Wednesday, July 31, 2019
The Mean Girls EffectDavid Jin Mean Girls is a 2004 film about the life of a popular high school girl. The teen comedy is considered by many high schoolers to be a legendary movie that depicts a dream high school that is ideal for many of todayÃ¢â¬â¢s youth. The film centers around 4 junior girls called the plastics. They are pretty and preppy, popular and legendary in the school. They are worshipped like goddess by the students of the school because of their fame, riches, and popularity.However, the group of mean girls live up to their name. They are nasty, trashy and downright evil at times. Revenge is their middle name, and they will not hesitate to throw some of their best friends under the bus at a seconds notice, literally throw them under a bus. They gossip, spread terrible rumors and exclude their friends from cliques on purpose. However, this movie has had a big effect on the public, especially the youth and the younger generation.The ideal life of the plastics in high sch ool has created a lust for popularity among teenagers and also has showed teenage girls that being Ã¢â¬ËmeanÃ¢â¬â¢ will get you friends, popularity and fame in the complicated world that is high school. To begin with, Mean Girls has caused teenagers in high school to embark on a quest for popularity, in some cases, an unhealthy quest. Studies show that the depictions of popularity by movies like Mean Girls, where an epitome of perfection is established, cause teenagers to strive for that image.Mean Girls and other similar movies are causing an unhealthy strive for popularity in teenagers. A study shows that after watching mean girls, females 14-16 are more likely to have thoughts of insecurity about their weight, attractiveness and popularity. High schools have also reported increased numbers of cases of eating disorders since the movie has come out, a direct result of the image and message that the movie conveys to the teenagers and high school students watching.In addition, Me an Girls and other movies have glorified being Ã¢â¬ËmeanÃ¢â¬â¢ and nasty which has created a negative image for the teenagers of our time. A society fed by these kinds of movies is teaching teenagers that being aggressive and nasty can boost their social status and also, as depicted by these movies, is the cool and popular thing to do. The movie also commends popular cliques and Ã¢â¬ËfakenessÃ¢â¬â¢ and sends a message that popularity is everything, and that girls must strive for it always. In regards to Mean Girls and its effect on the younger generation, it has caused a glorification of being trashy and nasty, as made teenage girls insecure about themselves and has also conveyed the message of Ã¢â¬Ëpopularity at all costsÃ¢â¬â¢, even if you have no real friends. Mean Girls and other similar movies have become legendary in high schools and have promoted negative images to teenagers everywhere. Ã¢â¬Å"I knew how this could be solved in the real world, but this was girl wo rld. All the fighting had to be sneaky and nasty. Ã¢â¬ As shown, the movie (although a really good movie) passes on a bad image to teenagers everywhere and has caused many problems in our society.
Tuesday, July 30, 2019
A tenet is a principle based on observation, intuition, experience, and in some cases, empirical analysis. Based on a study presented in the Handbook of Technology Management by Gerard Gaynor, Ten tenets are proposed as guiding principles for an organization to operate within a technology cycle framework. These are: 1. Value diversification is a poor substitute for MOT. 2. Manufacturability must keep pace with inventiveness and marketability. 3. Quality and total productivity are inseparable concepts in managing technology. 4.Ã It is managementÃ¢â¬â¢s responsibility to bring about technological change and job security for long term competitiveness. 5. Technology must be the Ã¢â¬ËservantÃ¢â¬â¢ not the Ã¢â¬ËmasterÃ¢â¬â¢; the master is still the human being. 6. The consequences of technology selection can be more serious than expected because of systematic effects. 7. Continuous education and training in a constantly changing workplace is a necessity, not a luxury. 8. Technology gradient is a dynamic component of the technology management process, to be monitored for strategic advantage. 9.Ã The RTC factor must be carefully analyzed and meticulously monitored for gaining the most out of any technology, particularly a new one. 10. Information linkage must keep pace with technology grow th. See more: The Issues Concerning Identity Theft Essay In the case of an IT Organization, the essence of the management several factors of technology are realized based on the above specified MOT principles. The following may be derived: Ã¢â¬ ¢ Importance of Core Technologies and Core Competencies. Analysis of the competencies and technological capability of an IT Organization will provide information on the inherent competitive ability of the organization, or the absence of such. This is a step towards active management of technology. Ã¢â¬ ¢ Inventiveness versus Market Drive. For an IT Organization, this translates to building an output-driven innovative culture versus customizing products and processes based on Market-demand. Ã¢â¬ ¢ Total Quality Management. Quality Assurance and Quality Control procedures are essential to monitor processes and the process improvement practice within an organization. Ã¢â¬ ¢ Initiation and Management of Technological Change. Conscious effort to improve current technology should e a consistent activity in an IT Organization. This may be a result of observed updates in the industry or an internal effort to innovate and update according to changing business needs. Ã¢â¬ ¢ Security for Competitiveness. As an industry with established processes, functions and professional track, job security through skills-based retention and promotion should be encouraged. This will invite constructive competitiveness and improve the industryÃ ¢â¬â¢s workforce. Ã¢â¬ ¢ Technology is the medium and the tool, it is not the solution.Ã The main product for an organization that offers Information Technology as a service is the solution. The technology is the enabler, while the process is the company-specific activity that adds value to the solution. Ã¢â¬ ¢ Organizational Systems and the Effect of Technology. The effect of information technology to the organization encompasses structures and organization systems. As processes and needs are updated, technologies or the manner that it is implemented should be revised complementarily. The reverse does not always follow. The Essence of Training and Education in an IT Organization. With the Human Resource as the main and sole source value and new service introduction, investment in further education is essential to an IT Organization. Technology managemet assessment: TA is the study and evaluation of new technologies. It is based on the conviction that new developments within, and discoveries by, t he scientific community are relevant for the world at large rather than just for the scientific experts themselves, and that technological progress can never be free of ethical implications. Also, technology assessment recognizes the fact that scientists normally are not trained ethicists themselves and accordingly ought to be very careful when passing ethical judgement on their own, or their colleagues, new findings, projects, or work in progress. Technology assessment assumes a global perspective and is future-oriented, not anti-technological. TA considers its task as interdisciplinary approach to solving already existing problems and preventing potential damage caused by the uncritical application and the commercialization of new technologies. Therefore any results of technology assessment studies must be published, and particular consideration must be given to communication with political decision-makers. An important problem, TA has to deal with it, is the so-called Collingridge dilemma: on the one hand, impacts of new technologies cannot be easily predicted until the technology is extensively developed and widely used; on the other hand, control or change of a technology is difficult as soon as it is widely used. Some of the major fields of TA are: information technology, hydrogen technologies, nuclear technology, molecular nanotechnology, pharmacology, organ transplants, gene technology, artificial intelligence, the Internet and many more. Health technology assessment is related, but profoundly different, despite the similarity in the name. Forms and concepts of technology assessment The following types of concepts of TA are those that are most visible and practiced. There are, however, a number of further TA forms that are only proposed as concepts in the literature or are the label used by a particular TA institution. 2] Ã¢â¬ ¢ Parliamentary TA (PTA): TA activities of various kinds whose addressee is a parliament. PTA may be performed directly by members of those parliaments (e. g. in France and Finland) or on their behalf by related TA institutions (such as in the UK, in Germany and Denmark) or by organisations not directly linked to a Parliament (such as in the Netherlands and Switzerland).  Ã¢â¬ ¢ Expert TA (often also referred to as the classical TA or traditional TA concept): TA activities carried out by (a team of) TA and technical experts. Input from stakeholders and other actors is included only via written statements, documents and interviews, but not as in participatory TA. Ã¢â¬ ¢ Participatory TA (pTA): TA activities which actively, systematically and methodologically involve various kinds of social actors as assessors and discussants, such as different kinds of civil society organisations, representatives of the state systems, but characteristically also individual stakeholders and citizens (lay persons), technical scientists and technical experts. Standard pTA methods include consensus conferences, focus groups, scenario workshops etc.  Sometimes pTA is further divided into expert-stakeholder pTA and public pTA (including lay persons).  Ã¢â¬ ¢ Constructive TA (CTA): This concept of TA, developed in the Netherlands, but also applied and discussed elsewhere attempts to broaden the design of new technology through feedback of TA activities into the actual construction of technology. Contrary to other forms of TA, CTA is not directed toward influencing regulatory practices by assessing the impacts of technology. Instead, CTA wants to address social issues around technology by influencing design practices. Ã¢â¬ ¢ Discursive TA or Argumentative TA: This type of TA wants to deepen the political and normative debate about science, technology and society. It is inspired by ethics, policy discourse analysis and the sociology of expectations in science and technology. This mode of TA aims to clarify and bring under public and political scrutiny the normative assumptions and visions that drive the actors who are socially shaping science and technology. Accordingly, argumentative TA not only addresses the side effects of technological change, but deals with both broader impacts of science and technology and the fundamental normative question of why developing a certain technology is legitimate and desirable.  Ã¢â¬ ¢ Health TA (HTA): A specialised type of expert TA informing policy makers about efficacy, safety and cost effectiveness issues of pharmaceuticals and medical treatments, see health technology assessment.
Monday, July 29, 2019
Why do many organizations fail to prove that traning has been a worthwhile business investment how might they go about doing this - Essay Example Indeed, employees perform better when they are happy (Philips, Jack, Patricia 2012, p. 39). Staff training is an essential and necessary step for specific reasons related to a business organization. On job training gives employees the chance to describe the broad knowledge that they had acquired during their early education with the specific needs of the organization (Bersin 2008, p.24). When workers are sure of their performance as acceptable to the management and organization needs they tend to feel important and happy with the business since they get satisfied with the result. There is always a direct connection between having happy workers and improving profit in all business organizations. Any organization that allows its employees to shoot hoops during work hours always leave clients with a lot of suspicions ( Price 2011, p. 24). Making the work environment, a bit tension that is constant has brought productivity in some organizations. Most workers leave their jobs in search of other position citing lack of skills training and development as their principal reason (B ebenroth 2015, p. 48). These movements of employees have a considerable impact on organization functioning as new employees have to be sought for replacement thus throwing the little experience that had been gained by the earlier workers to waste (Combs Davis 2010 p.55). Those that remain will be forced to double or even triple their effort to cover the gap. Workers morale will be affected in the process. Training by the organization can quickly take away the feeling of dissatisfaction thus making workers stay longer in their positions thus reducing the cost of turnover that cause slipping of business turnover (Bersin 2008, p.33). Though the initial cost of training may be high and discouraging, the benefits that the company stands to gain are much higher. Training of employees helps the
Sunday, July 28, 2019
Dog Pound - Movie Review Example The correction facility where the film is based is run by the government which provides resources to hire guards, provide meals, and educate the inmates as part of the correction process. In the US, about 93,000 teenagers are held in juvenile centers that are funded by the state . Some of the inmates in these centers are nonviolent and can receive correction in other intervention programs. The state of New York spends approximately $680 million annually for upkeep of nonviolent drug dealers in juvenile facilities.Davis has been locked up for drug possession and Butch for sociopathic behavior. Incarcerating nonviolent youth in juvenile centers increases the cost of running these facilities. Non-violent offenses can be managed safely in the community thus reducing finances required to run correction facilities. Consequently, juvenile centers have shifted from correction facilities to punishment areas. Youths locked up in these centers become subjects to bullying by other inmates and gu ards. The harsh conditions experienced by inmates in these facilities lead to suicide, stress, and psychiatric problems, which are detrimental to the development process of the teenagers and the community. Sending teenagers to distant detention centers and subjecting them to mandatory long-term sentences is counterproductive. (1)4. The violent events experienced by the actors change Butch from a non-violent prisoner conforming to prison rules to a violent and vengeful prisoner. According to Martin and Eason (1)4 the juvenile correction system is a financial, social, and political disaster that has little benefits to the inmates. The result of these violent encounters is an increase in juvenile related crimes in the society once the inmates are released from the correction facilities. Exclusion, aggressive prosecution of juveniles, and imprisonment of juveniles has led to an increase in crime rates in USA and France (42)5. This can be attributed to bullying and solitary confinement e xperienced by actors in the film. Juvenile facilities contribute to gender violence and queer sexuality among inmates. Davis is bullied and raped by Banks and other inmates when Butch is locked up in solitary cells. The rate of sexual harassment is on the increase in the US and juvenile prisoners are among the abusers (76)6. Forced intercourse experienced in these facilities makes inmates adopt queer sexuality behaviors that are transmitted to the society when they finish serving their prison terms. These events lead to psychological trauma and induce suicidal thoughts among the inmates. In the film, Davis commits suicide after he is physically and sexually abused. This contributed to the increasing suicidal rates in prisons and among ex-convicts. In 2002, there were approximately 1.6 million juvenile arrests in the US. However, the high number of those arrested is caused by teenagers arrested more than once (43).7 Most of these arrests were due to disorderly conduct, running away, drug abuse, and curfew violations. Some of those arrested were members of criminal gangs that committed crimes in groups. Some of these groups have
Saturday, July 27, 2019
Management in context - Assignment Example According to the authors of this article, in order to avoid the negative connotation that have become associated with the title Ã¢â¬Ëmanager,Ã¢â¬â¢ they have resorted to titles like professional, entrepreneur or project leader. The author not only expresses strong feelings about the behavior of managers but also condemns it, thereby calling for changes to be made on the responsibilities that go with this title. The way every context that the authors looks at the title is simple spellbinding, which therefore calls for serious research and analysis on management as a discipline in order to correct the situation (Brocklehurst, Grey and Sturdy, 2010). Surprises in JA2 Academicians and intellectuals in our business school are increasingly joining the chorus of castigating and condemning management practices which is a complete departure from the initial support that they exhibited on the management practice as we know it today. This article explores managersÃ¢â¬â¢ obsession with the so-called intellectual slavery with roots in explicit ideas that senior personnel in organization acquired in their respective business schools. According to the authors, the MBA has become a means of acquiring appropriate ways of management to gain self confidence for legitimate social privileges in senior management (Sturdy, Brocklehurst, Winstanley, et al, 2006). They are taught that managers cannot be trusted hence should maximize shareholderÃ¢â¬â¢ wealth in order to reconcile their interest and that of their employers (shareholder) as a way of overcoming the agency problems. This is particularly evident in cases where opportunities for application of management practices in organization are viewed as inappropriate within organizations. Therefore, tight monitoring should be an appropriate strategy of preventing people from pursuing opportunistic behavior at the expense of practices that are of the common good to the organization. It is in the context of this disparity that a regulatory framework should be devised as a mean of safeguarding the interests of the suppliers, customers, employees and most importantly, shareholder. The article however, points out the need to explore academic knowledge beyond that of transforming ideas of the discursive content to identify towards ideas associated with effective work .I suggest business school should provide moral theories inspired to free them from immoral responsibility by ensuring centrally based education in the organization. The evidence In both articles, authors defend their work by use of books, journals, web pages and research and study institution. According to Sturdy, Brocklehurst, Winstanley, et al (2006), there is more concern on the de-legitimization of a company as institutions and management as a profession. This will be brought about partly by the acceptance of these thoughts when ignored as vital elements of management. Several scholars have recently voiced their concern about the current state of management research and pedagogy. While training people on organization design focusing on transaction cost economics, it is imperative for trainers to ensure that there is firm monitoring as well as control of people so as to curb opportunistic behavior (Brocklehurst, Grey & Sturdy, 2010). Comparison The term management generally refers to
How Will You Measure Your Life - Case Study Example The unsurpassed tactic is balances linking comprising a purposeful, emergent or flexible strategy. Despite the fact that people will always possess deliberate strategies, possessing resources and ability to change the tactics is crucial. If the ideas used are about to be overtaken in the market, a person can always change to fit in the competitive environment. Best business entails giving to the customers what they need. In the case of allocating what is not needed by the customers leads to loss. This happens because the customers will not purchase what they do not require. Resources must be allocated where they are in demand. Smaller, feebler, but more pioneering competitors begin markets and finally dislocate and fully go beyond their entrants. In life, we cannot stay to obtain all the information before undertaking a decision. People can replicate their lives off by meditating on the causes and consequences. A number of organizations value short term over long term payouts. Ã Giving more value to the things which have immediate rewards compared to those whose fruits will be achieved later can be extremely damaging. How people utilize energy, time, talent and wealth will be determined by the decision made on how to put the resources into action. Abandoning personal correlations in the events may result into irreversible, detrimental effects. Good capital is devoting in stuffs most probable to proffer an optimistic return, or as a minimum let a person to have residual assets in order to revolve. In life situation, getting fixated on short term income is very easy. Failure to invest in crucial things such as family and friendship early enough, realizing their importance can take time. In industry, corporations can make colossal errors by impeding taking action against a troublesome competitor, or scaling up. Despite the fact that
Friday, July 26, 2019
The understanding financial data, and developing and making judgements on proposals against strategic objectives - Essay Example In this study the researcher observed the role played by the finance and accounting function in the operation of a business. The author of the study recognized the following main functions: Ã¢â¬ ¢ The raise of funds or financial management Ã¢â¬ ¢ The role of financial reporting and Ã¢â¬ ¢ The budgeting and organisational objectives. Financial management is a division of the finance and accounting purpose i.e. concerned with the financing of an industryÃ¢â¬â¢s activities. Finance is usually raised through loan capital, share capital and state finance or through inside generated funds. This report is prepared for Roberta Kelly and providing good budgeting plan to her business. It is designed to give the learners a chance to investigate the principles that support the financial decision making procedure and how they are applied into business. International Financial Reporting Standards (IFRS) is a group of accounting standards build up by a sovereign, not-for-profit business called the International Accounting Standards Board (IASB). Ã¢â¬Å"The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reportingÃ¢â¬ . Financial r eporting is the arrangement of financial data in a form that is helpful to interested parties. It includes the collection and presentation of data for utilize in management accounting and financial management. ... It includes the collection and presentation of data for utilize in management accounting and financial management. 3. Interpretation of Accounting Information Ã¢â¬â Public Limited Companies: For the comparison study and understanding of the Transportation sector we have chosen the two companies i.e. 1. MET Plc 2. KGL PTS. Both of the companies are well established in the transportation sector and they are diversifying their business worldwide. Marwyn European Transport Plc is newly established company in the transportation sector; it is formed by the leading Transport industry executives to exploit the opportunities in the European transport industry. They are now focusing on the German bus and coach industry and presently operating 250 buses in Germany. The MET is established as a wholly owned subsidiary company of the MMP (Marwyn Management Partner Plc.). The board of directors of the company has a belief on the attractive investment opportunities in the public transportation of the European countries and so they are willing to operate the business by keeping the favors of the stakeholders. Initially they are targeting the largest bus markets in the country. KGL Passenger Transport Services (KGL PTS) in Kuwait, a supplementary of KGL Holding, was recognized in 2005. Being the showpiece of KGL HoldingÃ¢â¬â¢s Passenger Transport Management Company, the KGL PTS has developed themselves as one of the most important passenger travel service companies within Kuwait and Middle East. As they are offering different means of carrying to suit the necessities of customer both publicly and commercially, they are still leading the sector. The head quarter of KGL PTS is in Kuwait and they are operating in Sharjah, Abu Dhabi and in the United Arab
Thursday, July 25, 2019
Business in USA before Wal-Mart Opened - Assignment Example Although the major stores had different items for customers to choose from earlier on, Wal-Mart took this a step further. This can be clearly seen in todayÃ¢â¬â¢s world where people prefer to shop in supermarkets. This is important since it allows customers to compare substitute goods in relation to price and quality hence settling for the most satisfying. Wal-Mart has a wide range of goods ranging from simple everyday necessities to seemingly luxurious items such as expensive watches. As such, the strategy of having a wide variety welcomes all people whether rich or middle class. The retail industry has hence changed business strategies such that most successful businesses provide a wide range of products. Furthermore, Wal-MartÃ¢â¬â¢s culture of weekly meetings has provided players within and outside the industry a new business strategy especially in relation to management. Although, the culture of the weekly Saturday meetings may not be still in play, Wal-Mart certainly brought in an effective business strategy. This culture instilled an entrepreneurial spirit and allowed people to view decentralized management as a possible strategy. Earlier on organizational management was mainly centralized mostly with only one annual employee meeting. Additionally, the culture united workers making Wal-Mart and other firms that adopted the technique solid due to employee loyalty and retention. As such, Wal-Mart made an important contribution not only to the retail industry but also across all other industries.
Wednesday, July 24, 2019
The Weaking Family Bond as the Pushing Factor of the Rise of Socialism during the Industrialization Period - Research Paper Example The rationalistic view of the world gave rise to the mechanization in the Western World. The development of the factory system during the Industrial Revolution in the late 1750s left sheer influence on the different aspects of human life in the Western world. The increase in the factory system of production paved the way for the loss of significance for the agrarian sector and the society that hovered around the same. The major political party, capitalism, focused on production and profit and created severe problem on peopleÃ¢â¬â¢s physical and mental problem. Like other parts of the world, the Industrial Revolution followed the same trajectory in the United States of America. Clashes within the family became common phenomena during this period (Backer). Some people argue that the bad working condition and poverty led to the rise of Socialism. However, I believe that though the rise of Socialism during the Industrialization period were related to the imbalanced wealth distribution, safety and sanitation issues, as well as the discriminating treatment towards the working class, the major pushing factor should be the social disorder created by the weakening family bond. ... In a capitalist society, people, especially bosses and employees, considered production and profit more because they believed that competition brings out the best in people. By following a capitalist routine of production indeed stimulated the economy, yet the workerÃ¢â¬â¢s physical and emotional wellness was severely ignored under a high pressure of productionÃ¢â¬âthey worked, struggled, and suffered. Comparatively, a socialist society advocates that workers should have most say in their factoryÃ¢â¬Ës management and people look out for general welfare. Having a clear overview of the rise of socialism over capitalism and its perils in the society now the focus should be entailed at the storyline of Upton SinclairÃ¢â¬â¢s famous novel, The Jungle. Upton SinclairÃ¢â¬â¢s, The Jungle contributed greatly to the literature and social reform in the American society. The novel gives a vivid description of the life of the workers in AmericaÃ¢â¬â¢s meat packing factory. The novel h eralds with the wedding feast of Jurgis Rudkus and Ona Lukoszaite who are immigrants from the Lithuania to Chicago. Along with Jurgis and Ona lived her stepmother Teta Elzbieta and her brother Jonas, one cousin Marija and father of Jurgis, Dede Antanas. The guests who came to their wedding ceremony were not all cheerful and they did not also properly wished the newlywed couple. Most of them went home disappointed and drunk. The reason was that this newlywed couple started their journey with debt. They have come from their homeland in Lithuania to Chicago to find a livelihood for them. But they have faith in America. Jurgis believes that he Ã¢â¬Å"will earn more money [he] will work
Tuesday, July 23, 2019
In instruction box - Research Proposal Example Presently, Nokia intends to launch its new the Nokia Lumia 2020 Tablet in the market. However, the success of this tablet will depend on the effectiveness of the marketing plan developed by the company. This marketing plan contains an analysis of the current situation, customers, and competitors that may affect the performance of the product after launch. The plan also analyses the strength, weaknesses, opportunities, and threats. In addition, the marketing plan also analyzes the macro-environmental factors, as well as the marketing mix of Nokia product. Situation Analysis Nokia operates in a very competitive market. The industry has several players that compete against each other for the limited customers available. To attract customers, every company in the industry tries to improve the quality of services provided to the customer by using the latest technology. The competition is stiff to the extent that months seldom pass without the existing or new players introducing a new plan aimed at luring additional customers (GRIN Verlag, 2012). Some NokiaÃ¢â¬â¢s main competitor in the industry includes Apple, Samsung, LG, Techno, and Sony Erickson. Customer Analysis This marketing plan targets all segment of the population. ... So far, the companyÃ¢â¬â¢s Nokia Lumia 2020 Tablet has all the functionalities accustomed to meet the needs of the companyÃ¢â¬â¢s potential customers. Some of the features of this tablet include being only 8-inches and operates on Snapdragon 800. In addition, the tablet is designed with 1080p resolution display, making it the best tablet in the market (Pratap, 2013). Further, the tablet has additional functionalities, including a high PPI display and comes with the stylus support. The company believes that these features will satisfy the needs of customers and help attract a huge demand. Competitor Analysis As aforementioned, Nokia operates in a very competitive environment. The industry has many players most of which have a very strong brand. Currently, NokiaÃ¢â¬â¢s main competitors in the industry include Samsung, Apple, LG, Techno, and Sony Erickson (Pratap, 2013). As such, to maintain gain a competitive advantage over its rivals, Nokia must come up with a marketing plan tha t will help lure many customers to its products. In addition, it must ensure that products are attractive and of high quality. SWOT Analysis SWOT analysis stands for strengths, weaknesses, opportunities, and threats. Strengths Nokia being a well-established brand across the global has a number of strength that has made it a brand of choice for many consumers in the world. Firstly, Nokia commands a huge market share in the mobile industry. Secondly, the company has one of the best research, design, and engineering team (GRIN Verlag, 2012). This has enabled the company to be innovative and produce high quality products that sell well in the market. In fact, one of the major reasons why Nokia phones sells well in the market is because of the
Monday, July 22, 2019
Positive Impact of Outsourcing in India Essay Outsourcing or Business Process Outsourcing (BPO) to countries belonging to the developing classification is the present trend. The establishment of outsourcing as an essential component in the world economy is a result of explosive growth of internet, development of the information society, and globalization. The outsourcing of Information Technology (IT) emerged during the time of the start of every corner of the world being brought together by the internet and the national barriers of countries all over the globe were brought down by globalization(Ghimire, 2005). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã In information technology industry, outsourcing to developing countries is the latest strategy of companies from developed countries mainly as a cost-cutting mechanism. Outsourcing now is not merely other firms handling operations and services of other companies but rather it has crossed the national borders. Parts of the IT aspects or the whole business functions are now executed and managed by different companies in developing countries like India, Brazil, China, Israel, and Philippines. These developing countries have companies which cater to the needs of big companies in developed countries. Outsourcing to other countries is thus the provision of services like those associated with information technology by companies of developing countries to sustain the needs of the companies which are in developed countries. The primary driving force of big companies in developing countries employing outsourcing in developing countries are: higher efficiency, better quality of services, and cheaper labor cost(Nag, 2004). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã The growth of the information technology sector of India has been unparalleled since the liberation of the Indian Telecom sector in 1994. The progression of India as a global outsourcing provider is continuous since then. Today, this country is the primary outsourcing provider in the world, holding the 44% of global outsourcing market in back-office services and software. At the end of 2005 the revenues generated by the outsourcing in this country is 17.2 US dollars; and hired direct employment of 1.05 million people and hired indirect employees which sums up to 2.5 people. These indirectly hired employees are associated with the catering and transport business(Pradhan, 2005). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Positive and negative impacts to the people of India especially on the workers of the outsourcing provider companies are brought about by this new trend. The most significant impact of outsourcing in developing countries like India is on its economy and its employment rate. Numerous numbers of individuals are given the opportunity to work for a living through the outsourcing processes. The outsourcing of the information technology (IT) to India increased the employment rate with 100,000 people being hired annually. Though the salary of those people working in an outsourcing provider from a developing country is lower than those of their developed country counterparts, these salaries are already slightly higher in relation to the rates in their developing country(Nag, 2004). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã The development of new infrastructures in developing countries like India is another affirmative impact of the business operations outsourcing. Aside from this, outsourcing also brought about the transmittance of ideas and technology to developing countries regarding various aspects of the business industry like manufacturing and agriculture. Guidance in communications from business-to-business and e-commerce applications; information provision regarding marketing and prices; and conveyance of knowledge on services processing operations are among the specific benefits acquired by developing countries through outsourcing(Nag, 2004). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã The primary component of IndiaÃ¢â¬â¢s outsourcing industry is the call centers which are providers of information and telecommunication technology-based off shoring services. The progression of the call center industry in India brought about changes in the culture and society of this nation. India which is a patriarchal society is now faced with the issue of social, cultural, and economic women empowerment because the call center industry prefers to hire women. These women call center agents acquired financial independence hence their outlook, career choice, and attitude changed from being subordinates of the patriarchal society into women capable of being independent and asserting themselves in their society and families. Despite women though being independent financially their social status in the society is not much changed because their work is considered inferiorly dignified due to the night working hours(Pradhan, 2005). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã The call centers serve as avenue for the Indian call center agents to understand the culture, customs, and accent of the West through the costumers which they provide services. These Indian call center agents are also exposed to diverse culture of the people that they work with because foreigners also come to India and work as call center agents. The outsourcing thus also serves as a medium for the Indian people especially the youth who are working as call center agents to interact with foreigners of different languages and culture(Pradhan, 2005). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Though outsourcing provides positive impacts to the people in India, it also goes along with its negative attributes. Some call center agents due to the pressures in their work and night working hours undergo panic attacks, stress, relationship troubles, depression, eating disorders, alcoholism, and relatively no social life. Mental, psychological, and health disorders are also observed in outsourcing companies due to the desire of the worker to cope with the challenges in their work. The workers of these outsourcing provider companies are subjected to racial and cultural discrimination by people of the developed countries which they service. The nature of the working hours of these outsourcing workers also brought about social division wherein the working class youth are alienated with their peers because they are not able to socialize with them(Pradhan, 2005). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Change like the development of IndiaÃ¢â¬â¢s business industry through outsourcing despite having various benefits also comes with diverse disadvantages. The government which benefits from the revenues and taxes which are generated through the outsourcing industry needs to have programs to help the employees of this work force be able to cope up with the challenges they encounter. In general, outsourcing brought about boost in the economy of India and is strengthening the value of rupee against the US dollar. References Ghimire, B. (2005). IT Job Outsourcing. UbiquityÃ Ã Retrieved January 29, 2008, from http://www.acm.org/ubiquity/views/v6i31_bhumika.html Nag, B. (2004). BUSINESS PROCESS OUTSOURCING: IMPACT AND IMPLICATIONS. Bulletin on Asia-Pacific Perspectives. Pradhan, J. P. a. V. A. (2005). Social and Cultural Impact of Outsourcing: Emerging Issues from Indian Call Centers. Harvard Asia Quarterly, from http://www.asiaquarterly.com/content/view/155/
Good and Evil and Beowulf Essay Beowulf is the most famous epic of the Anglo-Saxon period. This is a story of an epic hero who fights against the most sinister monsters known to man. Beowulf and Grendel are the main characters of this tale; they are the perfect example of good versus evil, light versus dark, and hero versus villain. Beowulf is the story all epic hero stories have followed; the Beowulf with his hero qualities goes head to head with Grendel. Heroes and villains share a lot of qualities but a number of key characteristics set them apart. Heroes as well as villains above all are abnormal; they share their own specific goals and are often very intelligent and capable of achieving what they want or need to achieve. Both types of these individuals are often warrior like and of unique or even divine like powers and weapons. Despite sharing these characteristics they are not similar in their desires. Heroes fight on the side of right, they fight for the good of man and they fight for the safety of society. Villains fight for evil; they do not care about innocent people being injured by their actions and only seek self satisfaction. Villains recklessly murder anyone who gets in their way and the only ones who can stop them are heroes like Beowulf. Beowulf is a shining example of an epic hero who fights against the evils of the Geats. Beowulf is a warrior who praises god and aims to kill the monsters that plague his people. Bravest and the best of the Geats, Beowulf is a superhuman warrior who is out to kill the likes of Grendel for fame and glory. Grendel is the most sinister monster known to the Geats, he strikes fear into their hearts because of what he has done to innocent people. Grendel is an ugly and despicable monster who has hands forged in hell (ll. 64). Grendel is the enemy of mankind and specifically Beowulf, he is the shadow of death and lusts for evil (ll. 74). The conflict between Grendel and Beowulf is not one that is just a battle of fame or pleasure but one of righteousness and wrong. Beowulf must defeat Grendel for all of the evil he has committed and to honor those who have died defending themselves from this creature born in the depths of hell.
Sunday, July 21, 2019
The School For Wives and Ghosts | Analysis In Henrik Ibsens Ghosts and Molieres The School for Wives, the playwrights portray the concept of male domination with the help of the relationships between the characters. Ibsen depicts male dominance in the late 1800 Norwegian society mainly through the characters of Mr. Manders and Mrs. Alving. On the other hand, Moliere portrays male dominance in French Renaissance society using the characters of Arnolphe and Agnes. The playwrights portray their societies through miniature household with stereotypical characters. Male domination in both the plays is depicted by the careful use of speech, actions and social beliefs. This similarity reflects upon the two 17th century European societies, the Norwegian and the French Renaissance. The writers establish differences in perception using characterization. The use of rhetoric speeches of Mr. Manders in Ghosts shows that domination in Norwegian society is elusive. At the same time, the use of simple language in The School for Wives illustra tes male domination that is prominent in the French Renaissance society. Important aspects of culture and society have also been incorporated in the two plays. In Ghosts, and School for Wives the playwrights convey male dominance through dialogue and action. However, the difference lies in the manner of portrayal. Ibsen employs ideas and social norms in his speech to bring out the oppressive character of Mr. Manders and to influence Mrs. Alving. The insurance of the orphanage is an example of indirect influence being employed as a tool to dominate. After Mrs. Alving decides to insure the orphanage, Mr. Manders asks, But what about the opinion of the people hereabouts?Ã Ã The ultimate aim of Mr. Manders is to avoid judgment by public. The character of Mr. Manders allows Ibsen to present the thoughts of common people in the Norwegian society who do not have the courage to deter from the norms of society. The issues in a domestic household such as the conflict between Mr. and Mrs. Alving act as a microscopic portrayal of Norwegian society. It is evident that this portrayal of male dominance in Ghosts was not approved by the Norwegian no rm as it was banned from being staged in a number of theatres in Scandinavia. Similarly, Moliere depicts complete male dominance through words and actions. The character of Arnolphe is used to bring out the theme of oppression of women. Arnolphes dialogue and soliloquys are used for this purpose. For example, he controls the upbringing of Agnes and restricts her right to modern education. Arnolphe says, A wife who writes knows more than can be good for her.Ã Ã This excerpt of Arnophes speech shows that the society presented in the play saw educated women as unsuitable wives. Arnolphe acts as a director when he says, A trusty soldier knows his place, however hard, and shows obedience to the captain of the guard; a valet serves his master, and a child obeys his father, and a priest does what the bishop saysÃ Ã . In this speech, Moliere metaphorically compares the inferior ranks of professions to women and the superior to men in French household. This quote also shows that hierarchy and domination exist in all parts of the French society as presente d in the play. The God-like figure of Arnolphe is often portrayed throughout the play as he says She never should presume to look him in the face- Except if he looks kind, and smiles at her with grace.Ã Ã It also suggests that the admiration that men receive from women and society is like a myth or action that is supposed to be done disregards to the individual person. The Maxims of Marriage mentioned in Act III Scene II of the play is the portrayal of male domination in French Renaissance society. Each maxim topic depicts the traits expected by the husband in an ideal wife. For instance, the maxim states that a good wife must not dress to tease or must never play cardsÃ Ã . The wives must obey the maxim as a bible whether they want to or not. Through this, Moliere portrays a French domestic household and complete male dominance in a marriage. Another technique of the playwrights in portraying male domination is through characterization and the different traits between the male and female characters. In Ghosts, Mrs. Alving and Mr. Manders are the two extreme opposite characters. Ibsen makes Mr. Manders a dutiful priest who represents conservative society while he makes Mrs. Alving a widow who represents modern beliefs and radical thoughts. This characterization technique is a tool enabling the male characters to influence the female characters. By doing this, Ibsen portrays various conflicting beliefs and ideas that exist in the Norwegian society: conservative and unorthodox. Similarly, in the play The School for Wives, Moliere uses characterization to portray male dominance. Arnolphe is a man of society who has wealth and property to his name. On the other hand, Agnes is portrayed at the beginning of the play to be an orphan with no wealth or status. She is uneducated and very young compared to Arnolphe. The relationship between Arnolphe and Agnes acts as a mirror image to the French Society. The age difference and the lack of education of women make it possible for men to control womens life in all aspects as Arnolphe says Whichever way I choose, Ill shape her very life- Ill mould her in my hands, just like a lump of wax, and then Ill sculpt her, in whatever form she lacks.Ã Ã An image of a toy or a figure being created out of clay is portrayed. This speech of Arnolphe, represent men in society, means that men do not want to marry a specific woman but they want to marry anyone who is, according to them, an ideal wife. In Act III, scene IV, this l engthy passage illustrates that he wanted to marry a woman who fitted in his vision of idealism in a marriage. Arnorphes soliloquy is an insight to the insecurities of French men in the 17th century. Moliere devoted a scene for this lengthy speech of Arnolphe to tell the audience about the selfish thoughts of men. The structure of this passage also shows Molieres use of punctuations to increase the pace of the monologue. It also makes the audience feel like Arnolphe is reciting a lyrical poem; hence the audience is kept interested until the end of the scene. The importance given to this scene by Moliere suggests that male dominance is a main theme which he wants to bring out in this play. The playwrights use some of the elements of the society as a tool to portray male dominance. In Ghosts, Ibsen depicts male dominance through concepts of duties, public opinions and individual beliefs as themes. For instance, Mr. Manders says What right have we to happiness? No! we must do our duty, Mrs. Alving.Ã Ã This emphasizes the idea of conservatism in the Norwegian society. General responsibility regardless to the personal situation or feeling applies to everyone in the society. Similarly, Moliere depicts male dominance using tools such as education, naivety and religion in the play The School for wives. The restriction of basic rights of Agnes is can be viewed as immoral, but at that point of time, men considered it to be a venture as Arnolphe says Then youll see the result of my experiment,Ã Ã Religion is used to portray men as God-like figure in society. And the profound respect she must show, in a word, to him, for hes her husband, ruler, chief and lord,Ã Ã This part of Arnolphes speech illustrates the overall image of relationship between husbands and wives in the French renaissance society. Men are not only husbands but also the owners of the wives. Naivety plays an important role in allowing men to dominate womens thoughts. I want her ignorant, since all she needs to know is how to love me, pray to God, and spin and sew.Ã Ã This quote again emphasizes the point that stereotypical husbands do not want educated wives because they a re considered too intelligent to be a good wife. The only qualities needed in a perfect wife are adeptness at chores and respect their husbands. Moliere employs Arnolphes speech to bring out the image of who was believed to be an ideal wife in renaissance society. In conclusion, Ibsen and Moliere represent their views on male dominance in Norwegian and French Renaissance societies respectively through Ghosts and The School for Wives. Using light hearted farce and comical elements, Moliere depicts human folly and elaborates the hidden motives such as fear of power of women.Ã Ã Similarly, Ibsen attacks the sanctity of marriage and identity of women.Ã Ã He accomplishes the aim of portraying taboos and making an impact on the Norwegian society. By analyzing these two plays, we understand the nature and culture of Norwegian and French societies. Male dominance exists in all societies but it is portrayed in a various ways depending on the nature of the society.
Saturday, July 20, 2019
The Dawn Of A New Beginning Many mornings during my childhood, my father would take me to watch the sunrise over the water. The place he took me was discovered several years prior and was the ideal place to watch the sunrise. It was comprised of a hill that was surrounded with only the purity of nature. The hill was encompassed by trees, and it slowly sloped down until the foot of the hill waded into the waterÃ¢â¬â¢s edge. At the top of the hill stood a massive Wye Oak tree, that to a child eyes seemed as though it was a skyscraper. This tree was as wide as a house and was full of green leaves. It was strategically placed in the center of the hill, which also happened to be the optimum point to see the sunrise. On one side of this hill was a field of swaying flowers. The flowers formed a rainbow of color, like the ones that were in the field by the Emerald City in Wizard of Oz. On another side was a crystal blue lake whose top seemed to be like a sheet of ice. This place was the Ã¢â¬Å"ideal placeÃ¢â¬ for the sunrise because no matter what was wrong in life, this tranquil area, which was like the Garden of Eden, was a means of escape. No matter, where someone stood on the hill the sun and nature was always gorgeous. One of my first visits to this place I remember very vividly. We got up early and my father drove us to the hill. We laid down our blanket under the tree and leaned up against its massive trunk. After waiting for what seemed to be an eternity (which was really only a matter of minutes) the sun began to peer over the trees almost like a child looking over the sofa to see if anyone has discovered them in a game of hide and seek. As the sun slowly rose over the trees, and with it my excitement level. It seemed like I was almost in tune with nature. My eyes followed the sun from the point when it was a red-orange ball, and was not even over the trees, to when it became whitish yellow ball in the middle of the sky. As the sun rose and I began to awaken a little more and I headed closer to the waterÃ¢â¬â¢s edge.
Friday, July 19, 2019
Consider the role of the Inspector in Ã¢â¬Å"An Inspector CallsÃ¢â¬ ? And what we learn about PriestleyÃ¢â¬â¢s view on society through the character and his effect on others. The traditional EnglishmenÃ¢â¬â¢s home is his castle goes out the window, just so that inspector Goole can solve a mystery. A mystery, that by his line of questioning, he already knows the answer to. An Inspector Calls was written in 1945 by John Boynton Priestley, just as the Second World War was ending and Britain was looking forward to life without war. The play is set in 1912, when Britain still had its Empire and was a wealthy country before the First World War Ã¢â¬â it was also the year that the Titanic sunk. Class structure was very strict and some people were willing to risk everything to enter a higher class. Strikes over poor working conditions in factories were common and only rich men who owned property were allowed to vote. Priestley was born in Bradford, Yorkshire on 13 September 1894, his father was a schoolmaster and his mother died later that year. In later life Priestley took a job as a very junior clerk at the local wool company. When the First World War broke out, he enrolled in the infantry, served in France and encountered a near death experience in Germany. On leaving the army, Priestley finally accepted a place at Cambridge University to read modern history and political science. He wrote many successful novels and plays before and after the Second World War. J B Priestley was a socialist, he believed that everyone should be equal and share everything between each other. In Ã¢â¬Å"An Inspector CallsÃ¢â¬ all of the characters are led to believe that they are all partly responsible for the suicide of a young working class woman. Ã¢â¬ An Inspector CallsÃ¢â¬ is a ... .... Only the younger generation have learned anything from the incident, this is that you should not make the same mistake that previous people have made. The older generation have learned nothing Ã¢â¬Å"weÃ¢â¬â¢ve been hadÃ¢â¬ says Mr Birling, proving that the older generation think that is quite funny and that it must have been someone having a joke. Conclusion The inspector represents J.B.Priestley and the socialist idea. Priestley hopes we have learned about socialism and that what can happen in a chain of events theory. Priestley hopes that we have learned that everyone should be equal and share their possessions. he also wanted us to learn from our mistakes. I have learned about socialism and about life in 1912. my views havenÃ¢â¬â¢t really changed because I didnÃ¢â¬â¢t know about socialism before. my view is that the play is a decent play, but not one that I would go and see. Role of the Inspector in An Inspector Calls Essay -- essays research p Consider the role of the Inspector in Ã¢â¬Å"An Inspector CallsÃ¢â¬ ? And what we learn about PriestleyÃ¢â¬â¢s view on society through the character and his effect on others. The traditional EnglishmenÃ¢â¬â¢s home is his castle goes out the window, just so that inspector Goole can solve a mystery. A mystery, that by his line of questioning, he already knows the answer to. An Inspector Calls was written in 1945 by John Boynton Priestley, just as the Second World War was ending and Britain was looking forward to life without war. The play is set in 1912, when Britain still had its Empire and was a wealthy country before the First World War Ã¢â¬â it was also the year that the Titanic sunk. Class structure was very strict and some people were willing to risk everything to enter a higher class. Strikes over poor working conditions in factories were common and only rich men who owned property were allowed to vote. Priestley was born in Bradford, Yorkshire on 13 September 1894, his father was a schoolmaster and his mother died later that year. In later life Priestley took a job as a very junior clerk at the local wool company. When the First World War broke out, he enrolled in the infantry, served in France and encountered a near death experience in Germany. On leaving the army, Priestley finally accepted a place at Cambridge University to read modern history and political science. He wrote many successful novels and plays before and after the Second World War. J B Priestley was a socialist, he believed that everyone should be equal and share everything between each other. In Ã¢â¬Å"An Inspector CallsÃ¢â¬ all of the characters are led to believe that they are all partly responsible for the suicide of a young working class woman. Ã¢â¬ An Inspector CallsÃ¢â¬ is a ... .... Only the younger generation have learned anything from the incident, this is that you should not make the same mistake that previous people have made. The older generation have learned nothing Ã¢â¬Å"weÃ¢â¬â¢ve been hadÃ¢â¬ says Mr Birling, proving that the older generation think that is quite funny and that it must have been someone having a joke. Conclusion The inspector represents J.B.Priestley and the socialist idea. Priestley hopes we have learned about socialism and that what can happen in a chain of events theory. Priestley hopes that we have learned that everyone should be equal and share their possessions. he also wanted us to learn from our mistakes. I have learned about socialism and about life in 1912. my views havenÃ¢â¬â¢t really changed because I didnÃ¢â¬â¢t know about socialism before. my view is that the play is a decent play, but not one that I would go and see.
Battle of the Bulge - A World War 2 Battle The World War Two was a very severe war. There were many battles that were fought during it. One of the biggest land battles was Battle of the Bulge. (http://helios.) The battle took place on December 16, 1944 under cover a very dense fog which was very difficult for the army to see. (Danzer et. al. 744) These conditions are hard to see in but to stage of the biggest land battle in the history of World War Two, it was truly an astounding event and a very tragic memory. The battle was fought in a heavily forested Ardennes region of eastern Belgium and northern Luxembourg (http://www.mm.) The fact that the battle was fought in a heavy forested area, with the conditions of the fog made the battle more dangerous, because the sight was poor and there was no clue where the opposite army was hidden. The Battle of the Bulge was a very vicious battle that had taken place. The battle included 600,000 Germans, 500,000 Americans and 55,000 British. (http://helios.) More than one million of the worlds' men fought in this battle. It claimed 100,000 German casualties, killed wounded or captured, 81,000 American casualties, including 23,554 captured and 19,000 killed, 1,400 British casualties and 200 killed. (http://www.mm.) This was a massive amount of people to be killed in one horrible battle in the world's history. The Germans led by Hitler went westward, they captured 120 American GI's near Malmedy, they herded the prisoners into a field and shot them with machine guns and pistols. (Danzer et. al. 744) This was a very vicious thing that the Germans had done to the US GI's. The American troops led by Brigadier General Anthony McAuliffe led the troops to Bastogne, a city of Belgium, were badly surrounded and our numbered by the Germans, that is were the American troops were demanded to surrender. (Danzer et. al. 744). In the end there were 800 tanks lost on each side, and 1,000 German aircraft lost as well. (http://www.mm.) This was a lot of machinery to have lost Hitler could not replace all the things he lost, so he had nothing left to do but to retreat. The way the battle had ended had the feeling of it being unfinished. The allies were credited in holding the Germans back. (http://helios.) This was a good thing because the Germans lost most of their resources, and the most important of all things, time.
Thursday, July 18, 2019
Milliman Research Report Prepared by: Safder Jaffer Farzana Ismail Jabran Noor Lindsay Unwin Reviewed by: Debo Ajayi November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Milliman Research Report Contents EXECUTIVE SUMMARY 2 BACkgROUND AND MARkET OUTLOOk 3 PRINCIPLES AND PRACTICES UNDERLYINg TAkAFUL TAkAFUL OPERATINg MODELS 11 ISSUES AND ChALLENgES FACINg ThE TAkAFUL INDUSTRY 15 CONCLUSION 25 APPENDIX I: gLOSSARY 26 APPENDIX II: BIBLIOgRAPhIC REFERENCES 28 APPENDIX III: SELF REgULATINg BODIES & TAkAFUL gROUPS 29 Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 1 Milliman Research Report exeCu tive summary Through desktop research, one can get a plethora of materials and papers on Takaful, but most tend to focus either on the fundamentals of Takaful or on Takaful models.In contrast, the objective of this report is to highlight the key issues and challenges facing the world of Takaful and suggested areas where work is required to find solutions. Therefore this report is intended to provide useful reference material for practioners by summarising the following key items: Ã¢â¬ ¢ An overview of Takaful and the intricacies of the models Ã¢â¬ ¢ Insights into the issues and challenges facing the Takaful industry Ã¢â¬ ¢ Finding sustainable solutions to some of these challengesTakaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 2 Milliman Research Report BaCkground and market outlook Muslims account for around 25% of the worldÃ¢â¬â¢s total population, but despite rapid growth in recent yea rs, insurance sales within the Muslim population remain a small fraction of the total insurance market. Historically, the incompatibility between conventional insurance and key tenets of the Islamic faith has acted as a significant barrier to sales.These differences have led to very low penetration rates and have left many Muslims with little external protection for their dependents or possessions. The development of Takaful, which originates from the Arabic verb Ã¢â¬Ëkafalah,Ã¢â¬â¢ which means Ã¢â¬Ëto help one anotherÃ¢â¬â¢ or Ã¢â¬Ëmutual guarantee,Ã¢â¬â¢ has been driven by a need to overcome these obstacles and create an insurance proposition that is fully compliant with Shariah (Islamic law). It offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and nonlife sectors that is acceptable to the Muslim faith.For non-Muslims, Takaful products potentially offer an alternative source of insurance protection Ã¢â¬âwith different investment objectives, an approach to surplus distribution, and an oversight system with an ethical dimension. Hence in Malaysia, for example, non-Muslims account for more than 60% of the total Takaful premiums. Takaful offers Muslims a valuable risk management tool and the first true alternative to conventional insurance in both the life and non-life sectors that is acceptable to the Muslim faith. Figure 1: geographiCal spread oF muslims as a % oF total population No data 0-5% 5-10% 10-50% 50-75% 75-100% Sources: U.S. State Department, CIA WORLD FACTBOOK, Swiss Re Economic Research & Consulting Market Size and Outlook Whilst Takaful started in 1979 in Sudan, it only gained momentum in early 2000 when the Malaysian government promoted it and significant growth was witnessed thereafter. The growth of Takaful has varied significantly from country to country and its success, or otherwise, has been largely dependent on the awareness and affluence of the local popu lation, as well as on the robustness of the local regulatory framework. Hence the highest growth has been observed in places such as Malaysia (with its considerable awareness ofTakaful and robust regulatory framework), whereas growth in the Middle East has only recently begun to take off. Depending on the definition of Takaful, the currently quoted volumes in terms of premiums range from USD$1 billion to USD$5. 6 billion. Although the exact size of the Takaful market has often been disputed, there is general acknowledgment of the rapid growth of the industry. In 2007, Takaful premiums in emerging markets grew by roughly 26% and accounted for 5% of insurance premiums Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 3Milliman Research Report written in Muslim countries. 1 According to Takaful Re, a Dubai-based Retakaful company, Takaful premiums crossed the USD$3 billion mark in 2007 as seen in the table in Figure 2. Figure 2: takaFul premiums (usd$ millions) gCC 2004 2005 2006 2007 770 SAUDI ARABIA 1,238 1,579 2,046 645 1,065 1,340 1,695 KUWAIT 54 83 90 124 UAE 31 42 65 109 QATAR 25 34 50 76 BAHRAIN 15 15 34 59 south east asia MALAySIA 474 544 692 951 343 412 534 797 INDONESIA 77 75 80 94 THAILAND 30 30 32 35 24 27 30 35 aFriCa BRUNEI 121 181 215 317 levant 14 17 21 32 5 8 11 18 1,384 1,988 2,518 3,364 indian suB-Continent total Source: Takaful ReThe projected Takaful written premium estimates have often been debated by practitioners because of the wide range of numbers published by various sources. There is difficulty in determining firm estimates of the total industry potential as there is a wide variety of Takaful definitions and categorisation, as well as a lack of consistent and credible data. Oliver Wyman suggested in a recent study that the Takaful premium potential is at least USD$20 billion whereas Swiss Re in its annual Sigma report sees a potential of USD$56 bi llion. Takaful premiums by 2015 are estimated to be in the range of USD$7 billion to USD$8 billion.Hence it is necessary to exercise caution when analysing projected figures. Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of gDP, and its growth in the global market is expected to continue in the long term. Takaful provides access to a large, relatively untapped market, in which insurance penetration hovers somewhere well below 2% of GDP, and its growth in the global market is expected to continue in the long term. Global estimates for the growth of the worldwide Takaful industry come in at 20% per year, far outstripping the 2. % annual growth for conventional insurance premiums. 2 It is interesting to note that many Takaful providers have emerged largely unscathed from the financial crisis, as investments are commonly held in highly liquid assets, which is due to limited Shariah-compliant investments. Ins urers considering entry to the Takaful market are better off assessing the markets and opportunities sooner rather than later. Targeted marketing and consumer education are essential to develop market awareness and established insurers can leverage their existing marketing and distribution platforms.The lack of a clear market leader in Europe and the UK means that insurers can take advantage of the challenges and opportunities present in a developing global industry. 1 2 Swiss Re (2008). Insurance in the emerging markets. Sigma, Issue No. 5. PricewaterhouseCoopers (2008). Takaful : Growth opportunities in a dynamic market. Retrieved Nov. 3, 2010, from http://www. pwc. com/en_GX/gx/financial-services/pdf/pwc_takaful. pdf. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 4 Milliman Research Report rinCiples and praCtiCes underlying takaFul Principles Underlying the Takaful Industry The Islamic F inancial Services Board (IFSB), a self-regulated organisation in Islamic finances, produced a paper on governance (in December 2009) and defines Takaful as follows: Takaful is the Islamic counterpart of conventional insurance, and exists in both Family (or Ã¢â¬ËLifeÃ¢â¬â¢) and General forms. Takaful is derived from an Arabic word that means joint guarantee, whereby a group of participants agree among themselves to support one another jointly for the losses arising from specified risks.In a Takaful arrangement the participants contribute a sum of money as a TabarruÃ¢â¬â¢ commitment into a common fund that will be used mutually to assist the members against a specified type of loss or damage. The underwriting in a Takaful is thus undertaken on a mutual basis, similar in some respects to conventional mutual insurance. A typical Takaful undertaking consists of a two-tier structure that is a hybrid of a mutual and a commercial form of company Ã¢â¬â which is the Takaful operator (TO) Ã¢â¬â although in principle it could be a pure mutual structure.Hence there is a recognition that whilst the current Ã¢â¬ËTakafulÃ¢â¬â¢ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. This will be analysed later when discussing the opportunities and challenges of the Takaful industry. There is a common misunderstanding that insurance or risk mitigation is not allowed under Islam, as Muslims believe that only God knows oneÃ¢â¬â¢s future and faith. The following conversation taken from the sayings of the Prophet Muhammad depicts an interesting message as to why Muslims should indeed reduce the risk of loss:Whilst the current Ã¢â¬ËTakafulÃ¢â¬â¢ concept and practice is in fact a hybrid of a mutual and commercial insurer, in principle it needs to move more towards a pure mutual structure. Prophet Muhammad asked a Bedouin who had left his camel untied, Ã¢â¬ËWhy do you not t ie your camel? Ã¢â¬â¢ The Bedouin answered, Ã¢â¬ËI put my trust in God. Ã¢â¬â¢ The prophet then said, Ã¢â¬ËTie up your camel first and then put your trust in God. Ã¢â¬â¢ Every society has risk management needs and, with the evolution of time, the methodologies also evolve.Almost 10 centuries before the advent of conventional insurance companies, the Muslim societies in Arabia adopted concepts of risk mitigation such as Ã¢â¬ËhilfÃ¢â¬â¢ to assist victims of natural disasters or hazards of trade journey. Another common practice widely used in Islam was Ã¢â¬Ëal-aqilah. Ã¢â¬â¢ Under the custom of Ã¢â¬Ëal-aqilah,Ã¢â¬â¢ it is mutually agreed that, if a person is killed unintentionally by another person, the paternal relatives will take the responsibility to make a mutual contribution for the purpose of paying the blood money to the victimÃ¢â¬â¢s relatives.This practice of having a fund that pools contributions from a group of people to assist others in need is akin to mutual insurance. It is important to point out that the mutual assistance was not originally a commercial transaction and did not contain any profit or gain at the expense of others. Rather it evolved as a useful social practice to mitigate the burden of an individual by dividing it among fellow members. There are certain key issues within conventional insurance that Islam does not permit: Ã¢â¬ ¢ Riba, or usury: The first of these is the earning of interest, referred to in Islam as Riba.It is a concept expressly prohibited at several points in the Quran. Traditionally viewed from the perspective of a loan, Riba is considered unfair and inequitable to the borrowing party and therefore earning interest is forbidden under Shariah law and Muslims must avoid Riba in all of their financial transactions. Ã¢â¬ ¢ gharar, or uncertainty: The second element is the presence of uncertainty embedded in the design of conventional insurance products. Uncertainty and the trading in risk are cla ssed as Gharar, a concept forbidden in Shariah law to protect participants from hazardous or unjust transactions.Conventional insurance is designed around the transfer of risk in return for a premium, and the timing, severity, and/or frequency of insured events are each subject to Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 5 Milliman Research Report varying degrees of uncertainty. The perception that insurance products commonly contain unclear contract terms furthers the view that a high level of uncertainty pervades all aspects of conventional insurance. Maisir, or gambling: Related to Gharar is the concept of Maisir, also prohibited under Islam, which captures those transactions with an underlying gambling or speculative nature. In the context of life insurance, many contract designs can be viewed as gambles which ultimately benefit one side of an insurance contract at the expense of t he other. For example, by taking out a term assurance contract, the risk is transferred to the insurer for a fixed premium and the payment of a small sum could potentially yield a disproportionately large payout, benefiting the policyholder at the expense of the insurer.Alternatively, the payment of a stream of premiums for many years could result in no return at all, which benefits the insurer. Ã¢â¬ ¢ haram, or forbidden: Conventional insurance designs may have investments in a number of asset classes that partake in activities prohibited within the Muslim faith, such as investments in alcoholrelated companies, pornography, or gambling-related enterprises such as casinos. Such activities are considered Haram or forbidden in Islam, and consequently, the proceeds of the conventional insurance are also deemed to be unacceptable in the Muslim faith.There is a further focus in Takaful (and in Islam in general) around the importance of moral values and ethics as business is meant to be conducted openly in accordance with the utmost good faith, honesty, full disclosure, truthfulness, and fairness in all dealings. It is not within the scope of this report to look into the Shariah matters in depth as there is a diversity of opinion on the exact principles of Takaful. There are some schools of thought within Islam that allow conventional insurance so long as it does not involve Riba (or usury) whilst others have a range of tolerance with some of the key issues mentioned above.However, by and large, there is broad consensus on the solution to these issues. This emerged in the late 1970s in Sudan, but gained more prominence in the 1980s in Malaysia and the Persian Gulf countries in the form of Takaful. Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. Takaful can thus be seen as the Islamic counterpart of conventional mutual insu rance (i. e. , insurance that is compliant with the Shariah).Takaful is not a type of insurance but rather an alternative to insurance. It has to operate on cooperative principles and incorporate the concept of TabarruÃ¢â¬â¢ (donation, gift). Instead of paying an insurance premium, Takaful participants (policyholders) donate their Takaful contribution to a common pool to mutually assist the members against a defined loss or damage. It is a one-way transaction which does not expect a definite return on the donation, unlike the more traditional bilateral conventional insurance contract where a premium is paid in return for an insurance benefit.The pooling does eliminate Gharar, as the uncertainty about future claim events certainly still exists but now is acceptable as the donation (TabarruÃ¢â¬â¢) is meant for mutual assistance and not for profittaking or gambling (contracts of charity are not affected by the prohibition of Gharar). However, unlike conventional insurance where the risk is transferred to the insurer, all participants mutually share the risk in Takaful, which is an important fundamental difference. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay UnwinNovember 2010 6 Milliman Research Report The chart in Figure 3 summarises the key differences between conventional insurance and Takaful. Figure 3: Comparison oF Conventional insuranCe and takaFul Conventional insuranCe takaFul A risk transfer mechanism whereby risk is transferred Based on mutuality; hence the risk is not transferred but from the policyholder (the insured) to the insurance shared by the participants, who form a common pool. The company (the insurer) in consideration of an Ã¢â¬Ëinsurance company (takaful operator) acts only as the manager of premiumÃ¢â¬â¢ paid by the insured. the pool.In effect, the policyholders are both the insurer and the insured. Contains the element of uncertainty, i. e. , gharar, whic h The element of uncertainty, i. e. , gharar, is brought down is forbidden in islam. The terms of the contract are to acceptable levels under shariah by characterising unclear as to certainty of when any loss would occur contributions as donations (TabarruÃ¢â¬â¢), not obligations, and and how much compensation would be payable. for a good cause, i. e. , To mitigate the loss suffered by any one of the participants, as opposed to payments linked to definite expectation of insured benefits to be received.Contains an element of gambling, i. e. , Maisir, in that the The participant pays the contribution (TabarruÃ¢â¬â¢) in the insured pays an amount (premium) in the expectation spirit of neÃ¢â¬â¢ea (purity) and brotherhood to cover mutual of gain (compensation/payment against claim). If the losses of members of the pool. Losses and gains are anticipated loss (claim) does not occur, the insured loses mutually shared by the pool members who contribute the amount paid as premium. If th e loss does occur, to the pool. That is, third parties (insurers or reinsurers) the insurer loses a far larger amount than collected as re not affected by the outcome of risk events. premium and the insured gains by the same. Funds are mostly invested in fixed interest-bearing Funds are only invested in non-interest-bearing, i. e. , instruments such as bonds, fixed interest securities, etc. Riba-free, instruments. Note that regular income hence these contain the element of riba (usury), which is investments are still possible (such as under forbidden in islam. Sukuk, islamic bonds) as long as the income is not interest-based. Surplus or profit belongs to both the shareholders and Surplus belongs to the participants and is accordingly he with-profit policyholders. The insured is covered returned to them. during the policy period but is not entitled to any return at the end of such period. The concept of Shariah (Islamic law) compliance is an evolving one and is overseen by the Islami c scholars that sit on the Shariah Supervisory Board, which provides the final certification of compliance. The scholars base their views primarily on the principles of the Quran, supplemented by Sunnah (the teachings of the Prophet), Fatwas (judicial opinions of Shariah scholars), and Islamic jurisprudence on economic transactions.While the words of the Quran and Sunnah are sacrosanct, the independent reasoning of Shariah scholars can be revoked or adapted to suit changing circumstances, and new developments are dealt with by legal reasoning and judgment of Shariah scholars. This creates a moving goalpost, which is one of the challenges in the Takaful industry which will be discussed further in Section 4. Takaful provides Shariah-compliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee.The mutual guarantee offered by Takaful is centred on a transparent, ethical, and Shariah-compliant agreement between the i operator and participants. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Takaful provides Shariahcompliant solutions to the prohibited concepts with conventional insurance while still protecting against uncertain events in return for a commensurate fee. 7 Milliman Research Report Practices in the Takaful Industry This section provides an overview of the components and current practices in the Takaful industry, including: Ã¢â¬ ¢ Ã¢â¬ ¢ Ã¢â¬ ¢ Practices within Family Takaful (Life) and General Takaful Shariah-compliant assets Retakaful Retro-Takaful Family Takaful (Life) and General Takaful As introduced above, conventional insurance as sold in Western markets is fundamentally irreconcilable with several tenets of the Islamic faith. In terms of life insurance, Shariah scholars view these contracts as a gamble on the insuredÃ¢â¬â¢s life. There is uncertainty surrou nding when and if death will occur within the covered period, and in the event that no claim is made the policyholder is considered to have made a loss.For Muslims, this incompatibility rules out traditional life insurance as a means of obtaining protection for their dependents. Family Takaful offerings provide access to life coverage in a manner which does not conflict with their religious beliefs. Takaful is structured around the core principle of sharing and pooling mortality/ morbidity risk with fellow participants rather than transferring it to a profitoriented corporate entity. Takaful is structured around the core principle of sharing and pooling mortality/morbidity risk with fellow participants rather than transferring it to a profit-oriented corporate entity.The concept of mutual support allows many parallels to be drawn between Shariah-compliant Takaful operations and mutual insurers. However, unlike mutual insurers and friendly societies, current Takaful operations involv e shareholders who have a profit motive, who provide the capital and fund the administration of the risk pool, and who are separate from the participants. Hence, Takaful operations can be viewed as Shariah-compliant commercialised mutual insurance operations. This structure of necessity, which is due to the need for capital, creates another set of challenges to be discussed further inSection 4. Similar to the concept of with-profits products sold by mutual insurers, Family Takaful is designed to combine protection for the benefit of oneÃ¢â¬â¢s dependents with a savings element and requires the distribution of surplus to participants. However, the requirement of transparent disclosure of charges makes Family Takaful contracts akin to the clear charging structure underlying a unit-linked insurance contract. Current practice is to develop Shariah-compliant variants of conventional insurance products.Family Takaful variants of most common life products, including level and decreasing term assurance, savings and retirement plans, and critical illness coverage, have been successfully launched in various markets. For example, a direct contribution style of savings scheme offering equity exposure could be developed by limiting investment to stock issued by companies that meet the non-Haram or Halal (lawful) requirements. Even product designs, such as annuities and whole life plans, whose inherent features include an uncertain duration, are currently being considered as Takaful offerings.A consequence of mutuality, voluntary contributions, and absence of third parties (such as the insurer in conventional insurance) to share in the risks is that Family Takaful contracts cannot (or do not) offer guarantees to the participants. Guarantees on investment returns, bonuses, risk charges, or premiums, etc. , are not offered under Takaful products. While Takaful practice allows the spread of risk through reinsurance from Retakaful companies, or conventional reinsurers on a ne cessity basis, this practice is not to allow guarantees as the reinsurance pool is seen as an extension of the primary risk pool.Accordingly, investment returns on contributed funds by the participants are based on actual investment experience. However, the Takaful operator is obligated to advance a loan (qard), on an interest-free basis, to support any shortfalls in the risk pool in meeting claims. This implicit guarantee of underwriting risk by shareholders of the Takaful operation creates some weakness in the current commercial model of a Takaful operation. Commonly, while there are no guarantees, there are expectations established at point of sale through product illustrations. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities SafderJaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 8 Milliman Research Report However, the concept of mutual assistance does not prohibit the use of underwriting and prospective pricing based on experience studies. As with conventional insurance, if the health of a potential participant would result in significant additional strain being placed on the underwriting fund then an extra contribution would be required. The prohibition of interest-bearing instruments does not impact on the use of interest functions in pricing or valuation of long-term liabilities in Takaful.The pricing interest assumption is based on expected returns from Shariah-compliant assets underlying the liabilities. In terms of surplus distribution, any distribution made to participants is based purely on actual surplus arising. As long as the underwriting fund is not in deficit, surplus arising from both investment and underwriting activities can be used to make a cash payment to participants and/or contribute to any claim fluctuation reserve. The latter is set up to cover short-term volatility in the size and incidence of payments out of the underwriting fund.As with regular bonus declarations on conventional with-profits con tracts in the UK, surplus distributions, if any, are most commonly made on an annual basis. Participants in a Takaful operation will need to be appropriately and comprehensively educated on this feature of the product design so that reasonable expectations are built up as to the level of distribution. Shariah-Compliant Assets The avoidance of Riba, Gharar, Haram, and Maisir in the design of Takaful products has a significant impact on the investment decisions of a Takaful operation.Contributions must be invested purely in Shariah-compliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Haram or forbidden investments in Islam include financial derivatives such as futures and options, interest-bearing bonds, and equity issued by companies partaking in non-Halal business activities as described earlier. The development of the Sukuk market and a robust Shariah-compliant stock selection process together offer T akaful providers an increasingly viable solution to this investment conundrum.Contributions must be invested purely in Shariahcompliant assets, i. e. , assets that are non-interest-bearing and whose returns are not derived from activities considered unethical. Shariah law forbids loan issues that are at a discount to their nominal value and, as already discussed, completely restricts the earning of interest (Riba). These two conditions effectively rule out conventional corporate or government bonds. The expanding Sukuk market offers access to an asset class which shares some properties with conventional bonds and others with equity stock, whilst remaining Shariah-compliant.Regular Income Assets: Sukuk are issued via the creation of a special purpose vehicle (SPV) by an issuing bank that has been approached by a company or government seeking funding for a particular project. Sukuk certificates are then issued in return for an investorÃ¢â¬â¢s funding contribution, and rank alongside the bankÃ¢â¬â¢s other senior, unsecured debt. Sukuk instruments are structured to provide a direct link to the assets that underlie the particular project and through this link confer shared ownership of these assets to the investor.Investors then receive a regular income based on a target rate of return. Neither this income nor the return of capital on maturity is guaranteed and both will typically vary in line with the revenue of the company (or equivalently the return on or value of the underlying assets). This potential variance is partially offset by the ability of the Sukuk manager to build up reserves when revenue exceeds the target rate, which can be subsequently used to make up shortfalls. Sukuk provides the Takaful market with a legitimate investment alternative to government and corporate bonds.Several issues surround these Sukuk, such as availability, control, and ownership. These issues impact their overall effectiveness in supporting long-term liabilities, especiall y income annuities. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 9 Milliman Research Report Equities: A Takaful operator does not need to seek an alternative investment in order to gain exposure to equity-type risk and return.Equity stock does not pay interest and offers direct participation in the profits of a listed business whether through dividends or growth in the price of the stock. However, restrictions do exist in relation to the type of company a Takaful operator may invest in to remain Shariah-compliant. To gain exposure to equity returns Takaful operators or their investment managers must apply a screening process to eliminate stocks of companies that are exposed to forbidden industries or breach certain financial conditions.The industries deemed to be non-Shariah-compliant include banking, insurance, gambling, and those linked to pork, alcohol, or tobacco. The financial screeni ng looks at key financial ratios of a particular company, such as conventional debt ratio and the sum of the interest and non-compliant income compared to total revenue. Where these ratios exceed limits laid down by a companyÃ¢â¬â¢s Shariah Supervisory Board, the equity issued by the company in question is excluded from permissible investment.This screening is a continual process, as the evolving nature of a firmÃ¢â¬â¢s business practices and capital structure mean that its status as either compliant or noncompliant is not static. Real Estate and Mortgages: Although there are Shariah-compliant forms of investments in real estate and mortgages, these are currently under-utilised but have significant potentials. Retakaful By entering into a reinsurance contract, conventional insurance companies are able to share risk, gain capital support, or benefit from a broader base of experience in areas such as pricing, underwriting, and claim management.Historically, Takaful operators have sometimes also had to make use of conventional reinsurance owing to the lack of a Shariah-compliant alternativeÃ¢â¬âthis exception was based on the Ã¢â¬ËdharuraÃ¢â¬â¢ or necessity principle. The growth in the Retakaful market offers a solution to this problem. Retakaful provides these same facilities to Takaful operators but within a structure that remains Shariah-compliant and in a manner specifically tailored to the particulars of the Takaful market. In the same way as Takaful rovides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In the same way as Takaful provides a vehicle for participants to provide support to and share their own risk with a pool of other members, Retakaful allows Takaful funds to share risk among multiple Takaful pools. In this regard, the operation of a Retakaful fund is very similar to that of a direct Takaful fund.A Ret akaful fund must have a Shariah Supervisory Board and the criteria it must satisfy to be considered Shariah-compliant mirror those to which a Takaful fund must adhere. The Retakaful fund receives contributions from each participating Takaful fund and distributes back surplus arising from investment and underwriting activities using one of the models described later in this report. Further, if the Retakaful fund goes into deficit then the Retakaful operator is required to make an interest-free loan or Qard Hasan to the fund to eliminate this shortfall.Re-Takaful operators may not pay commission to a Takaful fund with which it is engaged. In recent years there has been a significant growth in global Retakaful capacity, owing to major reinsurance companies such as Swiss Re, Hannover Re, and Munich Re entering the market. Their entries will help facilitate further expansion of the Takaful market, and the capital support and depth of advice that these players can offer will be invaluable in setting up an operation, wherever the chosen market. Retro-TakafulSome Retakaful operators retrocede conventionally on the Ã¢â¬Ëbasis of necessityÃ¢â¬â¢ because currently there is limited Retro-Takaful capacity available. There is talk of a LloydÃ¢â¬â¢s syndicate for Retakaful players that would imply retroceding each otherÃ¢â¬â¢s business to reduce volatility and provide the spread of risk, but this has yet to materialise. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 10 Milliman Research Report takaFul operating modelsThe basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. Family Takaful, the Shariahcompliant equivalent of life insurance, is commonly structured so that a participantÃ¢â¬â¢s contributions are apportioned between two segregated funds: the investme nt fund and the underwriting fund. An individual (investment) account is maintained for each participant with the contributions made, net of any upfront fees. From this account, risk charges are deducted to be deposited into the pooled underwriting fund.Contributions paid into the underwriting fund are considered to be made on the TabarruÃ¢â¬â¢ basis, to support all participants in their exposure to mortality/morbidity risk. Any covered claims suffered by the participants are paid from the underwriting fund to avoid the transferral of risk. The basic structure of a Takaful scheme involves the policyholders or participants enlisting a Takaful operator to perform the necessary investment and underwriting roles. The sharing of risk with fellow participants is in contrast to full or partial transfer of the risk to a proprietary company.This also means that if the underwriting fund is insufficient to pay claims then no recourse can be made to shareholder assets. However, in practical t erms, to prevent closure of the fund, the deficiency is covered by a temporary interest-free loan (Qard Hasan) provided by the Takaful operator. This would be repaid from future surpluses arising within the underwriting fund. Nevertheless, this arrangement acts as a strong incentive for operators to properly manage the fund, thereby limiting the possibility of making future loans.Takaful is most commonly structured using the following models: Ã¢â¬ ¢ The Mudarabah model: This is a Ã¢â¬ËProprietaryÃ¢â¬â¢ or Ã¢â¬ËPartnershipÃ¢â¬â¢ model that considers the Takaful operator as a business partner with the participants. It is structured on classic profit-sharing principles, i. e. , a partnership model where the participants provide the capital, while the Takaful operator provides expertise and management of the Takaful fund. A contract details how underwriting surplus and investment profits are shared between operator and participants, similar to conventional insurance (with-profi ts or articipating business). The Takaful operator shares in the investment and underwriting surpluses via a predetermined ratio mutually agreed with the policyholders at outset. Neither the operator nor the participant can unilaterally alter this agreed sharing ratio, which is usually explicitly set out in the contract at outset. From the perspective of the participants, they do not contribute directly to the operatorÃ¢â¬â¢s costs and all contributions are effectively available to meet claims.Correspondingly, the operator can generally only expect to make a profit by ensuring that the expenses of managing the operation are less than the total share of investment profit and/or underwriting surplus it may receive. If the underwriting fund runs into deficit then the operator is obliged to provide an interest-free loan or Qard Hasan, to be repaid once the fund is in surplus. Ã¢â¬ ¢ The Wakala model: This is an Ã¢â¬ËAgencyÃ¢â¬â¢ model that treats the Takaful operator as an agent of the participants tasked with the administration of the Takaful fund, for which it is compensated through a fixed fee.The operator does not share in the risk nor in the surplus generated from the two funds (investment and underwriting) but instead receives a fixed up-front fee (commonly a percentage of contributions paid) to cover management expenses, distribution costsÃ¢â¬âincluding intermediariesÃ¢â¬â¢ remunerationÃ¢â¬âcost of capital, and a margin for operational profit. This fee must be pre-agreed and is commonly expressly stated in the contract. This fee can vary by product and some contracts can change over time. Competitive consideration predominates in the setting of the level and structure of this fee.On the whole, the operator will be profitable if the fee it receives is greater than its incurred expenses. Theoretically, the Takaful operator bears no insurance risks itself. The risk-bearing is seen as a process of solidarity between participants and takes place s olely among the collective of insured persons (therefore the name Ã¢â¬Ëjoint guaranteeÃ¢â¬â¢). However, due to the obligation to make up for any deficits in the pooled underwriting fund, the insurer is indeed exposed to a non-negligible insurance risk: it might not be able to recuperate a Qard Hasan if insufficient surplus is generated Takaful (Islamic Insurance):Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 11 Milliman Research Report over time. Furthermore, no interest can be charged on the outstanding loan, but this is one of the very intrinsic principles of Islamic finance that has to be strictly followed. In reality, therefore, the Takaful operator under a Wakala model bears more risk than the designers of the model may have intended. In the extreme, the underwriting fund can be underfunded to create perpetual deficit in the fund thus making it the responsibility of the Takaful operator to be at risk perpetual ly.The diagram in Figure 4 compares a typical Family Takaful structure using the Mudarabah and Wakala models. Figure 4: Comparison oF mudaraBah and Wakala models Participants Participants Investment Fund Ã¢â¬â¢d on at urp nt S me Ta b ar io n Underwriting Fund Surplus shared in predetermined ratio between participants and operator Operator est ru Inv urp nt S me est Inv ar Contribution Investment Fund ru Ã¢â¬â¢d s& ent rplus ym Pa g Su im in Cla erwrit d Un Ta b s& ent rplus ym Pa g Su im in Cla erwrit d Un Contribution us Wakalah Model lus Mudarabah Model on at io n Underwriting Fund Wakalah Fee (% of Contribution) Operator In the 1980s, in a pioneering Takaful regulatory development in Malaysia, scholars initially accepted the more commercial Mudarabah model. However, recently there have been concerns raised by scholars that Mudarabah may not be appropriate because of the fact that Takaful is supposed to create a Ã¢â¬ËsurplusÃ¢â¬â¢ and not Ã¢â¬Ëprofits,Ã¢â¬â¢ and under writing surplus is prohibited as this arises from insurance risk.Therefore the element of profit-sharing of underwriting surplus by the Takaful operator within the Mudarabah model is deemed to be not Shariah-compliant. The pure Mudarabah model seems more akin to a business venture rather than a mutually based contract based on solidarity of its participants, which would imply that the TabarruÃ¢â¬â¢ is working capital and is arguably not in the spirit of a donation. Furthermore, the relationship between policyholders and operators lacks transparency. The development of Takaful n the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The development of Takaful in the Middle East took shape later in the 1990s, with the popular preference towards a Wakala model. The Wakala (agency) framework emerged as the dominant model, and Malaysian scholars have moved in favour of this model too. However, in late 2004, some scholarsÃ¢â¬âparticularly t hose in Pakistan, Bangladesh, and South AfricaÃ¢â¬âbegan to highlight deficiencies with the Wakala approach.As a result of the recent findings in the Takaful industry, there have been many variations of Mudarabah and Wakala developed by practitioners to address the limitations. The variant Takaful models considered in this section are: Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 12 Milliman Research Report Ã¢â¬ ¢ Variant Mudarabah model: A variant of the pure Mudarabah model would be to limit the profitsharing element such that it is only applied to the investment portion, which would then be fully in line with Shariah.However, this model might not be commercially viable as it is likely that the income generated from the investment portion will be insufficient for the Takaful operator. Another variant of this model would be to charge the operating expenses directly from the Takaful fu nd instead of funding it from the shareholdersÃ¢â¬â¢ fund (i. e. , the underwriting result is net of TabarruÃ¢â¬â¢, claims, Retakaful, reserve adjustments, and operating expenses).The type and amount of expenses charged to the fund should be laid out to the participants in a transparent manner, although there are concerns about the type of expenses that can be charged to the fund. With the Mudarabah model, there is also the difficulty in managing fixed expenses alongside a variable and potentially volatile surplus, although this feature indirectly encourages the efficient management of the Takaful operation. However, given the many commercial challenges facing the pure and hybrid Mudarabah models, many Takaful operators have opted for the Wakala structure. Wakala with incentive fee model: Critics of the pure Wakala model cite the lack of incentives for the operator to manage the Takaful fund efficiently as the operator does not share in any profits. The operatorÃ¢â¬â¢s income is a fee, which is based on turnover (i. e. , Takaful contributions). Therefore, the Takaful operator may be driven to write large amounts of new business without due regard to proper underwriting or claim management (although to some extent this action is deterred through the commitment of an interest-free loan or Qard).To encourage the operators to apply appropriate underwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation, where the Wakala fee is adjusted (upwards) in the instance of an underwriting and investment surplus. This performance-related fee would not be permitted under a pure Wakala model though the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI, the self-regulatory body) recognises that an incentive fee is permissible. To encourage the operators to apply appropriate nderwriting and investment approaches, some operators have adopted a Wakala model with incentive compensation. Ã¢â¬ ¢ Wakala Mudarabah model (hybrid): This is the most popular model today for Family Takaful operators, where a Wakala is applied on the underwriting fund and a Mudarabah on the investment profit. Specifically, the operator charges a Wakala fee from the Takaful contributions and all underwriting profits are distributed back to the participants. However, investment profit is shared between the participants and the operator based on a predefined ratio.There is an appeal within this model as investment profits are usually the major source of income for Takaful operators, whereas underwriting results can easily be managed using quota share Retakaful arrangements. Ã¢â¬ ¢ Wakala with Waqf model: The main issue in the pure Wakala model is that the element of Gharar (uncertainty) is not fully eliminated because the contribution (treated as a Ã¢â¬ËdonationÃ¢â¬â¢) remains in the participantÃ¢â¬â¢s ownership and is effectively a Ã¢â¬ËconditionalÃ¢â¬â¢ donation. Hence the participant can expect to receive the surplus back, which therefore becomes a conditional gift.However, there is uncertainty about the level and timing of the surplus it will receive. Secondly, there is a relationship between the participant and operator and another amongst participants (exchange of gift for a gift). This creates doubts on the Wakala contract as a contract of compensation. The relationship of the Takaful operator with the participants is ambiguous because none of the participants are liable for the repayment of the outstanding loan. To overcome these concerns, Pakistani scholars developed the idea of a hybrid Wakala-Waqf model to remedy some of these inherent disadvantages.This model requires the setting up of a Waqf (endowment-trust or independent pool) that becomes the nucleus for the relationship between the participant (donor) and the operator (i. e. , both have obligations towards this trust). A Waqf is a well recognised Shariah entity which has the ability of accepting owner ship or appointing ownership of asset. The objective of the Waqf is to provide relief to participants against defined losses as per the rules of the Waqf fund. By setting up a Waqf, the following advantages are derived:Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 13 Milliman Research Report ? The relationship of participant and operator is with the Waqf fund (i. e. , ambiguity removed) ? Donation of participant to the Waqf is unconditional (Gharar removed) ? Operator can be a Mudharib (or manager) of the investments of Waqf and can share in the investment profits ? Contingency reserves within the fund may be set up ? Cross-subsidy of various generations of policyholders is permissible ?Surplus distribution can be predefined on a variety of criteria with the primary condition that the operator does not get any share as a Wakeel (or representative) to the Waqf fund Currently this model is wi dely used in Pakistan and South Africa, and has also been adopted by the Swiss Re Retakaful branch in Malaysia. Which Model to Choose An operator can choose any of the above-stated models but the choice depends on many factors, such as the target population, regional acceptance, Shariah board views, regulatory framework, product design, marketing, and pricing.As outlined above, the most common models are the Wakala and Mudarabah model or a hybrid of both: Ã¢â¬ ¢ Mudarabah model is less acceptable globally but perhaps more attractive as profit is shared with the policyholders. However, there is a strong opinion of scholars from especially the Middle East that underwriting profit cannot be shared with the operator as it stems from donations. Ã¢â¬ ¢ The Wakala model is by far the most recognised and has the positive effect of providing a fixed and steady income stream. However, in its purest form it has limited upside potential as the only source of income is the Wakala fee.This coul d harm competitiveness as a high up-front Wakala fee might look unattractive to participants and have adverse effects to new entrants because of the high initial costs. Ã¢â¬ ¢ There has been an increasing trend towards the hybrid model which is based on the application of the Wakala model for the underwriting portion and the application of the Mudarabah model for the investment part. Considering that investment income usually makes up the bulk of the profits, this model is viewed by many Takaful operators to be commercially viable.This is widely practiced in the Middle East and Malaysia and accepted by virtually all scholars across the world. Ã¢â¬ ¢ The AAOIFI has also endorsed hybrid versions of Wakala models. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide an interest-free loan in case of a deficit in the underwriting pool. In all models, although not mandated by Shariah, the Takaful operator is commonly expected to provide a n interest-free loan in case of a deficit in the underwriting pool.This expectation requires careful risk management techniques as there is uncertainty in terms of the amount and timing of the loan to be repaid from future surplus arising. Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 14 Milliman Research Report issues and Challenges FaCing the takaFul industry The issues and challenges facing the Takaful industry are considered separately under the following sections: Ã¢â¬ ¢ I. Key Issues and Challenges Ã¢â¬ ¢ II. Technical Issues and Challenges Ã¢â¬ ¢ III.Other Issues and Challenges I. key Issues and Challenges Some of the key issues and challenges facing the Takaful industry are: a. b. c. d. e. f. g. h. Lack of consumer awareness Scarcity of human resources with both insurance and Shariah expertise The shortage of Shariah scholars with appropriate experience Lack of standardisation in the industry that is due to Shariah interpretations Diverging regulatory approaches and the lack of centralised regulations Solvency and capital requirements Corporate governance Shortage of suitable assets These are discussed in further detail below. . Lack of consumer awareness Despite the introduction of Takaful, the increase in the level of penetration anticipated has yet to be realised. Many consumers are still unaware of Takaful as an alternative, and some view Takaful as commercialisation of conventional insurance into the Islamic world and reject the notion that it is a Shariah-compliant instrument. In addition, many individuals tend to downplay the importance of security and retirement planning and many are also heavily dependent on the social security systemsÃ¢â¬âthis is particularly evident in the Middle East.Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). T here is a need to fundamentally address educational issues surrounding Takaful and individual risk management amongst the Muslim societies, to develop consumer awareness. Most of the current education on Takaful is among interested or related practitioners and investors, and very few awareness campaigns are aimed at or designed for the target population.Similar to conventional insurance, Takaful coverage is typically a proposition that needs to be sold to consumers (instead of one that is bought by consumers). b. Scarcity of human resources with both insurance and Shariah expertise Future growth may also be hampered by the currently narrow pool of professionals with sufficient Takaful knowledge in areas such as law, sales, and actuarial services. Most operators would typically employ human resources, such as legal advisors and actuaries, with conventional insurance experience.These resources would typically tend to learn the Shariah aspects of Takaful and adapt their previous experi ence to incorporate Shariah compliance rules in their new role. Hence the mindset of most operators tends to be driven by conventional thoughts and solutions and, as a result, there has been limited original thinking in the industry. Recently, there have been various Takaful courses offered, including one offered by the Chartered Insurance Institute (CII), which will assist in the development and creation of human resources with both insurance and Shariah expertise. c.The shortage of Shariah scholars with appropriate experience Every Takaful operator requires a Shariah Supervisory Board, which is typically comprised of three or more Shariah scholars. For a Takaful operator with regional ambitions, the need to build credibility in the target market means there are preferences for the board members to originate from the target markets or at least have experience in the target market. Scholars would ideally have experience and knowledge not only in Islamic jurisdictions but also in Tak aful. This is essential as board members are responsible for certifying the Shariah compliancy of the business operations.However, the number of Shariah scholars with experience in both Islamic jurisdiction and insurance is limited; inevitably, these scholars are currently sitting on multiple boards, which may create conflicts of interest and Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 15 Milliman Research Report compromise the quality of advice. The shortage in scholars remains a short-term barrier on new entrants and drives up the cost of setting up a Shariah board. As the Takaful industry has only recently been stablished, there is a wide range of issues currently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant. d. Lack of standardisation in the industry that is d ue to Shariah interpretations As the Takaful industry has only recently been established, there is a wide range of issues currently being debated amongst Shariah scholars and technocrats, particularly those surrounding the definitions and practices that are deemed to be acceptable and Shariah-compliant.For example, the inconsistency of Shariah interpretations can be seen in the following issues: Ã¢â¬ ¢ Issues that are due to regional differences: There are significant regional differences in consumer attitudes and the extent of tolerance and innovation in the Takaful industry. For example, Malaysia is perceived to be more liberal and willing to embrace modern conventional concepts within the Takaful framework. In contrast, the approach in the Middle East countries is more conservative, with less willingness to embrace modern conventions.This creates challenges in transferring solutions across regions. Ã¢â¬ ¢ Issues in the choice of Takaful models: There is a variety of models that may be adopted by the Takaful operator in the industry, as discussed in Section 3. There is a wide variation in practices and model preferences in various countries, which is due to the varying interpretation by scholars. For example, in Saudi Arabia, the regulatorsÃ¢â¬âSaudi Arabian Monetary Agency (SAMA)Ã¢â¬âapprove a cooperative model in which only 10% of the surplus is mandatory for distribution to policyholders.Some scholars would argue that this model does not meet the requirements of Shariah compliance. For instance, there are no specific Shariah compliance requirements for assets. yet Takaful operations are still possible, and some have been approved, within the broader cooperative model framework. Similarly in Iran (where the entire legal system is Islamic-based), Takaful remains an unknown concept as the Shia Islamic school of thought (as practiced in Iran) does not view conventional insurance to be non-Shariah-compliant.However, despite these regional variations, t here is a global trend elsewhere towards a Wakalabased model without any sharing of the underwriting profits. This approach has also been formally approved by the AAOIFI, which is a step towards standardisation. However, a global standard for Takaful models remains to be seen, which is due to the varying opinions and interpretations of Shariah scholars around the world. Ã¢â¬ ¢ Issues about the source of capital: There is a wide variety of issues that are subject to Shariah interpretations.One of the debates amongst scholars is whether it is necessary for the original capital in a start-up Takaful provider to be Shariah-compliant. In practice some scholars typically do not question the initial source of capital as this would impede the operation of global players. Instead, the scholars would usually only insist on the usage of capital to be fully Shariah-compliant. Ã¢â¬ ¢ Issues surrounding the type of risk deemed acceptable in Takaful: Another topic of debate amongst scholars s th e type of risks that are deemed to be acceptable within Takaful, and this issue mainly relates to General Takaful. As the concept of Takaful is to mutually guarantee all participants, there is an argument that for large risks where the number of participants is limited, those risks may not fall within the concept of Takaful. For example, Takaful coverage for government-owned projects where all the participants within the pool are government agencies may not essentially achieve the concept of mutual guarantee (as arguably there is only one participant in the pool, the government).There is a debate on whether there should be a distinction between Halal (lawful) and Haram (unlawful) risk, and if prior screening of risks is necessary for acceptance within the Takaful pool. Related to the lack of standardisation in types of acceptable risks is the lack of uniformity in the definitions of insured events and exclusions. For instance, in Family Takaful treatment of suicide, Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 6 Milliman Research Report AIDS, and contestability is non-uniform. This complicates the applicability of pricing assumptions based on experience statistics drawn from conventional business and complicates pooling of experience among Takaful operations with differing underwriting and contract definitions. Ã¢â¬ ¢ Issues surrounding Wakala fees and the cost of capital: Another issue that is constantly debated is the extent of expenses that can be charged by the operator as Wakala fees and whether the cost of capital can be included.Some Shariah scholars have argued that the operator cannot charge participants for the cost of capital, which raises the question of the commercial viability of Takaful operators. Some Takaful operators would also choose to allow for a profit margin to be embedded within the Wakala fees, and there is further debate on the extent that this is tolerable within the bounds of Shariah. The opposing views of Shariah interpretation in different regions make Takaful standardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions.This lack of standardisation in Takaful may undermine the credibility of the industry, and may have a subsequent negative impact towards consumer protection, transparency, disclosure, and the overall ethics of insurance. e. Diverging regulatory approaches and the lack of centralised regulations In the absence of standardisation of a global Takaful regulatory regime, the industry is relying heavily on the opinion of the Shariah boards of the Takaful companies, subject to any local regulatory constraints. Local regulators have adopted a variety of approaches when it comes to dealing with Takaful.There are three key categories of regimes: The opposing views of Shariah interpretation in different regions make Takaful s tandardisation even more difficult to achieve, particularly for global companies wishing to provide similar product bases across various regions. 1. A level playing field approach, such as the Financial Services Association (FSA) in the UK. This is the most common approach by regulators in predominantly non-Muslim countries. The FSA has adopted a Ã¢â¬Ëno obstacles, but no special favoursÃ¢â¬â¢ approach in handling Takaful business and will regulate Takaful operators within its current regulatory framework. . A pragmatic middle ground, such as the Bank Negara Malaysia (BNM), in Malaysia, where the regulators have adopted a comprehensive Islamic financial system running parallel with the conventional system, with an evolving attitude to regulations over time. 3. A more specific Ã¢â¬Ëtailor-madeÃ¢â¬â¢ approach, such as the Central Bank of Bahrain (CBB). The CBB has taken the lead in considering the unique characteristics of Takaful companies and aligns the regulations of Islami c insurance as far as reasonably possible.It is useful to note that based on a Ã¢â¬Ëlevel playing fieldÃ¢â¬â¢ regulatory approach, the FSA has outlined in its November 2007 publication entitled Ã¢â¬ËIslamic Finance in the UK : Regulation and Challenges,Ã¢â¬â¢ three potential challenges in regulating the Takaful industry: Ã¢â¬ ¢ Whilst Takaful products may appear similar to conventional products, the structure of the Takaful offerings and operations are fundamentally different compared to conventional products Ã¢â¬ ¢ The role and responsibility of the Shariah Supervisory Board should be purely advisory (i. e. , not executive roles) The marketing and promotion of Takaful products must be fair, transparent, and not misleading, in the spirit of the Ã¢â¬Ëtreating customers fairlyÃ¢â¬â¢ principle Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. There have been talks within the industry part icularly expressed by practitioners at various conferences and seminars for the need to standardise the Islamic finance industry, with aims to develop standards and guidelines for Islamic financial institutions and regulators.These are mainly driven by four organisations (details of each of the following are provided in Appendix III): Takaful (Islamic Insurance): Concept, Challenges, and Opportunities Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin November 2010 Due to the variety of regulatory approaches, there is an incentive to develop a centralised global regulator for the Takaful industry. 17 Milliman Research Report Ã¢â¬ ¢ Rulings of the Islamic Fiqh Academy of the Organisation of Islamic Conference (OIC) Ã¢â¬ ¢ Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) Ã¢â¬ ¢ Islamic Financial Service