BancaTakaful in Pakistan
Azeem Pirani
Regional Manager – Pakistan
FWU AG
4th International Conf. & Exhibition
Lahore – Nov. 2010
Contents
•What is Banca?
•History
•Benefits
•Coming to Pakistan
•Benefits in Pakistan
•Conclusion
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What is Banca?
« Bancatakaful is defined as the delivery and distribution of a suitable range of tailored
‘bankable’ protection and long term savings and pension products designed to meet the
lifecycle needs of the customer base of a bank or other financial institution.»
ANNUITIES
LIFESTYLE SPEND
RETIREMENT PLANS
STUDENT LOANS
LIFE INSURANCES
CAR LOANS
SAVINGS
MORTGAGES
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BancaTakaful
Banca - History
• Started in France in the 80’s
– More than 60% of life policies sold through banks.
• Quickly spread to the rest of Europe
• Subsequently came to Asia
• Began in India in 2000
– Being practiced by a large number of Indian banks; both state owned, private
and foreign.
– Most insurance companies have linkups with banks.
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BancaTakaful - Benefits
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Natural synergy between Bank and Takaful/Insurance company.
Banks have a very positive image vis-à-vis their customers.
Provides quick fee based income to the Banks.
Enables Banks to further increase their offering and ensure customers get all
their financial needs met under one roof.
• Further enhance customer loyalty as life Takaful/insurance contracts are of a
longer duration
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BancaTakaful
Came to Pakistan
• Credit Covers on Credit Cards, etc. started in mid to end 1990’s.
• Unit linked Banca offerings started in 2003.
• Family Takaful offerings were available from mid 2008.
• First Unit Linked BancaTakaful product launched in mid 2009
BancaTakaful
Benefits to Pakistan
• Takaful provides Pakistani public with risk mitigation which is line with
their religious sensitivities.
• BancaTakaful means they can access it through channels they are used
to and comfortable with.
BancaTakaful
Models & Results
• Different models:
– Bank Resources (dedicated/non dedicated)
– Insurance/Takaful co. resources
• Some of the bigger players are producing between PKR 50 million to
PKR 75 million per month
BancaTakaful
Conclusion
• Pakistani public needs Takaful.
– BancaTakaful could be the best and fastest way to provide it to them.
• Pakistani banks need additional fee based income.
– BancaTakaful will provide this additional revenue stream.
• Takaful co. need additional channels to distribute their products to such
a large market.
– BancaTakaful will provide this channel
Jazak-Allah Khair
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