Takaful - What Is Underwriting Risk?
Takaful - What Is Underwriting Risk? Underwriting risk is the risk that the actual claims and costs of the Takaful business turn out to be higher than expected when the operator originally assessed and...
Takaful - Basic Difference Between Retakaful and Reinsurance
Takaful - Basic Difference Between Retakaful and Reinsurance The key point in this passage is who actually bears the underwriting risk. In a Takaful arrangement, the Takaful operator itself is primarily...
Takaful - What Exactly Is the Retakaful Risk Pool?
Takaful - What Exactly Is the Retakaful Risk Pool? Yes — you have the first part correct: Takaful Risk Pool = Participants’ Risk Fund (PRF), funded mainly by the tabarru’ portions of participants’ contributions....
Takaful - Takaful Risk Pool vs Retakaful Risk Pool
Takaful - Takaful Risk Pool vs Retakaful Risk Pool The easiest way to understand them is that there are two different pools of money at two different levels. Takaful risk pool → protects the participants....
Takaful - What Is Underwriting?
Takaful - What Is Underwriting? Underwriting is the process used by a Takaful operator to evaluate a risk before deciding whether to accept it, how much protection to provide, and how much contribution...
Takaful - Importance of Designing an Appropriate Retakaful Programme
Takaful - Importance of Designing an Appropriate Retakaful Programme As part of sound risk management, a Takaful operator should design a suitable Retakaful programme for its Takaful risk fund. The purpose...
Takaful – Methods of Retakaful
Takaful – Methods of Retakaful Case Scenario A Takaful operator has developed a large portfolio consisting of motor, property, medical, and commercial risks. Management is concerned that a major catastrophe...
Takaful – Facultative Retakaful
Takaful – Facultative Retakaful Case Scenario A Takaful operator underwrites a large commercial property risk. After assessing the exposure, the operator decides that retaining the entire risk within...
Takaful – Treaty Retakaful
Takaful – Treaty Retakaful Case Scenario A Takaful operator underwrites a large number of motor, property, and commercial risks during the year. Instead of arranging separate Retakaful protection for...
Islamic Law of Transaction: Eligibility for Ownership
Islamic Law of Transaction: Eligibility for Ownership 1. What Does “Eligibility for Ownership” Mean? The basic rule in Islamic Law is: Property is normally capable of being owned. In other words,...