The document discusses the International Cooperative & Mutual Insurance Federation (ICMIF) and opportunities for collaboration with the Takaful concept. ICMIF represents 127 cooperative and mutual insurance members from 67 countries. It aims to strengthen the cooperative insurance sector and increase insurance access. Takaful structures align with ICMIF's mutual approach. The document outlines ICMIF's development work, including establishing 25 people-oriented insurers. It discusses using insurance to alleviate poverty and the potential for microtakaful products through cooperative models and partnerships between informal schemes and Takaful providers. The need is great in many Muslim countries where social services are limited and poverty widespread.

1. ICMIF
International Cooperative &
Mutual Insurance Federation
www.icmif.org

3. Key points
• About ICMIF
• Linkage with Takaful concept
• Avenues for collaboration
• The development function of ICMIF
• Importance of insurance to poverty alleviation
• Providing microinsurance products
• The need and possibilities in Muslim
countries

4. About ICMIF
• Established in 1922
• Not-for-profit voluntary trade association
• Represents 127 members from 67 countries
• Member driven
• “Strengthen and promote the cooperative and
mutual insurance sector”

5. Linkage with Takaful concept
• Policyholders co-operate among themselves
for their common good
• Every policyholder pays his subscription to
help those that need assistance
• Losses are divided and liabilities spread
according to the community pooling system
• It does not derive advantage at the cost of
others

11. Avenues for collaboration
• Reinsurance
• Information
• Training
• Establishing Takaful windows with members
• Development

12. ICMIF development function
• Objectives
Provide support to small members
Assist cooperative bodies to establish
insurance operations
Increase access to insurance to excluded
sectors of society

13. ICMIF development function
• Methodology
ICMIF Fees
Technical expertise provided by members
Development projects led by members
Partnerships with national and international
donor agencies

14. ICMIF development function
• Progress
Established 25 people-orientated insurance
organisations
Unique Insurance Company – Ghana
Financial support received for Latin America
Contract to write guidelines on microinsurance
Turkmenistan – State Insurance Organisation
Health Mutual scheme – Mali
Currently involved in 22 countries

15. “Insurance is being
recognized as an
important tool for
poverty alleviation”

16. Insurance and Poverty Alleviation
• The poor are the most vulnerable
• The impact of losses are more severe
• They have minimum means of recovery
• Success of microfinance schemes show the
poor can and want to save
• Savings and credit are used unproductively
• The poor need a safety net to escape poverty

17. Providing microinsurance
The challenges
• Coverage
• Regulation
• Moral hazard and Fraud
• Adverse selection
• Education and trust
• Technical expertise
• Affordability
• Retention
• Sustainability

18. Providing microinsurance
The possibilities
• The cooperative microinsurance model
History of organising the poor
Operate for the interest of members by
members
Trust
Ownership and loyalty
Peer pressure
Surplus reinvested or redistributed

19. Providing microinsurance
• The partner agent model
No-risk fee for microinsurance provider
Better coverage for policyholder
Access to new market
Pooling of risks between informal and formal
sector

20. Providing microinsurance
• The donor agent model
Access to expertise
Financial sustainability
Guiding hand

21. The need in Muslim countries
• Social services inadequate or unavailable
• Large sectors of poverty in many Muslim
countries
• Over half of world’s lowest developed countries
have a majority Muslim population
• Increasing inequality in Middle East and Gulf
countries

22. “Takaful is the second
most important social
institution to counter
poverty and
deprivation”
Omar Fisher,1999

23. How can we provide microtakaful
products?
• Establish informal microtakaful schemes
• Encouragement of pro-poor organisations
• Education of government and donor agencies
• Involvement of Takaful sector
Technical expertise
Financial assistance
Partner-agent model
“Bear ye one another’s burden”

24. A Global reach for
local strength
Thank you for your attention