CHAPTER 1 INTRODUCTION

Insurance provides the means for people to transfer the burden of uncertainty

(of

financial loss) to the insurer, for an agreed financial consideration called the premium. In exchange, the insurer promises to provide financial compensation to the insured should a specified loss occur. It is an effective risk transfer mechanism by which individuals or organization can exchange their uncertainty of financial loss (or risk) for the certainty of the premium. With a fixed premium, the insured is certain that he will not have to pay more for that year.

1.1

The History and Emergence of Insurance

No doubt the longing for safety is as old as mankind itself and its a direct result of bearing and living with risks and the need for protection and the dependency on the help of others. This need seems to be trigger for the old practice of insurance. Its roots might be traced to Babylonia, where traders were encouraged to assume the risks of the caravan trade through loans that were repaid (with interest) only after the goods had arrived safely.

With the growths of towns and trade in Europe, the medieval guilds undertook to protect their members from loss by fire and shipwreck, to ransom them from captivity by pirates, and to provide decent burial and support in sickness and poverty. By the middle of the 14th century, as evidenced by the earlier known insurance contract (Genoa, 1347), marine insurance was practically universal among the maritime nations of Europe. In London,

Lloyds Coffee House (1688) was a place where merchants, ship-owners and underwriters met to transact business. By the end of 18th century Lloyds had progressed into one of the first conventional insurance companies.

Insurance developed rapidly with the growth of British commerce in the 17th and 18th century. Prior to the formation of corporations devoted solely to the business of writing insurance policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter. The first stock companies to engage in insurance were chartered in England in 1720, and in 1735, the first insurance company in the American colonies was founded at Charleston, S.C. fire insurance corporations were formed in New York City (1787) and in Philadelphia (1794). The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance corporation in America, for the benefit of Presbyterian ministers and their dependents.

The New York fire of 1835 called attention to the need for adequate reserves to meet unexpectedly large losses; Massachusetts was the first state to require companies by law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the costly nature of fires in structurally dense modern cities. Reinsurance, whereby losses are distributed among many companies, was devised to meet such situations and is now common in other lines of insurance. The Workmens Compensation Act of 1897 in Britain required employers to insure their employees against industrial accidents. Public liability

insurance, fostered by legislation, made its appearance in the 1880s; it attained major importance with the advent of automobile.

1.2

The History and Emergence of Takaful

An Islamic alternative to conventional insurance is known as Takaful. It is based on the concept of Taawun, or mutual assistance. Taawun forms the basis of many Islamic practices. The teaching of Islam in regard to the equality and brotherhood of believers, and their responsibilities toward one another and all humanity led to several forms of mutual assistance both social and economic. Takaful as practiced in the 6th century (Christian era A.D. and +50 Hijirah) actually evolved from tribal practices of mutual assistance dating back to pre Islamic times. There are several examples in pre-Islamic history whereby families, tribes or related members throughout the Arabian Peninsula pooled their resources as a mean to help the needy on a voluntary and gratuitous basis. There practices were validated by Prophet Muhammad (P.B.U.H) and incorporated into institutions of the early Islamic State in Arabia around 650 C.E.

Examples of these early Islamic practices include the merchants of Makkah who used to formed funds to assist victims of natural disasters or hazards of trade journeys. Surety called Dhaman Khatr al-tariq was placed on traders against losses suffered during a journey due to hazards on trade routes. Assistance was provided to captives and the families of murder victims through a grouping known as aaqila.

1.3

Takaful Referenced with the Quran and Sunnah

Although the word Takaful does not appear in the Holy Quran, it is derived from the term Taawun, or mutual assistance and connotes the same meaning, the second verse of the Surah 5 in Holy Quran exhorts the individual to assists others: Assist one another in the doing of good and righteousness. Assist not one another in sin and transgression, but keep your duty to Allah.

Given the Quranic admonition to assist one another and the words of the Prophet Muhammad (P.B.U.H) regarding mutual assistance, Takaful may be understood as an imperative upon Muslim believers:

A system based on solidarity, peace of mind and mutual protection which provides mutual financial and other forms of aid to members in case of specific need, whereby members mutually agree to contribute moneys to support this common goal. O.Fisher

The practice of blood money was sustained for nearly a thousand years provision against danger to which a group of persons are all equally subject. A group united by blood-ties and family-ties comes to the aid of a member through mutual action hence, the custom of sharing in common. This practice was used for plundered properly as well as compensation for the loss of life to avoid feud and unchecked destruction. The Arabic term for blood tie is maaqil, which is derived from aql or aaqila.

During the emergence of Islam (623-670 CE), some of these customs, including aaqila were sanctioned by the Prophet Muhammad P.B.U.H). In this way, these customs became part of Sunnah (collection of sayings and practices of the Prophet Muhammad (P.B.U.H) and subject to regulations by the Shariah.

The principle of maaqil was affirmed by the Prophet Muhammad (P.B.U.H) as related in the following story from the Sunnah.

Two ladies (had a fight) and one of them hit the other with a stone on the abdomen and caused her to abort. The Prophet judged that the victim be given either a slave or a female slave (as blood money). Narrated Ibn Shihab: Said bin Al-Musayyab said, Allahs apostle judged that in case of child killed in the womb of its mother, the offender should give the mother a slave or a female slave in recompense. The offender said, how can I be fined for killing one who neither ate nor drank, neither spoke nor cried: a case like that should be denied. On that Allahs Apostle said He is one of the brothers of the foretellers. (Sahih Bukhari, Volume 7, Book 71, Number 654-655, Narrated by Abu Hurairah)

The decree in this case was that the Prophet Muhammad (P.B.U.H) decided that the second womans kin would pay a penalty to the relatives of the first woman who was killed (aaqila), in accordance with established custom.

1.4

Insurance Today

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.

1.5

Principal of Insurance

The principles on which the insurance is based are utmost good faith, insurable interest, indemnity, subrogation, contribution and proximate cause. Utmost good faith is the declaration of all material Information about the subject matter of insurance. The material Information is that information which enables the insurer to decide whether he will accept the risk and; if so, at what rate of premium and subject to what terms and conditions. The legal right enjoyed by the owner of a property to insure is called Insurable Interest. The insurance will become null and void, without the insurable interest. The principle of Indemnity states that under the policy of insurance, the insured has to be placed after the loss in the same financial position in which he was immediately before the loss. Subrogation is the Transfer of rights and remedies from the insured to the insurer who has indemnified the insured in respect of the loss. The rules of indemnity prevent an insured party from claiming more than the true amount of his loss. If he has more than one policy covering the same risk against the same peril, he is therefore unable to claim his full loss against each policy. However, if the insured party decides to claim the full amount from one insurer, each insurer is entitled to call for a contribution from every other insurer involved. Proximate cause is a legal term that refers to exactly how a loss occurred. The cause of a loss must be established because only risks specifically insured against can be

compensated. If there is more than one cause for a loss, the dominant and effective cause is the one considered; a more remote cause will not count.

The products being offered in conventional insurance are fire and property insurance, marine insurance, motor insurance, engineering insurance and family insurance. There is no proper model according to which the insurance is being performed. The basic set rules, acts and principles are used by the companies to do their business e.g. how the premium is calculated and what will be the terms and conditions, where to invest the money and how to maximize the profits are all set by the companys management and board of directors.

1.6

Takaful Today

As the word Takaful is derived from the Arabic verb Kafala, which means to guarantee; to help; to take care of one anothers needs.

Takaful is a system of Islamic insurance based on the principle of shared responsibility, brotherhood, solidarity and mutual cooperation, which provide for mutual financial security and assistance to safeguard the participants against certain defined risks.

1.7

Takaful Models

There are three models of Takaful which are used in all over the world. These are: Mudarabah Model Wakala Model Wakala and Waqaf Model

The Mudaraba model is based on Mudaraba and is basically a profit-sharing mechanism where the surplus is shared between the Takaful Company and the participants in a predetermined mutually agreed manner between the contracting parties.

Fig: 1.1.

Mudaraba Model

Source: PricewaterhouseCoopers global training call abridged transcript Understanding Takaful (Islamic insurance) - its concepts, models, growth and opportunities

The Wakala model is a fee-based mechanism where the Takaful operator is only entitled to take out a fee upfront as the contribution, though it may also charge a fund management fee and performance incentive fee. This model is formulated by scholars in the Middle East and is still the predominant form of Takaful in that part of the World.

Fig: 1.2.

Wakala Model

Source: PricewaterhouseCoopers global training call abridged transcript Understanding Takaful (Islamic insurance) - its concepts, models, growth and opportunities

In Pakistan, Wakala and Waqf Model are used. The relationship of the participants and the operator is directly with the WAQF fund. The Operator is the Wakeel of the fund and the participants pay contribution to the Waqf fund by way of Tabarru.

Fig: 1.3.

Wakala and Waqf Model

Source: PricewaterhouseCoopers global training call abridged transcript Understanding Takaful (Islamic insurance) - its concepts, models, growth and opportunities

The contributions received would also be of this fund and the combined amount will be used for investment and the profits earned would again be deposited in the same fund which also eliminates the issue of Gharar (uncertainty). The company pays losses to the participant from the same fund. Operational expenses incurred for providing Takaful services are also met from the same fund. (Imran Ali, 2008)

The products being offered by Takaful are same as in conventional insurance. These are fire and property insurance, marine insurance, motor insurance, engineering insurance and family insurance.

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1.8

Comparison of Insurance and Takaful

Shariah Scholars view the insurance contract as a transaction where money is being exchanged with money. Basically, the two parties to an insurance contract are exchanging the premium for claims both in monetary terms. Money is therefore viewed as the subjectmatter of the insurance contract. It should be noted that treating the insurance contract as a contract for exchange of money is not just a Muslim view but is also shared by some western writers. The following definition of an insurance contract clearly shows that it is a contract of exchanging money for money:

An agreement whereby one party, the Insurer, in return for a consideration, the premium, undertakes to pay to the other party, the Insured, a sum of money or its equivalent in kind on the happening of a specified event, which is contrary to the Insureds financial interest.1

The subject-matter is, therefore, risk coverage (compensation) sold in consideration of the premium. Insurance is thus, a species of contract of sale as is further evident from the policy.2 Exchanging money with money in itself is not a problem so long as there is no difference in the amount or time involved. However, in the insurance transaction, the amount of premium and claim (both in terms of money) being exchanged is different and takes place at different times. This brings about the problem of Riba (interest). Another problem is
1 2

Malaysian Insurance Institute (MII) Text Book - Risk and Insurance. Dr. Muslehuddin, Insurance and Islamic Law pg.129

11

that in many cases, the exchange does not take place because the event giving rise to the claim did not occur. This gives rise to another problem, namely Gharar (uncertainty) and Qamar (gambling). The existence of these three elements is the major objections most Scholars have with Conventional Insurance.

Islam does not object to trade nor does it simply prohibit contracts just for the sake of it. What it seeks to ensure is justice and fair play in all dealings to all parties. Only those elements which could lead to exploitation of people or those deemed unjust by Shariah standards would be forbidden. What is basically useful to society would not be against the Shariah. The objection is not against the concept of insurance but against the existence of the weaknesses in the insurance contract namely as gharar (uncertainty), maisir (gambling) and riba (usury).

In the first session, which was held at Mkkah Mukarrmah on Shaban 10, 1398 A.H in the office of the Majlis -I-Fiqhi Islamia (the Assembly of Islamic Jurisprudence) deliberated on insurance and its difference branches and kinds. The vast amount of writings by the Ulama on this subject was also kept in view. Also kept in view was resolution # 55 of Saudi Arabias Majlis -e- Hayat-I-Kibar-ul-Ulama (The Constituent Assembly of Most Eminent Religious Scholars) passed in its tenth session at Raid held on 4.4.1397 A.H. declaring all kinds of commercial insurance as unlawful in Islam. In the report, the council expressed the opinion that the main laws relating to insurance and the pre-pondering bulk of insurance business is in conflict with the injunctions of Islam,

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because there is uncertainty in these contracts and the element of gambling and interest is present in the contract.

The Council of Islamic Ideology of Pakistan gave a decision in December, 1983 that the well -known and current forms of insurance are in conflict with the Islamic injunctions.

Table 1.1

Comparison of Takaful and Conventional Insurance

Section Niyyah Objective

Takaful Co-operation

and

Conventional Insurance risk Risk transfer and Receiving compensation

sharing in the group Receiving donation assistance from of

all from the insurance company all Responsibility of the

Protection Contribution Investment of Contribution

participants Responsibility

participants insurance company All or partial donated for the Belongs to the insurance benefit of participants company Shariah complaint No Islamic investment monitored by restriction for Insurance companies will make profit if the claims are regularity

Underwriting profits

Shariah board No provision underwriting profit

Claims Surplus

lesser that the premium Payable from Participants Payable from over all fund Takaful fund Belongs to Participants of the company Belongs to company share

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Deficit

holders Qardh-al-Hasan is given to Financed from share holders the participantsTakaful fund fund i.e. company

Mutual assistance amongst members of a tribe was not originally a commercial transaction and contained no profit or gain at the expense of others. Rather, it evolved as a social institution: to mitigate the burden of an individual by dividing it among his fellow members (group persons) or tribe. In contrast, most conventional insurance (even mutual stock insurance entities, but not mutual association) is a capitalist-based commercial enterprise, where losses are projected in advance and funds (premiums) allocated to risks to cover them. Premiums are paid in line with such projection of risk.

In short, the former practice involves compensation for actual losses upon occurrence by dividing them among the group, whereas, the latter involves the transfer of losses in advance based upon past experiences. This transfer often is from policy holders to share holders and thus voids the age-old principle of mutual assistance.

CHAPTER 2 LITERATURE REVIEW

Billah (1998) stated that an insurance contract is mainly based on the principle of mutual co-operation, solidarity and brotherhood which is operated based on the Mudharabah

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financing technique in which the parties to the contract share the profits at the agreed proportions as an alternative to the interest-based financing technique. The paid premiums of the general insurance are to be given away as tabarru or donation in the case of nonoccurrence of loss or damage to the subject matter. In a life insurance policy, the beneficiary(s) cannot claim the exact agreed sum of money from the insurer. The beneficiary(s), however, may claim the total paid premiums, the share of profits over the paid premiums, dividends and bonuses, besides the donation from the charitable fund according to their financial status.

Hanifa (1970) suggested that the agents should enjoy a share of the profits as a salary from the company. Such proposal is due to the fact that the agents are working for the company.

An insurance practice should not be valid if it involves the elements of riba or usury. Hence, an insurance policy must be operated based on the principles of the al-Mudharabah financing technique in order for it to remain valid and enforceable.

As far as the sources of insurance law under Islamic principles are concerned, they could be divided into two categories; namely the sources in general, and specific. In general, the sources of insurance law include the Holy Quran, the Sunnah or Tradition of the Holy Prophet (SAW), Ijma, Qiyas, Ijtihad, Isthisan, Masalih al-Mursalah, Urf, Fiqh, Shariahbased literatures and regulations enacted by the legislative body. Meanwhile, specifically the sources of insurance are the general principles of contract, the laws on liability, the

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principle of al-Mudharabah, the principle of Agency, the principle of mutual co-operation, the principle of humanitarian law, the concept of welfare, and so on.

Despite the development of insurance practices in the world, the ulama or Islamic scholars are still not agreed as regards to the validity of insurance policies. These Muslim scholars are divided into three groups. The first group totally accepts the idea and practice of insurance. The second accepts the idea and practice of general insurance, while rejecting the idea and practice of life insurance; while the third group opposes the entire idea of insurance practice, arguing that it is totally against the principles of the Shariah. It is also to be clarified here that a model of an Islamic insurance policy is different from the conventional one. This model is justified by the Shariah principles in the sense that it does not involve the elements of riba or usury, nor is it contrary to the principles of mirath and wasiyah. Therefore, it is submitted here that there are enough justifications to uphold the validity of an insurance policy in the eyes of the Shariah principles and that Muslim scholars should no longer be divided on this issue.

White (2007) in her article stated that objections relating to the insurance contract itself are those of riba (usury), gharar (uncertainty), and maysir (gambling). The other objections relating to market practice are usually concerned with two issues: The first is that insurance companies investment policies are generally interest-bearing (which is not acceptable in Islam), and the second issue is the fact that life assurance is considered to go against Islamic inheritance rules by distributing the sum assured among beneficiaries. These

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objections relating to market practice can be easily overcome by the insurer making changes to their company policy, as they do not affect the insurance contract itself.

The main features of Islamic insurance are cooperative risk sharing by using charitable donations to eliminate gharar and riba; clear financial segregation between the participant (insured) and the operator (insurance company) and Shariah-compliant underwriting policies and investment strategies.

Ashraf (2005) stated that Muslim jurists recognize that the basis of shared responsibility in the system of "aquila" as practised between Muslims of Mecca and Medina laid the foundation of mutual insurance. Islamic insurance was established in the early second century of the Islamic era when Muslim Arabs expanding trade into Asia mutually agreed to contribute to a fund to cover anyone in the group that incurred mishaps or robberies along the frequent sea voyages.

Takaful is an Arabic word meaning guaranteeing each other or joint guarantee. The Tabarru' system is the core of the Takaful system making it free from uncertainty and gambling. Tabarru' means "donation; gift; contribution." Each participant that needs protection must be present with the sincere intention to donate to other participants faced with difficulties. Therefore, Islamic insurance exists where each participant contributes into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims. The objective of Takaful is to pay a defined loss from a defined fund.

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Conventional insurance contains elements contradictory to Islamic Shariah like Uncertainty (Gharar), Gambling (Maisir) and Interest (Riba). The insurance contract contains uncertainty due to Uncertainty whether the payment will be accepted as promised, the amount to be paid is not known and the time it will occur is not known. Any form of contract which is unbalanced in favour of one party at the expense and unjust loss to the other is classified as Gharar.

In furtherance, conventional insurance involves gambling because the participant contributes a small amount of premium in hope to gain a large sum; the participant loses the money paid for the premium when the insured event does not occur and the company will be in deficit if claims are higher than contributions. Conventional insurance involves interest because an element of interest exists in conventional life insurance products - as the insured, on is death, is entitled to get much more than he has paid, insurance funds invested in financial instruments such as bonds and stocks contain and element of Riba.

Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain sum of money to a common pool. The purpose of this system is not profits but to uphold the principle of "bearing one another's burden." The role of this practice indicates that the policyholders are in fact the managers of the fund and the ones in ultimate control. However, the commercialisation of Takaful has produced several types of Islamic insurance like Mudharabah Model, Al Wakala Model and Wakala+Waqf Model, each reflecting a different experience, environment and perhaps a different school of thought.

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Mughal (2007) described the concept of Insurance in Islam. If the importance of insurance is observed in detailed, the following aspects emerge; to bear the risk, to protect others, to share the loss. Keeping in view the basic elements of insurance, it is evident that nowhere in Islam the above mentioned aspects are prohibited and that there is no reason to be considered haram or illegal since Islam itself encourages to help others. Narrated by Hazrat Abu Huraira (R.A.) that the Prophet Muhammad (PBUH) said: Whosoever removes a worldly hardship from a believer, Allah will remove from him one of the hardships on the Day of Judgment.(Sahih Muslim, Hadith. 59).

Islam teaches us not only to have total dependence on Allah but also emphasizes on self protection against risks and threats. Islam in fact even goes to the length of ensuring that incase of ones death, there should be enough to support the widow for at least a year. Therefore, it is decided that the philosophy of Insurance does not contain any flaws from the Shariah perspective and it can not be considered Haram or illegal. Research has shown that the fault lies not in the philosophy itself, but in the methodology carried out by the insurance companies due to which it is looked upon narrow mindedly.

Conventional insurance contains both direct and indirect forms of Riba. The direct Riba is in the of Premium and indirect Riba in the shape of interest earned on interest based Investments e.g. by giving loans to financial institutes and banks on interest or by investing in interest based activity at stock exchange etc. thus promoting interest. Second factor is Gharrar, where the person being insured does not know when he would bear the loss and to

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what amount, or the insurer can ascertain the amount and time with respect to profitability. Third element is Maysir, which involves a chance of total loss to one party in the contract, where profit to one person is directly related to another persons loss. While the relationship of claim between the insurance company and its client is related to each others profit and loss. Thus, by removing these three harmful elements of Riba, Gharrar and Maysir from the conventional insurance, we can call it Takaful.

Rasheed (2007) talk about the comparison of Islamic and conventional insurance. There are two major differences which make both different from each other. One is as Takaful is an Arabic word whose meaning is of mutual and joint guarantee whereas meaning of conventional insurance is reassuring. Therefore it is clear that in conventional insurance, Companies time by time reassure their clients about the loss. Where as in Takaful every participant take the weight of risk of other on his own head because Takaful is based on the concept of Tabarru. In short, we can say that conventional insurance is risk transferring and Takaful is risk sharing. Second major difference is their investments; conventional insurance companies without any regard of Haram and Halal invest their funds which is not acceptable in Islam where as in Takaful company make use of their funds according to Shariah.

Mortuza (2006) talked about the takaful that the idea of having a Shariah based insurance system (Takaful) stems from the desire of the followers of Islam to conduct their affairs in day to day life according to the teachings of Islam and within the framework of Islamic law. Takaful is based on the concept of cooperation, brotherhood and solidarity of the

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members of the society who voluntarily agree to contribute money to support a common goal of providing mutual financial aid to the members of the group under certain terms and conditions. The growth of Islamic Insurance companies would serve as the vehicle of risk pooling. It will also provide a means of investment. It has been estimated that total Takaful contribution (premium) is approximately 0.05% of total world insurance premium. However, the growth of Takaful industry during last decade was very impressive. The demand for Shariah compliant products is increasing and a high level of demand for Takaful is being predicted by market observers. It is now right time for the national regulators to provide supportive Takaful laws, rules and guidelines.

Anwar (1994) studied that during the last decade the Council of Islamic Ideology Pakistan (CIIP) reviewed the operations of the existing takaful in order to find a suitable model for Pakistan. This paper attempts to define the points of contact and convergence between insurance and takaful, and to make recommendations for possible improvement in the takaful concept. The study is organized as Islamic debate on insurance, with special reference to its application to takaful significant operational features of takaful are compared with insurance and the CIIP model is examined in the end. The final section features proposals meant to augment the conformity of takaful with the principles of Shariah.

Maysami and Kwon (2007) stated that there are several issues that must be resolved before takaful insurance can advance globally. First, there are still needs for educating the general public about insurance. In a recent study conducted by Survey Research Malaysia, 45

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percent of respondents were found to know little about life insurance (Asia Insurance Review, 1997). Among all respondents, slightly more than 33 percent indicated their need for insurance coverage but the other 45 percent even disliked discussing the subject. Similar findings are also observed in Singapore (Maysami and Low, 1998). Takaful insurers, therefore, need to plan strategies to increase the public awareness of the importance of insurance, both life and non-life.

Asia-Pacific Risk and Insurance Association (2008) stated that in Pakistan, no new life conventional companies have been established in Pakistan over the past 12 years. Soon after the introduction of Takaful Rules, however, the country saw its first general takaful operator (Pak Kuwait Takaful) in 2005. Since then, two more operators in general takaful insurance (Takaful Pakistan and Pak-Qatar General) and one in family (life) takaful insurance (Pak Qatar Family Takaful) have commenced operations.

Islamic banking presently stands at approximately 3.2% of the total banking sector PKR4.4 trillion (US$70 billion) in total assets, and the State Bank of Pakistan is pushing to bring this ratio to 15% in the next few years. These values make it very clear that there exists a significant gap in the market for financial protection tools in Pakistan. This gap is a big opportunity for takaful as well. There are significant challenges for takaful in Pakistan. These include education and awareness, human resource, ambiguity in regulatory statutes, uncertainty in dealing with the law and thin margins. Thus, the challenges are not small by any measure, but they can definitely be overcome.

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Abdul Wahab, Lewis and Hassan (2007) narrated that the takaful system is still in the process of evolving, with a number of issues raised by various Shariah scholars. The mudarabah model is acceptable as long as the operator benefits only by sharing in the investment returns of the funds. However, there are some very serious reservations if it is applied to risk contracts with underwriting surplus being shared. These issues do not seem to have a solution and hence most operators now adopt the wakala model. The wakala model has much wider acceptance and is most suited to risk contracts.

Siddiqui and Athmey (2006) in a paper briefly addressed the current status of different issues raised in the Islamic insurance like controversy of life insurance, provision of non Riba assets for insurance companies and Islamic banks it then attempt to define and suggest a set of distinguishing goals for Islamic insurance. The out come of the entrance of Islamic insurance to world finance should be a degree of relief for the policyholders and a good name for our beloved religion Islam. It will certainly remove any remaining doubt about the concept of insurance among the Muslim lots and especially amongst the low income groups. Their increased participation will not only improved their economic conditions, but also provide the necessary savings needed in many capital-scarce Muslim countries.

Abdul Rahman (2004) stated that Takaful is an alternative form of financial instrument to insure assets, liabilities and other personal interests of individuals and organizations. Almost 30 years later, takaful has grown at such a rapid rate and the market has expanded from western Asia, south Asia, south East Asia, Africa which is predominantly Muslim populated countries and recently has made its appearance in parts of Europe and North

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America. The impressive growth world wide and potential expansion into new western markets has a strong implication to would-be takaful operators to match the traditional insurance market to cater to the close to a billion Muslim market scattered in many parts of the world.

Ahmed (2006) described the background of Takaful, Insurance in Islam and comparison of Takaful with Conventional Insurance. Islam is not against the concept of insurance itself but against some of the means and methods that are currently used in conventional insurance. In fact, the concept of mitigation of risks by adopting the law of large numbers was widely used in Islam. However, to be acceptable to Islam, any form of insurance should avoid the elements of riba (interest), maisir (gambling) and gharar (uncertainty).

The difference between Takaful and Conventional Insurance lies in the points that in conventional insurance, a policy in the form of a risk sharing contract between the individual insured and the pool of insured as represented by the cooperative insurance company. Whereas in Takaful a combination of tabarru contract (donation) and agency and/or profit sharing contract between the individual insured and the pool of insured as represented by the Takaful. In conventional insurance policyholders pay premium to the insurer whereas in Takaful any underwriting surplus belongs to the policyholders, who are also liable for any deficit.

In conventional insurance pool is liable to pay claims according to the policy using the underwriting fund. Whereas Takaful operator acts as the administrator of the scheme and

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pays the Takaful benefits from the Takaful (underwriting) fund. In the event of deficiency in the Takaful fund, the Takaful operator is expected to provide an interest-free loan to the Takaful fund to cover the deficiency. In conventional insurance no access to share capital, but access to debt with possible use of subordinated debt. Whereas access to share capital by Takaful operator but not to debt, except for interest-free loan from operator to underwriting fund. In conventional insurance there are no restrictions apart from those imposed for prudential reasons. Whereas in Takaful, assets of the Takaful funds are invested in Shariah-compliant instruments.

Reid (2008) describes the global Islamic financial service industry and the principle of Islamic finance with more detail about Takaful. Takaful refers to insurance i.e. complaint with Shariah law. Shariah law contains direction relating to fairness and the overall prosperity of the community also to specific prohibition of certain activities. Islamic law forbids the payments of interest. Investment related in alcohols, drugs or anything else considered unlawful under Shariah law are also prohibited. Contract involving uncertainty or speculation are forbidden. At first sight any sort of general insurance would appear inherently incompatible with Shariah law. The outcome of an insurance contract is uncertain. Some Islamic Scholars believe that insurance can be written in ways that stick to Shariah law. The sharing of risk with in a community is considered to be beneficial to society and so is acceptable in Islam. Shariah law permits the use of capital for social or ethical purposes and sharing profits from social or ethical investments is permitted when the risks are also shared. Whereas in conventional insurance, insurers put capital at risk to

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make profit then, how it could be Shariah complaint? Thats why it is not good for Muslims.

Shahzad (2007) describes that how Conventional Insurance is Against Shariah. Commercial Insurance and all its contracts are relatively new development. The pioneer Muslims neither knew it nor was it ever considered by the earlier Islamic Jurisprudents.

It was for the first time examined by a Hanafi Jurist Syed Ibn Abdin at the request of some Muslim merchants who sought his opinion about the validity of marine insurance under Islamic laws. He discussed the essence of marine insurance and concluded that it is not permitted to any merchant to get insurance for his damaged property against the payment of a certain sum of money known as insurance premium; because this is a commitment for what should not be committed to. The attitude towards misconduct of insurance from Islamic point of view continued for full century after Ibn Abdin. However in view of the tremendous importance assumed by insurance for the modern finance, trade and industry the contract of insurance has been subject matter of extensive and in depth studies and discussions amongst the Islamic Jurisprudents during the past several decades. In 1976 the first international conference on Islamic Economics was held in Makkah, which was attended by more that 200 Islamic Jurists and Economists. They reached at the following decision on it:

The conference sees that the commercial insurance which is practiced by the commercial insurance companies in this era does not conform to the Shariah principle of cooperation and solidarity because it does not fulfill the Shariah conditions which would make it suitable and acceptable. This

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conference also suggested that a committee comprising of Shariah Experts & Muslim Economists should be constituted in order to suggest a system of insurance that will be free of Riba, Usury and Gharar. Some of the jurists and experts approved all forms of insurance subject to certain conditions, limitations and qualifications; others totally disapproved all of them. However an overwhelming majority of Islamic shariah, the objection is against the existence of the weaknesses in the insurance contract namely as Gharar (Uncertainty), Maisir (Gambling) and Riba (Usury). Conventional insurance is a Risk Transfer mechanism whereby risk is transferred from the policy holder (the Insured) to the Insurance Company (the Insurer) in consideration of 'insurance premium' paid by the Insured where Takaful is based on mutuality; hence the risk is not transferred but shared by the participants who form a common pool. The Company acts only as the manager of the pool (Takaful Operator). Funds are mostly invested in fixed interest bearing instruments like bonds, TFCs, securities, etc. in conventional insurance. Hence these contain the element of riba (usury) which is forbidden in Islam. Whereas in takaful funds are only invested in non-interest bearing, i.e. riba-free instruments. Surplus or profit belongs to the Shareholders. The insured is covered during the policy period but is not entitled to any return at the end of such period in conventional insurance. Surplus belongs to the participants and is accordingly returned to them (in proportion to the irrespective shares of contributions) at the end of the accounting period in Takaful.

Secondly conventional insurance contains the element of uncertainty i.e. gharrar which is forbidden in Islam. There is an uncertainty as to when any loss would occur and how much compensation would be payable where in Takaful the element of 'uncertainty' i.e. gharrar is brought down to acceptable levels under Shariah by making contributions as "Conditional

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Donations" (tabarru) for a good cause i.e. to mitigate the loss suffered by any one of the participants. Thirdly conventional insurance contains an element of gambling i.e. maisir in that the insured pays an amount (premium) in the expectation of gain

(compensation/payment against claim). If the anticipated loss (claim) does not occur, the insured loses the amount paid as premium. If the loss does occur, the insurer loses a far larger amount than collected as premium and the insured gains by the same where in Takaful the participant pays the contribution (tabarru) in the spirit of Ne'ea (purity) and brotherhood; hence it omits the element of maisir while at the same time without losing the benefit of Takaful in the same way as conventional insurance.

Rashid (1993) stated that the necessity of insurance as a fact of modern life is fully appreciated by Muslims. However, their less-than-receptive attitude towards insurance has been due to the un-Islamic manner in which it is presently conducted. A workable alternative is provided by takaful. Takaful company operates much on the same basis on which modern insurance companies operate. In modern insurance the insured themselves are the insurers. The income from premiums is used to cover the cost of operations and to pay claims. The balance, if any, is returned to the members. The only difference between takaful and modern insurance is that under the takaful contributions (premiums) are not invested in interest-earning schemes and un-Islamic businesses.

Takaful differs from conventional insurance in the sense that the company is not the "insurer insuring the participants. The persons participating in the scheme mutually insure one another. The takaful company simply handles the matters of investment, business and

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administration. Takaful completely avoids riba at every stage of its business. It neither takes nor gives interest. It does not make investments in interest-bearing bonds, deposits nor participates in such businesses which involve interest. No business participation is undertaken directly or indirectly in things prohibited by the Shariah. The takaful contract attempts the clearest possible determination of the terms of contract so as to minimize ignorance and uncertainty. The business is conducted on the basis of mudarabah. There is no penalty of premiums in case of surrender of lapse of participation contract. Nomination is good for purposes of identifying the person (nominee) who would take the benefit on behalf of all the heirs. The nominee cannot retain the benefit for his own use. A Shariah Advisory Council keeps close watch on the activities of the takaful company to ensure its adherence to Shariah. The company pays Zakat on the total profit before distributing it. Takaful business is not conducted through either the agencies or agents, but directly by the employees of the company through Takaful Desks. And due to absence of above mentioned things in modern insurance it is against Shariah law and not suitable for Muslims.

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CHAPTER 3 METHODOLOGY

This study is an exploratory as well as descriptive study. The study is divided into two parts. The first part deals with the analysis of interviews conducted from capable person of six insurance companies i.e. Mr. Irfan-ul-Haq, Divisional Head Adamjee Insurance Company Limited; Mr. Zafar Ali Khokhar, Executive Vice President EFU General Insurance Company Limited; Mr. kareem Siddique, Manager Reliance Insurance Company Limited; Ms. Hira Amjad, Assistant Business Unit Head Pak-Qatar General Takaful Limited; Mr. Hassan Malik, Manager Pakistan Takaful Limited and Mr. Abdul Haleem Mugal, Islamabad Branch Head Kuwait Takaful Limited. The companies are chosen with

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convenience sampling technique. The second part deals with the analysis of the percentage change in investments and assets of the companies. The required data is collected from the financial statements of the companies.

The analysis of the interviewed data is also justified through existing regulations and companys vision. The analysis of secondary data study is done by measuring the percentage change in investments and assets of three years of data (FY-2007 to FY-2009) of the selected companies by using Excel sheets because percentage change is the only quantitative measure that we can use to differentiate Takaful and Insurance in numeric terms. The percentage change in investments and assets used to show the growth and size of the companies respectively.

CHAPTER 4 DATA COLLECTION AND ANALYSIS 4.1 Analysis of Interviews

Adamjee Insurance Company Limited (AICL): According to AICL both Conventional insurance and Takaful companies are different as Conventional Insurance is catering a different marketing segments and Takaful is catering a different one. There is no interest involved in Insurance they just take consideration of their services. In addition to it, they also do not justify the point that either they are risk sharing or transferring. The point is that they are sharing risk with their Re-Insurance companies at back end but not with the customers. They also do not agree that gambling is involve in insurance but yes there is

31

uncertainty involved in their business but that is also controllable. They also highlighted that there are some moral hazards involved in the insurance. Reliance Insurance Company limited: Reliance Insurance confirmed in the interview that there is a factor of interest, Gambling and Uncertainty involves in Conventional insurance system i.e. if somebody has insured his property e.g. of Rs. 10 Lac if any damage occur to his property we will provide him with money but if no damage occur all the money will be taken by the company. Secondly, the investments of Conventional Insurance companies differ from Takaful as Conventional insurance companies invest in anywhere that generates profit for them without the difference of Haram and Halal.

EFU General Insurance Limited: According to EFU there is a no factor of interest involved in their business they just charged fees for the service they provide to the customers. Conventional insurance is a sale contract as customer is selling a risk to them for a certain sum of money. Surplus in their company is not given back to the customers. They also talk about the scope and peoples awareness about insurance that people are still not open to insurance concepts as in the west. People only used to have insurance policies when there is any obligation by the banks. A self need or urge to have an insurance policy is still very minor in the people.

PAK-QATAR, General Takaful Limited: According to them from the very first day there is no interest involved in their business and as far as gambling and uncertainty is concern it diminishes when all the clients pool their resources in the one pool. Their contract is Tabarru contract which involves giving money as Waqf, Hiba, and Ariyatan and

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as Qarz-e- Hasana. Moreover they return the surplus amount to the customers if no loss occurs. The model which they follow is Wakala and Waqf model because it is related to Tabarru contract of insurance in which client gives money as Waqf as to help others. In Wakala and Waqf model they have two pools, when client give money to them it goes both into investment pool and participant investment account on the basis of percentage. There are charges for both the pools and the Wakala fees are deducted according to the contribution of that person. According to them Takaful Companies also differ in financial terms as their objectives are different and their Niyyah is different.

Pak Kuwait Takaful Company Limited: According to PKTCL, Takaful is risk sharing and they are in a competition with conventional insurance companies but they cannot differentiate numerically with conventional insurance companies as Takaful is emerging. Takaful is different from Conventional Insurance companies on the basis of interest, gambling and uncertainty.

Takaful Pakistan Limited: Takaful Pakistan Limited do their investments in Islamic bonds and Islamic banks. They follow Wakala and Waqf model. The insurance rate which they offer depends on market value. According to them major difference between conventional insurance and Takaful lies in the principles.

With the interviewed data it is analyzed that surplus sharing is a key concept in Takaful that differentiate Takaful from Conventional Insurance. In case of any surplus in the individual General/Family Takaful participants fund, this surplus is distributed among the

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participants in proportion to their net contribution into fund. Whereas in conventional insurance all the surplus amount has to be taken by the Insurance Company. Secondly, in Takaful all the participants pool their resources in one pool as Waqf means if there are 10 participants in the pool and any mishap occur to any 1 participant then all the 9 participants help that participant from their money which they have pour in Waqf pool that is they are sharing the risk among them. Whereas, in conventional insurance if any mishap occur to the participant then the loss has to be paid by the company only i.e. client has transfer the risk to the company for a certain sum of money. Thirdly conventional insurance do their investments in any business which they feel that it generate higher profits for them without the difference of Haram and Halal e.g. banks, stock exchange, bonds etc. but it is not the case in Takaful they just do investments in those business that are Shariah Complaint and free from Riba e.g. Sukooks, Islamic Banks, Oil and Gas, Flour Mills etc. and there is a Shariah regulatory board present who regulates all their investments but in conventional insurance there is no such board present. Last but not the least which have been concluded from the interview is that they both differ in their objectives. The objective of conventional insurance companies is to earn profit whereas Takaful objective is to provide mutual help and financial protection to the people. However they are selling the same products and to the same people, the only difference is in their processes.

The rules that have to follow by the insurance and Takaful companies are some how different that in addition to SECP regulations and ordinance act 2000 Takaful also have to follow Shariah Board Requirements. They also have taken into consideration the Takaful Rules 2005.

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The vision which defines the roadmap of the company also evident that insurance companies are here to prosperous, profit earning, recognition and maximizing the shareholders returns but Takaful companies are aim to facilitate the people through the Takaful principles of solidarity and brotherhood.

4.2

Analysis of Percentage Change in Investments and Assets

Being at the initial stages of business Takaful is expanding very rapidly. There is a high scope of Takaful. It is expanding both in terms of infrastructural development and economic development. The investment figures taken from the annual reports of the selected companies are also justifying the scope of the Takaful in Pakistan.

Table 4.1

Percentage Change in Investments from FY-2007 to FY-2008

Percentage Change in Investments from FY-2007 to FY-2008

40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00% Insurance Companies -12.50% Takaful Companies 31.80%

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From the year 2007 to 2008 all the positive investments change is incurred by the Takaful companies as compared to insurance companies that are showing negative figures for the year.

Table 4.2

Percentage Change in Investments from FY-2008 to FY-2009

Percentage Change in Investments from FY-2008 to FY-2009

1600.00% 1400.00% 1200.00% 1000.00% 800.00% 600.00% 400.00% 200.00% 0.00% 1479.84%

46.35% Insurance Companies Takaful Companies

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In percentage change from year 2008 to 2009 again there is a good comparative growth in investments by Takaful companies being the fact that they are the new entrants to the market.

Table 4.3

Percentage Change in Assets from FY-2007 to FY-2008

Percentage Change in Assets from FY2007 to FY-2008

20.00% 15.00% 10.00% 5.00% 0.00% -5.00% Takaful Companies Insurance Companies -2.44% 14.27%

The percentage change of asset also shows negative results for the insurance companies whereas for Takaful companies there is a good increase in assets from the year 2007 to 2008.

4.4

Percentage Change in Assets from FY-2008 to FY-2009

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Percentage Change in Assets from FY2008 to FY-2009

25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Takaful Companies Insurance Companies 5.41% 22.05%

From the year 2008 to 2009 both Takaful and insurance companies shows a positive change in assets hence ultimately increasing the business size.

The investments growth as compared to insurance companies from year 2007 to 2009 also indicates the scope of the Takaful which shows that the Takaful business has a great potential to progress and capturing the market share. The change in assets also shows positive results for Takaful in all the three years as compared to Conventional insurance companies which shows an increase in the business size of Takaful. The government and the regulatory bodies are also aware of this potential and thats the reason that SECP has given the license to some specified insurance companies that they can start Window Takaful by September 2010. CHAPTER 5 CONCLUSION, RECOMMENDATIONS AND LIMITATIONS

5.1

Conclusion

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From the study it is concluded that both Takaful and Insurance are different from each other as their principles and objectives of doing business are totally different. The process and working of the business is also different. Insurance is to exchange risk for the certain amount. They take fees for taking the risk and uncertainty only, and the company purpose is to maximize the shareholders returns and to earn profits.

Whereas, Takaful is to share the risk and serve their customer on the principles of solidarity and brotherhood. Their purpose is to share the risk among the participants not to earn profits or to maximize the shareholders wealth. The only thing which is common in both of them is the products they are selling as both of them are doing the same thing and selling the same products but their purpose and process of doing the business is different.

It is finalized about the scope of the Takaful that it has a great potential to grow and progress as the early investment figures and total assets of the companies evident this. The Window Takaful going to be started by the insurance companies is also a sign of Takaful acceptance and expansion in the country.

The only need is of time that Takaful have required some time to develop as it is on the early stages of business as compared to Conventional insurance which have almost centuries has been passed of doing business. And thats the main reason that until yet there is no mode to establish the difference of their processes in numerical terms.

5.2

Recommendations

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Firstly, we recommend that Takaful Companies have to increase the number of Takaful operators in Pakistan.

It is recommended for Takaful to conduct Seminars in educational Institutions to spread awareness from grass root.

5.3

Limitations Time constraint is the biggest limitation due to which we can not do the research analysis in detail. Secondly, the head offices of the selected companies are outstation which cause problem in collecting relevant information. Lack of financial resources are also encumber in exploring more things in the field.

REFERENCES

Anwar, M. (1994), Comparative Study of Conventional Insurance and Takaful (Islamic Insurance) Pakistan Development Review, 33:4 part II, PP. 1315-1330.

Ashraf, M. (2005, October 06), Takaful Insurance Business, Accountancy Articles.

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Billah, M. M. (1998), Islamic Insurance: Its Origin and Development Arab Law Quarterly, Vol.13 No.4, PP 386-422.

Maysami, R. C. and Kwon, W. J. (2009), An Analysis of Islamic Takaful Insurance A Cooperative Insurance Mechanism, Available at http://www.docstoc.com/docs/19625805.

Rahman, Z. A. (2009 A.D./1430 A.H.), Takaful: Potential Demand and Growth .J.KAU: Islamic Econ., Vol. 22 No. 1, PP. 55-72.

Rashid, S. K. (1993), Islamization of Insurance A Religio-Legal Experiment in Malaysia Religion and Law Review, Vol.2, Issue-I, PP. 16-40.

Reld, J. (2008), Takaful Insurance an Introduction Islamic Insurance and Finance, Vol.31 No.05, PP.36-38.

Shahzad, M. A. (2009), Difference between Islamic Insurance (Takaful) & Conventional Insurance, Available at http://www.scribd.com/doc/18271637.pdf

Siddique, S. A. and Athmey, A. R. (2006), Resolving Controversial Issues and Setting Goals for Islamic Insurance: An Evaluation of Takaful Companies of Brunei Malaysia, Journal of Islamic Economics, Banking and Finance. PP. 130-158.

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Anonymous (August 2006), Issues In Regulation and Supervision of Takaful (Islamic Insurance) ISSUE PAPER.

Anonymous, (2008), Country Study: Takaful Markets in Selected Asia Countries AsiaPacific Risk and Insurance Association, Vol.2, Issue 2.

Yasin, N. M. (1995), Socio Benefits Of Takaful / Islamic Insurance Vol. 19, No.2, PP. 43-44.

ANNEXURE A

Controlling Documents of Takaful and Conventional Insurance Insurance Ordinance 2000: Insurance ordinance 2000 is very important for the both Islamic and conventional insurance because these are the rules on which both of them have to work.

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Main Features: The Ordinance provides regulation of Insurance Industry by an independent Body. (i) (ii) The insurance business has been bifurcated into two main divisions, Life Insurance Business Non-Life Insurance Business.

Each of these two divisions has further been divided into different classes.

Capital requirements for life insurance and non-life insurance companies are Rs. 150 million and Rs. 80 million respectively.

The minimum solvency margin has not been fixed and is to be prescribed under the rules from time to time.

Enforcement of the insurance law has been made more effective by giving to the Commission powers of investigation and issuance of directives.

Detailed provisions have been made to prevent insurers from indulging in practices prejudicial to the interest of policyholders.

Provision has been made for the institution of an Insurance Ombudsman who shall have the authority to investigate mal-administration of insurance companies and to redress grievances of the insurers.

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Provision has been made for the constitution of an Insurance Tribunal, which shall have, civil as well as criminal jurisdiction.

Special provisions have been made for the establishment of a Small Disputes Resolution Committee for speedy settlement of minor claims.

Penal provisions for contravention of the insurance law have been made stricter.

Reinsurance arrangements have been strengthened and rules would be made for reinsurance arrangements even outside Pakistan.

Life insurance business companies are required to maintain separate funds for separate classes of their business.

Adequate disclosure requirements by insurance companies have been prescribed for purposes of reporting to the regulator Insurance Rules 2002: Insurance rule 2002 is also a controlling document and the main purpose for the formation of Insurance Rules 2002 is to implement and regulate the Insurance ordinance 2000 in memo and spirit. The SECP has published in Gazette of Pakistan a Draft Notification in February 2002 with the title of "Draft Insurance Rules, 2002" and this deals with specific details of admissibility of assets, reinsurance, licensing documents etc, applicable to all insurers both conventional and Islamic insurance have to fallow this.

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Takaful Rules 2005: Takaful rules are notified in 2005 under the Insurance Ordinance, 2000 these rules deals with specific additional requirements for Takaful operators only.

Main Features: Takaful Rules have been made to address the above objectives of insurance ordinance 2000 by keeping in view the specific needs of our country, under the umbrella of Islam.

According to Takaful rules 2005 Takaful companies have to use Wakala model for Risk Management and Wakala/Mudaraba for Investment. The principal model for insurance risk management component shall be based on Wakala .The principal model for investment components shall be based on Modarba, The Takaful product shall be based on the principal of Wakala or Modarba or both.

If we look at the Capital requirements for life insurance and non-life islamic insurance companies it is same as conventional insurance companies as it is stated in insurance ordinance 2000.

According to Takaful rules 2005 retakaful should be adequate to ensure continuing compliance by Takaful Operator with the provisions of the Insurance Ordinance. In case Shariah Compliant Re-Takaful Operator does not provide sufficient re-takaful,

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Takaful operator may be allowed to enter into contract with conventional reinsurance under the advice of Shariah Board.

Risk sharing among Takaful Operators within or outside Pakistan may be permitted by SECP.

According to Takaful rules 2005 three members of Shariah Board are required and these members must be of high caliber scholars with knowledge of modern financial dealings and they are responsible for approval of products, investment and operational practices.

Takaful Operators have to deposit and keep deposited with State Bank a minimum amount in cash or approved securities. Currently the minimum required statutory deposit is higher of Rs. 10 million or 10% of Paid-up-Capital. The securities for this purpose must be approved under the Insurance Ordinance and should be instruments of approved Islamic Financial Institutions.

According to Takaful rules 2005 , each Takaful Operator shall maintain two funds Shareholder Fund (SHF), and Participants Takaful Fund (PTF)

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ANNEXURE B

Companys Vision Differences Pak Qatar General Takaful Limited:

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Pak Qatar General Takaful Limited is committed to become a result oriented Shariah compliant provider of risk mitigation through the principle of Takaful based on mutuality, team spirit and brotherhood. Takaful Pakistan Limited:

To spread Takaful benefits beyond borders, beyond Time!

Pak Kuwait Takaful Company Limited: To be Acknowledged as the synonym for Takaful in Pakistan. EFU General Insurance Limited: Our vision is to be the first choice company for our customers, shareholders and employees. To achieve this we will be driven by an obsession to be better than the best in a continuous journey, not a destination. At EFU first choice means a sustained commitment to meet and exceed stakeholder expectations. We will to go the Extra Mile to delight our customers with products and services that exceed their expectations. Reliance Insurance Company Limited:

To be recognized as a professional and dependable business entity committed to play a meaningful role in the development of insurance industry in Pakistan and to safeguard the

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legitimate interests of all stakeholders, namely, policy-holders, shareholders, re-insurers, employees and all other business associates/partners.

Adamjee Insurance Company Limited:

"Our will is to Explore, Innovate and Differentiate. Our passion is to provide leadership to the Insurance Industry."

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