151
TABLE 26: T AKAFUL BUSINESS SUSTAINABILITY ISSUES AND POLICY RECOMMENDATIONS
No Issues Policy Recommendation Country Affected
5 5.1. Low growth and lack
of competitiveness
Create mega Takaful business
through merger and
acquisition
Applies to all the four
countries
Create favourable tax
incentives
Applies to all the four
countries
Source: Authors
It is imperative for the industry to continue designing and delivering solutions that meet the real
needs of the economy and offer positive experience to participants to stay relevant. To achieve
this, TOs must strive to address protection gaps in OIC countries, rather than merely replicating
available insurance offerings. Unique features of Takaful would strengthen the value proposition
and business sustainability of the industry.
The following table summarises the policy recommendations and identifies the list of agencies
responsible for the implementation:
TABLE 27: P OLICY RECOMMENDATIONS AND THE I MPLEMENTING AGENCIES
No Item Policy recommendations Implementing agencies
1 Legal and
Regulatory
Framework
Developing the Takaful Act  Saudi Arabia: SAMA
 UK: Financial Conduct
Authority (FCA),
complemented by the
Islamic Insurance
Association of London (IIAL)
 Turkey: Ministry of Treasury
and Finance
Developing specific Takaful
laws
 Malaysia: BNM
Developing Takaful standards  Saudi Arabia: SAMA
 UK: Financial Conduct
Authority (FCA),
complemented by the
Islamic Insurance
Association of London (IIAL)
 Turkey: Ministry of Treasury
and Finance
2 Shari'ah
Framework
Developing the Shari'ah
governance framework for
Takaful
 Saudi Arabia: SAMA
 UK: Financial Conduct
Authority (FCA),
complemented by the
Islamic Insurance
Association of London (IIAL)
 Turkey: Ministry of Treasury
and Finance