BancaTakaful in Pakistan 4th International Conf. & Exhibition Lahore – Nov Azeem Pirani Regional Manager – Pakistan FWU AG

2 Contents What is Banca? History Benefits Coming to Pakistan Benefits in Pakistan Conclusion

3 «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.» Customer Life Cycle Demand Driven STUDENT LOANS LIFESTYLE SPEND CAR LOANS MORTGAGES SAVINGS LIFE INSURANCES RETIREMENT PLANS ANNUITIES What is Banca?

4 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.

5 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

BancaTakaful Came to Pakistan Credit Covers on Credit Cards, etc. started in mid to end 1990’s. Unit linked Banca offerings started in Family Takaful offerings were available from mid 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 10