The Islamic Financial Services Board (IFSB) and IAIS have issued a joint paper on issues in regulation and supervision of Microtakāful (Islamic microinsurance). The paper:

  • identifies current practices and models for offering Microtakāful products, and the challenges and potential issues in offering them to target customers;
  • reviews the current regulatory framework for the Microtakāful sector in various jurisdictions and suggests initiatives to strengthen it and thus enhance financial inclusion through the Takāful sector; and
  • provides guidance to the regulatory and supervisory authorities in implementing an enabling environment for the development and growth of the Microtakāful sector.

(Source: IAIS Reports on Regulation and Supervision of Microtakāful)