With many of the country’s individuals, organisations and businesses without adequate levels of insurance or risk management products of any kind, it has been said that the Takaful sector in Malaysia has the potential to be a high-growth industry. However, the industry faces challenges in its developmental cycle, such as product innovation and a bid to further educate the market of the benefits and features of Takaful. The evolving regulatory and financial risk management requirements for Takaful, as well as the continuous duty of ensuring Shariah-compliance (and rigorously avoiding Shariah non-compliance) also add to the inherent challenges of the industry.
This one-day seminar, brought to you by REDmoney will address and examine the current position of Takaful companies from the viewpoint of regulation, Shariah and financial risk management and capital adequacy. We will examine the latest regulatory frameworks, including those of Bank Negara Malaysia and PIDM, and how regulatory compliance can be maintained. We shall also examine Shariah standards for Takaful as well as how Shariah risk can effectively be managed. Financial risk management and capital adequacy for Takaful operators will also be covered in significant detail, including the significance and importance of stress testing and Internal Capital Adequacy Assessment Process (ICAAP) for Takaful operators.
Key Learning Outcomes
Assessing the current position of Takaful operators in Malaysia and identifying what challenges face the industry
Predicting the opportunities and threats presented by financial technology (FinTech)
Identifying and effectively managing Shariah risk and non-compliance risk in Takaful and discussing key Shariah issues relating to Takaful contracts and business operations
Examining the Regulatory Framework for Takaful operators and providing an update on Islamic Financial Services Act 2013 and Malaysia Deposit Insurance Corporation’s differential levy systems framework
Discussing the importance and significance of capital adequacy for Takaful companies and analysing the Internal Capital Adequacy Assessment Process (ICAAP)
Examining the recent regulatory and operational environment for Retakaful operators
Agenda
09:15 – 10:15
Session One: Overview of the Takaful Industry in Malaysia - Regulatory and Operational Environment
Examining the state of play: where is Takaful in Malaysia today and what challenges face the industry
Assessing optimum and fine-tuning business models, operations, product offerings and distribution channels for Takaful
Discussing the regulatory framework and the operational effect on Takaful operators: overview of Bank Negara Malaysia Framework for Takaful operators; new capital adequacy requirements; changes to Malaysia Deposit Insurance Corporation’s differential levy systems framework
The look ahead: focusing on FinTech opportunities and threats for the Takaful industry on an operational level
Hassan Scott Odierno — Partner, Actuarial Partners Consulting
10:15 – 10:45
Coffee Break
10:45 – 12:00
Session Two: Latest Update on Shariah Requirements, Arrangement and Issues for Takaful Operators
Effectively managing Shariah risk and non-compliance risk in Takaful
Assessing key Shariah issues relating to Takaful contracts
Identifying and discussing Shariah issues relating to ownership of funds, nomination and Hibah, and distribution of surplus
Undertaking effective Shariah review, audit and compliance for Takaful operations and assessing the legal requirements of these functions in Malaysia
Datin Dr Nurdiana Wati Irwani Abdullah — Associate Professor, Department of Finance, Kulliyyah of Economics & Management Sciences, International Islamic University Malaysia and Shariah Committee Member, AmMetLife
12:00 – 13:00
Session Three: Assessing the Regulatory Framework for Takaful operators: Update on Islamic Financial Services Act 2013
Examining Bank Negara Malaysia’s Life Insurance and Family Takaful Framework for Takaful operators
Assessing the workings of Malaysia Deposit Insurance Corporation’s differential levy systems framework, and the objectives of this framework
Discussing the implication of Islamic Financial Services Act 2013 to Takaful: an update on the timelines, effect on business operations and organization, duties and responsibilities of senior management
Datin Dr Nurdiana Wati Irwani Abdullah — Associate Professor, Department of Finance, Kulliyyah of Economics & Management Sciences, International Islamic University Malaysia and Shariah Committee Member, AmMetLife
13:00 – 14:00
Lunch
14:00 – 15:15
Session Four: Examining Key Financial Risk Management and Capital Requirements for Takaful Operators
Discussing the importance and significance of capital adequacy for Takaful companies
Assessing the Internal Capital Adequacy Assessment Process (ICAAP) for Takaful operators: timeline, obligations, responsibilities and implementation
Identifying and analysing stress testing procedure for Takaful operators
Effectively monitoring and reviewing new capital adequacy requirements
Session Five: Discussing the Recent Regulatory and Operational Environment for Retakaful Operators
Analyzing 2016 IFSB Guiding principles for Retakaful: evidence from GCC and Malaysia
Assessing the Impact of IFSA 2013 on Retakaful undertakings
Shariah compliance and Governance issues in Retakaful and possible impact on relevant risk profiles
Evaluating prudential requirements and risk mitigation measures in view of current Retakaful environment
Assoc. Prof. Dr. Younes Soualhi — Senior Researcher, ISRA and former Deputy Dean, Institute of Islamic Banking and Finance, International Islamic University Malaysia
