Structure of Re-takaful Products

  • Mohd Ma’Sum Billah


The basic operational frameworks of Re-takaful and conventional reinsurance do not differ very much—they only contradict one another in certain conditions. Conventional reinsurance has always been in opposition with Shari’ah regulations, as it embodies three strictly prohibited fundamentals—Gharar (uncertainty), Maisir (gambling) and Riba (interest). These concepts will result in unfair contribution between different participants, including the possibility of a participant having an advantage over another participant. Another aspect that is strictly prohibited in Re-takaful business is the portion of profit commission that may be earnt from the Re-takaful, as it results in changes to Re-takaful fees.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Mohd Ma’Sum Billah
    • 1
  1. 1.Professor of Finance, Insurance, Fintech and Investment Islamic Economics InstituteKing Abdulaziz UniversityJaddahKingdom of Saudi Arabia

Personalised recommendations