Islamic Insurance -Takaful now eyes more penetration

Dar es Salaam. Tanzania Insurance Regulatory Authority (Tira) yesterday launched two sets of guidelines that are expected to increase penetration and create more jobs.
The new guidelines which will become effective next month include the Islamic Insurance called Takaful, which is open to all.
Takaful is a form of insurance which incorporates elements of mutuality and ethical finance consideration in which operators shall be required to adhere to the existing regulatory requirement.
Other launched guidelines covered sales force executives and digital insurance platforms which will enable graduates to spread the products across the country and allow various universities and web aggregators to design various and affordable products.
The on sales force executives guidelines seek to address the market need of enhancing the distribution, penetration, employment and availability of insurance services.
Speaking during the launching ceremony, Commissioner for Insurance Dr Baghayo Saqware said all the guidelines help to attain the targeted 50 percent of adults to use at least one insurance product by 2030.
“The guidelines we are launching will start operation in May this year whereby companies can use to sell insurance. I am calling on the stakeholders to ensure they follow all the requirements while they are implementing products such as Takaful. It should comply with Sharia basis,” he said.
He said in order to allow implementation of both guidelines people who want to sell the insurance must be endorsed by companies or authority and must follow the requirements which will be available in the guidelines.
“We want to spread insurance countrywide especially in areas that are yet to be reached.”
Head of CRDB Bank Islamic Banking window known as Al-Barakah, Mr Rashid Rashid said the Takaful will increase customers who use the products that follow the Islamic faith.
“We are happy to have these guidelines to enable customers who need services that adhere to the principles of Sharia to now get what they want,” he said. “We, CRDB, through Bancasssurance are ready to partner with companies that will be providing such services.”
For his part, chairman of Association of Tanzania Insurers (AIT) Mr Khamis Suleiman said; “We were waiting for these guidelines for many years. So I want to call upon companies to ensure they implement the guidelines according to laws and regulations.”