Accounting, Auditing and Governance for Takaful Operations

A comprehensive guide to current issues and practices in governance for Takaful and re-Takaful operations As the global demand for Islamic insurance products increases, a thorough understanding of Takaful principles is vital for accountants, auditors, and leaders of companies offering these products. This book covers the basic accounting principles and practices of Takaful operations, including the segregation of assets, liabilities, income, and expenditures between the Takaful operator and participants; the setting aside of cash reserves for meeting outstanding claims and future claims; and the management of revenue and expenditure. Featuring extensive case studies from real-world situations, this book is the perfect primer for accounting students and practitioners unfamiliar with Islamic finance and Takaful operations. Written by experts from the International Islamic University Malaysia, the leading organisation in research in Islamic finance Covers all the major accounting principles and practices Based on real-world experience and packed with illustrative case studies For practicing accountants and business leaders, this book offers a thorough education in Takaful operations while also serving as an excellent guide for undergraduate students and researchers.

1.0 Introduction
1.1 History of Insurance and Takaful
1.1.1 History of Insurance (Conventional Insurance)
1.1.2 History of Takaful (Islamic Insurance)
1.2 Differences between Takaful and Conventional Insurance
 1.2.1 Risk Management in Islam
1.2.2 Insurance in Islam
1.2.3 Fatwas declaring the illegality of Conventional Insurance
1.2.4 Fundamental Differences based on Prohibitions
1.2.5 Summary of differences between Takaful and conventional insurance
1.3 Shariah, Legal and Regulatory Framework of Takaful
1.3.1 The Shariah principles
1.3.2 The Shariah Framework of Takaful
1.3.3 Legal and Regulatory Framework of Takaful
1.3.3.1 Legal Ruling of Islamic Insurance in Malaysia
1.3.3.2 Regulatory framework of Takaful
1.3.3.2.1 Takaful Act 1984
1.3.3.2.2 Licensing of Takaful Operators
1.3.3.2.3 Statutory Deposits
1.3.3.2.4 Compulsory Membership
1.3.3.2.5 Insurer Solvency
1.3.3.2.6 Takaful Fund
1.3.3.2.7 Investment of Takaful Funds
1.3.3.2.8 Supervision of Takaful Operators
1.4 The International Association of Insurance Supervisors (IAIS) and Islamic Financial Services Board (IFSB)
1.5 Different Types of Takaful Models
1.5.1 Basic Takaful Model
1.5.2 Types of Takaful Model
1.5.2.1 Pure Cooperative (Taa’wuni) Model
1.5.2.2 Pure Wakalah (agency) Model
1.5.2.3 Wakalah with Incentive Compensation
1.5.2.4 Pure Mudarabah (only investment profit-sharing) Model
1.5.2.5 Modified Mudarabah Model
1.5.2.6 Hybrid Wakalah-Mudarabah Model
1.5.2.7 Waqf Model                                               
1.6 Conclusion