Abstract
Re-Takaful or Islamic reinsurance is essentially about handling risk. It is a risk aversion method in which the Takaful ceding company resorts to either a conventional reinsurer or a Re-Takaful operator to reinsure originally insured risks against an undesirable future situation if the risk insured were over and above the normal underwriting or claim. Thus, a Takaful ceding company may, based on limited financial resources, hedge against possible incapability to meet all Takaful reinsurance protection from a financially capable reinsurer, which will thus take over the coverage of the large proportion of the risk.
It should be acknowledged that the idea for this chapter/product has derived significantly from the practices/experiences/thoughts of Bank Negara, ARIL, MNRB, Takaful Malaysia, Takaful Ikhlas, Takaful Nasional, Etiqa Takaful, IBFIM, IIUM, MII (Malaysia) and others.
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Notes
- 1.
Al-Jamal, Garib, al-Ta’min al Tijari wa al-Badiil al Islami (Cairo:Dar al I’tisam, n.d.), pp. 340–344; al-Khafif,‘Ali Muhammad, al-Ta’min, a paper presented at the 2nd Conference of the Academy of Islamic Research, Cairo, 1965. Quoted from Mohammed Burhan Arbouna, “The Operation of Re-Takaful (Islamic Reinsurance) Protection”, Journal IIUM, pp. 336.
- 2.
Lashin, Fathi, “Sigha Muqaddama li-al-Sharikat Ta’min wa I’adat al-Ta’min fi al-Islam”, Bayt al-Tamwil al Kuwaiti. ‘Amal al-Nadwa al-fiqhiyya al-Thaniya, 28–31 May, pp. 95–122. Quoted from Mohammed Burhan Arbouna, “The Operation of Re-Takaful (Islamic Reinsurance) Protection”, Journal IIUM, pp. 336.
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Billah, M.M. (2019). Re-takaful Products in a Nutshell. In: Islamic Insurance Products. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-17681-5_2
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DOI: https://doi.org/10.1007/978-3-030-17681-5_2
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