Board of Directors reviews new opportunities for Shariah-compliant insurance packages
Methaq Takaful Insurance Company has approved a revised corporate governance structure and internal control systems in accordance with the requirements of the UAE Securities and Commodities Authority (SCA) during Methaq’s most recent Board of Directors meeting last week in Abu Dhabi. By implementing its decisions along three tiers—governance structure, operations and business planning—the action culminates significant efforts made by Methaq since October 2009 to engage independent consultants and adopt governance policy ahead of the SCA review deadline on April 20th.
“Businesses as well as individuals need to be able to take risks in today’s economic climate while feeling comfortable that their insurance providers are going to be along for the journey,” says Mr. Abdullah Al Maamarri, Managing Director of Methaq Takaful Insurance. “These new structures and policies will clarify our role as a partner of the business community while allowing us to provide the most reliable Shariah-compliant insurance solutions to the market.”
The new corporate governance structure adopted by Methaq’s Board includes a new Board Charter and several Board Committees—namely Follow Up and Remuneration, Audit and Investment Committee. In addition, a new charter was approved for the Shariah Supervisory Board as clear reporting lines and job descriptions for senior management were reviewed.
On the operational level, the Board also modified Methaq’s organizational chart with a Business Continuity Plan to ensure that insurance packages are continually supervised throughout their life. New technical manuals dealing with underwriting procedure and accounting practices are also going to be updated to bring greater transparency to the decision-making process.
The company has even reviewed its core business plans, including looking at HR policies, accounting policies and financial controls. Methaq has confirmed that the final evaluations of its business planning model will be finalized sometime during Q2 2010.
“Research shows that companies adhering to good corporate governance and transparency in operations will out-perform competition and generally enjoy higher financial ratings among insurers,” adds Al Maamarri. “The Board’s actions demonstrate Methaq’s sincere commitment to progressive corporate governance, and we are proud to move forward with a new plan for developing the Takaful insurance market across the UAE.”