BancaTakaful in Pakistan

Azeem Pirani Regional Manager – Pakistan FWU AG 4th International Conf. & Exhibition Lahore – Nov. 2010

Contents

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What is Banca?

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History

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Benefits

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Coming to Pakistan

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Benefits in Pakistan

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Conclusion 2

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 SAVINGS CAR LOANS MORTGAGES 3

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

• Natural synergy between Takaful/Insurance company.

Bank and • 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 Takaful/insurance contracts are of a longer duration enhance customer loyalty as life

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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 launched in mid 2009 BancaTakaful product

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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