ISLAMIC INSURANCE
Retakaful definition
Retakaful is Islamic reinsurance that allows takaful operators to share or transfer risk in a Sharia-compliant way.
In practice, this means retakaful refers to the ‘reinsurance’ of a takaful operation and denotes reinsurance that, like takaful or Islamic insurance, is carried out in a way that complies with Islamic principles and sharia law. See also: reinsurance; takaful This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in reinsurance, alternative risk transfer and risk financing. It helps users interpret insurance terminology consistently across markets, policies and risk data. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Retakaful is closely related to takaful, reinsurance, Islamic insurance and risk sharing. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Reinsurance, alternative risk transfer and risk financing.
- Purpose
- Helps users interpret insurance terminology consistently across markets, policies and risk data.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- takaful, reinsurance, Islamic insurance and risk sharing.
Example of retakaful in insurance
A takaful operator shares part of its risk with another Sharia-compliant risk pool. That arrangement may be described as retakaful.