IslamicFinance.de

The Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) which are expected to come into force by the middle of this year, would require composite insurers and takaful players to split their life and general insurance businesses under separate licences. Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said the Act would have an impact not only on talent hiring but also on retaining the existing talent, and would lead to staff pinching, resulting in higher wages but little improvement in productivity and efficiency. According to analysts, the impact would be felt more by takaful operators due to the higher number of composite or dual licences issued to them compared with conventional insurers.