By 2008, the total gross written premium (GWP) for takaful business (life and non-life combined) had grown to just under $5.1 billion.
Takaful Insurance Resources
Understanding Takaful Practice
Takaful originates from Arabic word Kafalah, which means "joint guarantee". In principle, the Takaful Insurance system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants
Risk Financing
The following are areas of activity in which risk financing should at least to be targeted at:
1. Evalution of total values at risk
2. Estimation of total cost of risk which consist of :
- Cost of retained losses
- Cost of risk sharing scheme under Takaful
- Risk control and handling costs
- Risk management and administration expenses
3. Identification of appropriate sources of funding in advance of any loss. One of the sources could be proceeds from a Takaful Fund.
