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report provides some policy recommendations to further develop the industry and expand its
outreach.
The policy recommendations identified are classified into five broad areas:
 Firstly, enhancing the legal and regulatory framework by developing specific Takaful laws
in the case of Malaysia and creating newActs in the cases of the UK, Turkey and Saudi Arabia.
 Secondly, the report recommends the harmonization of existing local laws with Shari'ah
requirements, creating Shari'ah units for dispute resolutions and empowering the Shari'ah
committee, developing the Shari'ah governance framework and Shari'ah standards to guide
TOs.
 Thirdly, for products and services, it is recommended that Takaful companies innovate
unique and original products, invest in technology particularly, InsurTech, and mobile apps
for micro-Takaful, diversify products to include trade Takaful and more Re-Takaful
businesses and increase public awareness campaign.
 Fourthly, for talent development, the study recommends in-house training and certificate
programs, technical assistance and collaborations between the industry and the academia.
 Finally, the report provides two policy recommendations to be used to spur growth in the
Takaful industry: the creation of mega Takaful companies and favourable tax incentives.
So, the recommendations could be generalised to the other Islamic countries based on the
level of Takaful sector development as follows:
I. For New and Emerging Takaful markets:
- Set up the supportive regulatory and legal frameworks creating the level-playing
ground with adjusting the taxation, requiring more transparency and disclosure, and
softening the capital requirements and solvency margins.
- Increase the awareness of the market about the nature of Takaful to attract the new
customers and increase the market confidence.
- Develop the Shari’ah framework with clear standards and governance.
- Develop a comprehensive Islamic finance infrastructure making available the
Shari'ah -compliant instruments for investment, creating a well-developed distribution
network, and introducing the Re-Takaful services.
- Build a human capacity by offering the education programmes and attracting talents.
II. For Developed Takaful markets:
- Embrace new technology and maintain cybersecurity to sustain the quality of
operations and products and penetrate the new markets.
- Ensure the continuous human capital development to increase the quality of services
and achieve the higher level of customer satisfaction.
- Stimulate innovation including new business models and product development.