Table of Contents

Dedication

About the Editors

About the Contributors

Foreword

Acknowledgment

Chapter 1: Conceptual, Legal, and Institutional Issues Confronting Takaful

1.1 Introduction

1.2 Developments in International Prudential Guidelines for Insurance and Takaful

1.3 Contents of this Book

Part 1

Chapter 2: Business Models in Takaful and Regulatory Implications

2.1 Introduction

2.2 Business Models

2.3 Business Structures and Regulatory Implications

2.4 Regulatory Perspectives

Chapter 3: Shari'ah Principles Governing Takaful Models

3.1 Introduction

3.2 Takaful: Nomenclature and Conceptual Meaning

3.3 Shari'ah Principles Governing Takaful Contracts

3.4 Takaful Management Models

Chapter 4: Corporate Governance and Stakeholder Rights in Islamic Insurance

4.1 Introduction

4.2 The Neo-Classical and Neo-Corporatist Models of Corporate Governance

4.3 Corporate Governance Issues in the Insurance Industry

4.4 Corporate Governance Issues in Takaful

4.5 Concluding Remarks

Chapter 5: Legal Issues in Takaful

5.1 Introduction

5.2 Takaful Models and their Impacts

5.3 The Legal Issues

5.4 The Call for an Effective Framework

5.5 Concluding Remarks

Chapter 6: Business Conduct in Islamic Insurance with Special Reference to Emerging Markets

6.1 Background

6.2 Business Environment in Emerging Markets

6.3 Framework of Business Conduct and Best Practices

6.4 Critical Drivers for Developing Market Infrastructure

6.5 Conclusion

Chapter 7: Supervisory Issues in Takaful: An Overview

7.1 Introduction

7.2 Governance Issues

7.3 Financial Issues

7.4 Market Conduct Issues

7.5 Market Issues

7.6 Supervisory Priorities

Part 2

Chapter 8: Reinsurance and Retakaful

8.1 Introduction

8.2 What is Reinsurance?

8.3 Functions of Reinsurance

8.4 Types of Reinsurance

8.5 Proportional Reinsurance

8.6 Non-Proportional Reinsurance

8.7 Reinsurance Market

8.8 Concept of Takaful

8.9 Need for Retakaful

8.10 Retakaful Models

8.11 Main Issues Raised by Retakaful

8.12 Conclusion

Chapter 9: Risk Management in Takaful

9.1 Introduction

9.2 Comparison Between Conventional Insurance And Takaful

9.3 Fundamental Principles of Takaful from a Risk Management Perspective

9.4 Risk Issues in Takaful Undertakings

9.5 Management of Risks in a Takaful Undertaking

9.6 Concluding Remarks

Chapter 10: Solvency and Capital Adequacy in Takaful

10.1 Introduction

10.2 The Need for Solvency

10.3 The Principle of Solvency

10.4 Traditional Approaches to Insurance Solvency

10.5 Risk-Based Capital

10.6 Summary

Chapter 11: Investment Portfolios of Takaful Undertakings

11.1 Total Investment Portfolio of Takaful Undertakings for All Funds

11.2 Shareholders' Funds

11.3 Analysis of Shareholders' Funds between the GCC Countries and Malaysia

11.4 General Fund

11.5 Analysis of General Fund between GCC and Malaysia

11.6 Family Fund

11.7 Influence of Related Parties on the Investment Portfolios of Participants' Funds

11.8 Summary and Conclusions

Chapter 12: Issues in Rating Takaful Companies

12.1 Introduction

12.2 What is a Credit Rating?

12.3 Types of Credit Rating

12.4 Credit Rating Basics

12.5 Key Issues for Rating Takaful Firms

12.6 Conclusion

Chapter 13: Transparency and Financial Reporting in Islamic Insurance

13.1 Introduction

13.2 Stakeholders Need Transparency in Financial Reporting by Islamic Insurance Companies

13.3 Existing Islamic Insurance Financial Reporting Framework Should be Improved to Achieve Greater Transparency

13.4 Conclusion

Part 3

Chapter 14: Concluding Remarks

14.1 Introduction

14.2 The Structure of Takaful Undertakings and Resultant Unresolved Issues

14.3 Corporate Governance and Related Matters

14.4 The Need for, and Scope of, a Comprehensive Regulatory Framework for Takaful

14.5 The Work of the IFSB in Developing International Prudential Guidelines for Takaful Undertakings

14.6 Some thoughts for the Future

Bibliography

Index