BancaTakaful in Pakistan

4th International Conf. & ExhibitionLahore – Nov. 2010

Azeem PiraniRegional Manager – Pakistan

FWU AG

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Contents•What is Banca?•History•Benefits•Coming to Pakistan•Benefits in Pakistan•Conclusion

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«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.»

Customer Life CycleDemand Driven

STUDENT LOANS

LIFESTYLE SPEND

CAR LOANS

MORTGAGES SAVINGS

LIFE INSURANCES

RETIREMENT PLANS

ANNUITIES

What is Banca?

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BancaTakafulBanca - 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 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

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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