Islamic Insurance in Bangladesh

Prospects for Evolution of Takaful in the 21st Century by Omar Fisher and Dawood Y.Taylor | | (Copyright and reserved by Fellows and President of Havard University, Mass , USA . April 2000) | | | | | | | | | | | | | | | | | | | | Introduction | | According to the world Bank Development Report 2000, the earth's human population is approaching 6 billion, of which upwards of 25% are practicing Muslims who adhere to one of the ancient Abrahamic faiths-Islam. Pressures from rapidly expanding air travel, globalization of industry and trade, 24/7 news media and global 'chat" are compounded by instantaneous satellite telecommunications via the worldwide web to forge a collective consciousness that all peoples are part of "global village". Yet paradoxically, these same contemporary pressures are revealing ethic diversity as never before and this revelation serves to empower affinity groups worldwide. | | | | In the burgeoning field of financial services, the fastest growing segment is Islamic Banking - particularly because it seeks to address needs of an underserved affinity group. Individuals and business in +40 countries with Muslim-majority population and another + 15 countries with Muslim-minority communities share a common value system. IslamiQ.com reports that as of June 2001, the global Islamic Banking sector manages USD$200 Billion in ways that conform to Islamic principles (called the Shariah) with a growth rate of 15% annually. While no definitive data exists, it is believed that this represents 10% to 15% of Muslim-owned fungible assets worldwide. Islamic banking and financial products are attractive for Muslims precisely because of their combination of financial efficacy, religious correctness and spiritual rewards. Every Muslim is held accountable for how s/he manages wealth, invests or borrows funds and cleanses profits by giving a portion for any gains annually to charity (Zakat). | | | |