The second and final day of the 11th annual World Takaful Conference (WTC) built on Monday's critical discussions on the state and future of the global takaful industry. Convened by Middle East Global Advisors and in strategic partnership with the Dubai International Financial Centre (DIFC) Authority, WTC is held in Dusit Thani Hotel, Dubai under the theme "Prudent Practices for Global Growth" and considered to be the world's most powerful takaful gathering. On Tuesday, WTC played host to a ratings roundtable that assessed the necessary steps required for takaful players to build the industry's financial strength. The session also specifically addressed the ratings perspective of the risk-shifting effect of the use of Qard loans from shareholders to the policyholders' fund. Following suit was a look at what the takaful industry would look like in 2020, with a particular look at the whether family Takaful can grow large enough to support the increasing supply of longer-dated sukuk expected in the market. Mahesh Mistry, Director, Analytics of A.M Best, said "the lack of differentiation and the associated pricing pressure along with poor distribution networks will be the key challenges for Middle East takaful companies going forward. For the industry to tackle these challenges, the operators will need to adopt suitable strategies and appropriate structures to ensure that the Takaful model employed is balanced, and that it serves the needs of the enormous potential for Shariah-compliant insurance, to the benefit of all stakeholders." The afternoon sessions included topics such as innovation and takaful, the key imperative of risk-based capital and emerging Takaful markets. The WTC audience comprised of high profile guests and dignitaries from Dubai Islamic Economy Development Centre, Dubai International Financial Centre, Islamic Insurance Association of London, Insurance Authority UAE, PwC, Moody's, EY, Swiss Re, Munich Re, Noor Takaful, Watania, Emirates RE and many more organizations.
