Retakaful growth expectations disappoint
Tuesday, 02 13 2018, Category: Islamic Insurance, Country: World
The increasing appetite for Islamic insurance has led many investors to view the retakaful sector as a growth opportunity, but retakaful players have recently run into difficulty or have exited the market, according to a report by AM Best.
Retakaful is the Islamic alternative to the conventional reinsurance. Takaful can be defined as a co-operative or mutual insurance, because members of a takaful company join in contributing a certain sum of money as their subscription to a common pool; losses are divided and liabilities spread. Takaful can be structured as either a mudaraba (profit-sharing) model, a wakala (agency agreement) model, or a combination of both.
Source: Intelligent Insurer