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Takaful Islamic Insurance. Concepts and Regulatory Issues. Wiley Finance

  • Book
  • 338 Pages
  • September 2009
  • John Wiley and Sons Ltd
  • ID: 1087141
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.

Table of Contents


About the Editors.

About the Contributors.



1 Conceptual, Legal, and Institutional Issues Confronting Takaful (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).

1.1 Introduction.

1.2 Developments in International Prudential Guidelines for Insurance and Takaful.

1.3 Contents of this Book.

Part 1.

2 Business Models in Takaful and Regulatory Implications (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).

2.1 Introduction.

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).

3.1 Introduction.

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).

4.1 Introduction.

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).

5.1 Introduction.

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).

6.1 Background.

6.2 Business Environment in Emerging Markets.

6.3 Framework of Business Conduct and Best Practices.

6.4 Critical Drivers for Developing Market Infrastructure.

6.5 Conclusion.

7 Supervisory Issues in Takaful: An Overview (Peter Casey).

7.1 Introduction.

7.2 Governance Issues.

7.3 Financial Issues.

7.4 Market Conduct Issues.

7.5 Market Issues.

7.6 Supervisory Priorities.

Part 2.

8 Reinsurance and Retakaful (Mahomed Akoob).

8.1 Introduction.

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.

8.12 Conclusion.

9 Risk Management in Takaful (Abdullah Haron and Dawood Taylor).

9.1 Introduction.

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).

10.1 Introduction.

10.2 The Need for Solvency.

10.3 The Principle of Solvency.

10.4 Traditional Approaches to Insurance Solvency.

10.5 Risk–based Capital.

10.6 Summary.

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).

12.1 Introduction.

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.

12.6 Conclusion.

13 Transparency and Financial Reporting in Islamic Insurance (Elham Hassan and Andre Rohayem).

13.1 Introduction.

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.

13.4 Conclusion.

Part 3.

14 Concluding Remarks (Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus).

14.1 Introduction.

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.




Simon Archer Rifaat Ahmed Abdel Karim Volker Nienhaus