View source for Technical Aspects of Takaful By Azman Ismail

   Business Operatio

Proposal for Enhance

                           Azma

       HIJRAH Strategic Advisor

                    Tel : 603-42

                    Fax : 603-42

        Email : azman.hijrah@em

                azmanwong@ya


              Shariah

   Surplus              Legal I

Reserving                Acco

      Pricing           Shariah

              Retakaful


Takaful Practitioners technically

“incompetent” when it comes to sha

issues.

Reflect the state mentioned by Abd

Qadir Audah

The need for practitioners to be

‘technically’ competent in both shari

insurance knowledge


Application/Proposal Forms

Policy/Certificate Wordings

Accounting of Premiums/Contributio

Claims & Retakaful (Additional

discussions on accounting and reta

Surplus distribution – shariah issue


Employ more shariah graduates

Expose practitioners to usul fiqh, qa

fiqhiyah & fiqh muamalah

Shariah scholars given allowance to

at least once a week


Not all countries have legal infrastru

Those countries that have legal

infrastructure – conflicts between

legislations

Gap between legislators, supervisor

players


Legal infrastructure for Muslim coun

acts of parliament, decrees, DG

guidelines,

Committee for legal reforms – to es

and enhance takaful position

Common ombudsman – e.g. IFSB e


Contribution

Claims/Reserves

Surplus


Cash/Accrual Issues

Late payment issues

Agency/collection issues

Contribution Warranty Issues


Unearned/Unexpired risks

IBNR (including IBNYR, IBNER)

Valuation Reserves


Accounting Standards – AAOIFI ba

Standard Contractual Model

Financial Models


Lacking In Takaful

Parallel To Conventional Audit

Areas of Audit


Combine shariah & technical perso

conduct regular audit

Develop audit standards & instrume

Make it compulsory on operators

Training for shariah auditors


Retakaful Programming

{Shariah Considerations

  zHolding company is conventional insurance

  zCo-takaful – among operator & with conven

{Retention

  zBetween shariah & business considerations

{Structure


Retakaful Pool Beyond Geographic

Groupings

Strong Technical Retakaful Operato

Strategic Partnership With Reinsure

Transfer of Appropriate Technology


“Scientific” approach

General takaful – actuarial input

Pricing factors

“Image”

Compilation & coordination of data 

operators


Conventional reserving methods for

general insurance

 {May elect to choose most suitable base

  shariah considerations

Conventional reserving methods for

insurance

 {Most may be suitable from shariah angl

 {Based on legal maxims


Pure Mudharabah Model

Modified Mudharabah Model

Basic Wakalah Model

Wakalah-Jualah Model