Re-Takaful as an Islamic alternative to conventional reinsurance

Abstract

By this study, we tried to highlight one of the internal strategies of the Takaful insurance companies and through which it manages the risks that it accepted to be insured, despite being huge risks that may exceed its financial capabilities, as it mainly consists in resorting to other more financially efficient companies, which take into account the legal aspect in their management of those risks, known as Re-Takaful companies. As the current practices of takaful insurance showed the inability of the insurance companies practicing their activities without re-takaful, because of the latter’s role in enhancing the activity of takaful insurance companies, as an alternative to traditional reinsurance, as it works to provide protection for them and maintain their position and financial stability