on the industry’s tremendous growth potential. However in order to ensure that we sustain the impressive growth rate which the Takaful industry has enjoyed over the last few years, it is essential to resolve certain critical issues which may hamper the industry’s long term growth. With increasing competition from large-scale conventional players and new players entering the market, maintaining scale, operational efficiency and profitability will become increasingly key issues for all industry players,” confirming his participation at WTC 2012, Dr Saleh Malaikah, Chairman, Rusd International Holding Group and Vice Chairman and Chief Executive Officer, Salama Group, said.
“SALAMA has been a key partner of the annual World Takaful Conference since its inception. The event, over the last 7 years, has played an important role in facilitating dialogues that shaped the growth of the industry and we are once again delighted to be supporting this prestigious event to enable the world Takaful industry to achieve further success”, he added.
“The global Takaful market has shown strong growth in the last few years, with the Takaful sector estimated to outpace the conventional insurance market in some of the key markets in the coming years. Though the volume of total global Takaful contributions has increased sharply, most companies operating in the sector are finding it challenging to maintain their profitability levels. In order to ensure that the industry achieves its growth potential, it is essential to improve competitive performance and shift to sound underwriting profitability. We are once again delighted to be supporting the World Takaful Conference and we believe that this event will be an ideal opportunity to discuss some of the critical challenges and opportunities facing the industry,” a similar view was expressed by Hussein Al Meeza, Managing Director and Chief Executive Officer, Dubai Islamic Insurance and Reinsurance Company (AMAN), said.
WTC 2012 will also feature the exclusive launch of the 2012 edition of the World Takaful Report. With a principal focus on ‘Takaful Regulations for Growth, Equity and Stability’, the World Takaful Report 2012, developed in collaboration with Ernst & Young, will analyse the key trends shaping the industry, map out the strategic direction of the market leaders and probe the emerging landscape of opportunities in the global Shari’ah compliant insurance industry.