Models of Takaful in Bangladesh Perspective

Milliman Research Report
Prepared by:
Safder Jaffer
Farzana Ismail
Jabran Noor
Lindsay Unwin
Reviewed by:
Debo Ajayi
November 2010

Takaful (Islamic Insurance):
Concept, Challenges, and Opportunities

Takaful (Islamic Insurance): Concept, Challenges, and Opportunities
Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin
November 2010

Takaful (Islamic Insurance): Concept, Challenges, and Opportunities
Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin
November 2010

Milliman
Research Report

Contents
EXECUTIVE SUMMARY

2

BACkgROUND AND MARkET OUTLOOk

3

PRINCIPLES AND PRACTICES UNDERLYINg TAkAFUL

5

TAkAFUL OPERATINg MODELS

11

ISSUES AND ChALLENgES FACINg ThE TAkAFUL INDUSTRY

15

CONCLUSION

25

APPENDIX I: gLOSSARY

26

APPENDIX II: BIBLIOgRAPhIC REFERENCES

28

APPENDIX III: SELF REgULATINg BODIES & TAkAFUL gROUPS

29

Takaful (Islamic Insurance): Concept, Challenges, and Opportunities
Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin
November 2010

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Milliman
Research Report

exeCutive summary
Through desktop research, one can get a plethora of materials and papers on Takaful, but most tend to focus either on the fundamentals of Takaful or on Takaful models. In contrast, the objective of this report is to highlight the key issues and challenges facing the world of Takaful and suggested areas where work is required to find solutions.
Therefore this report is intended to provide useful reference material for practioners by summarising the following key items:
• An overview of Takaful and the intricacies of the models
• Insights into the issues and challenges facing the Takaful industry
• Finding sustainable solutions to some of these challenges

Takaful (Islamic Insurance): Concept, Challenges, and Opportunities
Safder Jaffer, Farzana Ismail, Jabran Noor, Lindsay Unwin
November 2010

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Research Report

BaCkground and market outlook