- Publisher: Edward Elgar Publishing
- Available in: Hardback
- ISBN: 978-1785363351
- Published: July 30, 2016
Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is unique in its risk sharing approach.
This authoritative book tracks the evolution of the takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high level discourse on shari’ahcompliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity.
Scholars and practitioners working in Islamic Finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of shari’ah compliant cooperative finance. The book is equally vital for academics and researchers interested in understanding various takaful models and their shari’ah considerations.
Takaful and its role in Regulatory Capture and Arbitrage: Joe Bradford
This paper examines Fatwā in Islamic Insurance and its role as an underlying cause of Regulatory Capture and Arbitrage. The progression of the Islamic Insurance industry from one almost unanimously forbidden to a multi-billion dollar industry in less than three decades is indicative of the notable advances the industry has made. With its core principles of cooperation, mutuality, and sharing of loss/gain, Islamic Insurance is of particular appeal to the consumer. The paper highlights the key obstacles preventing Islamic Insurance from achieving true mutuality and cooperation, and as such truly serving the consumer for whom it was created. These obstacles include the conflation of terms in understanding mutuality under an Islamic rubric, the undue emphasis on the contractual particulars governing the consumer, and the role of Fatwā or lack thereof in creating Regulatory Capture. It will cover the need for review of the Islamic legal approaches used in the formation of Fatwā in order to limit regulatory arbitrage by way of fees and charitable contributions.
Other Contributors include:
A. Abozaid, A.U.F. Ahmad, A. Akhtar, S.N. Ali, H. Allam, M. Ayub, M. Al Bashir Al Amine, A. Bhatty, S.E.B. Carmody, M.A. El-Gamal, M. Faisal, M.F. Haq, I. Bin Mahbob, A. Nana, V. Nienhaus, S. Nisar, U.A. Oseni, M. Rahman, A. Rehman, M.A. Samad, B. Shafiq, H. Sultan, A.-R. Syed, T.A. Uddin