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Despite a noteworthy growth of the Takaful industry in the UK, the sector is still facing many
issues and challenges due to legal issues related to product innovation and to the acceptance by
the Muslim general public of the Takaful products. The legal issues have transformed into new
challenges, including the inability of the Takaful sector to meet up with the fast-paced
developments in the conventional insurance industry. Many other challenges have also been
identified. These include inadequate awareness among the faith-based financial consumers, the
lack of political will, the inadequate Re-Takaful capacity, the limited investment options, the
inadequate skilled human resources, the weak regulatory support, the lacking distribution
capacity and the minimal efforts undertaken up to now in research and development.
Recommendations are put forward based on the analysis of the steps that need to be taken.
These recommendations are classified into phases, such as operating landscape, legal and
regulatory framework, product development and technology innovation, human capacity
building, and Takaful business sustainability.
The key issues and policy recommendations for the Takaful industry to develop further and to
become a business as usual worldwide, especially in OIC member countries, include:
 Addressing the structural, regulatory, technical, academic and other main challenges
that inhibit the development and promotion of Islamic finance for Takaful.
 Addressing the issues and challenges at the local, regional and global levels and
proposing the adequate Shari'ah-compliant solutions.
 Providing practical solutions to the ever-emerging issues and recommending the
solutions and policies based on this study for improving/strengthening Islamic finance
for Takaful in the OIC member countries.
 Standardising the best practices of Takaful insurance and making them ready to be
implemented in most, if not all, OIC member countries.