Insurance industry players are preparing for the introduction of takaful in Morocco in 2019.
However, the long-awaited launch of Islamic insurance in the kingdom is still subject to a tedious regulatory and shariah process, even though takaful is seen as essential to building a participatory financial ecosystem in Morocco, reports Le Boursier.
"The problem is that no one wants to communicate a timeline," said an industry source. He said that there are several stakeholders in the process, namely, the Insurance and Social Security Supervisory Authority, (ACAPS), the Capital Market Authority (AMMC), and the Supreme Council of Ulema (CSO) in addition to the General Secretariat of the government, but none wants to stipulate a deadline for the launch of takaful.
The explanation for this reticence is that between the several stakeholders, various conflicts involving the law or shariah compliance may arise.
Still, sources say that professionals in the sector are optimistic that there would be an effective start to takaful in 2019. One source said, "This is the time we have given ourselves. We believe that the remaining months are sufficient to issue the takaful circular and decree, the law for its part being completed; in addition to general conditions that have already been validated by professionals."
The source added, "The circular and the order were handed over by professionals to ACAPS, which in turn has handed over these documents to the CSO. And so we will wait for the stamp of the CSO, which normally will have to decide in one or two months. But we prefer to remain cautious and count on early 2019 for a launch, taking into account the possible back and forth between the various stakeholders."
The approval of the CSO is expected since the return of the council from a visit to Bahrain and Malaysia to study the experience of both countries in takaful and sukuk.
There are also others in the insurance industry which expect Islamic insurance operations to begin later this year, as much of the related regulatory work has been completed.