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.