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Takaful is a system based on mutual assistance which was approved by the Islamic Fiqh Council in 1985 as a Shari'a compliant alternative to conventional insurance. Commercial insurance is considered unlawful because it involves prohibited elements including maisir (gambling), riba (interest) and gharar (uncertainty).

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The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Takaful - Islamic insurance

Mastering Islamic Finance is a practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. Chapter 8 on Takaful covers the Sharia perspective on conventional insurance, the Islamic alternative (takaful), takaful models, types of takaful policy and the future of the takaful industry (pages 147-159).

Takaful: An alternative to conventional insurance

In Understanding Islamic Finance Muhammad Ayub of the Institute of Islamic Banking and Insurance (IIBI) introduces all the major products and processes associated with Islamic finance. Chapter 16 focuses on Islamic insurance and sets out the need for takaful cover, explains why conventional insurance is prohibited and provides an explanation of how the takaful system works in practice.

Islamic Financial Institutions

'Islamic finance: law, economics, and practice' is a qualitative overview of the practice of Islamic finance. Chapter 8 focuses on Islamic financial institutions, with a discussion of how Islamic versions of commercial banks, insurance companies (Takaful) and venture capital and private equity firms have evolved.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

The market for Takaful

The number of Islamic insurance operators worldwide is gradually increasing but adoption of Takaful is still at an early stage with many commentators observing that it has not yet fulfilled its potential to replace conventional insurance in the leading Islamic finance markets.

Global Takaful report 2017: Market trends in family and general Takaful
This report by actuarial firm Milliman examines the growth of the global and family Takaful markets for 2012 to 2015, analysing financial trends, market penetration rates, and the various opportunities and challenges that lie ahead for the industry. The firm has also produced a paper on Implementing IFRS 17 for Takaful companies, published December 2018.

Global trends in Islamic finance and the UK market 2019
TheCityUK publishes a regular Islamic finance research report which summarises global trends in Islamic finance, with particular reference to how the market - including the Takaful market - is developing in the UK. The most recent report was published in April 2019.

Islamic Finance Outlook 2019
Annual S&P Global Ratings research report predicting trends that will shape the industry's growth in 2019, with a section on the Islamic insurance sector. 

Thomson Reuters Islamic Finance Development Report 2018
The latest Thomson Reuters report examines the top performing markets for Islamic finance services, including Takaful, with an infographic on the top global Takaful markets during 2017. Requires free registration to download.

Islamic Finance News: IFN Annual Guide 2019
This annual IFN journal guide looks at overall markets for Islamic finance, along with articles on Takaful in Asia, Europe and the Middle East and individual country market reports. Requires an IFN subscription to access. 

Islamic Financial Services Industry Stability Report 2019
Annual industry report by the Islamic Financial Services Board (IFSB). Provides updates on trends, market growth and developments in the Islamic financial services industry, including Takaful. Requires free registration to access. 

Multimedia and video

Essentials of Takaful
In this Institute of Islamic Banking and Insurance (IIBI) 2012 video Islamic finance expert Iqbal Asaria provides a short introduction to the essentials of Takaful. Running time, 17:19 minutes.

Takaful - A Discussion
A 2017 IIBI video in which industry experts Iqbal Asaria and Dawood Taylor discuss the origin and concept of Takaful and building capacity in the re-Takaful market. Running time, 22.33 minutes.

Useful links

Institute of Islamic Banking and Insurance
The Institute of Islamic Banking and Insurance (IIBI) publishes the quarterly magazine NewHorizon, which provides coverage of new developments in Islamic finance and Takaful.

Islamic Insurance Association of London (IIAL)
Industry body launched in 2015 to support UK insurance markets transacting Islamic finance. 

Middle East Insurance Review
The Middle East Insurance Review takes a regular look at the latest developments in the Takaful market, including regulatory changes in the Middle East and Asia which have the potential to alter the Takaful landscape.

Further reading

The library provides access to a range of online articles from leading business and finance journals on takaful, supplemented by a collection of articles and books that can be obtained through the library's enquiry service.

Online articles

Access to full text articles is provided for ICAEW members, ACA students and other entitled users subject to the conditions listed in the terms of use statement.

Takaful companies gaining ground

Takaful companies are gaining ground in the United Arab Emirates (UAE) market, according to a new report from AM Best. However, there are concerns that Takaful companies continue to lag behind their conventional counterparts.

Takaful market starts to pick up

James Gavin looks at the improved performance of the Takaful Islamic insurance market in the regional union GCC (Gulf Cooperation Council) and considers some issues that need to be resolved in order for Takaful providers to gain ground on conventional insurers.

Islamic takaful: Business models, Shariah concerns, and proposed solutions

This article examines the basic principles of takaful and then analyzes the mechanics of the two models most commonly used in the industry; the mudarabah system that was developed by the Malaysians and the wakala (agency) system that is now being used by most takaful operators.

Books in the Library collection

Mastering islamic finance : a practical guide to sharia-compliant banking, investment and insurance
F.Karbani (Pearson Education, 2015, 191 pages)
A practical guide to provide practitioners with an understanding of the key concepts underpinning Islamic finance and the prevalent and developing market practices. It also explains the main products and service types and how they differ from comparable conventional finance instruments. Includes a chapter on takaful. 

To find out how you can borrow books from the Library please see our guide to book loans.

You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

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