Turkey: Regulator outlines local model of takaful

The Insurance and Private Pension Regulatory and Supervisory Agency (SEDDK) has published the “Definition of the Turkish Model within the Framework of Participation-Based Insurance Activities”.

Under it, the minimum requirements to be met for takaful include:
  • Establishment of an advisory committee,
  • Not guaranteeing issues and risks that violate religious tenets, and
  • Management of financial assets based on Shariah-compliant (participation) principles.


The minimum framework of the Turkey model should also ensure:

  • the takaful contract is grant-based,
  • determination of remuneration, eg. profit sharing methods such as mudarabah,
  • separation of shareholders’ and contributors’ funds,
  • establishment of a fund with a legal entity,
  • return, balance or qard and similar applications are not obligatory.

The Turkish government introduced a new law to regulate takaful in 2017.

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