TAKAFUL STUDY REPORT SET A CLEAR PATH TOWARDS INTRODUCTION OF TAKAFUL IN TANZANIA.

Tanzania Insurance Regulatory Authority (TIRA) team to study viability of introduction of Takaful products and associated regulatory framework in Tanzania has completed its work and submitted a detailed report on the way forward for introduction of Takaful in the country. According to reliable source, who have seen the report, (it is yet to be released in public) it provides a clear path and workable recommendations to follow if the country is to succeed on its drive towards introduction of takaful products and its related framework in the country. Summing up the major findings of the report, the source noted: • The report finds that in a country where a large proportion of the population is Islam, there is significant and growing demand for Takaful insurance in the country. Hence, it is important that necessary steps be initiated in order to accommodate this demand as it is already overdue. • The industry is yet to adequately offer Takaful products considering absence of legal and suitable framework, expertise within TIRA to regulate Takaful and structure to oversee Sharia compliance aspects at the company level and regulatory’ s level. • To ensure a level playing field and given the likely sensitivities where financial products structured around religious beliefs are concerned, it is essential that the right regulatory framework be put in place for Takaful insurance before it is allowed to be practiced in the market. Taking note of the above, the team recommended practical steps on the way forwards, which includes forming a committee to work on the strategy for introduction of Takaful, enacting Takaful Act and its regulations in 2013 so as to introduce Takaful products in 2014. However, to date there is limited information on whether or not the recommendations of the report have started to be implemented.