MIMBG Helping Set-up Takaftrl Firm in WestAfricaLacl< of stability and board level disagreements harms Takaful industry inreglon

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scene to head a Takaful company, manyhardly have any experience, whereasconventional insurers enjoy stability toa large extent and are doing well. In theTakaful industry, Mankani said, there iscontinuous interference from the board:"If you want to run a company it shouldbe left in the hands ofthe professionals.Board members cannot run companies.They're not insurance people." He said inzor 3 alone three to four Takaful compa-nies changed their general managers be-cause of disagreements at the board 1evei.

Mankani said the UAE insurance au-thority should set up a committee to lookat the worlcings of Takaful companieswith the purpose of guiding and helpingthem "Islamic insurance demands a lotof transparency and I think there is notransparency these days. A lot of ques-tions have to be asked, there has to be a lot

Eyeing lranian markets:Mohamed Iqbal Mankan,Founder & Managing Director atUAE-based MIM Business Consultants (MIMBC)

ast year, we spoke to MohamedIqbai Mankani whose companyUAE-based MIM Business Con-suitants (MIMBC) was a new

comer on the insurance consultancyscene. Today, apart from offering consul-tancy services to clients locally, he is usinghis expertise to help set up a new Takafulcompany in West Africa. As Founder andManaging Director of the company with44 yearc of Insurance experience behindhim out of which 38 years were in theUAE insurance industry, Mankani helpsIocal clients with their overall insurancerequirements, he helps them make surecoverage is adequate; he looks at the priceand advises them accordingly. He alsoworks closely with insurers. Insurers con-sult him to set up their marketing teamsor advise them on their products and theirreinsurance programs; as such he hasgood connections with the reinsuranceindustry as well. With good experience inthe Tal<aful industry Mankani's expertise

as high as 8oo/o to 9oolo as such the grow-ing demand for Islamic insurance: 'AI1we have to do is take the managementexpertise and technical expertise overthere and set it up. I remain on board as

an advisor to these companies." He saidthat his company is looking forward toworking closely with the Iranian marketonce the sanctions are lifted: "I recentlycame back from a fact finding trip toIran where I noticed a big demand forreinsurance support." Mankani said,"During my visit I met with some verysenior figures in Iran s insurance indus-try and had a very good chat with them."He said there is a lot of demand in theIranian marl<et and once sanctions areIifted then they will start working on it.

Mankani said that the Takaful indus-try is today where it was five years ago,it has not developed or progressed whencompared to conventional insurance.He said the little profit these companiesshow comes more from the investmentside, mostly investments in real estate:"Out of ro Takaful companies in the UAEand I think two or three are making aprofit and that also from investments."Mankani blames this poor result on thelack of stability pointing out that everyfew years Takaful companies changetheir general managers which meansthat people will not have the confidenceto deal with them. He said every two orthree years a new name comes on the

of accountability and the UAE insuranceauthority should get involved and set upcommittee to investigate the working ofthe Talcaful operators," he said. He saidthe insurance authority should properlyguide Takaful companies. "I don't thinl<they will change unless some new rulesare introduced or some authority stepsin and tries to take control of the work-ings of these companies," said Mankani.

MIM continues to focus primarily onthe UAE market with the exception ofhelping set up companies in Africa. Hesaid that as a small company they want totake it step by step, but if someone callsthem for a consulting job from say Omanor Saudi Arabia they would definitely liketo go there. "Ours is a small company,at this stage I think UAE is our base,we would like to strengthen ourselvesover here first and then gradually moveon," Mankani said. The UAE insurancemarket produced Dh z6 biliion-worthof premiums in zor 3, making it biggerthan the Saudi market. Growth is greaterin the life insurance and bank insurancesectors. Mankani said that there is greatconfidence in the UAE insurance marketwith Lloyd's and many Lloyd's brokersopening up at the Dubai InternationalFinancial Center (DIFC). He said thatthe main reinsurers are using Dubai as

a base not only for the UAE marlcet, butalso as a springboard to the wider MENAregion and the Indian sub-continent.

the Iakalul rndustry, Mankanr's expertrseis in demand, especially in East and WestAfrica. "I'm working on a project to setup a Takaful company in West Africa.It's part of a very large group. MIMBC isworking with them as consultants," hesaid. Today MIMBC has between r 5 and zoclients which Mankani cultivated throughhis insurance industry connectionsthat he built over the past four decades.

Mankani said that in some Africancountries the Muslim population can be

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