Takaful Investment Portfolios. A Study of the Composition of Takaful Funds in the GCC and Malaysia. Wiley Finance
- Language: English
- 256 Pages
- Published: June 2013
- Region: Global, Malaysia
Authors Rifaat, Archer and Volker bring an international perspective to the growing Islamic Insurance industry. Drawing on contributions from leading experts around the world, they present a comprehensive view of the very issues governing the industry and its future direction. As top financial institutes around the world seem to enter the lucrative Takaful markets, this timely book offers crucial background information and advice, invaluable for any serious player in the market.
About the Editors.
About the Contributors.
1 Conceptual, Legal, and Institutional Issues Confronting Takaful (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).
1.2 Developments in International Prudential Guidelines for Insurance and Takaful.
1.3 Contents of this Book.
2 Business Models in Takaful and Regulatory Implications (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).
2.2 Business Models.
2.3 Business Structures and Regulatory Implications.
2.4 Regulatory Perspectives.
3 Shari’ah Principles Governing Takaful Models (Dr. Mohd Daud Bakar).
3.2 Takaful: Nomenclature and Conceptual Meaning.
3.3 Shari’ah Principles Governing Takaful Contracts.
3.4 Takaful Management Models.
4 Corporate Governance and Stakeholder Rights in Islamic Insurance (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).
4.2 The Neo-classical and Neo-corporatist Models of Corporate Governance.
4.3 Corporate Governance Issues in the Insurance Industry.
4.4 Corporate Governance Issues in Takaful.
4.5 Concluding Remarks.
5 Legal Issues in Takaful (Madzlan Mohamad Hussain).
5.2 Takaful Models and their Impacts.
5.3 The Legal Issues.
5.4 The Call for an Effective Framework.
5.5 Concluding Remarks.
6 Business Conduct in Islamic Insurance with Special Reference to Emerging Markets (Arup Chatterjee).
6.2 Business Environment in Emerging Markets.
6.3 Framework of Business Conduct and Best Practices.
6.4 Critical Drivers for Developing Market Infrastructure.
7 Supervisory Issues in Takaful: An Overview (Peter Casey).
7.2 Governance Issues.
7.3 Financial Issues.
7.4 Market Conduct Issues.
7.5 Market Issues.
7.6 Supervisory Priorities.
8 Reinsurance and Retakaful (Mahomed Akoob).
8.2 What is Reinsurance?.
8.3 Functions of Reinsurance.
8.4 Types of Reinsurance.
8.5 Proportional Reinsurance.
8.6 Non-proportional Reinsurance.
8.7 Reinsurance Market.
8.8 Concept of Takaful.
8.9 Need for Retakaful.
8.10 Retakaful Models.
8.11 Main Issues Raised by Retakaful.
9 Risk Management in Takaful (Abdullah Haron and Dawood Taylor).
9.2 Comparison between Conventional Insurance and Takaful.
9.3 Fundamental Principles of Takaful from a Risk Management Perspective.
9.4 Risk Issues in Takaful Undertakings.
9.5 Management of Risks in a Takaful Undertaking.
9.6 Concluding Remarks.
10 Solvency and Capital Adequacy in Takaful (James Smith).
10.2 The Need for Solvency.
10.3 The Principle of Solvency.
10.4 Traditional Approaches to Insurance Solvency.
10.5 Risk-based Capital.
11 Investment Portfolios of Takaful Undertakings (Dr. Abdulrahman Tolefat).
11.1 Total Investment Portfolio of Takaful Undertakings for All Funds.
11.2 Shareholders’ Funds.
11.3 Analysis of Shareholders’ Funds between the GCC Countries and Malaysia.
11.4 General Fund.
11.5 Analysis of General Fund between GCC and Malaysia.
11.6 Family Fund.
11.7 Influence of Related Parties on the Investment Portfolios of Participants’ Funds.
11.8 Summary and Conclusions.
12 Issues in Rating Takaful Companies (Andrew Murray).
12.2 What is a Credit Rating?.
12.3 Types of Credit Rating.
12.4 Credit Rating Basics.
12.5 Key Issues for Rating Takaful Firms.
13 Transparency and Financial Reporting in Islamic Insurance (Elham Hassan and Andre Rohayem).
13.2 Stakeholders Need Transparency in Financial Reporting by Islamic Insurance Companies.
13.3 Existing Islamic Insurance Financial Reporting Framework Should be Improved to Achieve Greater Transparenc.
14 Concluding Remarks (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).
14.2 The Structure of Takaful Undertakings and Resultant Unresolved Issues.
14.3 Corporate Governance and Related Matters.
14.4 The Need for, and Scope of, a Comprehensive Regulatory Framework for Takaful.
14.5 The Work of the IFSB in Developing International Prudential Guidelines for Takaful Undertakings.
14.6 Some Thoughts for the Future.
Professor Simon Archer is Visiting Professor at the ICMA Centre, Henley Business School, University of Reading (U.K.), where he teaches on an MSc program, Investment Banking and Islamic Finance. Previously, he was Professor of Financial Management at the University of Surrey (U.K.) having been Midland Bank Professor of Financial Sector Accounting at the University of Wales, Bangor. After studies in Philosophy, Politics, and Economics at Oxford University, he qualified as a Chartered Accountant with Arthur Andersen in London and then moved to Price Waterhouse in Paris, where he became a Partner in Management Consultancy Services. In addition to being co-editor of, and chapter contributor to, Islamic Finance: Innovation and Growth, and Islamic Finance: The Regulatory Challenge (published by John Wiley), Professor Archer is co-author of the CCH International Accounting/Financial Reporting Standards Guide and the author of a considerable number of academic papers on international accounting and on accounting, finance, and related issues in Islamic financial institutions. He also supervises research students in these areas. He has carried out a number of consultancy assignments for the Accounting and Auditing Organization for Islamic Financial Institutions, the Islamic Financial Services Board, and the World Bank on issues connected with Islamic finance.
Professor Rifaat Ahmed Abdel Karim has been the Secretary-General of the Islamic Financial Services Board since 2002. Prior to his current position, Professor Rifaat was the Secretary-General of the Accounting and Auditing Organization for Islamic Financial Institutions, a post he held for more than eight years. He was a member of the Standards Advisory Council of the International Accounting Standards Board for two terms, and is currently a member of the Consultative Advisory Group of the International Auditing and Assurance Standards Board. Professor Rifaat was a Visiting Professor at Surrey University (U.K.) and Honorary Professor at Monash University (Australia). He is currently a Visiting Professor at Reading University (U.K.). Professor Rifaat is the co-author of Business and Accounting Ethics in Islam, the Euromoney bestseller book Islamic Finance: Innovation and Growth, and Islamic Finance: The Regulatory Challenge recently published by John Wiley. He is also the author of many academic and professional papers on accounting, governance, and finance issues in Islamic banking and finance.
Dr. Volker Nienhaus was Professor of Economics at the German universities of Trier (1989–90) and Bochum (1990–2004) before he became President of the University of Marburg (election period 2004–10). He has published numerous books and articles on Islamic economics and Islamic banking and finance since the 1980s. He was a member of several academic advisory boards of public and private institutions in Germany, including the German Orient-Foundation (1993–2006) and the Federal Ministry of Economic Cooperation and Development (1998–2008). In 2006, he was appointed a member of the Governing Council of the International Centre for Education in Islamic Finance (INCEIF) in Kuala Lumpur. He is also consultant to the Islamic Financial Services Board on governance issues of takaful operations.