This report highlights opportunities, challenges, and recommendations for Takaful—a shariah-compliant insurance alternative—to build the financial resilience of at-risk Muslim communities against rising climate risks.
The report lays out the evidence and key recommendations for Takaful to be developed, implemented, and scaled to build the financial resilience of at-risk Muslim communities on the frontlines of climate change. It highlights significant potential in the Arab States region and beyond for the development of Takaful, achievable through innovative public- private partnerships between government and the insurance industry.
This publication is the first in a collaborative series being produced by the United Nations Development Programme (UNDP), the Islamic Development Bank (IsDB), and the Islamic Development Bank Institute (IsDBI) focused on leveraging Takaful for mitigating climate risks. Other publications in the series are expected to be released in 2024.
