Dave Matcham is Chief Executive of the International Underwriting Association of London (IUA). IUA is the market association representing insurance and reinsurance companies writing international business in or through London.
Previous to joining IUA at its formation on 31 December 1998, Dave worked for 18 years, many in a senior managerial position, for the Institute of London Underwriters – a long established trade association for marine and aviation insurers in London. ILU merged with LIRMA to form IUA as the sole representative voice for the London company market on 31 December 1998.
David was appointed Chief Executive on 17 March 2005 and joined the IUA Board at that time.
David obtained his Associateship of the Chartered Insurance Institute in 1986 and his Fellowship (specialising in Aviation) in 1989. David serves on many market groups on behalf of the company market, notably the London Market Group and the Islamic Insurance Association of London.
TAKAFUL: AT A TIPPING POINT?
Are Takaful and Retakaful profitable, and what are the challenges in 2019? – the Retakaful activity in London is very small and I have not heard of any published results by the window operators. I have seen some modest distributions announced by Takaful operators. Many entitles are evaluating the opportunity from a commercial perspective but there is no reason why the result of conventional business should not mirror a shariah complaint product for the same business as the rate and conditions would be very similar. The major challenge for 2019 is to raise client awareness of the availability of the product and not so easily rely on necessity to go down the conventional route. The guiding principles launched in the London market at the end of last year are a strong framework for the product in London.
What lessons have been shared between different jurisdictions, from London to Asian markets? – IIAL ran a survey of client demand and expectation from Takaful operators. Our results were shared with major markets in Asia and our findings were not dissimilar to surveys conducted in other countries. The survey also complemented research conducted by AM Best and other commentators. The overriding lesson is to raise awareness and education about the product and these reasons were central to why IIAL was formed in London. Clients wish to have the option presented to them but it is too often dismissed too early in the renewal negotiations.
How is the business to expand, and reduce the protection gap, across MENA markets? – insurance and reinsurance are often quoted by our industry as important solutions for the protection gap. Case studies on similar strength earthquakes in regions with or without insurance protection make compelling reading. With insurance, economies recover quicker and less reliance is placed on the national purse. As markets look more to commercial insurance with the necessary relaxation of regulatory hurdles to liberalise and enable its sale cross border, (re)Takaful must be part of that solution. London market specialises in providing speciality solutions for specialty risks and stands ready to offer the fullest variety to suit the client need and request. If a Takaful solution is desired in whole or part, we must be ready to respond.