Islamic finance awaits Takaful insurance

The delay in Takaful insurance in Morocco has resulted in the collapse of transactions sponsored by Islamic banks, which have emerged after a long work, but a source responsible for the sector has confirmed the near-application of the Takaful insurance and should be by the end of this year, which would clarify the vision of banks, insurance companies and customers.
Banks and Islamic insurance companies in Morocco are waiting for the issuance of takaful insurance, intended to provide substantial guarantees to Islamic finance operators.

The law on takaful insurance was approved by the Moroccan parliament a few days ago, but it should be published in the official gazette, which should be followed by the regulatory laws and the form of contracts for the government. takaful insurance.
The source of the insurance and social reserve, which oversees the insurance sector in the Kingdom, has enacted all the legislation on Takaful insurance in the coming weeks, stressing that "the insurance industry and the insurance company, which oversees the insurance industry in the Kingdom, has enacted all the legislation on Takaful insurance in the coming weeks, stressing that". it will be identified before the end of this year.

The source, who declined to name himself, said that after clarifying the vision of the laws, insurance companies would begin to apply for a license to provide their services in the field of takaful insurance , knowing that Islamic banks would market this type of insurance.
"The importance of this insurance comes from the fact that it must accompany any real estate financing process, for example via Murabaha, and guarantees the transfer of housing to heirs and rights holders," said Omar Kettani. , a Moroccan economist specializing in Islamic finance.

"The delay in Takaful insurance creates confusion about the feasibility of Islamic finance, which leads to a loss of confidence in it, especially since there is a precedent in the late work of banks." Islamic, born after a long work.
He pointed out that the delay in the publication of Takaful insurance hinders transactions with Islamic banks, which are forced to risk financing transactions without a substantial guarantee represented by this financing.

Many Islamic banks financed the purchase of real estate by families, although takaful insurance was not provided.

Islamic banks in Morocco hold 1% of the banking sector of the Kingdom, with deposits amounting to $ 150 million, against funds provided to the tune of $ 650 million.

The governor of the central bank, Abdel Latif Jouahiri, recently said that there was no obstacle to the expansion of Islamic banks, especially in light of the crystallization of the accounts contracts of Investment and development trend of other products such as Istisna & # 39; a.

Islamic banks in Morocco have more than 60,000 bank accounts, while more than 90% of the funding is for the real estate sector.
The new law, recently pbaded by Parliament, provides for the creation of insurance companies and reinsurance, funds intended to cover the risks contained in the Takaful or Takaful insurance contract.