BancaTakaful in Pakistan

Azeem Pirani
Regional Manager – Pakistan
FWU AG

4th International Conf. & Exhibition

Lahore – Nov. 2010
 Contents
•What is Banca?
•History
•Benefits
•Coming to Pakistan
•Benefits in Pakistan
•Conclusion

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 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

Cust
RETIREMENT PLANS
omer
Life C STUDENT LOANS
ycle
Dema
LIFE INSURANCES nd
Drive
n CAR LOANS

SAVINGS
MORTGAGES

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 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 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
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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 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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