The Islamic Research and Training Institute (IRTI) has participated in the process to develop a new regulatory standard for Islamic insurance (Takaful) and re-insurance (Retakaful). The work is being led by the Islamic Financial Standards Board (IFSB) Working Group in which IRTI is a member.
The new standard covers the key elements in the supervisory review process of Takaful and Retakaful undertakings.
At a meeting on 16 July in Kuala Lumpur, Malaysia, the IFSB Working Group finalized the draft standard for review by the IFSB Technical Committee and the Islamic Development Bank (IsDB) Shari'ah Committee. The standard is due to be adopted by the IFSB Council later this year.
When approved and put to use, the standard is expected to contribute towards strengthening the regulatory framework of Takaful and Retakaful and consequently enhance the stability of the Islamic financial industry.
IRTI Director General, Dr. Humayon Dar, said, "Takaful and Retakaful constitute an important component of Islamic finance, and IRTI is committed to supporting IFSB and other Islamic financial infrastructure institutions to develop this subsector as well as the various other subsectors of the industry."
The IsDB Group is a key founder of the IFSB and other Islamic financial infrastructure institutions. IRTI represented the IsDB Group in the process to develop the regulatory standard Takaful institutions.