Morocco: Supreme Council of Ulemas approves seven types of takaful contracts
Source: Middle East Insurance Review | Jun 2022
The Supreme Council of Ulemas has approved seven categories of standard takaful contracts. The move will accelerate the market entry of shariah-compliant insurance products.
Apart from death and disability policies, the other types of contracts validated by the council as in conformity with shariah principles relate to takaful multi-risk home products, retirement savings and investments. The council also approved regulations on advances on and withdrawal of takaful policies.
The next step is for the Insurance and Social Security Supervisory Authority (ACAPS) to approve takaful and retakaful products, reported EcoActu. The takaful products are awaited eagerly by those engaged in participatory finance. The absence of takaful has so far represented a risk for participatory banks, which started their Islamic lending activities more than four years ago, in particular for the acquisition of real estate without the buyer subscribing to death insurance.
The Superior Council of Ulemas has prohibited participatory banks from requiring their customers to take out traditional insurance, which does not comply with shariah principles, to cover the mortgage risk. Customers who have benefited from such financing have committed to acquire takaful death cover once it is available in the market.
ACAPS has so far granted five licences for takaful insurance. The five Islamic entities are Wafa Takaful (subsidiary of Wafa Assurance); Attakafulia Assurances (subsidiary of Atlanta Sanad); Taawouniyate Taamine Takafuli (subsidiary of MAMDA/MCMA, BCP and CAM); La Marocaine Vie (subsidiary of the Societe Generale Morocco group); and a retakaful window to be operated by Central Reinsurance Company. M