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FIGURE 32: R EGULATORY FRAMEWORK (SURVEY RESULTS)
(A) Legislation (B) Transparency and Disclosure
(C) Taxation (D) Capital Requirement and Solvency Margins
Source: Authors
The majority of the respondents from all the four countries: Malaysia, Saudi Arabia, Turkey and
the UK agreed that legislation is a challenge to the industry. The response is almost 90% in Saudi
Arabia and slightly above 50% in the UK. A similar scenario is observed in the pattern of
responses related to transparency where 90% in Malaysia and over 50% in Turkey and the UK
agreed that transparency and disclosure are challenges for the Takaful industry in the respective
jurisdictions.
The majority of the respondents from three countries: Malaysia, Turkey and the UK agreed that
taxation is a challenge to the industry. In contrast, only 30% of the respondents in Saudi Arabia
agreed that taxation as a challenge. Meanwhile, with regards to capital requirement and
solvency margin, the scenario is more or less the same with more than 50% (slightly lower in
Saudi Arabia) of the respondents in all the four countries agreeing that these two factors pose
challenges to the Takaful industry.
3) Business Operations. The third question of the survey solicits opinions on the extent to
which fundamental Takaful business features pose challenges to the effective growth of the
industry. Three options were identified for the responses, namely new business models, quality
of operation and, product development and innovation.
0%
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100%
MY SA TR UK
SD D U A SA
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MY SA TR UK
SD D U A SA
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MY SA TR UK
SD D U A SA
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MY SA TR UK
SD D U A SA