|
MALAYSIA: The IFSB is
evaluating current Islamic microinsurance frameworks across different
markets as it seeks to bolster the sector through an enhanced revision to
such regulatory infrastructure.
Despite being touted as a high-potential Islamic instrument for social
inclusion, especially when 25% of the global Muslim population are living
on less than US$1.25 per day, microTakaful has struggled to gain traction
in many nations due to the limiting factors of the present operating
landscape.
“Regulators and supervisors in jurisdictions where Takaful providers offer
their services have relatively little experience or empirical data to
support their role in creating a conducive environment for the microTakaful
market that could work effectively for the lower income segments,”
explained the IFSB in a statement.
This has prompted the global standard-setting body to release a joint paper
in collaboration with the International Association of Insurance
Supervisors (IAIS) addressing regulatory impediments to the Islamic
microinsurance segment.
The exposure draft notes that despite bearing similar features to Takaful
products, microTakaful solutions are faced with various unique supervisory
challenges. Among critical issues highlighted include requirements of
separation of funds; solvency and capital adequacy frameworks; an
investment framework and Shariah compliance. Education, consumer
protection, licensing requirements and the supervisory review process are
also covered by the joint paper.
Looking to delineate current practices and product structures as well as
challenges with the end goal of enhancing financial inclusion through the
Islamic insurance sector via the provision of sound guidance, the IFSB and
IAIS are seeking public feedback on their joint initiative until the 6th
August.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.