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Re-takaful Products in a Nutshell

In: Islamic Insurance Products

Author

Listed:
  • Mohd Ma’Sum Billah

    (King Abdulaziz University)

Abstract

Re-Takaful or Islamic reinsurance is essentially about handling risk. It is a risk aversion method in which the Takaful ceding company resorts to either a conventional reinsurer or a Re-Takaful operator to reinsure originally insured risks against an undesirable future situation if the risk insured were over and above the normal underwriting or claim. Thus, a Takaful ceding company may, based on limited financial resources, hedge against possible incapability to meet all Takaful reinsurance protection from a financially capable reinsurer, which will thus take over the coverage of the large proportion of the risk.

Suggested Citation

  • Mohd Ma’Sum Billah, 2019. "Re-takaful Products in a Nutshell," Springer Books, in: Islamic Insurance Products, chapter 0, pages 29-45, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-17681-5_2
    DOI: 10.1007/978-3-030-17681-5_2
    as

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