Sumayya Hassan is CEO of Takaful Insurance of Africa, based in Nairobi, Kenya.

Takaful Insurance in Africa has been collaborating with MRR Lab researchers at UC Davis, led by Michael Carter, since it began offering Sharia-compliant Index-based Livestock Insurance to pastoralists in 2013. In recent years, the collaboration has included the development, testing, and scaling of gender-inclusive (or “family”) insurance and Village Insurance Saving Accounts with pastoralist communities.

 

Some might imagine that a team at a university on the other side of the world would be removed from the local reality, instead focusing on theory. How would you describe your experience collaborating with the MRR Lab?  

Collaborating with UC Davis and the MRR Lab has been an enriching and rewarding experience for Takaful Insurance of Africa. Despite the assumption that a university team might be detached from our local reality, our experience has been quite the opposite.

Our partnership with UC Davis and the MRR Lab has been pragmatic and valuable. Through our parametric Index-Based Livestock Takaful (IBLT) program, we've closely aligned with UC Davis to craft practical, real-world solutions that address the unique needs and challenges of these pastoralist communities, while also tackling climate change and environmental issues head-on.

The UC Davis team has shown a genuine commitment to grasping the local context and collaborating closely with us to address real-world pressing issues. Their research expertise, paired with our takaful and on-the-ground knowledge, has enabled us to co-create impactful initiatives that directly benefit our communities.

Our collaboration with UC Davis has been marked by mutual respect, cultural sensitivity, and a shared dedication to making a positive difference in people's lives. Together, we've overcome geographical boundaries to forge meaningful partnerships and drive significant change.

 

What is the impact of the collaboration with the MRR Innovation Lab on Takaful’s business?

Beyond the business benefits, collaborating with Prof Michael Carter and his team of researchers has contributed to the culture of innovation, learning, and collaboration within our organization.

Academic researchers bring fresh perspectives, diverse expertise, and rigorous analytical approaches to the table, assisting us in tackling complex challenges and exploring new opportunities.  When combined with our takaful expertise and on the ground experience, their commitment to evidence-based research and data-driven insights has empowered us to make informed decisions and drive positive change in the respective business operations and strategic initiatives.

The collaboration with the MRR Innovation Lab has impacted Takaful's business across several areas:

1.      Innovative Solutions: Through the collaboration, Takaful has gained access to cutting-edge research, technologies, and methodologies developed by UC Davis/MRR Innovation Lab. This has facilitated innovation in our products, services, and business processes, better meeting the needs of our participants.

2.      Enhanced Risk Management: Access to expertise in risk management and resilience-building strategies has enabled us to develop more robust Takaful solutions and risk mitigation strategies tailored to the unique challenges faced by the communities we operate in.

3.      Expanded Market Reach: Leveraging the insights and resources of UC Davis/MRR Innovation Lab, Takaful has expanded its market reach and attracted new participants. Innovative solutions developed through the collaboration have helped differentiate us in the marketplace, appealing to participants seeking sustainable and socially responsible takaful options.

4.      Community Engagement: The collaboration has deepened Takaful's engagement with local communities and built trust among our participants. Active participation in initiatives developed through the collaboration demonstrates Takaful's commitment to social responsibility and community development, enhancing our reputation and brand image.

5.      Long-Term Sustainability: Collaboration with UC Davis/MRR Innovation Lab has positioned Takaful for long-term sustainability and growth. Investment in research and innovation has strengthened our competitive advantage and prepared us to adapt to evolving market dynamics and participant preferences.

 

What else would you like to share about your experience working with academic researchers? 

Working with academic researchers has been a positive experience for Takaful. Here are some insights and reflections:

1.      Access to Cutting-Edge Knowledge: Collaborating with academic researchers grants us access to cutting-edge knowledge, research methodologies, and technological advancements. This enables us to remain at the forefront of innovation and develop solutions that address emerging challenges in the insurance industry.

2.      Interdisciplinary Perspectives: Academic researchers bring diverse perspectives and expertise from various disciplines, including economics, social sciences, technology, and environmental studies. This interdisciplinary approach fosters creativity and innovation, enabling us to tackle complex problems from multiple angles.

3.      Rigorous Analysis and Evaluation: Academic researchers uphold rigorous standards of analysis and evaluation, ensuring the credibility and validity of research findings and solutions. This commitment to excellence enhances the quality and effectiveness of the initiatives developed through collaboration.

4.      Bridge Between Theory and Practice: Collaborating with academic researchers helps bridge the gap between theory and practice. Our takaful expertise and local knowledge helps in translating theoretical concepts into practical applications and actionable insights, thus helping the academic research become more relevant and impactful in real-world settings.

5.      Capacity Building and Knowledge Sharing: Working with academic researchers facilitates mutual capacity building and knowledge sharing. Through workshops, seminars, and collaborative projects, the respective teams gain valuable skills, insights, and perspectives that contribute to professional development and organizational growth.

6.      Fostering Innovation and Creativity: Academic researchers contribute to the culture of innovation, challenging conventional thinking and exploring new ideas; inspiring us to push the boundaries of what is possible and develop innovative solutions that drive positive change.

In summary, our experience working with UC Davis / MRR Innovation Lab, with Professor Carter and his team of academic researchers, has been stimulating and rewarding, empowering us to harness the power of knowledge, collaboration, and innovation to create meaningful impact in the takaful industry and beyond.