13. Principles of Conventional Insurance in conflict with Islamic Principles Uncertainty (Gharar) Gambling (Maysir) Interest (Riba) Forbidden (Haram) x
17. Takaful Flows Source: PWC Mudahraba model (profit & loss sharing) Management fee + percentage share of surplus Wakala model (agency) Fixed fee applied to either contributions or investment income Policyholder Fund Investment income Shareholder Fund Investment income Explicit fees Interest free loan if deficit in PF (Qard Al-Hassan) Expenses Claims Retakaful Brokerage Policyholder contributions Surplus / (Deficit) Hybrid model (agency) Mix between Wakala Model and Mudaraba model
18. Potential Marketing Approaches / Channels Mosque Marketing ‘ Affinity marketing’ approach in co-operation with mosques Faith-based associations Marketing direct to ‘faith-based’ associations Ethical Product Aim to market products as ‘ethical investments’ (not directly religious) Mutual Insurance Highlighting the cooperative/ mutual nature of insurance, not islam Ethnic Marketing Primarily targeting ethnic angle (e.g. Pakistani/ Bangladeshi) rather than religious