Operational Solutions for Retakaful in Islamic Republic of Iran The Comparative Analysis of Reinsurance & Retakaful:

Abstract

Sometimes the losses in insurance companies are so considerable that even the total sum of capitals and reserves of the company are not enough to compensate them. That's why the reinsurance companies were established. As reinsurance is necessary for survival of the insurance companies at unexpected losses, the Retakaful operation is vital for takaful companies which perform the insurance operation according to the Islamic contracts. This research which is the analytical- descriptive approach is done by the documentary method. The main purpose of this research is the comparison between the Reinsurance and the Retakaful. There is also a survey of Iran's reinsurance operation in internal and external sectors. Islamic Republic of Iran Central Insurance, on the one hand, and Reinsurance Pool and International Reinsurance Companies, on the other, are examined for the internal sector and external sector respectively, and their limitations are specified. The conclusion shows that the Retakaful can be proposed as complementary to other kinds of insurance coverage in the Islamic Republic of Iran.

Keywords

• conventional insurance
• takaful
• reinsurance
• retakaful