Takaful faces talent crunch

Manama : Islamic insurance industry is struggling to attract managerial talent and top-level leaders including board members, according to a recent report by Middle East Global Advisors.

Almost half of the industry participants surveyed by the group says that there is only a limited availability of competent senior executives, and this situation is expected to pull down the growth of the industry, the report noted.

The shortage is much more felt in the Takaful segment of Islamic finance industry than any other branch and the lack of quality board members could be detrimental to the sector’s health on an immediate basis, notes the report.

“Fixing and filling this gap could help the industry take a major leap as competent leaders and mangers would not only help Takaful companies survive locally, but also help them to navigate into the global insurance landscape,” it says.

“Further hindering growth at the level of human capital is the absence of qualified staff in the ‘product development area’ as approximately 45 per cent cited such staff to be limited. With limited qualified marketers who can promote or create awareness of Takaful products, the industry will be held back further.

“Only 40pc cited ‘marketing and promotion’ to be adequate, whereas more than 45pc respondents deemed the availability of skilled staff in this area to be limited. Practitioners taking new product initiatives and infusing innovations can support the industry which otherwise has been lacking greatly,” added the report.

The study says that despite positive feeling among the industry participants regarding the quality of employees in claims, underwriting and risk management, shortage of top level executives may make it difficult for Takaful to compete with conventional insurance.

“When we asked about the availability of appropriately qualified Takaful staff in various functions in the survey respondent’s jurisdiction, the biggest gaps were seen on the managerial side rather towards the technical front,” said the report. 

There is a shortage of qualified executives with good leadership and managerial skills, and 47pc of the respondents cited this role as having limited availability of competent executives and senior management. Moreover, 50pc cited a shortage in the number of board members which, combined with shortages at the executive level, raises questions about the strategic vision guiding many operators which is set at the board level,” the report added.