Algeria: Proposals to enhance takaful legislation
Source: Middle East Insurance Review | Oct 2024
Takaful has gained significant acceptance among Algerians but faces regulatory and technological hurdles and a lack of awareness, according to two academics from the Higher School of Accounting and Finance and the National Higher School of Islamic Sciences.
Lecturers Loubna Boutemine and Cheyma Mansouri have proposed several revisions to legislation governing takaful companies in Algeria according to a report by Algerian news outlet El Moudjahid. These include reducing the number of members to set up a takaful company and lowering the mandatory proportion of investments in public treasury bonds, from the current 50%. They also advocate issuing sukuk and establishing separate Islamic banks to ensure shariah compliance, transparency, governance and development of bancatakaful in Algeria. Further growth can be supported with diversified takaful products, they said.
They also propose expanding the regulatory oversight of takaful companies to ensure legal standards. They suggest inviting foreign takaful companies to tap the Algerian market for growth and talent.
Algeria is expected to increase its takaful market aided by financial and management incentives included in its 2024 finance law that supports the start-up phase of takaful. M