The new Moroccan Insurance Code provides a legal framework for Islamic insurance
The new Moroccan Insurance Code provides a legal framework for Islamic insurance, also known as Takaful.The new Moroccan Insurance Code provides a legal framework
Islamic insurance, also known as Takaful.
According to newspaper l'Opinion, the reform of the Code also takes into account the advances and innovations in risk coverage.
Islamic insurance offers a cooperative system where the risk is shared between subscribers, with mutual assistance.
This new framework is part of a broader effort by the Moroccan government to promote Islamic finance. A bill regulating this alternative method of financing is under study at the Moroccan Parliament, which will allow Islamic institutions to be fully established in Morocco, provided they are subsidiaries of domestic or foreign banks.
Moroccan banks BMCE and BCP are already preparing to launch Islamic subsidiaries, according to a report from Reuters.
The potential for Islamic finance is important in Morocco, given that 98 percent of the population is Muslim but only 40 percent of Moroccans own a bank account.