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Consultation: Draft Paper on Issues in Regulation and Supervision of MicroTakāful (Islamic Microinsurance)
The objective of the paper is to provide an overview of the issues in respect of microtakāful and its role in enhancing financial inclusion. Microtakāful (Takāful or Islamic Insurance for the low-income population) is considered a type of insurance that could promote access to insurance in Islamic communities and regions. The paper will enhance the understanding of these particular issues among regulators and supervisors and other organisations and parties with an interest in this area.
The paper was developed in a joint initiative of the IAIS and the IFSB building on the mandates of both organisations. As part of their cooperation both standardsetters earlier developed the paper “Issues in Regulation and Supervision of Takāful (Islamic Insurance)”, which was issued in August 2006, providing a background to Takāful as well as an analysis of the applications of ICPs to the Takāful industry.
The draft Paper on Issues in Regulation and Supervision in Microtakāful intends to:
In this paper, four major themes are outlined to address the regulatory and supervisory issues within the Takāful industry:
Consultation: comments due by 6 August midnight Basel time (CEST).
Consultation: Draft Issues on Conduct of Business in Inclusive Insurance
As an Issues Paper the paper intends to provide an overview of the issues in respect of conduct of business in inclusive insurance markets that affect the extent to which customers are treated fairly, both before a contract is entered into and through to the point at which all obligations under a contract have been satisfied. The objective of this paper is to promote the understanding of these particular issues among regulators and supervisors and other organisations and parties with an interest in this area. This understanding can inform further initiatives to address these issues in the area of conduct of business as a follow-up to this paper, possibly by developing application guidance on proportionate regulation and supervision.
This Paper is structured as follows: The first main part (section 2) gives a description of the features of the inclusive insurance market. This is important as it is essential to understand the setting in which the contractual relationship will exist to gain an appreciation of how the concept of fair treatment of the customer plays out in an inclusive insurance market. The second main part (section 3) will subsequently discuss the various elements of the inclusive insurance life cycle and present 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.
Consultation: comments due by 6 August midnight Basel time