Making Cooperation Work COMCEC STRATEGY For Building an Interdependent Islamic World RESPONSES OF THE MEMBER COUNTRIES TO THE POLICY QUESTIONS ON Improving the Takaful in the OIC Member Countries Mr . Selçuk KOÇ, Director- COMCEC Coordination Office October 17th, 2019
OUTLINE 1.Formulation of Policy Recommendations 2.Policy Questions and Responses of the Member Countries 3.Room Document Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY 2 For Building an Interdependent Islamic World For Building an Interdependent Islamic World
1)FORMULATION OF POLICY RECOMMENDATIONS «..... approximate policies in the cooperation areas to address and find solutions to the economic and social challenges of the Islamic Ummah » (COMCEC Mission) Policy Recommendations: Research reports, policy questions, discussions during the WGs Adopted by the COMCEC Ministerial Sessions Serve to policy approximation Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY 3 For Building an Interdependent Islamic World For Building an Interdependent Islamic World
1.Formulation of Policy Recommendations Findings of Research Reports Policy Debate Adoption Room Policy (COMCEC Session Document Recommendations Ministerial (During WGs) Session) Responses to the Policy Questions Member Countries ’ Direct Involvement Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 4
2. Policy Questions and Responses Q1: Takaful/retakaful operators Country Yes No - Afghanistan (Initiatives for both) - Azerbaijan Brunei Darussalam (Takaful) (Retakaful) - Iran (Initiative for Takaful) - Pakistan - Sierra Leone - Tunisia Turkey (Takaful ) (Initiative for Retakaful) Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 5
2. Policy Questions and Responses Country Sufficient awareness Effective cooperation with about takaful sector key stakeholders Afghanistan - Azerbaijan - Brunei Darussalam - Iran - Pakistan - - Sierra Leone - Tunisia Turkey Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 6
2. Policy Questions and Responses Q3: Does Your Country have a legal and regulatory framework for takaful sector? Country Yes/No If no, any initiative or plan Afghanistan No Yes Azerbaijan Yes - Brunei Darussalam Yes - Iran No Yes Pakistan Yes - Sierra Leone No Yes Tunisia Yes - Turkey Yes - Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 7
2. Policy Questions and Responses Q4: Does Your Country have sufficient Islamic capital market products (sukuk, etc.) for Takaful Operators? Country Yes/No Afghanistan No Azerbaijan No Brunei Darussalam No Iran Yes Pakistan No Sierra Leone No Tunisia No Turkey Yes Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 8
2. Policy Questions and Responses Q5: Does Your Esteemed Country have enough human capital to improve the takaful sector? Country Yes/No Afghanistan Yes Azerbaijan No Brunei Darussalam No Iran Yes Pakistan Yes Sierra Leone Yes Tunisia No Turkey No Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 9
2. Policy Questions and Responses Q6: Main issues/problems that negatively affect the development of takaful sector • Insufficient awareness • Shortage of investors • Inadequate sharia-compliant investment opportunities • Low level of disposal income and savings • Lack of detailed and sufficient regulation, guidelines and research • Lack of transparency and information asymmetry • Inadequte consumer services and low cost solutions • Competition with other non-Islamic insurance institutions • Insufficient Islamic Capital Market Products for Takaful Operators • Differences between the “fatwas” within Takaful Operators Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 10
2. Policy Questions and Responses Takaful operators ’ role in addressing the evolving needs of OIC countries such as Q7 - retirement products and long-term health care benefits Country Yes/No Afghanistan No Azerbaijan No Brunei Darussalam Yes Iran No Yes Pakistan (for only retirement products) Sierra Leone No Tunisia Yes Turkey Yes Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 11
3- ROOM DOCUMENT Policy Advice 1 • Developing a comprehensive legal and regulatory framework for the Takaful industry to facilitate the operations, transparency, and governance in this sector. Policy Advice 2 • Promoting product customisation in Takaful Sector and introducing new products in accordance with the changing needs of the market. Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 12
3- ROOM DOCUMENT Policy Advice 3 • Encouraging talent development through programs and projects (i.e. professional certification programmes).and increasing the awareness of stakeholders in Takaful sector. Policy Advice 4 • Providing incentives (i.e tax incentives ) to enhance the competitiveness of Takaful industry and its business sustainability. Making Cooperation Work Making Cooperation Work COMCEC STRATEGY COMCEC STRATEGY For Building an Interdependent Islamic World For Building an Interdependent Islamic World 13
Making Cooperation Work COMCEC STRATEGY For Building an Interdependent Islamic World THANK YOU www.comcec.org finance@comcec.org Mr . Selçuk KOÇ, Director- COMCEC Coordination Office October 17th, 2019
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