Takaful and Mutual Insurance : Alternative Approaches to Managing Risks
Access to insurance, as part of a broad range of essential financial services, is especially important for poor households in order to smooth consumption, build assets, absorb shocks, and manage risks associated with irregular and unpredictable income. Without access to good formal insurance service...
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| Format: | Publication |
| Language: | en_US |
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Washington, DC: World Bank
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/13087 |
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okr-10986-13087 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
Access to insurance Accounting actuarial science actuaries amount of capital Assurance auditors balance sheet balance sheets bilateral transaction bond broker business laws capacity building capital adequacy capital base capital markets capital requirements casualty insurance central banks Chapter 13 Chapter 7 claim commercial law commissions conflict of interest conflicts of interest consumers contractual terms conventional insurance Cooperative Insurance Cooperatives Corporate Governance coverage credit standing criminal law debt debt instruments debts deficits dependent Deposit Deposits developing countries Development Bank dividends Earthquake Insurance economic development emerging economies equities equity holders estate finances financial constraints financial crisis Financial Flows Financial Institutions financial reporting free assets global market good governance holding Holdings implicit guarantee indemnity inflation insolvencies Instrument Insurance insurance broker Insurance Companies insurance company Insurance Exchange insurance funds insurance industry insurance market Insurance Markets insurance policy insurance premiums insurance products insurance regulation insurance regulations insurance risk Insurance Supervisors insured events insured risks Insurers integrity interest Cost interest income interest rates interests of stakeholders International Bank international trade investing investment activities investment decisions investment instruments investment opportunities Investment risk investment risks Investment Strategy investments in equities Islamic bonds Islamic finance Islamic Financial Institutions Islamic Financial Services Islamic Insurance Islamic investments Islamic markets Islamic transactions issuance joint stock companies joint stock company judgment jurisdiction Jurisdictions lack of transparency leverage liability liability insurance life insurance loan long-term investment loss of property market development Market Share market value merger Micro Insurance Microcredit microfinance microfinance institution Microinsurance minimum capital requirements Monetary Fund mortgage nonpayment ownership structure ownership structures Policyholders poor reputation portfolio Poverty Alleviation principal-agent relationship profitability programs property investments quality of assets Regulatory Framework regulatory frameworks Reinsurance reinsurance companies reinsurers reserves return returns riba risk allocation risk capital risk management Risk mitigation risk premiums Risk sharing risk transfer Risk Underwriting risk-sharing arrangements risk-sharing mechanism savings secondary markets settlements shareholder Shareholders Solvency solvent Specific debt sukuk supervisory board sustainability Takaful tax tax incentives trading transaction Treasury treaties treaty trust fund turnover underwriters winding up |
| spellingShingle |
Access to insurance Accounting actuarial science actuaries amount of capital Assurance auditors balance sheet balance sheets bilateral transaction bond broker business laws capacity building capital adequacy capital base capital markets capital requirements casualty insurance central banks Chapter 13 Chapter 7 claim commercial law commissions conflict of interest conflicts of interest consumers contractual terms conventional insurance Cooperative Insurance Cooperatives Corporate Governance coverage credit standing criminal law debt debt instruments debts deficits dependent Deposit Deposits developing countries Development Bank dividends Earthquake Insurance economic development emerging economies equities equity holders estate finances financial constraints financial crisis Financial Flows Financial Institutions financial reporting free assets global market good governance holding Holdings implicit guarantee indemnity inflation insolvencies Instrument Insurance insurance broker Insurance Companies insurance company Insurance Exchange insurance funds insurance industry insurance market Insurance Markets insurance policy insurance premiums insurance products insurance regulation insurance regulations insurance risk Insurance Supervisors insured events insured risks Insurers integrity interest Cost interest income interest rates interests of stakeholders International Bank international trade investing investment activities investment decisions investment instruments investment opportunities Investment risk investment risks Investment Strategy investments in equities Islamic bonds Islamic finance Islamic Financial Institutions Islamic Financial Services Islamic Insurance Islamic investments Islamic markets Islamic transactions issuance joint stock companies joint stock company judgment jurisdiction Jurisdictions lack of transparency leverage liability liability insurance life insurance loan long-term investment loss of property market development Market Share market value merger Micro Insurance Microcredit microfinance microfinance institution Microinsurance minimum capital requirements Monetary Fund mortgage nonpayment ownership structure ownership structures Policyholders poor reputation portfolio Poverty Alleviation principal-agent relationship profitability programs property investments quality of assets Regulatory Framework regulatory frameworks Reinsurance reinsurance companies reinsurers reserves return returns riba risk allocation risk capital risk management Risk mitigation risk premiums Risk sharing risk transfer Risk Underwriting risk-sharing arrangements risk-sharing mechanism savings secondary markets settlements shareholder Shareholders Solvency solvent Specific debt sukuk supervisory board sustainability Takaful tax tax incentives trading transaction Treasury treaties treaty trust fund turnover underwriters winding up Gönülal, Serap O. Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| relation |
Directions in Development--Finance; |
| description |
Access to insurance, as part of a broad range of essential financial services, is especially important for poor households in order to smooth consumption, build assets, absorb shocks, and manage risks associated with irregular and unpredictable income. Without access to good formal insurance services, the poor depend on less reliable and often far more expensive informal sector mechanisms. Yet, in many majority Islamic countries, accessing and using insur-ance products has been quite limited, as many Muslims avoid such services over concerns about riba (interest), gharar (uncertainty and ambiguity in contracts), and maysir (speculative risk), among other factors. Takaful insurance products are emerging as a central part of the Shariah-compliant family of financial services, helping meet insurance needs in ways that are consistent with the local norms and beliefs of many majority Islamic countries. Takaful has been developing steadily since the first Shariah-compliant insurer was founded in 1979, based on a Shariah-compliant cooperative model resembling mutual insurance. This is based on a group of participants donating funds into a pool that members can then use in the event of specified unfavorable contingencies. While practitioners have applied varying business models and standardization remains a challenge, many policy makers recognize the potential of takaful to expand financial inclusion and have aimed to promote the industry with supportive legislation and effective regulation. The response has been strong, with premiums growing about 30 percent (inflation adjusted) annually between 2007 and 2010, reaching US$8.3 billion. This robust performance is expected to continue, based on substantial latent demand in Muslim majority countries and improvements in the industry, including better distribution capabilities. |
| author2 |
Gönülal, Serap O. |
| author_facet |
Gönülal, Serap O. Gönülal, Serap O. |
| format |
Publications & Research :: Publication |
| author |
Gönülal, Serap O. |
| author_sort |
Gönülal, Serap O. |
| title |
Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| title_short |
Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| title_full |
Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| title_fullStr |
Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| title_full_unstemmed |
Takaful and Mutual Insurance : Alternative Approaches to Managing Risks |
| title_sort |
takaful and mutual insurance : alternative approaches to managing risks |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/13087 |
| _version_ |
1764422429573120000 |
| spelling |
okr-10986-130872021-04-23T14:03:06Z Takaful and Mutual Insurance : Alternative Approaches to Managing Risks Gönülal, Serap O. Gönülal, Serap O. Access to insurance Accounting actuarial science actuaries amount of capital Assurance auditors balance sheet balance sheets bilateral transaction bond broker business laws capacity building capital adequacy capital base capital markets capital requirements casualty insurance central banks Chapter 13 Chapter 7 claim commercial law commissions conflict of interest conflicts of interest consumers contractual terms conventional insurance Cooperative Insurance Cooperatives Corporate Governance coverage credit standing criminal law debt debt instruments debts deficits dependent Deposit Deposits developing countries Development Bank dividends Earthquake Insurance economic development emerging economies equities equity holders estate finances financial constraints financial crisis Financial Flows Financial Institutions financial reporting free assets global market good governance holding Holdings implicit guarantee indemnity inflation insolvencies Instrument Insurance insurance broker Insurance Companies insurance company Insurance Exchange insurance funds insurance industry insurance market Insurance Markets insurance policy insurance premiums insurance products insurance regulation insurance regulations insurance risk Insurance Supervisors insured events insured risks Insurers integrity interest Cost interest income interest rates interests of stakeholders International Bank international trade investing investment activities investment decisions investment instruments investment opportunities Investment risk investment risks Investment Strategy investments in equities Islamic bonds Islamic finance Islamic Financial Institutions Islamic Financial Services Islamic Insurance Islamic investments Islamic markets Islamic transactions issuance joint stock companies joint stock company judgment jurisdiction Jurisdictions lack of transparency leverage liability liability insurance life insurance loan long-term investment loss of property market development Market Share market value merger Micro Insurance Microcredit microfinance microfinance institution Microinsurance minimum capital requirements Monetary Fund mortgage nonpayment ownership structure ownership structures Policyholders poor reputation portfolio Poverty Alleviation principal-agent relationship profitability programs property investments quality of assets Regulatory Framework regulatory frameworks Reinsurance reinsurance companies reinsurers reserves return returns riba risk allocation risk capital risk management Risk mitigation risk premiums Risk sharing risk transfer Risk Underwriting risk-sharing arrangements risk-sharing mechanism savings secondary markets settlements shareholder Shareholders Solvency solvent Specific debt sukuk supervisory board sustainability Takaful tax tax incentives trading transaction Treasury treaties treaty trust fund turnover underwriters winding up Access to insurance, as part of a broad range of essential financial services, is especially important for poor households in order to smooth consumption, build assets, absorb shocks, and manage risks associated with irregular and unpredictable income. Without access to good formal insurance services, the poor depend on less reliable and often far more expensive informal sector mechanisms. Yet, in many majority Islamic countries, accessing and using insur-ance products has been quite limited, as many Muslims avoid such services over concerns about riba (interest), gharar (uncertainty and ambiguity in contracts), and maysir (speculative risk), among other factors. Takaful insurance products are emerging as a central part of the Shariah-compliant family of financial services, helping meet insurance needs in ways that are consistent with the local norms and beliefs of many majority Islamic countries. Takaful has been developing steadily since the first Shariah-compliant insurer was founded in 1979, based on a Shariah-compliant cooperative model resembling mutual insurance. This is based on a group of participants donating funds into a pool that members can then use in the event of specified unfavorable contingencies. While practitioners have applied varying business models and standardization remains a challenge, many policy makers recognize the potential of takaful to expand financial inclusion and have aimed to promote the industry with supportive legislation and effective regulation. The response has been strong, with premiums growing about 30 percent (inflation adjusted) annually between 2007 and 2010, reaching US$8.3 billion. This robust performance is expected to continue, based on substantial latent demand in Muslim majority countries and improvements in the industry, including better distribution capabilities. 2013-04-08T17:01:18Z 2013-04-08T17:01:18Z 2013 978-0-8213-9724-4 10.1596/978-0-8213-9724-4 http://hdl.handle.net/10986/13087 en_US Directions in Development--Finance; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research |