Moroccan government adopts a bill on Islamic insurance
It is looking to establish a basic framework for Islamic insurance in Morocco.A draft law on the establishment of a basic framework for Islamic insurance in Morocco was recently adopted by the Moroccan government.
Named Takaful, this type of insurance is based on the principle of solidarity through a cooperative guarantee scheme.
The bill, which has yet to be subjected to parliamentary approval, modifies the Moroccan insurance code, and plans for the establishment of a Council of Ulemas in charge of assessing the compliance of Islamic Sharia insurance products.
It also requires that insurance companies applying for a licence to provide Islamic finance be specialised companies. The classic insurance companies will thus have to create dedicated subsidiaries.
According to a study by Reuters, the Islamic Research and Training Institute and the consulting firm Zawya, about 98 per cent of Moroccans are interested in Islamic banking products.
Islamic insurance is increasingly popular in Africa. The Kenyan Authority insurance market regulation has recently allowed insurance companies to provide Takaful products through Islamic windows as early as June.