Considerable benefits are gained by those participating in the production of a Research Studies report, particularly in broadening their expertise and, perhaps more importantly, in building relationships with colleagues from all areas of the insurance market.

Membership of a Research Study Group is recognised by the CII as evidence of continuing professional development and it should also assist candidates in preparing for Fellowship.

All members of the CII are eligible to apply to join London Research Study Groups. Any suggestions for new topics or applications to join a group or establish a study group will be most welcome and should be made to the Assistant Secretary at the Institute (Allison.potts@cii.co.uk).

Proposal for Research

The Insurance Institute of London sponsors publication of research which expands the sum of insurance knowledge and is of particular relevance to the London and International insurance market.  If you would like to propose a research project please click here for more information.

Recent Studies:
The following Research Study reports have recently been published and received considerable praise in the insurance press.

Reports available from the Institute:

RS249:

To access the framework, please click here

To obtain a summary, please click here

Postage Charges:  UK - £7.50 per order.  Europe - £10.00 per order.  Outside Europe - £12.50 per order.   Maximum of 5 reports in any one order.

Click on the title to place an order.

New Research Study Groups seek volunteers

In addition to the significant contribution made to the overall sum of insurance knowledge, being a member of a Research Study can provide considerable personal rewards - particularly through broadened expertise and the building of invaluable sets of contacts in other areas of the insurance market. All those contributing throughout have their and their companies names featured in the final report as a permanent record of their participation.

New study groups are being formed and we are looking for contributors. The latest studies are:

The Universe of Risk

The answer to the question ‘what is insurable?’ is changing: and what was a gradual process of evolution has recently accelerated into something like a business revolution. There is pressure to find ways to provide insurance cover for risks that were previously not insurable. This evolution is driven both by the pressure for increased capital efficiency and by insurers’ recognition that to keep their corporate clients they must be no less innovative than other sectors of the financial services markets”.

During the last few years a number of insurers have undertaken risks that would previously have been outside the parameters of their business. In particular these include financial risks that would previously have been regarded as business and trading risks that the insured should retain. Lloyd’s is to abandon its prohibition on “financial risk” and is likely to be active in underwriting such risks. Insureds are now seeking to cover “enterprise risk” and insurers are seeking ways to “insurancise” such risk. These include such risks as revenue guarantee, residual value.

The purpose of the research is to identify the exposures and risks in which the insurance industry may now become involved, what parameters should be applied, how might non-insurance risk be transformed into insurance risk, and how insurers should obtain the necessary expertise.

Since 2000 the world of risk has moved on considerably. In addition to the business risks originally perceived as the subject of the project, technological and scientific developments are taking place at an increasing rate and creating unknown risks, climate change represents a completely new set of challenges for insurers and risk managers, and natural and manmade catastrophes are increasing in size and number.

We intend to detail the “risk landscape” of the 21st Century, the challenges this represents to Insurers, and how the market may respond.

Introduction

• A completely different set of risks
• A fundamental challenge to insurers
• Opportunities and threats to Insurers
• Risk Transfer Products

Business and Enterprise Risks

• Trading Risks
• Exchange rates
• Revenue guarantee
• Depreciation
• Credit risk
• Globalisation
• Concentration of capital
• Political Risk
• Obsolescence

Legal Risks

• Tort and the compensation culture
• Contract
• Statutory

Intangible Business Risks

• Reputation
• Brand
• Intellectual Property
• Innovative capability
• Skill and experience

Natural Catastrophes

• Climate Change
• Pandemic
• Hurricanes
• Earthquakes
• Mould

Manmade Exposures

• Nanotechnology
• Genetic Modification
• Immunisation
• EMF’s
• Artificial Intelligence - Decision making machines
• Video Games
• Social breakdown
• Terrorism

The Study will be led by Des McCavitt, Aspen.

Islamic Insurance - TAKAFUL

Takaful is a very topical subject and worldwide there is a growing awareness and demand for Islamic financial instruments including insurance in both Muslim and non-Muslim countries. Estimates vary but worldwide premium could reach USD 14 billion by 2015.

There are an estimated 2 million Muslims in the UK.

There is a very evident lack of knowledge and understanding of Takaful and as such it is felt that this would form a suitable subject for a Research Studies paper to create a reference work on Takaful.

Subjects to be included in the study:

• What is Takaful? A description and definition.
• Why is conventional insurance not permissible? A commentary on Shari’ah law and its application to
insurance.
• How Takaful differs from conventional insurance.
• The history and evolution of Islamic insurance and growth in the sector both current and future.
• Fiqh Academy Resolution 1985 and other rulings.
• Principles and Practice of Takaful.
• Takaful models - a description and explanation of:
• Not for profit model
• Ta’awuni model – “co-operative insurance”
• Al Mudharabah model – profit sharing
• Al Wakala model – agency agreement
• Takaful insurance policies, wordings and acceptable clauses.
• Takaful in Non-Muslim countries and the potential in the UK.
• Regulatory aspects of Takaful.
• Legal aspects of Takaful.
• The selling of Takaful products.
• Financing of Takaful ventures.

The Study is being led by Charles Catt.

 Further information
Telephone:+44 (0) 20 7600 1343