Long-awaited rules for takaful are expected in the first half of 2018, according to industry players.
The Insurance and Social Insurance Supervisory Authority (ACAPS) and stakeholders in the sector are still studying the measures to be taken to implement a comprehensive and reliable participatory insurance system, reported Morocco Today. No date has been fixed so far for announcing the introduction of a directive on takaful.
A takaful law was passed in 2015, but supporting regulations have not been finalised for the launch of Islamic insurance. Time is needed too for the Higher Council of Ulema to set guidelines and for takaful operators to be licensed.
The local media reported earlier this year that all classes of business will be open to takaful operators simultaneously when Islamic insurance is launched in the country. This encompasses a very wide range of operations: life and death, industrial accident and illness, property, assistance and even the more specialised classes such as marine insurance.
Pending the assent of the Higher Council of Ulema, the approval of the circular by the Ministry of Finance and the transmission of its order to the General Secretariat of the Government, banks have already started to market Shariah-compliant products. Many people have opted for murabaha financing to aid the acquisition of real estate. However, the financing agreements concluded commit customers to subscribe later to takaful products to cover the credit extended.
Another delay in participatory finance lies in sukuk. The first issue of sukuk was scheduled in September 2017 but to date, no issuance has taken place because a revision of the legal and fiscal framework is necessary.