The following video from Hasham Piperdy goes inside the Takaful Framework. He explains the internal framework of Takaful, focusing on fund structures, investment strategies, and governance. Takaful operates with three distinct funds—participants’ risk and investment funds, plus a shareholders’ fund—to ensure transparency, fairness, and solvency. Investments must comply with Shari’ah principles, avoiding interest and prohibited industries, while surpluses and deficits are managed ethically through redistribution or interest-free loans. Strong governance and oversight keep the system aligned with both financial discipline and Islamic values.
Contributors: Hasham Piperdy, FIA; Lisa Schilling, FSA, EA, FCA, MAAA; Jon Forster, ASA, MAAA