IAA creates Expert Panel on Islamic Finance

The International Actuarial Association (IAA) is pleased to announce the creation of the Expert Panel on Islamic Finance (EPIF) under the leadership of Chairperson Yves Guérard, who held the position of IAA Secretary General until December 2010. Membership of the EPIF is open to all individuals with the relevant expertise and interest.

In carrying out its mandate, the EPIF will monitor major developments of interest to the actuarial profession and to actuaries practising in areas related to Islamic finance, and inform interested parties via the IAA website.

The panel’s first purpose is to identify compatibility issues between actuarial and Shariah principles as applied to risk-sharing for the mutual benefit of actuaries, regulatory or standard-setting bodies and the wider community.

The EPIF has examined a number of issues and provided advice on the harmonization of International Financial Reporting Standards with the underlying principles of Islamic finance and actuarial principles. The panel has recently been looking into the challenge of extending risk-based capital requirements to Shariah-compliant products.

To learn more about the work of the IAA on this topic, please contact the Chairperson of the Expert Panel on Islamic Finance, care of the IAA Secretariat.