This episode, Hasham Peperdy explores the different Takaful models that bring the framework into practice. The Hybrid, Wakala-only, and Cooperative models differ in how operators earn income, handle surpluses and deficits, and share investment results. Unique financial tools such as Wakala fees, Mudarabah fees, and Qard-e-Hasn loans ensure solvency while upholding Shari’ah principles. The episode also explains actuarial considerations in pricing, reserving, and compliance oversight, highlighting the importance of stewardship and fairness in Takaful operations.
Contributors: Hasham Piperdy, FIA; Lisa Schilling, FSA, EA, FCA, MAAA; Jon Forster, ASA, MAAA