Converting an Insurance Company to Takaful
Separate the funds, choose the operator model, convert the portfolio, investments and reinsurance, and complete the change
Advanced · 22 hours · 42 lessons · Language: English and Arabic · ID: IFS-COU-0078
USD 25Original price USD 45
Included in the annual membership.
No expiry
Converting an insurer into a takaful operator changes the company's legal and economic heart: the participants, not the shareholders, own the risk fund, and the company becomes their agent or manager for a fee or a share of profit. Every policy, investment, reinsurance treaty and product has to follow.
This advanced course takes an insurance company through conversion in light of AAOIFI's Shari'ah Standard No. 26 (Islamic Insurance) and No. 41 (Islamic Reinsurance): the conversion routes, governance and regulatory approval, separating the participants' and shareholders' funds, operator models and remuneration, converting the in-force portfolio and the investments, surplus, deficit and qard, retakaful, products and distribution, and accounting, reporting and completing the conversion.
The course has readings, practitioner case studies with worked logs, tests and calculations, slides, study notes and practice quizzes, and a final exam of 30 scenario-based questions in 60 minutes (70% to pass).
This course is written by ifSPACE in its own words, does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa or legal advice.
What you will learn
- Explain why insurers convert to takaful and choose a conversion route
- Set up governance and obtain regulatory approval for a takaful conversion
- Separate the participants' and shareholders' funds and choose the operator model
- Convert the in-force portfolio, investments and reinsurance programme
- Calculate operator fees, surplus distribution and qard
- Report on the funds and complete and audit the conversion
Syllabus
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1.From insurance to takaful: the case for conversion
- Welcome to the courseFree preview1 min
- From insurance to takaful: the case for conversionFree preview30 min
- Practitioner case study30 min
- Module 1 presentation15 min
- Module 1 practice quiz15 min
2.Governance and regulatory approval
- Governance and regulatory approval30 min
- Practitioner case study30 min
- Module 2 presentation15 min
- Module 2 practice quiz15 min
3.Separating the funds
- Separating the funds30 min
- Practitioner case study30 min
- Module 3 presentation15 min
- Module 3 practice quiz15 min
4.Operator models and remuneration
- Operator models and remuneration30 min
- Practitioner case study30 min
- Module 4 presentation15 min
- Module 4 practice quiz15 min
5.Converting the in-force portfolio
- Converting the in-force portfolio30 min
- Practitioner case study30 min
- Module 5 presentation15 min
- Module 5 practice quiz15 min
6.Converting the investment portfolio
- Converting the investment portfolio30 min
- Practitioner case study30 min
- Module 6 presentation15 min
- Module 6 practice quiz15 min
7.Surplus, deficit and qard
- Surplus, deficit and qard30 min
- Practitioner case study30 min
- Module 7 presentation15 min
- Module 7 practice quiz15 min
8.Retakaful and reinsurance
- Retakaful and reinsurance30 min
- Practitioner case study30 min
- Module 8 presentation15 min
- Module 8 practice quiz15 min
9.Products, distribution and operations
- Products, distribution and operations30 min
- Practitioner case study30 min
- Module 9 presentation15 min
- Module 9 practice quiz15 min
10.Accounting, reporting and completing the conversion
- Accounting, reporting and completing the conversion30 min
- Practitioner case study30 min
- Module 10 presentation15 min
- Module 10 practice quiz15 min
- Course summary and where to go next20 min