Bank Negara Malaysia issues policy document on Broader Application of Ta’awun in Takaful

19 January 2026

On 28 November 2025, Bank Negara Malaysia (“BNM”) issued a policy document on Broader Application of Ta’awun in Takaful (“Policy Document”), which sets out the Shariah and regulatory requirements aimed at promoting financial resilience as well as financial inclusion in line with Shariah objectives (maqasid Shariah).

The Policy Document took effect on issuance and applies to licensed takaful operators. It aims to facilitate an effective broader application of ta’awun in the takaful business by setting out:

• the scope of a broader application of ta’awun encompassing the sources of fund that can be utilised;
• Shariah requirements to preserve the rights and ensure fair treatment of existing takaful participants, particularly when the broader application of ta’awun also benefits third parties beyond the existing participants;
• regulatory requirements to support prudent and innovative implementation of a broader application of ta’awun, encompassing the introduction of new and/or enhanced requirements on governance and oversight, market conduct, as well as transparency and disclosure; and
• guiding principles to facilitate the exploration and development of new takaful operational models to support an effective implementation of a broader application of ta’awun.

The Policy Document incorporates proposals and feedback from the exposure draft issued on 28 June 2024. BNM has also issued a feedback statement in this regard, summarising its response to key feedback received.