Takaful Insurance of Africa Limited (TIA) hosted a Business Breakfast Meeting at Crowne Plaza Hotel, Nairobi during which it declared surplus for the second year running. It declared a Surplus of Ksh 11 million to be given to its eligible Policy holders while reserving 42 million of the Surplus Profit in the Risk Fund.
The Surplus announcement for the second year was testament to the impact of the sharia-based insurance model, which emphasizes ethical practices and sharing of surplus with its eligible surplus holders. The Business meeting provided an opportunity for Takaful Insurance of Africa to showcase and further emphasize the unique selling propositions of the very products that have propelled the growth of the company.
Takaful Insurance of Africa (TIA) CEO Hassan Bashir showcased some of the products, among them Family Takaful, Takaful Retirements Benefits Scheme (Pension), Medical Takaful and the unique Index Based Livestock Cover, which is an innovative product that insures pastoralists against loss of forage and livestock. This product was launched in partnership with the International Livestock Research Institute (ILRI). The uptake of the product is steadily growing with beneficiaries registering positive feedback "The cover has improved my welfare and that of my family by providing a safety net for me and my family".
TIA CEO Hassan Bashir, further recapped the remarkable performance of TIA as it surges on in its fourth year of operations saying," We are emerging as a stronger player in the insurance sector with adequate capitalization to meet the needs and requirements of members."
As a result of its focus on growth, TIA has also commenced its regional growth expansion and now has presence in Mogadishu, Garowe, Bossaso and Hargeisa with plans to expand its footprint in the East African region. Media Release II Takaful Insurance of Africa
TIA remains committed to very prudent risk management, through its espoused values of 40% allocation of the risk fund for administrative costs with the remaining 60% strictly set aside for claims settlement and/ or surplus profits, dependent on the financial performance after deducting claims settlements and related costs.
In his speech, Takaful Insurance of Africa Chairman Eng. Abdirahman Sheikh reminisced on the journey that TIA has taken saying, ‘It is a dream come true". He appreciated the hard work and effort that it has taken to make the dream a reality. While explaining the surplus concept to the guests he said, "The Takaful model of insurance is one of a kind and original in Kenya, and with it comes a high level of transparency regarding the management of risk funds, a factor that additionally distinguishes us from the conventional insurer." From the initial license of General Takaful products three years ago. Now TIA boasts of additional licenses including Family Takaful, Takaful Retirements Benefits Scheme (Pension) and the Medical License which has already started operations in the greater Somalia region. .
Eng. Sheikh further outlined regional interests that are very promising with operations having already started in Somaliland, Puntland and Mogadishu in Somalia. Initial meetings with regulators taking place in neighboring countries like Tanzania, Uganda and Djibouti are positive. In addition, he emphasized that the Surplus declaration for year 1 and 2 of operation is the first in the world for any Takaful operator to declare surplus in two consecutive years. He thanked the dedication of the Shareholders, Directors, Regulators, TIA Management and staff for their utmost dedication.
The Chief Guest at the Breakfast Meeting was Summayya Athmani, the CEO of National Oil Corporation of Kenya. She commended TIA for being a pioneer and trailblazer in promoting the Takaful model in the region. She challenged TIA to come up with additional innovative products especially in the Oil and Gas sector to exploit the emerging opportunities with the discovery of oil in parts of Kenya. She added that TIA should consider developing a product for the flood prone and fish rich regions in Kenya that is similar to the Index Based Livestock Cover that is meeting the needs of the Pastoralists in the drought prone Northern Kenya.
"The insurance sector has undergone tremendous changes and TIA has done well to respond to the market by tailor-making products to suit its members".
In his vote of thanks, Abdulla Abdulkhalik , C.E.O of Gulf African Bank, one of the two fully fledged Islamic banks in the country, acknowledged the need for Islamic institutions to work together as their services are complimentary to each other.
In attendance at the Breakfast were were representatives from the Shariah Supervisory Council, the Insurance Regulatory Authority, and the Association of Kenya Insurers, the Chairman of NSSF, Mr. Adan Mohammed, partner banks, agents and brokers. Media Release II Takaful Insurance of Africa
About Takaful Insurance of Africa
Founded in 2008 and licensed in March 2011, by the Insurance Regulatory Authority (IRA), Takaful Insurance of Africa Limited (TIA) is a dynamic insurance company responsible for pioneering the Takaful concept, a new and ethical perspective to the insurance industry in Kenya and the region.
The Takaful concept is based on the Sharia’h principles of togetherness, cooperation and mutual solidarity where each participant or member contributes a given premium which is pooled into a general fund managed by TIA on behalf of the members. It is operated under the concept of mutual guarantee where both risks and rewards in the form of underwriting surpluses are shared among members or policy holders.
Through the principle of Tabarru’ or donation, the members allow the company to pay any losses suffered by participants contributing to the pool. Any surplus left from the pooled funds after payment of claims and other expenses is either used to grow the reserves or is distributed among members. This is referred to as "surplus profit".
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