Tradi­tional insu­rance pro­ducts often fail to meet Islamic prin­ciples on prac­tices such as char­ging inte­rest. In recent years, this has led to the crea­tion of a signi­ficant market for Sharia-compliant Takaful products.

Takaful opera­tors adopt a pooling struc­ture, where parti­cipants contri­bute to a fund that pro­vides compen­sation when­ever prede­fined claim condi­tions arise. Char­ging a manage­ment fee, dedi­cated Takaful opera­tors are respon­sible for distri­buting any sur­plus after claims – and for funding any de­ficit when claims exceed contri­butions.

Having rein­sured busi­ness in a number of Islamic coun­tries over many years, Hannover Re has long taken a strong interest in this deve­loping market. We recog­nised early on that the Takaful concept only holds true when every link in the chain of risk adheres to Takaful rules. This led us, in 2006, to create a fully Sharia-compliant rein­surance company, Hannover ReTakaful.

As a separately consti­tuted and capita­lised Takaful rein­surer within one of the world’s top-tier rein­surance groups, Hannover ReTakaful is 100% com­mitted to Sharia-compliant opera­tions, taking regular advice from a panel of highly res­pected Islamic scholars and wor­king in strict accor­dance with the pre­cepts of Islamic finance.

Our clients benefit from the combi­nation of global under­writing exper­tise and a deep know­ledge of Takaful insurance. We have the commer­cial flexi­bility to identify and imple­ment Sharia-compliant solu­tions enabling them to compete effec­tively in their target markets.

The business has grown strongly over the years, and we have a proud record today of retur­ning a sur­plus to the Takaful opera­tors who pool their risks through Hannover ReTakaful.