Rating methodologies and challenge of maintaining solvency among pressing issues for Takaful and Retakaful Industry

Seminar on Rating of Takaful and Retakaful Firms (25 November 2008)
This Seminar will focus on the technical issues relating to the rating of Takaful and Retakaful firms. It will bring together regulators and leading market practitioners to discuss the relevance of rating methodologies of these firms. The Seminar is of relevance to senior technical officers of Takaful firms, insurance and Takaful regulators as well as professionals of rating agencies.

The Seminar will address the following topics :

• The expansion of Takaful and Retakaful and the need for ratings
• Ratings agencies methodologies for Takâful and Retakaful firms
• Perspectives of rated institutions
• Building transparency, understanding and trust: Next steps in an industry dialogue

The panel of confirmed chairpersons and speakers include:

1. Abdullah Haron, Assistant Secretary-General, IFSB
2. Dr. Abdul Rahman Khalil Tolefat, Allianz Takaful, Bahrain
3. Dr. Aida Othman, Zaid Ibrahim & Co., Malaysia
4. Andrew Cunningham, Financial Services Corps, Egypt
5. Connie Wong, Financial Institutions Ratings, Hong Kong
6. Ismail Mahbob, Malaysian National Reinsurance Berhad
7. J. M. McMullen, Islamic International Rating Agency, Bahrain
8. Milly Leong, Malaysia Rating Corporation Berhad
9. Dato’ Mohamed Hassan Md. Kamil, Syarikat Takaful Malaysia Berhad
10. Pervez Rivzi, HSBC Amanah Takaful (Malaysia) Sdn. Bhd.
11. Mohammad Azam, Islamic Corporation for the Insurance of Investment and Export Credit, Saudi Arabia
12. Professor Simon Archer, University of Reading, UK
13. Sobia Maqbool, JCR-VIS Credit Rating Co. Ltd., Pakistan
14. Wan Siew Wai, Fitch Ratings, Singapore
15. Wing Chew, Moody’s Investors Services, Australia
16. Vasilis Katsipis, A.M. Best, UK

4th Seminar on the Regulation of Takaful (26 – 27 November 2008)
This Seminar, the fourth in the series of IFSB Takaful Seminars, will discuss issues relating to the solvency of Takâful operators. This is a pertinent issue for the industry due to it’s relation to the capacity and capability of the Takaful firms to meet their obligations to the Takaful participants.   The IFSB is currently preparing a standard on solvency for the Takaful operators, which is expected to be issued as an exposure draft for public consultation by the end of 2009. The Seminar will provide a platform for the IFSB to learn more from the views of the various stakeholders on this important issue.

The topics that will be discussed are:

• Risk Management – Managing Takaful Risk
  Discussion on risk management practices by Takaful Operators to fulfil solvency requirements. This includes risk management practices to support solvency and the specificities of these practices.
• Treatment of Underwriting Surplus
  Discussion will cover the approaches on the treatment of underwriting surplus by Takâful practitioners. This includes ownership of the underwriting surplus, impact of the distribution of underwriting surplus on solvency requirements and underwriting surplus as an element of incentive.
• Retakaful – Issues and Opportunities
  Discussions focus on Retakaful arrangements and how they support the solvency of Takaful undertaking. This will include types of reinsurance that fit into Retakaful solutions, role of Retakaful arrangement in solvency of Takaful undertaking and application of doctrine of necessity for Retakaful.
• Solvency Framework
  Discussions will explore the existing solvency framework that suit the nature of Takaful undertaking. This includes capital adequacy and solvency requirements.
• Regulatory Issues
  Discussions aim to analyse the factors affecting the solvency regulatory framework for the Takaful undertaking. Topics include the legal issues surrounding the solvency requirement and the enforceability of Qard facility in meeting deficit of the Takaful fund.

The panel of confirmed chairpersons and speakers include:

1. Professor Rifaat Ahmed Ahmed Karim, IFSB
2. Teo Swee Lian, Monetary Authority of Singapore
3. Chia Der Jiun, Monetary Authority of Singapore
4. Abdullah Haron, IFSB
5. Peter Casey, Dubai Financial Services Authority
6. Professsor Volker Nienhaus, University of Marburg, Germany
7. Dr. Omar Zuhair Hafiz, Allied Cooperative Insurance Group, Saudi Arabia
8. Syed Moheeb Syed Kamarulzaman, Takaful Ikhlas, Malaysia
9. Dr. Abdul Rahman Khalil Tolefat, Allianz Takaful, Bahrain
10. Dr. Abdul Sattar Abu Ghuddah, Unified Sharia Board, Albaraka Banking Group
11. Alfadino Akbar Ali Akbar, Bank Negara Malaysia
12. James Smith, Ernst & Young, Hong Kong
13. Kamsani Tati, Tokio Marine Nichido Retakaful, Singapore
14. Martin Roberts, Beachcroft Consulting, UK
15. Murad Al Haj Mahmoud, Insurance Commission of Jordan
16. Salah El Din Musa Mohamed, Shiekan Insurance Company, Sudan
17. Professor Simon Archer, University of Reading, UK
18. Vasilis Katsipis, A.M. Best, UK

For more information on the Seminars, please visit www.ifsb.org/takaful2008