The regulation on takaful (risk-sharing) insurance products is underway and expected to enter into force before the year-end.
Takaful insurance, also known as Islamic insurance, consists of a co-operative system of reimbursement in case of loss by pooling the insurance premiums and losses among participants.
The demand for takaful products increased, especially with the rise of Islamic banking. Currently, few insurance companies provide products similar to takaful, and until now, no special regulation oversaw these services. With the establishment of the legal infrastructure, the number of players in this field is likely to increase in parallel with product diversification.