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Re-takaful Products in a Nutshell

  • Mohd Ma’Sum Billah
Chapter

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.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Mohd Ma’Sum Billah
    • 1
  1. 1.Professor of Finance, Insurance, Fintech and Investment Islamic Economics InstituteKing Abdulaziz UniversityJaddahKingdom of Saudi Arabia

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