IAIS consults on MicroTakāful: IAIS is consulting on issues in respect of MicroTakāful and its role in enhancing financial inclusion in the Muslim community. This draft paper intends to:

  • identify the current practices and models used for offering MicroTakāful products, and the challenges and potential issues arising from transactions in the products;
  • review the current regulatory framework for the sector in various jurisdictions and suggest initiatives to strengthen the framework and enhance financial inclusion through the Takāful sector; and
  • provide guidance to the supervisors in putting in an enabling environment for the overall development and growth of the sector.

The paper focuses on four major themes to address the regulatory and supervisory issues within the Takāful industry:

  • Corporate Governance;
  • Financial and Prudential Regulation;
  • Transparency, Reporting and Market Conduct;
  • Supervisory Review Process.

IAIS asks for views by 6 August. (Source: Draft Paper on Issues in Regulation and Supervision of MicroTakāful)

IAIS consults on inclusive insurance: IAIS published a draft Issues Paper on Conduct of Business in Inclusive Insurance. The paper gives a description of the features of the inclusive insurance market. It then discusses the various elements of the inclusive insurance life cycle and presents the issues that have been identified from a conduct of business perspective. The term “life cycle” is used as reference to the specific elements of an insurance product from its development as a product, its distribution, disclosure of information, customer acceptance, premium collection, and claims settlement to the handling of complaints by the insurer. IAIS asks for comments by 6 August. (Source: Draft Issues on Conduct of Business in Inclusive Insurance)