REGULATORY AND OPERATIONAL CHALLENGES OF TAKAFUL IN THE MALIAN INSURANCE MARKET: EVIDENCE FROM TAKAFUL MALI ASSURANCE ISLAMIQUE (TMAI) WITHIN THE CIMA FRAMEWORK
DOI:
https://doi.org/10.33102/a73add03Keywords:
Takaful, Islamic Insurance, Mali, CIMA, Regulatory Framework, Shariah Governance, Financial Inclusion, Sub-Saharan Africa, Wakala-Mudarabah, RetakafulAbstract
Despite having significant potential in Muslim-majority economies, Islamic insurance (Takaful) remains markedly underdeveloped across Sub-Saharan Africa. This paper examines the regulatory and operational impediments constraining the development of Takaful within the Malian insurance market, with particular reference to Takaful Mali Asurance Islamique (TMAÏ) — the first and, to date, only Takaful operator licensed in Mali. Employing a qualitative exploratory case-study design, the research integrates documentary analysis of CIMA Regulation No. 003/2019 with primary data gathered through structured questionnaires administered to three senior executives of TMAI (General Director, Administrative and Financial Director, and Technical Director). Findings reveal a dual-layer challenge. At the regulatory level, CIMA Regulation No. 003/2019 provides an enabling legal basis for Takaful yet falls short of the operational specificity required: accounting standards aligned with AAOIFI frameworks, tax-neutral treatment of underwriting surpluses, detailed Shariah governance protocols, and retakaful facilitation mechanisms remain absent or insufficiently developed. At the operational level, TMAI confronts a shortage of Islamic finance specialists, severely limited access to Shariah-compliant retakaful arrangements, a restricted universe of investable Shariah-compliant assets, and pervasive consumer unawareness — notwithstanding Mali's approximately 95% Muslim majority. Despite these constraints, TMAI achieved remarkable contribution growth, from CFA 143.7 million in 2022 to over CFA 2.5 billion by 2025, evidencing latent demand for Shariah-compliant protection products. This study contributes the first empirically grounded analysis from a functioning Takaful operator in Mali, enriching the emerging body of knowledge on Islamic insurance in francophone West Africa. Policy recommendations target CIMA regulators, national policymakers, and Takaful operators. The findings have broader applicability across the fourteen CIMA member states.
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