I delivered this presentation in World Takaful Conference 2014. It is giving perspective of banks for developing successful bancatakaful channel. It is alos giving ideas of additional Tkaful products which can be developed for the bank customers

1. BankaTakaful
What Banks Expect from Takaful Companies
WTC- 2014
Pervaiz Ahmed

2. BankaTakaful Defined
• For the banks, the Bankatakaful is marketing third
party Takaful products to its customer to
– Earn additional fee based income without deploying its
assets
– Protect its assets (acquired through financing) by getting
adequate Takaful Cover.
Bankatakaful is similar to bancassurance under conventional insurance
with the main different that the insurance products promoted through the
banks under bankatakaful are Shariah compliant.

3. BankaTakaful- Current Status
• Currently the main focus of Takaful companies is to market investment
linked long term contracts to the bank customers
• In some territories these investment linked polices are not proving
beneficial for the customers and for the banks mainly due to;
– high upfront commissions
– Inappropriate selling practices and
– below par investment performance
• Takaful companies are not offering anything significantly different or
better than conventional insurance
• There is a demand from the banks to extend this relationship to other
Life and General Products

4. Bank’s Customer Segments
Assets Products Liability Products
Wealth
Management/Corpor
ates/SMEs
Where the
bank has done
Financing
Where bank
has the
customer
deposits
Cross
Marketing
customers

5. Takaful Needs of Asset Customers
• Vehicle Takaful
• Life Takaful- DTI
Vehicle Financing
• Fire Insurance/Third Party Liability
• Life Takaful- DTI
Property Financing
• Marine InsuranceTrade Finance
• Life Takaful
• Property Takaful
Personal Finance
• Credit Shield, Travel Takaful
• Warranty Takaful, Purchase Protection
Debit/Credit Cards

6. Takaful Needs of Liability Customers
• Depositor’s InsuranceSaving Account
• Term Insurance ProductsTerm Deposits
• Education, Savings and Retirement Income
Plan
• Cross marketing opportunities for other Life
and General Insurance Products
Wealth
Management/Cor
porates/SMEs

7. Expectations of the Banks
•Banks are moving towards paper less processing. Takaful companies
should focus on on-line underwriting and seamless policy issuance
processes. No movement of papers !!!
Automation
•Speed is the name of the game. Bank’s customer do not like to fill
lengthy forms and go through laborious medical examinations.
Higher non-medical limit and non declinature policies are needed
Hassle Free
Underwriting
•Low or no allocation in the early years to finance higher
commissions will not work in the longer run. Takaful companies
should find a way to bring balance between short term gains and
long term sustainability
Customer Value
for Money
•Takaful companies should bring products which would either yield
higher benefit to the customer or add value to the society at large
Product
Innovation

8. Key Success Factors
Commitment from the
TOP management of
both the sides
Customer Value for
money
Customer
Convenience

9. Thank you!
WTC- 2014
Pervaiz Ahmed