Legal and regulatory challenges in Takaful and Retakaful

This study aims to analyze critical issues faced in the Takaful and Retakaful industry. The background of this study is based on the rapid development of the Islamic finance industry, especially the Takaful and Retakaful sector, which is also facing various challenges in its operations. The main problem statement that prompted this study is the lack of in-depth understanding of legal and regulatory constraints, investment limitations, the complexity of accounting and financial reporting, and operational challenges in Takaful and Retakaful fund management. The main objective that will be discussed in this study is to analyze the legal and regulatory challenges in Takaful and Retakaful operations. Next, it can identify investment constraints in Takaful operations. In addition, it examines accounting and financial reporting issues in the Takaful industry. Finally, it examines operational issues in fund management. The methodology of this study involves content analysis of existing literature, including case studies, industry reports, reliable journals, and academic articles related to Takaful and Retakaful. The findings of this study are expected to reveal a number of significant issues in each aspect studied, including inconsistent interpretation of sharia law, limited investment options, lack of standardization in accounting practices, and inefficiencies in fund management. Based on these findings, the study recommends several improvements, including regulatory harmonization, expansion of Sharia-compliant investment instruments, strengthening of accounting standards specific to Takaful, and increasing the efficiency of fund management through better technology and governance.