Retakaful

Retakaful is the equivalent of reinsurance within Islamic finance, allowing takaful operators to cede part of their risks while respecting compliance principles. Takaful funds, like any insurer, need to transfer part of their exposure to absorb peak losses and stabilise results; retakaful meets this need under a compliant structure, based on pooling and excluding interest and excessive uncertainty. The retakaful market remains narrower than that of conventional reinsurance, which poses a practical difficulty: available compliant capacity is limited, and takaful operators sometimes resort to conventional reinsurance out of necessity, under exemptions admitted by certain compliance bodies. Developing sufficient retakaful capacity is a structuring issue for the sector's autonomous growth. For international reinsurers, this segment represents an opportunity to support the expansion of takaful in high-growth emerging markets.

A takaful operator exposed to a catastrophe risk cedes part of its commitment to a compliant retakaful, rather than to a conventional reinsurer, to respect its principles.

retakaful, réassurance islamique, réassurance takaful