Part VI

Islamic Insurance: Takaful

In this part . . .

The principles of Islam prohibit many conventional insurance products because they involve elements of risk, speculation, and gambling. Therefore, for more than 1,400 years, an alternative called takaful has existed for Muslims. In this part, I explain how takaful differs from conventional insurance and how large the Islamic industry is. I then introduce you to specific takaful products as well as retakaful, which is the Islamic equivalent of reinsurance or company-to-company insurance.