Investment of Re-takaful Funds
Re-takaful/reinsurance comes from the desire of one party to share losses amongst many or of the insurer in turn to reinsure part of his risk with the reinsurer. The obstacle that made conventional reinsurance impermissible under Islam is the practice of paying a fixed periodic premium. With 40 takaful operators worldwide, Re-takaful has become a necessity in order for Muslim countries to benefit fully from the success of Takaful. The inadequacy of Re-takaful market to meet the needs of Re-takaful operators, and lack of commitment and political willingness among Muslim nations has delayed the establishment of a strong Re-takaful market, but Shari’ah does not allow Takaful operators to deal with conventional reinsurance.