FRA issues new guidelines for takaful insurers switching to conventional policies

Mutual guarantee “takaful” insurance providers looking to make a switch to offering conventional insurance plans will now have to comply with newly issued Financial Regulatory Authority guidelines (pdf). Under the new regulations, the providers will be required to submit certain documents, including the company’s plan to clear off outstanding takaful policies and reasons for requesting a change in license. The company will also have to make the request public by having a local newspaper publish news of its intention.