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Dedication. <p>About the Editors.</p> <p>About the Contributors.</p> <p>Foreword.</p> <p>Acknowledgment.</p> <p>1 Conceptual, Legal, and Institutional Issues Confronting Takaful (<i>Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus</i>).</p> <p>1.1 Introduction.</p> <p>1.2 Developments in International Prudential Guidelines for Insurance and <i>Takaful</i>.</p> <p>1.3 Contents of this Book.</p> <p><b>Part 1.</b></p> <p>2 Business Models in Takaful and Regulatory Implications (<i>Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus</i>).</p> <p>2.1 Introduction.</p> <p>2.2 Business Models.</p> <p>2.3 Business Structures and Regulatory Implications.</p> <p>2.4 Regulatory Perspectives.</p> <p>3 Shari’ah Principles Governing Takaful Models (<i>Dr. Mohd Daud Bakar</i>).</p> <p>3.1 Introduction.</p> <p>3.2 <i>Takaful</i>: Nomenclature and Conceptual Meaning.</p> <p>3.3 <i>Shari’ah</i> Principles Governing <i>Takaful</i> Contracts.</p> <p>3.4 <i>Takaful</i> Management Models.</p> <p>4 Corporate Governance and Stakeholder Rights in Islamic Insurance (<i>Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus</i>).</p> <p>4.1 Introduction.</p> <p>4.2 The Neo-classical and Neo-corporatist Models of Corporate Governance.</p> <p>4.3 Corporate Governance Issues in the Insurance Industry.</p> <p>4.4 Corporate Governance Issues in <i>Takaful</i>.</p> <p>4.5 Concluding Remarks.</p> <p>5 Legal Issues in Takaful (<i>Madzlan Mohamad Hussain</i>).</p> <p>5.1 Introduction.</p> <p>5.2 <i>Takaful</i> Models and their Impacts.</p> <p>5.3 The Legal Issues.</p> <p>5.4 The Call for an Effective Framework.</p> <p>5.5 Concluding Remarks.</p> <p>6 Business Conduct in Islamic Insurance with Special Reference to Emerging Markets (<i>Arup Chatterjee</i>).</p> <p>6.1 Background.</p> <p>6.2 Business Environment in Emerging Markets.</p> <p>6.3 Framework of Business Conduct and Best Practices.</p> <p>6.4 Critical Drivers for Developing Market Infrastructure.</p> <p>6.5 Conclusion.</p> <p>7 Supervisory Issues in Takaful: An Overview (<i>Peter Casey</i>).</p> <p>7.1 Introduction.</p> <p>7.2 Governance Issues.</p> <p>7.3 Financial Issues.</p> <p>7.4 Market Conduct Issues.</p> <p>7.5 Market Issues.</p> <p>7.6 Supervisory Priorities.</p> <p><b>Part 2.</b></p> <p>8 Reinsurance and Retakaful (<i>Mahomed Akoob</i>).</p> <p>8.1 Introduction.</p> <p>8.2 What is Reinsurance?.</p> <p>8.3 Functions of Reinsurance.</p> <p>8.4 Types of Reinsurance.</p> <p>8.5 Proportional Reinsurance.</p> <p>8.6 Non-proportional Reinsurance.</p> <p>8.7 Reinsurance Market.</p> <p>8.8 Concept of <i>Takaful</i>.</p> <p>8.9 Need for <i>Retakaful</i>.</p> <p>8.10 <i>Retakaful</i> Models.</p> <p>8.11 Main Issues Raised by <i>Retakaful</i>.</p> <p>8.12 Conclusion.</p> <p>9 Risk Management in Takaful (<i>Abdullah Haron and Dawood Taylor</i>).</p> <p>9.1 Introduction.</p> <p>9.2 Comparison between Conventional Insurance and <i>Takaful</i>.</p> <p>9.3 Fundamental Principles of <i>Takaful</i> from a Risk Management Perspective.</p> <p>9.4 Risk Issues in <i>Takaful</i> Undertakings.</p> <p>9.5 Management of Risks in a <i>Takaful</i> Undertaking.</p> <p>9.6 Concluding Remarks.</p> <p>10 Solvency and Capital Adequacy in Takaful (<i>James Smith</i>).</p> <p>10.1 Introduction.</p> <p>10.2 The Need for Solvency.</p> <p>10.3 The Principle of Solvency.</p> <p>10.4 Traditional Approaches to Insurance Solvency.</p> <p>10.5 Risk-based Capital.</p> <p>10.6 Summary.</p> <p>11 Investment Portfolios of Takaful Undertakings (<i>Dr. Abdulrahman Tolefat</i>).</p> <p>11.1 Total Investment Portfolio of <i>Takaful</i> Undertakings for All Funds.</p> <p>11.2 Shareholders’ Funds.</p> <p>11.3 Analysis of Shareholders’ Funds between the GCC Countries and Malaysia.</p> <p>11.4 General Fund.</p> <p>11.5 Analysis of General Fund between GCC and Malaysia.</p> <p>11.6 Family Fund.</p> <p>11.7 Influence of Related Parties on the Investment Portfolios of Participants’ Funds.</p> <p>11.8 Summary and Conclusions.</p> <p>12 Issues in Rating Takaful Companies (<i>Andrew Murray</i>).</p> <p>12.1 Introduction.</p> <p>12.2 What is a Credit Rating?.</p> <p>12.3 Types of Credit Rating.</p> <p>12.4 Credit Rating Basics.</p> <p>12.5 Key Issues for Rating <i>Takaful</i> Firms.</p> <p>12.6 Conclusion.</p> <p>13 Transparency and Financial Reporting in Islamic Insurance (<i>Elham Hassan and Andre Rohayem</i>).</p> <p>13.1 Introduction.</p> <p>13.2 Stakeholders Need Transparency in Financial Reporting by Islamic Insurance Companies.</p> <p>13.3 Existing Islamic Insurance Financial Reporting Framework Should be Improved to Achieve Greater Transparenc.</p> <p>13.4 Conclusion.</p> <p><b>Part 3.</b></p> <p>14 Concluding Remarks (<i>Simon Archer, Rifaat Ahmed Abdel Karim, and Volker Nienhaus</i>).</p> <p>14.1 Introduction.</p> <p>14.2 The Structure of <i>Takaful</i> Undertakings and Resultant Unresolved Issues.</p> <p>14.3 Corporate Governance and Related Matters.</p> <p>14.4 The Need for, and Scope of, a Comprehensive Regulatory Framework for <i>Takaful</i>.</p> <p>14.5 The Work of the IFSB in Developing International Prudential Guidelines for <i>Takaful</i> Undertakings.</p> <p>14.6 Some Thoughts for the Future.</p> <p>Bibliography.</p> <p>Index.</p>

<b>Professor Simon Archer</b> is Visiting Professor at the ICMA Centre, Henley Business School, University of Reading (U.K.), where he teaches on an MSc program, <i>Investment Banking and Islamic Finance</i>. Previously, he was Professor of Financial Management at the University of Surrey (U.K.) having been Midland Bank Professor of Financial Sector Accounting at the University of Wales, Bangor. After studies in Philosophy, Politics, and Economics at Oxford University, he qualified as a Chartered Accountant with Arthur Andersen in London and then moved to Price Waterhouse in Paris, where he became a Partner in Management Consultancy Services. In addition to being co-editor of, and chapter contributor to, <i>Islamic Finance: Innovation and Growth</i>, and <i>Islamic Finance: The Regulatory Challenge</i> (published by John Wiley), Professor Archer is co-author of the <i>CCH International Accounting/Financial Reporting Standards Guide</i> and the author of a considerable number of academic papers on international accounting and on accounting, finance, and related issues in Islamic financial institutions. He also supervises research students in these areas. He has carried out a number of consultancy assignments for the Accounting and Auditing Organization for Islamic Financial Institutions, the Islamic Financial Services Board, and the World Bank on issues connected with Islamic finance. <p><b>Professor Rifaat Ahmed Abdel Karim</b> has been the Secretary-General of the Islamic Financial Services Board since 2002. Prior to his current position, Professor Rifaat was the Secretary-General of the Accounting and Auditing Organization for Islamic Financial Institutions, a post he held for more than eight years. He was a member of the Standards Advisory Council of the International Accounting Standards Board for two terms, and is currently a member of the Consultative Advisory Group of the International Auditing and Assurance Standards Board. Professor Rifaat was a Visiting Professor at Surrey University (U.K.) and Honorary Professor at Monash University (Australia). He is currently a Visiting Professor at Reading University (U.K.). Professor Rifaat is the co-author of <i>Business and Accounting Ethics in Islam</i>, the <i>Euromoney</i> bestseller book <i>Islamic Finance: Innovation and Growth</i>, and <i>Islamic Finance: The Regulatory Challenge</i> recently published by John Wiley. He is also the author of many academic and professional papers on accounting, governance, and finance issues in Islamic banking and finance.</p> <p><b>Dr. Volker Nienhaus</b> was Professor of Economics at the German universities of Trier (1989–90) and Bochum (1990–2004) before he became President of the University of Marburg (election period 2004–10). He has published numerous books and articles on Islamic economics and Islamic banking and finance since the 1980s. He was a member of several academic advisory boards of public and private institutions in Germany, including the German Orient-Foundation (1993–2006) and the Federal Ministry of Economic Cooperation and Development (1998–2008). In 2006, he was appointed a member of the Governing Council of the International Centre for Education in Islamic Finance (INCEIF) in Kuala Lumpur. He is also consultant to the Islamic Financial Services Board on governance issues of <i>takaful</i> operations.</p>

<i>Takaful</i> is the means of bringing the social and economic benefits of modern insurance coverage, in a form consistent with their religious beliefs, to Muslims and to the merging economics of many predominantly Muslims countries. As such, the development of <i>takaful is</i> crucial, both to social inclusion in non-Muslim countries, and to economic development in a number of countries with emerging market economies. It is therefore only surprising that the <i>takaful</i> industry is undergoing a period of rapid growth. <p>Yet the development of <i>takafu</i>l faces some formidable barriers that are largely due to the complex structure of <i>takaful</i> understandings and the unresolved issues associated with it. These issues contribute to making the development of an appropriate legal and regulatory infrastructure, as well as financial reporting, corporate governance, rating and other related matters, problematic for the <i>takaful</i> industry.</p> <p><i>Takaful Islamic Insurance: Concepts and Regulatory Issues</i> provides an in-depth and comprehensive examination of these issues, contributed by a number of leading experts in the field. The editors, Simon Archer, Rifaat Ahmed Abdel Karim and Volker Nienhaus, who contributed four chapters, are internationally recognized for their work in Islamic finance. This book constitutes essential reading for all those who seek a solid understanding of the <i>takaful industry</i>, whether they be industry regulators or supervisors, practitioners or academics.</p>

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