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The IFSB Issued a Statement Addressing The Measures to Mitigate The Impact of COVID-19 on The Takāful Sector

Date posted: 6 August 2021

6 August 2021, Kuala Lumpur, Malaysia - The Islamic Financial Services Board (IFSB) issued a statement addressing the measures to mitigate the impact of COVID-19 on certain elements of the takāful sector. 

The statement on the takāful sector aims to foster regulatory responses across jurisdictions to mitigate the negative effects of the COVID-19 crisis and to ensure continued clear guidance for the takāful industry during this challenging environment.

Based on the policy responses adopted by IFSB member countries, the IFSB acknowledges that the regulatory supervisory authorities (RSAs) are in a delicate position on striking the right balance in competing priorities between sustaining financial stability, providing assistance to Takāful Operators (TOs) and offering relief to takāful participants. The IFSB commends its member RSAs and recommends that RSAs shall remain vigilant in performing the act of balancing with a focus on ensuring the takāful business sector remains financially and operationally resilient. Taking cognizance of the wide spectrum in terms of the level of maturity of the TO across IFSB member jurisdictions couple with limited knowledge on takāful products among the takāful participants, RSAs are expected to continue playing a key role in this unprecedented situations and the IFSB committed to work closely with all its members during these unprecedented times in order to mitigate the potential impacts of the pandemic in their Islamic financial sectors. 

This statement is part of the IFSB’s ongoing programme to provide appropriate policy guidance and to serve as a reference tool kit for its members and the Islamic financial services industry to navigate the current economic and regulatory challenges. 

The IFSB will continue to assess the implications of the pandemic on Islamic banking, Islamic capital markets and takāful, and will issue further public statements where necessary.

The statement is available at www.ifsb.org.

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