Ajmal Bhatty’s Takaful experience spans over 20 years. This includes practical exposure to several markets managing businesses ranging from multinational organizations to smaller companies and start-up ventures. As a recognized industry figure, he is actively engaged in industry debates through the platforms of AAOIFI, IFSB and the IDB. Bhatty has written extensively on Takaful in over 100 publications.
Could you provide a brief journey of how you arrived where you are today?
I believe that no matter what you do, do it with passion and this has brought me to where I am. Having graduated in mathematics, I joined the actuarial profession at the age of 20 working with the insurance company Slater Walker in London.
This put me on the path to ‘paid’ work early in life, learning from life experiences, gaining professional knowledge and enjoying every minute of it. Slater Walker changed hands and name, from Arrow Life, to Providence Capitol and finally to Old Mutual when it was bought over by the South African parent company.
I was fortunate to move on vertically within this company and then to Shield Assurance as one of the directors. My passion for Takaful brought me to Bahrain, first working with Arab Insurance Group and then to Takaful International as its CEO.
That has kept me going, moving to HSBC as the global head of Takaful and then to Tokio Marine in my current position, located in Dubai.
What does your role involve?
Tokio Marine Group is very much committed to providing insurance solutions fully synchronized to the local cultures and beliefs. The development and growth of Takaful for Tokio Marine Group is therefore my prime objective.
Our set-up in Dubai is the center of excellence in Takaful and I manage our Takaful investments in the MENA region.
We also provide technical assistance and support to Takaful ventures and welcome opportunities for new start-up operations, joint ventures and M&A.
What is your greatest achievement to date?
Perhaps the opportunities I availed in the early 1990s of carrying out investigative research that highlighted the prospects, potentials and hurdles in Takaful. This greatly contributed to the groundswell of activity in the development of Takaful business in later years.
It is most gratifying to see some of the people I met on this journey who were once great skeptics of Takaful, becoming part of the Takaful industry and contributing to its growth and development.
Which of your products/services deliver the best results?
In the Takaful business, it is the claims paying ability and the speed of settling the claims that makes the difference for products and services. Our strength lies there.
What are the strengths of your business?
Corporate governance, professionalism and a caring culture both for the staff and customers resulting in mutual respect.
What are the factors contributing to the success of your company?
Efficient utilization of resources, working in small teams, and access to larger pool of group resources as and when needed.
What are the obstacles faced in running your business today?
The Takaful industry has not done enough to create a good understanding and awareness for the customer of the real benefits of the Takaful system as against insurance.
There is a lot of emphasis on selling and advertising but not enough focus on good marketing which can give better results at lower cost.
Where do you see the Islamic finance industry in the next five years?
I believe the prospects for the Islamic finance industry are even brighter than they have been in the past. The fundamental social changes taking place in the Middle East and the economic successes in Asia are all good signs for a better future for Islamic finance.
Name one thing you would like to see change in the world of Islamic finance.
For the Takaful industry, there are several challenges ranging from lack of standardization of operational aspects of the business, such as the need to charge high Wakalah fees, no sharing of surplus between participants and shareholders, the role of qard hasan from the shareholders and the question of risk sharing or pooling at the re-Takaful level. But if there is one thing I would like to see changed in the world of Takaful, it would be to have one commonly accepted model of ‘Shariah compliant’ insurance, be it Takaful, cooperative insurance or Islamic insurance.