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For the second consecutive year, Standard & Poor's Ratings Services today announced that it has been voted "Best Takaful Ratings Company" at the International Takaful Awards 2009. The accolade, presented during an awards ceremony at The 3rd International Takaful Summit 2009 in London, acknowledges our commitment to supporting the development of the Islamic insurance industry.

We published our first Takaful rating in 1997 and we remain the leading rating agency for Islamic insurers, with eight ratings on Takaful and Retakaful firms across Africa, the Middle East, and Asia--more than any other global agency. During 2008, we published updated guidance on our approach to rating Islamic insurers and assigned new ratings to Bahraini-based composite insurer Takaful International Co. BSC, Kuwait-based insurerWethaq Takaful Insurance Co. and Dubai-based Insurer Dubai Islamic Insurance & Reinsurance (Aman).

"We are thrilled to be recognized by the Islamic finance community for our continuing support of the Shariah-compliant risk-management industry, which is driving increased acceptance and understanding of the Takaful business model," said Yann Le Pallec, managing director of Standard & Poor's. "We continue to experience strong demand for new ratings from both Islamic and traditional insurers worldwide."

"Having grown from a niche product servicing limited demand, Islamic insurance has reached a critical mass in the past five years and is now firmly established within the global risk management markets," said Kevin Willis, credit analyst at Standard & Poor's. "The potential for growth is immense, with many consumers switching from conventional insurance or entering the Takaful market for the first time."

The International Takaful Awards 2009 are an initiative of the Middle East Business Forum and Afkar Consulting. Winners were selected from a pool of nominees by a panel of Shariah judges, lawyers, journalists, and practitioners from leading Islamic insurance firms worldwide.

--zawya

RAWALPINDI: The Muslim countries should promote Islamic banking, as its basic aim was not to make money at the cost of people but to play an effective role in eliminating interest.

This was said by speakers in a seminar on “Islamic banking and Takaful” held at Fatima Jinnah Women University here on Tuesday.

Al-Huda Center of Islamic Banking and Economics organized the seminar in collaboration with Pak-Kuwait Takaful Company.

Abdul Wadood Khan, a senior scholar, was guest speaker on the occasion.

Khan highlighted various aspects of conventional banking in the light of Islamic teachings.

“Loan is an indispensable need of mankind. Trade, industry, governments and welfare organizations very frequently and rich persons occasionally need loans, but the loan lending should be free of interest. Islam prohibits interest and highly recommends interest-free loan,” he said.

Pak Kuwait Takaful Company representative Adnan Akhtar briefed the participants about Takaful, an Islamic way of insurance.

He said Takaful was based on mutual contribution to furthering good by helping others in need.

He said Pak-Kuwait Takaful was the first Islamic insurance company in Pakistan that believed in promoting the cause of Takaful as well as of insurance business all over the country.

Islamic Relief Fund representative Shazia Hassan also spoke on the occasion and highlighted the concept of Islamic banking.

The seminar was followed by a question-answer session. In the end, certificates were also awarded to the speakers and organizers of the seminar. Staff Report
--Daily Times

Takaful seems to have become a fundamental part of the insurance landscape and is growing from strength to strength, within the region and internationally with more players sprouting up even in the West and North America.

With the global financial crisis raging, Islamic finance seems to have been relatively unscathed. Takaful still remains a viable option, if not a more attractive option now for both Islamic as well as conventional clients. Asia Insurance Review, therefore together with our Lead Sponsor B.E.S.T Re is putting together the next Asian Takaful Conference this year to address the challengesand opportunities facing takaful in the current global financial crisis. The conference, supported by International Cooperative and Mutual Insurance Federation (ICMIF) & the International Insurance and Takaful Companies Federation (FIITC) will look at the theme, "The New Takaful Landscape in the Current Global Financial Crisis".

However, takaful players together with regulators and rating agencies must remain vigilant to ensure that proper risk management practices are in place to determine solvency and capital requirements.

The 4th Takaful Conference will look at issues that affect the Takaful industry in this current financial crisis �' the growth potential, corporate governance, maintaining solvency, the role of regulators in ensuring a balanced regulatory framework, and the operational and strategic challenges faced by takaful operators. There will be special panel discussions on issues like surplus distribution, as well as a comparison between how takaful is run in Asia and the Middle East. The conference will touch on the need to boost standards in the takaful world and offer real value to consumers while making sure the industry remains effi cient, competitive and compliant. There will be a sharing of success stories in the arena as well as the factors limiting the growth of takaful and retakaful.

Sign up today for this important event to learn from the leaders and to find out how to sharpen the edge of your takaful business and how to make it a serious platform for success. The conference is expected to attract takaful as well as conventional companies from around Asia including insurance and reinsurance companies, Islamic banking institutions, regulators, Shariah scholars, consultants, brokers as well as service providers keen to tap the potential of the takaful market. We hope to see you in Singapore.

Who Should Attend

* Life & General Insurance & Reinsurance Companies (both Takaful and Conventional)
* Takaful Companies and those providing Takaful insurance services
* Islamic Banking Institutions & Islamic Finance Players
* Regulators
* Shariah Scholars
* Management Consultants
* Reinsurance & Insurance Brokers
* Service Providers to the Takaful industry, ie lawyers, technology companies, loss adjusters, etc.

--pr-inside

( by : Zubair Mughal )
Takaful is an Islamic alternative to the conventional Insurance. The words ‘Takaful’ has been derived from the Arabic verb ‘Kafala’ which is also referred to as ‘Kafalat’ in urdu language, its means to guarantee, to help, to take care of one another’s needs. The Takaful system has been structured keeping in view the Islamic system of Dait (Blood Money) which is the philosophy behind mutual assistance/Kafalat. Before going into further details about Takaful, we shall have a look at the conventional insurance system and the factors that led to it being considered Haram or illegal in the society. If the importance of insurance is observed in detailed, the following aspects emerge;
1-To bear the risk/threat
2-To protect others
3-To share the loss

Keeping in view the basic elements of insurance, it is evident that nowhere in Islam the above mentioned aspects are prohibited and that there is no reason to be considered haram or illegal since Islam itself encourages to help others. Narrated by Hazrat Abu Huraira (R.A.) that the Prophet Muhammad (PBUH) said: “Whosoever removes a worldly hardship from a believer, Allah will remove from him one of the hardships on the Day of Judgment.”(Sahih Muslim, Hadith. 59)

Islam teaches us not only to have total dependence on Allah but also emphasizes on self protection against risks and threats. Narrates by Hazrat Anas Bin Malik (R.A.), one day Prophet Muhammad (PBUH) noticed a Bedouin leaving his camel without tying it. He (PBUH) asked the Bedouin, “Why don’t you tie down your camel?” The Bedouin answered, “I put my trust in Allah.” The Prophet (PBUH) then said, “Tie your camel first, and then put your trust in Allah.” (Sunan At-Tirmidhi,.1981). Islam infact even goes to the length of ensuring that incase of one’s death, there should be enough to support the widow for at least a year. Therefore, it is decided that the philosophy of Insurance does not contain any flaws from the Shariah perspective and it can not be considered Haram or illegal. Research has shown that the fault lies not in the philosophy itself, but in the methodology carried out by the insurance companies due to which it is looked upon narrow mindedly.
1-Riba (Interest/Usury)
2-Gharrar (uncertainty)
3-Maysir
Conventional insurance contains both direct and indirect forms of Riba. The direct Riba is in the of Premium and indirect Riba in the shape of interest earned on interest based
Investments e.g. by giving loans to financial institutes and banks on interest or by investing in interest based activity at stock exchange etc. thus promoting interest.
Second factor is Gharrar, where the person being insured does not know when he would bear the loss and to what amount, or the insurer can ascertain the amount and time with respect to profitability. Third element is Maysir, which involves a chance of total loss to one party in the contract, where profit to one person is directly related to another person’s loss. While the relationship of claim between the insurance company and its client is related to each others profit and loss. Thus, by removing these three harmful elements of Riba, Gharrar and Maysir from the conventional insurance, we can call it ‘Takaful’. Now, we shall examine how these elements have been removed in the Takaful system.

The first ever Takaful Company in the world was established 27 years ago in Sudan in 1979 by the name of Sudan Islamic Insurance. It would be interesting to know that the founder of the company was a Pakistani. Following suite, in the same year another company by the name of Islamic Arab Insurance company (IAIC) was formed in United Arab Emirates but it took sometime for the company to establish.

There are approximately more than 155 Takaful and 8 Re-Takaful companies operating globally with an approximate sum of $ 3 Billions Takaful contribution. Out of these companies 60% are General Insurance Companies while the remaining 40% are working as Life and Family Insurance Companies. Geographically, 46% of them are located in South East Asia, 32% in Middle East, 17% in Africa and 5% in Europe and America. For the 23% of the Muslim population of the world, the existence of 260 Billion US dollars worth of Islamic Financial Market is a very encouraging factor for the Takaful Companies.

The systems used by Takaful companies in the world can be divided into three models;
1) Mudarba Model (Sudan, African states)
2) Wakalah Model (Malaysia and other countries)
3) Wakalah Waqf Model (Pakistan)

SECP is the regulatory authority for Takaful companies in Pakistan and has formulated rules and regulations for the companies by making amendments in the Insurance ordinance 2000 while keeping in view the Islamic perspective/principles of Wakalah and Waqf.
Pak Kuwait Takaful was the first Takaful Company in Pakistan and soon after

Another company by the name of Takaful Pakistan came into existence formed by Capt. Jamil Akhtar with the mutual collaboration of House Building Finance Corporation (
HBFC, Emirates Global Islamic Bank, Arif Habib, Sitara Chemical, Emirates Investments Group (U.A.E.) and Al-Buhaira National U.A.E. Pak Qatar Takaful also started their operation in General & Life Takaful Business in Pakistan.

All the Takaful companies operating in Pakistan are based on the Wakalah Waqf model.
The operational methodology/system of the model can be explained through the following example; Some individuals form a Fund on the basis of Waqf and subsequently donate/contribute in the fund, hence giving it the name Participation Takaful Fund ( P.T.F ) with an understanding that if any calamity/risk befalls any of the participants of the fund, a decided amount would be donated (Tabbaru) to the effected. The fund would be monitored by an organization (Takaful Company) on the pattern of Waqf, to safeguard the deposits and to increase the profitability of the fund. Subsequently, the company would be paid its Wakalah agency fee. The example of a Waqf is similar to that of a Mosque Waqf Committee which receives its contributions from people for the maintenance of the Mosque. Likewise, Takaful Company also acts as a Waqf operator. It will receive donations from the people and strengthen the fund. Incase of a calamity to either of the members of the Fund, the company would pay the compensation. Furthermore, it would do its level best to make the Waqf Fund/Takaful contribution more profitable and for that, it would receive its Wakalah fees which would be its profit.
The element of Riba (Interest) is removed from the whole system in such a manner that the Takaful company would invest in interest free institutions to make the fund more profitable while adhering to the rules and regulations of the Shariah and instead of premium, it would receive Tabbaru. As far as Gharrar is concerned, Takaful company is a Waqf and it does not have any direct relationship with the profit and loss of the person insured, instead the Takaful participants would share the risk from their given donations through mutual consent. Thus, the non compliant elements of the Shariah are removed along with the objections on Islamic banking that if Islamic banking defies interest then how come it practices conventional insurance which contains the elements of interest.

Now a new market will emerge in Pakistan, which would support the Islamic Financial system. Those who abstained from Conventional Insurance by calling it un-Islamic, also their savings will increase due to Takaful. With the increase in Takaful funds, the funding resources of Islamic Banks and Islamic Financial institutions will also increase alongside.
since Takaful companies have to invest without interest, their best choice would be the Islamic Banks or Financial institutions or they would opt for Sukuk (Islamic Bond), which would help in promoting the Sukuk market in Pakistan. Actually, the promotion of ‘Takaf’ is related to the expansion of Sukuk market because whenever the issues of
underwriting hedge, Insurance of underlying assets etc. will arise, only Takaful will cover them due to which both will be promoted dually. Thus the Sukuk would be more easily available as compared to the shares to the general public in the market and they would be assets backed. Consequently, the creative evolution of money in the country will come to
a halt because of the asset base which would definitely be helpful in the stability and positive economic growth of the monetary system and short term Sukuk would be the cause of formation of Inter bank market between Islamic Banks and Financial Institutes.
We can compare Takaful with a social organization where the Micro Takaful Ideology should be kept in view and used as a weapon to eliminate poverty in Pakistan.
To eliminate the poverty from the country, while keeping in view the economic, social and geographical conditions of Pakistan, if Zakat, Waqf and the ideology of Micro Takaful are brought forward together, then it would be no less than a revolution.

If Dr. Younas persists that the interest based micro finance system is the only solution for the elimination of poverty, then was the same existent at the time when there was no Zakat receiver. If we try and find solutions to our social and economic problems in the light of the Holy Quran and Sunnah, then there is success both in the world and hereafter.
With the Shariah compliant combination of Micro Takaful, Zakat and Waqf and with both positive and constructive thinking, beneficial results with regards to poverty elimination can be achieved. The question remains, who would think in a positive and broad minded manner when there is no Nobel Prize given on Islamic economics and finance, but only a question.

( The writer is Chief Executive Officer, AlHuda Centre of Islamic Banking & Economics www.alhudacibe.com )

Abu Dhabi Islamic Bank (ADIB), one of the world’s leading Islamic financial institutions, has reaffirmed its commitment to expanding and investing in its workforce in the UAE, while recognizing 70 existing employees who have been with the bank since its inception in 1998.
While the bank acknowledges the changed economic conditions in 2008, ADIB has not slowed down its ambitious plans to extend its business footprint in 2009. It is continuing with its strategy to attract and retain the best talent in the Islamic banking industry, and to continually invest in its workforce. Standing as testament to this strategy, the bank recently recognized the 70 employees still working at ADIB, out of the original 1500 who started with the bank 10 years ago, with a celebratory gala dinner held in their honour at the Emirates Palace in Abu Dhabi.
In the UAE, the bank is consolidating its workforce via a number of appointments across different divisions, strengthening its people-base in line with the organisation’s vision to become a top tier Islamic financial services group. Over the past few months ADIB has significantly bolstered its senior management team with hires from around the region and beyond, including in the Retail, Risk Management Finance and Branches divisions. This team building has reinforced ADIB’s position as one of the fastest growing Islamic finance institutions.
In Egypt, ADIB is currently building up its new management team, spearheaded by the recent appointment of Nevine Loutfy as market Chief Executive Officer.
ADIB, which marked its 10th anniversary in November, maintains a staff of 1500 in the UAE. The gala dinner recognising the 70 employees who have been with the bank since its inception was attended by the Chairman, H.E. Jawaan Awaidha Suhail Al Khaili, Managing Director, Mr Khamis Bu Haroon, and CEO, Mr Tirad Mahmoud, who presented a number of awards and certificates of appreciation to the employees.
AME