Regulatory Alerts2023-10-01
Added · Updated
Takaful Companies Rating Methodology
VIS Credit Rating Company Limited has updated its rating methodology to assess the financial strength of Takaful companies by integrating environmental, social, and governance (ESG) considerations. The framework evaluates core operational models, including Wakala and Modaraba structures, while emphasizing capitalization adequacy between the Participants Takaful Fund and Shareholders’ Fund, robust re-takaful arrangements, and management competency. By analyzing liquidity, profitability, and Shari’a compliance alongside traditional financial metrics, the updated criteria provide a comprehensive basis for assigning insurance financial strength ratings to Islamic insurers.