Wafa Takaful reveals its ambitions


Just after obtaining his approval, the management of Wafa Assurance hastened to present his newborn to the press. Wafa Takaful is the 11th subsidiary of the group and its 9th activity before the imminent arrival of reinsurance, making Wafa Assurance one of the most universal companies on the market. As for Wafa Takaful, it will address a new clientele, mainly interested in so-called participatory products.

To position this subsidiary, the insurance leader in Morocco has chosen a visual identity that combines the Wafa Assurance logo and color codes specific to the Wafa Takaful brand (green and blue). Asked about this positioning, which can cause confusion among customers, Ramses Arroub, CEO of the company, admitted that the first file sent to ACAPS included a different identity from Wafa Assurance. But in-depth study of the market and consultation with partners, in particular Bank Assafa, which will be the privileged but non-exclusive distributor of Wafa Takaful’s offers, has changed the position to emphasize belonging to the group and reassure customers and partners. “We have concluded that reassuring is better than standing out,” sums up Ramsès Arroub.

Wafa Takaful Logo

A market driven by real estate financing

Mohamed Ibrahimi, executive director in charge of the Takaful project at Wafa Assurance, estimates that the Takaful market could reach one billion dirhams within 5 years. But the start will be more modest and the initial income will initially come from the cover of real estate financing (Death and multi-risk home) while savings products will develop in a second phase. This prioritization of the offer is explained by the characteristics of the participatory banking market, the main source of premiums for Takaful, which is experiencing strong growth in Murabaha financing with outstandings totaling 19 billion dirhams at the end of 2021, while inflows are struggling to take off so quickly, causing a mismatch between the jobs and the resources of the participatory banks.

Wafa Takaful’s offer

Wafa Takaful’s offer will therefore immediately consist of family protection through death coverage and property coverage products. Gradually, the company will offer savings products, starting in the second half of this year. It will then develop its product catalog according to demand. Mohamed Ibrahimi indicates that Wafa Takaful’s business plan provides for reaching the break-even point after 3 years.

Wafa Takaful wants to assume market leadership

Mohamed Ibrahimi does not hide it. Wafa Takaful must do like all the other subsidiaries of the Wafa Assurance group by aiming for the podium in terms of market share. “Wafa Takaful wants to ensure leadership in Morocco, and in the medium and long term, to study an international extension. This leadership is not exclusively linked to market share. But also in terms of innovation.

Takaful: How does it work?

At the start, Takaful companies will only market so-called Life products. There will therefore be no offers in non-life (in the automotive sector, for example). Unlike conventional insurance where life insurance binds the company to the insured, Takaful is a tripartite relationship between a Takaful operator (company), the participants (insured) and the Takaful fund independent of the company. Participants contribute to the fund, which is an independent legal entity of the company. The latter manages the fund through a remunerated management mandate somewhat like a UCITS. But unlike the conventional one, when the fund generates a surplus at the end of the year (claims less than the contributions), this surplus is returned to the policyholders. Conversely, it is the shareholders of the Takaful company who advance the remainder to the fund to recover it in the following years if it generates surpluses. Asked about the mode of restitution which will be applied in the event of surpluses, Ramses Arroub specified that it can be in cash or by subtracting from the next contributions. “Wafa Takaful will offer both options to its customers,” he tells us.

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