For many companies a feasibility study is the first step in the establishment of a takaful operation. Actuarial Partners can provide studies on:

• the market potential for the company, and
• analysis of the risks such as the potential cannibalization of traditional business if a parallel akaful company is established by an existing conventional insurer

Setting up a takaful company is a complex process, and in many ways is more complex than setting up a conventional insurance company. There are many aspects which can have a significant influence on how takaful should be implemented. As an example, whereas for conventional insurers the product pricing is fairly standardized, in takaful there are a wide variety there are a wide variety of operating models to chose from. You must consider the most appropriate operating models, be it mudharaba (profit sharing), wakala (agency), musharaka (partnership) which will affect the pricing basis, to the interaction of English Law and Shariah (Islamic).Law and principles and avoidance of riba (usury) and gharar (risk).The shariah council members who are responsible for approval of the takaful products are most concerned with the adherence to these rules and principles. Actuarial Partners consultants can provide guidance with developing your model and identifying how your Takaful model adheres to these principles while maintaining business viability.
Our  consultants can assist from the initial planning which includes conceptualisation of these takaful models to implement until product launch, with our services grouped into three areas:

Actuarial Partners is familiar with the challenges associated with takaful when considering a merger and acquisition, particularly the potential need to merge differing models and changes in model design, when new parties become involved. This work is performed on behalf of the buyer or the seller in a merger or acquisition and could also be performed for the purposes of an IPO, demutualization, or as part of a compensation scheme to company’s executives (embedded value calculation).Actuarial Partners can provide the required strategic advice and calculations for all stages of the project including:

• Financial investigation and actuarial valuation
• Potential sellers/purchasers identification and evaluation
• Brokering negotiations between parties
• Due diligence on financial as well as strategic and operational aspects
• Identifying synergies
• Company restructuring prior to and after the sale
• Independent opinion to regulators
• Identifying the factors affecting deal price, with a view to maximize the value for the seller or assess potential risks for the buyer

A conventional company operating in a changing market may find converting its operation from a conventional setup to a takaful setup as an attractive option. We can advise on the optimal route to his conversion, taking into account that need to honour existing conventional contracts and advise on the best takaful model to adopt.

This option enables the shareholders to retain the company’s existing critical operating size and optimizes the capital when switching from a conventional to a takaful environment.

• Assistance in determining relevant industry benchmark
• Assistance in developing industry surveys to ascertain industry standards and operator’s opinion
• Analyzing the reasons for insurers position in the industry

• Assistance in determining relevant industry benchmark
• Assistance in developing industry surveys to ascertain industry standards and operator’s opinion
• Analyzing the reasons for insurers position in the industry

Actuarial Partners can provide detailed financial modeling which is essential for effective business planning. These models can assess the effects of new market entry on operator profit, or test the effect of differing models on company profitability

The level and type of retakaful in place can have a large effect on profitability. We can assist in investigating the financial impact when varying an operator’s current retakaful arrangements and retention levels. This is performed using statistical modeling, and results in a distribution of profits across various scenarios.Standard input and decisions for this analysis would include the following:

• Range of retakaful levels to test by class of business ( separately for surplus and excess of loss)
• Underwriting risks to be included (i.e. focus on major classes of business)
• Aspects to be simulated, including expected number of policies, claim size, claim frequency, risk of business by size of sum assured, claim run-off rates and reserving patterns
• The level of interaction between volatility of investment return and retakaful arrangements
• Classes of business which must be combined due to inadequate claims data information distribution to use for each aspect being simulated

Financial modeling forms our core practice. We can provide appraisal valuation, dynamic solvency testing and financial condition reporting.Our financial modeling services can also assist in the strategic running of the company, and includes the following services:

We offer advice and assistance to a company’s appointed actuary, are able to perform most or all actuarial work for companies with little or no actuarial staff, or can provide more of an auditing role for companies with an in-house qualified actuary.

We review the actuarial tasks and reports performed by client’s in-house actuarial department or the company’s appointed actuary in discharging his or her responsibility, which may be a necessary regulatory requirement or as part of a regular audit process.

We review the actuarial tasks and reports performed by client’s in-house actuarial department or the company’s appointed actuary in discharging his or her responsibility, which may be a necessary regulatory requirement or as part of a regular audit process.

We review the actuarial tasks and reports performed by client’s in-house actuarial department or the company’s appointed actuary in discharging his or her responsibility, which may be a necessary regulatory requirement or as part of a regular audit process.

Having innovative products is a necessity in today’s competitive environment. The extent of innovation will depend on where in the product life cycle the takaful operator is designing or revising a productActuarial Partners can assist in all aspects of the product development cycle, including:

We are an industry leader in pricing medical and health takaful products. We can also assist in specific medical product development and pricing, and subsequently track results.