Establishing a Legal and Regulatory Framework for the Takaful Industry in Iraq: A Reform-Based Approach

Abstract

 This study concentrates on the Takaful industry of Iraq within the current Iraqi conventional legislation. There are, however, several problems with the Iraqi takaful sector. Firstly, legal and regulatory issues, such as the lack of a specific or comprehensive Takaful Act. Therefore, the enactment of a special Takaful law is necessary. Thus, analyzing the Takaful laws of some countries is a suitable method for Iraq to enact a comprehensive Takaful Act. Secondly, Sharia compliance issues, such as a shortage of Sharia experts with sufficient knowledge in Takaful and a lack of qualified Sharia scholars who can issue Fatwas, might be a significant challenge to the Iraqi takaful industry. In this context, the CBI should establish a training center for the current Sharia scholars and staff to be trained. The Takaful sector in Iraq also requires the creation of a uniform Sharia supervisory committee. Thirdly, limited public awareness poses an additional challenge for the Takaful industry in Iraq. Most Iraqi people lack knowledge about Takaful; they do not differentiate between conventional insurance and Takaful. Hence, current Takaful firms, with the assistance of the CBI, should provide information about Takaful through the media and mosques. Lastly, the limited number of institutions in Iraq that provide Takaful products is a challenge to the Takaful industry. Additionally, the shortage of skilled staff in these institutions is regarded as a significant issue for the Takaful industry in the country