CMA hosts workshop on Takaful Insurance

Abdullah Al Salmi: New applications for establishment of Takaful companies and the law will be issued shortly

The Capital Market Authority  hosted a workshop on Takaful Insurance organized by Deloitte and IRTI-IDB under the auspices of HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority at the Intercontinental Hotel Muscat.

The workshop addressed key operational and leadership requirements to attain growth, best practices in governance, risk, financial,  sharia, transparency and investment instruments.

HE  Abdullah Al Salmi said the Takaful Law is in the process of issuance and will be issued shortly.

He added the workshop brought together many expert from the region in addition to experts and employees in Takaful industry in Oman to exchange views and to consider the daily issues and challenges.

He added Takaful insurance has commenced two years ago with two operators and it is early to judge on the operators. He said CMA is considering new application for Takaful operations.

Ahmed Ali Al Maamari, Director General of Insurance Supervision said the workshop was organized with the objective of  creating high level discussion on the new and fast growing  market in the Sultanate  in tandem with His Majesty Sultan Qaboos bin Said’s vision to develop and diversify the overall financial market and economy of the country.

He added Islamic finance has emerged as one of the fastest growing segments of the financial services industry in Oman especially after the issuance of the first Islamic banking regulation on 18 December 2012 and the establishment of 2 new Islamic banks and 6 Islamic windows pointing out that two Takaful operator are currently operating in the market.

He added  the Islamic financial system requires Sharia compliance pointing out that two players are operating namely Al Madinah Takaful which was registered in December 2013 and Takaful Oman which was registered in February 2014. He said Takaful represents 6% of overall insurance premiums and  4% of the total claims paid in the  local market in 2014.

Ahmed Al Qassabi, Senior Manager, Deloitte and Touch said Takaful companies are operating in the insurance industry which requires new products adding that Takaful is a new Sharia complaint  method for the public. He said two Takaful operators were registered in 2014 and the total  premiums of such companies were 6% . He expected the sector to grow which needs more investments and work with CMA in collaboration with the private sector to provide more products with quality and transparency.

The workshop was attended by Takaful and conventional insurance executives, Islamic and conventional banking executives, regulators, credit and rating analysis, portfolio and fund manager, financial planning consultants and legal advisors.

The workshop discussed  work and operation strategies, case studies , panel discussion on best practices, products, services and transparency disclosure mechanisms.