New Jersey-based insurance ratings firm A.M. Best has come out with a set of draft guidelines for rating Takaful firms. The new guidelines address a number of concerns that Takaful firms have, but none more important than the limitations of the Shari’ah compliance rules on the investments available to Takaful firms and the lack of Shari’ah compliant fixed income products like Sukuk.
A.M. Best said: “Takaful companies need to develop and demonstrate that they can apply an adequate risk-based approach to investment management because of the reduced investment opportunities.”……………………………………….Full Article: Source