The Role of International Insurance Companies new products (Takaful)

advertisement
The Role of International Insurance Companies
in the opening of frontiers: development of
new products
(Takaful)
Sohail Jaffer
Partner, FWU Group
FWU group won the Euromoney Islamic Finance Award
for being the "Best Islamic white label service provider“.
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
2
FWU’s definition of Bancassurance
«Bancassurance 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.»
3
FWU-GROUP‘s Core Business Competencies
Bancassurance - Asset Management - Factoring
Germany
Luxembourg
Austria
Italy
France
Saudi Arabia
United Arab Emirates
Kuwait
Pakistan
Malaysia
The
group
is
well
positioned to meet the life
assurance,
investment
and pension needs of
institutional and private
clients in Europe, Middle
East and Asia with state of
the art bancassurance &
Shari‘a compliant
Life
products.
4
FWU Group’s International Business Model
 Strategic Product
 Clone international
Bancassurance
success
Partners
FWU Shari’ah Board
&
Expertise
 Product &
process innovation
 Structured asset
management approach
 Web-based POS &
Admin System
 customer convenience
 commission factoring solution
 tailored ‘white label’ solutions
 exclusive Retakaful solution
 quality training and sales support
 selection of service providers incl.
custodian bank
5
Benefits of ‘White label’ Bancassurance Solution
 Bank defines own
commission level
 Tailored customer
solutions
 Seamless integration
into Bank’s own brand
Bank offers choice of
both conventional
Bancassurance and
Takaful products
 Structured asset
mgt. approach
linked to open inv.
architecture
Bank has choice to participate in other
modules of the service value chain
(custodian, brokerage, transaction banking)
6
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
7
FWU Group‘s international Bank distribution and
Strategic product partners
Bank Distribution Partners
 FWU's existing distribution partners
include: NCB in KSA and ADCB in
UAE
Al Safat Takaful
Company
Kuwait
Bank Customers
EFU Life Insurance
Pakistan
Aman Insurance
UAE
Takaful Ikhlas
Malaysia
Al Ahli Takaful
Company
KSA
Bank is Custodian of all customer
funds in the Savings Plan
 Product administration,
and claims management
 Customer statements
 Financial accounting
 Filing with local regulatory
authorities
Local Life
Insurance Product Partner
FWU Int. Network
Dubai, KL
& Luxembourg
 New product development,
 Product launch support
 Product management,
Marketing & Training
support
 Structured asset mgt.
apporach
 Systems support to
Strategic Product Partner
and Bank Distribution
Partner
 Product enhancements &
Shari’ah compliance
8
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
9
Main product features and customer benefits
FWU Group‘s "White Label" Savings, Education and Retirement Plans –
Product Highlights
Product features
Customer Benefits
 Plan benefits are available to all bank
customers
 All bank customers are insurable
 No medical examination of bank
customer required (up to a defined
limit)
 Eliminates important psychological
barrier
 Transparent and cost efficient
structure
 Greater customer comfort
 Accelerated sales process using
FWU’s Point of Sale and
Administration technology
 Immediate risk cover for bank
customer
 Plan benefits are available
immediately to all bank customers
 Bank customer convenience
10
Bank Annuity Income: Attractive Dynamics
Bank Income Growth – 5 year period
7,000
USD ('000)
6,000
5,000
4,000
Conservative
3,000
Average
Best
2,000
1,000
-
Year 1
Year 2
Year 3
Year 4
Year 5
Conservative
Base Assumptions:
Number of Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average duration
15 years
Average monthly contribution
$ 200
Lapsation rate
2 to 10 % p.a
Fund growth rate
7 % p.a
25,000
Average
Best
40,000
50,000
11
Cumulative Bank Income over a 5 year period
US $ in Millions
20
15
10
5
0
Conservative
Average
Best
12
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
13
Structured Asset Management Approach
Agreed funds
target universe
Objective
Investment
process
FWU’s fund
selection and
allocation
model
Overweights the winners &
underweights the losers
Enhance return by
15% to 25% p.a
14
FWU‘s Dynamic Fund Selection
and Allocation Model
Fund Selection Process
 Based on Funds’ returns, risk and
correlation amongst each other,
funds are ranked from best to
worst => Each fund is given a
score, based on its ranking.
 Using the above rankings
=> Top eight funds are selected.
15
FWU‘s Dynamic Fund Selection
and Allocation Model
Allocation model (key value added)
 Overweighting of the outperformer
 Underweighting of the underperformer
16
Investment Proposal for Regular and Single Premium
Savings Plans
FWU‘s Dynamic Fund Select & Allocation Model
Strategy 1
Conservative
Portfolio
Strategy 2
Balanced
Portfolio
Strategy 3
Growth
Portfolio
Strategy 4
Dynamic
Portfolio
Investment in External Islamic Mutual Funds
Launched as internal funds of
FWU‘s local Takaful Product Partner
17
Investment Advantages of Pooling
Conservative
portfolio
Balanced
portfolio
25:75
50:50
Custodian
Bank
Equity Pool
Growth
portfolio
Dynamic
portfolio
80:20
0-100
Cash
Equivalent
Pool
Direct Investment in:
 Sukuk
 Murabaha
 Trade-Finance
18
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
19
The value added – why FWU Group
ENTREPRENEURIAL
INNOVATION
PARTNER
 Customised
product design
 Product training
and sales support
 Sophisticated Point of
Sale and Administration
System
 Dynamic funds select and
allocation model
 Business simulation
model
 Cost efficient Agency structure
 Regional service
hubs
 Unique Retakaful arrangement
20
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Product Highlights and customer benefits
 Dynamic Fund Selection and Allocation Model
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
21
FWU-Group‘s Exclusive Retakaful Pooling Arrangement
Hannover Re
(„AAA rated“,
3rd largest
life Reinsurance)
FWU – GROUP
Administrator
-Data processing
and administration
Asset Management
Pooling
Arrangement
Wakeel/Trustee
- Fee
Basis
- 100% profit redistribution
- Quard Hasna
- Shari‘ah compliant Investments
Establishment of insurance provider through joint venture or strategic cooperation
agreement
Insurance
Partners
Al Ahli Takaful
Company
NCB/FWU / IFC
Dubai Islamic
Insurance &
Reinsurance
AMAN
Al Safat Takaful
Company
Eastern
Federal
Union Life
EFU
Takaful
Ikhlas
SDN BHD
Bank distribution partners in the following markets
KSA
DistributionPartners
The National
Commercial Bank
Jeddah
UAE
Abu Dhabi
Commercial
Bank
Kuwait
Major Bank
Pakistan
Major Bank
Malaysia
Major Bank
22
Contents
 FWU’s International Business Model
 International Bank Distribution and Strategic Product
Partners
 Retakaful Pooling Arrangement
 Structured Asset Management Approach
 FWU’s Value Added
 FWU’s Retakaful Pooling Arrangement
 FWU Group
23
FWU-GRUPPE
An entrepreneurial and institutional partnership
Swiss Re Frankona
Rückvers. AG,
Dr. Manfred J. Dirrheimer and
Partners
Munich
95%
5%
FWU AG
Munich, Luxembourg, Dubai, Kuala Lumpur
74,9%
ATLANTICLUX Life
Insurances S.A.
Luxembourg
PREMIUM SELECT
LUX S.A.
Luxembourg
25,1%
Branch
Bolzano
100%
80%
25,1%
VHV
Versicherungen,
Hanover
Branch Luxemburg
International HQ
Branch Dubai
Regional HQ ME
13,25%
100%
10%
FWU Commission
Factoring GmbH
FWU Payment
Services GmbH
Al Ahli Takaful
Company
Wave Asset
Management AG
Munich
Munich
Jeddah, KSA
Hamburg
13,25%
IFC International Finance
Cooperation
Washington
30%
National Commercial
Bank,
Jeddah, KSA
7,5%
90%
VHV
Versicherungen,
Hanover
Branch Kuala
Lumpur
Regional HQ FE
24
FWU Group – Profile

The FWU Group is an entrepreneurial financial services group with
headquarters in Munich, Germany.

Further offices are located in Luxembourg and Dubai Internet City (DIC).

Group shareholders include GE Frankona Re AG, an international reinsurer, and European banks and insurance companies.

Core activities are Bancassurance, Savings & Pension Plans and Asset
Management.

Group subsidiaries include:
– an Asset Management Company (PREMIUM SELECT LUX S.A.)
– a Life Insurance Company (ATLANTICLUX S.A.)
Both are based and regulated in Luxembourg.
25
Contact
Mr. Sohail Jaffer
Partner, FWU Group
2, Rue Sainte Zithe
L-2763 Luxembourg
Email: s.jaffer@fwugroup.com
Tel: +352 – 2 61 97 700
Fax: +352 – 2 61 97 800
Internet: www.fwugroup.com
The information in this presentation does not constitute a sales offer, investment advice or an offer for the
acquisition of financial products or instruments, and shall not in this regard imply legal obligations for the
FWU Group or anybody else towards the readers of this presentation.
This presentation is solely intended to provide information on matters of interest for the readers and such
information is not meant to replace the knowledge and the judgment of the readers who should make all
appropriate inquiries.
26
Download