Could you provide a brief journey of how you arrived where you are today?
My reinsurance career started in 1976 with Munich Re in South Africa, and in 1996 I became general manager responsible for non-life operations, finance and strategy and business development.
I joined the Hannover Re Group in 2002 as group chief financial officer for Hannover Re Africa, responsible for group corporate finance, IT and strategy. I also had the honor of establishing the first Takaful company in South Africa of which I am still chairman. In 2006, Hannover Re Group entrusted me with the responsibility to establish their re-Takaful operation.
What does your role involve?
My role involves the strategic and overall development of our worldwide re-Takaful business operation centered out of Bahrain. With a team of highly qualified individuals, I oversee the implementation of our strategic plans, critical, tactical and operational issues on the underwriting, and provide overall leadership to the team in achieving our common goals.
What is your greatest achievement to date?
I consider my involvement in establishing our successful and profitable operation here as one of the most rewarding achievements. This success could not have been possible without the truly business friendly atmosphere in Bahrain and the unwavering support of Hannover Re Group’s colleagues and executive board. We are proud to see this achievement be well recognized by the international financial community and have received several international awards over the years in recognition of our pioneering efforts.
Which of your products / services deliver the best results?
We transact a wide array of re-Takaful lines. We see huge potential in the family Takaful business, and have a team of experts addressing this area with successful outcomes. On the General Takaful side, engineering and casualty lines are key profitable growth areas.
What are the strengths of your business?
The most significant strength definitely lies with our people. We are a team of highly qualified and committed underwriters and support staff. We see our response time and solution driven approach as key strengths. Products are tailored to suit the needs of our re-Takaful clients.
We are also a well capitalized re-Takaful operator providing impeccable financial security to our business partners. We are a member of one of the world’s leading reinsurance groups, which affords us the opportunity to leverage on the group’s global reach and experience to better serve our core clients and markets.
What are the factors contributing to the success of your company?
Capitalizing on the strengths added to our successful start in Bahrain. In addition, eminent opportunities in the Takaful market made it interesting for many investors to set up Takaful operators. They were keen on having a world renowned technically competent organization providing re-Takaful solutions, and we were there.
One of our most important success factors is the location. Bahrain has a robust regulatory framework and the Central Bank of Bahrain encourages sound business practices and supports investors. Bahrain’s location in the Gulf provides easy access to our target market as well as Asia and Europe.
What are the obstacles faced in running your business today?
On the underwriting side, competition exerts enormous pressure on calculating risk commensurate pricing. This pressure sometimes jeopardizes a technically sound assessment of the underlying risk. Another obstacle is talent. As much as we strive to recruit and retain the best talent, there remains a shortage of trained and specialized re-Takaful professionals.
On the investment side, the lack of quality, rated Shariah compliant products with adequate returns is a continuing obstacle. There is still great potential for corporates and the public sector to issue Shariah compliant instruments and the demand is available. The current condition, however, puts constraints on investment opportunities available for a Shariah compliant institutional investor such as Takaful and re-Takaful operators.
Where do you see the Islamic finance industry in, say, the next five years or so?
The Islamic finance industry is expected to grow as Islamic financial products continue to present a viable alternative to conventional products. The overall size of the Islamic finance industry has exceeded US$1 trillion and is expected to double over five years. On the re-Takaful side, we want to take our rightful place in this development.
Name one thing you would like to see change in the world of Islamic finance.
The challenge is to develop a uniquely Islamic product that is not fundamentally modeled on conventional finance, perhaps using an alternative to the time value of money concept.