Takaful and Islamic cooperative finance: Challenges and opportunities

Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is unique in its risk sharing approach.

This authoritative book tracks the evolution of the takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high-level discourse on shari’ah compliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity.

Scholars and practitioners working in Islamic finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of shari''ah-compliant cooperative finance. The book is equally vital for academics and researchers interested in understanding various takaful models and their shari''ah considerations.