In Brunei, Islamic insurance is governed by the Takaful Order 2008 and licensed by the Brunei Darussalam Central Bank; two long-standing players, Syarikat Takaful Brunei Darussalam and Insurans Islam TAIB, offer general and family takaful contracts.
The Brunei Darussalam Central Bank in charge
The BDCB, which succeeded the Autoriti Monetari Brunei Darussalam, licenses insurers under the Insurance Order 2006 and takaful operators under the Takaful Order 2008. It publishes a page of licensing criteria for takaful and insurance business.
A searchable public register
The central bank's register of licensees offers a filter labelled Takaful Operators, General and Family. It is the simplest tool for confirming that a company selling an Islamic contract in Brunei actually holds a current authorisation.
Takaful Order and Takaful Regulations 2008
The core of the system is the Takaful Order 2008, supplemented by the Takaful Regulations of the same year. The country thus stands apart from Bangladesh, which is still awaiting a takaful framework, having had a specific law for nearly twenty years.
Other applicable legislation
The Insurance Order 2006 governs conventional insurance, while the International Insurance and Takaful Order 2002 targets international business. According to Oxford Business Group, a life, non-life or takaful licence required minimum paid-up capital of 8 million Brunei dollars in 2016.
A national Sharia board
Islamic financial products fall under the Syariah Financial Supervisory Board, created in 2006. This national board sits above internal committees, a notable difference from markets where each company approves its own contracts. See our page on the role of the Sharia committee.
Syarikat Takaful Brunei Darussalam
Founded in 1994, Syarikat Takaful Brunei Darussalam, or STBD, operates through two arms: Takaful Brunei Am for general takaful and Takaful Brunei Keluarga for family takaful. Its website was not verified during our research, so confirm details directly.
Insurans Islam TAIB
Insurans Islam TAIB offers both general and family takaful, according to Oxford Business Group. Together with STBD, it forms the historical core of Islamic cover in the sultanate, but the full current list should be read in the BDCB register.
A significant weight in the sector
At the end of 2015, takaful held 30.8% of the Brunei insurance sector's assets, or 421 million Brunei dollars. In non-life it even outpaced conventional business, with 27 million in premiums against 15 million, according to Oxford Business Group.
Population and demand
In 2016, Oxford Business Group put the Muslim population at close to 70%. No more recent data was verified. This base explains the place of takaful in non-life, notably motor, where liability cover is an everyday need for households.
Comparison with neighbouring Malaysia
Malaysia and its fifteen takaful operators offers a much larger market, with separate family and general entities. Brunei, being smaller, relies on two long-standing players and on a central bank that also licenses conventional insurers.
Read the contract before signing
Ask the operator which management model applies, what fee is charged and how the fund surplus is treated. Also check the reference to the Syariah Financial Supervisory Board approval for the product concerned, and keep a written copy of that reference.
Old figures call for caution
The available market data date from 2015 and 2016. No statistics for 2023 to 2026 have been confirmed. For a recent figure, contact the BDCB or consult its publications rather than relying on commercial estimates of uncertain origin.
Taking out takaful in Brunei in practice
- Look up the operator in the BDCB register of licensees using the Takaful Operators, General and Family filter.
- Choose the right arm, general for a vehicle or home, family for protection and savings.
- Request the contract model and the reference to the Syariah Financial Supervisory Board approval.
- Compare the contribution, management fee and surplus clause between STBD and TAIB or any other licensed operator.
- Examine exclusions and limits, then keep the certificate of cover and the documentation provided.
- If you suffer a loss, inform the operator without delay and send the required supporting documents in writing.
Breakdown of a Brunei takaful contribution
| Component | Role | Parameters that change it |
|---|---|---|
| Tabarru contribution | Feeds the participants' solidarity fund | Participant profile, sum insured, use |
| Operator fees | Pay for technical and commercial management | Licensed operator's scale |
| Shared return | Income from compliant investments where provided | Model chosen and fund assets |
| Surplus | May go back to participants | Claims experience and contract wording |
| Excess | Amount you bear when a claim arises | Option chosen when taking out cover |
Documents requested when applying in Brunei
- Brunei identity card, or a passport and residence permit
- Proof of address
- Vehicle registration card for motor takaful
- Title deed or lease for home cover
- Health questionnaire for family takaful
- Islamic financing agreement for loan-linked cover
Common traps in Brunei
- Buying through an intermediary without checking in the BDCB register that the takaful operator is properly licensed.
- Confusing the general and family arms of the same operator, for example Takaful Brunei Am and Keluarga.
- Relying on market statistics dating from 2015 to judge an operator's current financial strength.
- Accepting a verbal promise of surplus refunds that does not appear in the written terms.
- Overlooking the product's Sharia approval on the assumption that a local operator is compliant by default.
Questions on takaful in Brunei Darussalam
Which authority licenses takaful operators in Brunei?
The Brunei Darussalam Central Bank, formerly the Autoriti Monetari Brunei Darussalam, licenses takaful operators under the Takaful Order 2008 and publishes a register of licensees that can be filtered by type of business.
Which takaful operators are present in Brunei?
The long-standing players are Syarikat Takaful Brunei Darussalam, with its Am and Keluarga arms, and Insurans Islam TAIB. The complete current list should be checked in the BDCB register, which records general and family operators.
What share of the market does takaful represent?
At the end of 2015, takaful held 30.8% of the sector's assets and outpaced conventional business in non-life, with 27 million Brunei dollars in premiums against 15 million. No more recent data has been confirmed.
Who approves the Sharia compliance of takaful products?
Products fall under the Syariah Financial Supervisory Board, created in 2006, which oversees Islamic finance nationally alongside each takaful operator's internal procedures. Ask for the reference of this approval for your contract.
Takaful operators and organisations
Takaful BruneiBruneian takaful operator offering family and general products, including medical, home and education cover, in line with Islamic principles.Takaful MalaysiaMalaysia's first takaful operator, publicly listed, offering family and general takaful products to individuals and businesses.Qatar Islamic InsuranceQatari Islamic insurer offering family and general takaful products to individuals and companies.Indicative list: assuranceislamique.com has no commercial link with these organisations. Always check the licence with the local regulator.