Takaful - How Underwriting Loss Affects Shareholders in Conventional Insurance
Takaful - How Underwriting Loss Affects Shareholders in Conventional Insurance The key point is: An underwriting loss does not immediately mean a “shareholder deficit.” Rather, the underwriting loss...
Takaful - Underwriting Loss, Underwriting Deficit, Underwriting Gain and Surplus
Takaful - Underwriting Loss, Underwriting Deficit, Underwriting Gain and Surplus They are closely related concepts, but the terminology depends on whether we are talking about conventional insurance...
Takaful - Understanding Underpricing, Underwriting Loss and Shareholders’ Capital
Takaful - Understanding Underpricing, Underwriting Loss and Shareholders’ Capital The sentence means: If a conventional insurer deliberately charges premiums that are too low in order to attract more...
Takaful - Alignment of the Interests of All Stakeholders
Takaful - Alignment of the Interests of All Stakeholders Alignment of interests means designing the governance, incentives and reward systems of an organisation so that the important stakeholders are...
Takaful - Conflict in an Agent-Principal Arrangement
Takaful - Conflict in an Agent-Principal Arrangement This issue is about a possible conflict of interest between the Takaful operator and the participants under a Wakalah arrangement. The basic relationship...
Takaful - Product Mis-Selling Risk
Takaful - Product Mis-Selling Risk Product mis-selling risk arises when a participant is sold or recommended a Takaful product that is unsuitable for their actual needs, financial circumstances, risk...
Takaful - Margin in Pricing
Takaful - Margin in Pricing In Takaful pricing, a margin is an additional amount included above the central or best estimate of expected costs to allow for uncertainty and adverse experience. The basic...
Takaful - Pricing, Solvency Risk and Adequacy of Tabarru’
Takaful - Pricing, Solvency Risk and Adequacy of Tabarru’ Pricing in Takaful is slightly different from pricing in conventional insurance because the initial contribution paid by a participant may not...
Takaful - Risk of Wakalah Fee Making the Tabarru’ Insufficient
Takaful - Risk of Wakalah Fee Making the Tabarru’ Insufficient This means that even when the total Takaful contribution charged to the participant appears sufficient, the Participants’ Risk Fund (PRF)...
Takaful - What Is Surplus and How Is It Derived?
Takaful - What Is Surplus and How Is It Derived? In Takaful, a surplus generally means the amount remaining in the Participants’ Risk Fund (PRF) after the fund has met its relevant obligations for the...