Issues in Regulation and Supervision of Microtakaful (Islamic Microinsurance)

Guidance and understanding aimed at regulatory and supervisory authorities

The purpose of this paper is to provide insights to the regulatory  and  supervisory authorities and  industry  players  on  the  types  of issues that arise from Microtakaful practices.

Both of these standard-setters obtained data from the industry on the existing practices of providers by sending out survey questionnaires to relevant regulatory and supervisory authorities as well as Microtakaful providers.  In addition, a literature  review was  done to enhance the paper  by adding successful examples from various jurisdictions for the benefit of other jurisdic tions. This paper studies  the various types of Microtakaful model, the supervisory  framework, and prevalent issues faced by Microtakaful providers and regulatory and supervisory authorities.