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,...
Takaful - Proportional vs Non-Proportional Retakaful
Takaful - Proportional vs Non-Proportional Retakaful The easiest way to distinguish them is: Proportional Retakaful = Takaful and Retakaful share the risk from the beginning. Non-Proportional Retakaful...
Takaful - Proportional Treaty Retakaful: Quota Share and Surplus Treaty
Takaful - Proportional Treaty Retakaful: Quota Share and Surplus Treaty In a proportional treaty Retakaful arrangement, the Takaful operator’s risk pool and the Retakaful operator’s risk pool share the...
Takaful - Permissibility of Conventional Reinsurance and Non-Proportional Retakaful
Takaful - Permissibility of Conventional Reinsurance and Non-Proportional Retakaful The use of conventional reinsurance by a Takaful operator may be permitted when there is a genuine practical necessity....
Takaful - Excess of Loss vs Stop Loss Retakaful
Takaful - Excess of Loss vs Stop Loss Retakaful Concise Overview Both Excess of Loss and Stop Loss are non-proportional Retakaful arrangements. The main difference is that Excess of Loss looks at the...
Takaful - Excess of Loss Retakaful
Takaful - Excess of Loss Retakaful Excess of loss Retakaful is a non-proportional form of Retakaful protection. Under this arrangement, the Takaful operator first bears losses up to an agreed retention...
Takaful - Stop Loss Retakaful
Takaful - Stop Loss Retakaful A stop loss Retakaful arrangement protects the Takaful operator when its total claims for the year become too high. The Retakaful risk pool does not pay individual claims...