Chapter 19
Takaful and Retakaful Products, Structures, and Governance
In This Chapter
Getting a taste of general and family takaful products
Identifying takaful contract structures
Introducing the retakaful industry
Heeding the governance of the sharia board
As I explain in Chapter 18, Islamic scholars don’t accept conventional insurance as being sharia-compliant because it involves prohibited elements of uncertainty, gambling, and interest. Therefore, a fairly new world of commercial insurance products has emerged to satisfy consumers seeking sharia compliance.
If you travel through Malaysia or a country in the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, or United Arab Emirates), you’ll likely see billboards with messages such as “Share your risk in a sharia-compliant way” or “Save for your family in a sharia-compliant way.” Such ads promote Islamic insurance products called takaful that exist to decrease risks related to everything from travel and retirement to international trading.
Takaful companies are gaining a meaningful global market share in the ...
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