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Islamic Finance (Expert Panel)


RBC for Takaful – Differences from Conventional, Impact and Opportunities
Author(s): Charlene Lee — Source: Munich Re Retakaful — Year Published: 2011
Summary: Presentation to the 16th East Asian Actuarial Conference: Venture into Uncertainty, Capture Opportunities 10-13 October 2011 - Kuala Lumpur, Malaysia

Takaful Insurance
Author(s): Zainal Kassim, Richard Letarte and Marie-Luc Robert — Source: SOA Life 2008 Spring Meeting — Year Published: 2008
Summary: PowerPoint

Takaful & Retakaful - Advanced Principles & Practices
Author(s): Tobias Frenz and Younes Soualhi — Source: Islamic Banking and Finance Institute Malaysia — Year Published:
Summary: This publication is based on the research done in the course of setting up Munich Re's office for Islamic reinsurance: Munich Re's retakaful operation (MRR) was licensed by the Central Bank of Malaysia on 31 December 2007 in Kuala Lumpur to conduct worldwide family and general retakaful business.

The purpose of this publication is to provide an insight into the principles and current practices of Islamic insurance (takaful) and reinsurance (retakaful) for takaful practitioners and scholars of Islamic law (Shari'a) as well as readers new to Islamic insurance, It provides a balanced mix of general background information, technical knowledge and examples from the current key takaful markets, written by two experts in the field, one a German actuary and the other a Shari'a Scholar. The publication will equip the reader with a detailed knowledge of takaful, complemented by a primer on the Islamic banking and capital market as well as Islamic contract law.

This publication will be updated regularly to reflect the fast pace at which the takaful and retakaful industry is developing. It does not aim to be comprehensive and exhaustive, but a rather a snapshot of the current practices and discussions within the takaful industry.

At Munich Re we are convinced that there is ample space for innovation and optimisation in the takaful industry and hope that this publication will give food for thought and contribute ideas for further development.

Do Markets Perceive Sukuk and Conventional Bonds as Different Financing Instruments?
Author(s): Godlewski, Christophe J., Turk Ariss, Rima and Weill, Laurent — Source: BOFIT Discussion Paper No. 6/2011 — Year Published:
Summary: The last decade witnessed an unprecedented proliferation in issues of sukuk, Islamic financial instruments structured to replicate the cash flows of conventional bonds. Using a market-based approach on Malaysian data, we consider whether investors react differently to the announcements of sukuk and conventional bond issues. Our findings suggest the stock market is neutral to announcements of conventional bond issues, but reacts negatively to announcements of sukuk issues. We attribute this finding to the excess demand for Islamic investment certificates and explain the difference in stock market reactions as an adverse selection mechanism that favors sukuk issuance by lower-quality debtor companies. Unlike previous studies, our findings indicate markets readily distinguish between sukuk and conventional bonds.