Takaful (Islamic insurance), retakaful, and microtakaful
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Takaful, or mutual assistance, is the Islamic counterpart of conventional insurance. The word takaful is derived from an Arabic word kafalah, which means to guarantee. A group of participants agree to support one another jointly for the losses arising from specified risks. They contribute to a fund, and are compensated or reimbursed from that fund in the event of certain risks. The scheme is managed on the participants' behalf by a takaful operator. It is similar to a mutual insurance concept, but it complies with Shariah and is based on concepts of mutual solidarity and risk sharing.
Takaful , Retakaful , Insurance , Microtakaful , islamic finance
Ismail, Ezamshah and World Bank. (2016). Takaful (Islamic insurance), retakaful, and microtakaful. In The World Bank, Islamic finance: a catalyst for shared prosperity? (pp. 103-117). Washington, D. C.: World Bank Group.
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