By 2004, the total gross written premium (GWP) for takaful business (life and non-life combined) had grown to just under $1.4 billion.
Takaful Insurance Resources
Understanding Takaful Practice
Takaful originates from Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". In principle, the Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants
Fitch outlines draft Takaful rating methodology
Fitch Ratings has published an exposure draft detailing the agency’s expected approach to rating Takaful firms.
Takaful is a form of financial protection, similar to insurance, designed to be compliant with Islamic principles (Shari’ah). The document, “Exposure Draft - Takaful: Rating Methodology and Review” specifies several areas of analysis that are particularly important to assessing the financial security of a Takaful firm. The document also reviews the current status and prospects for the industry.
“The agency’s Takaful rating methodology is designed to reflect the specifics of these businesses and Fitch welcomes feedback on the proposed approach,” said Andrew Murray, Senior Director in Fitch’s Insurance Department, “Fitch sees strong potential in the Takaful industry, although also some challenges for the coming years.”
