By 2008, the total gross written premium (GWP) for takaful business (life and non-life combined) had grown to just under $5.1 billion.
Takaful Insurance Resources
Understanding Takaful Practice
Takaful originates from Arabic word Kafalah, which means "joint guarantee". In principle, the Takaful Insurance system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants
Takaful Overview
Takaful-Insurance.Net is a useful website guide to understanding
Takaful, or the concept of Islamic insurance. This website explains
Takaful insurance practice without going in detail into the understanding of Islamic Law, or Shariah. The basic principle of Takaful is risk sharing as opposed to risk transfer in
conventional insurance. In a Takaful risk-sharing scheme, there are three items that must be avoided:
Gharar (uncertainty);
Maisir (gambling) and
Riba (usury). While uncertainty is an integral part of human existence, conducting sales or business transactions in a climate of uncertainty is not permitted. On the other hand, helping each other in any situation is always encouraged in Islam.
Takaful is therefore developed based on this mutual help or mutual protection concept. This website addresses the implementation of the concept of mutual protection in technical aspects, risk-sharing in practice, calculating a fair contribution from each participant of the
Takaful models (
Wakalah and Mudharabah) impact on contribution rating calculation, revenue account and the overall risk-sharing cost.
