IAIS together with the Islamic Financial Services Board (IFSB) has published a report on issues in the regulation and supervision of MicroTakāful. The report identifies two important areas as possible directions for future work on Microtakāful:
- identify a successful cooperation mechanism between stakeholders (especially between supervisors, government agencies, Takāful Operators, Retakāful Operators and the Sharī`ah Board), and to understand the roles and responsibilities of each of the stakeholders; and
- delineate the specific areas to be looked into by supervisors and relevant authorities when regulating the Microtakāful Providers (MPs). These significant areas include MPs’ corporate governance strategy and structure, solvency requirements, underwriting requirements, licensing provisions, fund management framework, consumer protection, use of digital technology and regulatory reporting.
IAIS and IFSB have also published the comments received in relation to the consultation on MicroTakāful and its role in enhancing financial inclusion in the Muslim community (see FReD 26 June). (Source: IAIS Reports on Microtākaful and IAIS Publishes Comments to Microtākaful Consultation)