ISRA-MTA Thematic Workshop 2012 – An Alternative Model for Re-Takaful, Based on Wadi’ah Concept
Kuala Lumpur, March 15, 2010, The International Shari`ah Research Academy for Islamic Finance (ISRA), organized a thematic workshop on an alternative model for Re-Takaful, based on wadi’ah concept. In line with the tradition of ISRA, the objective was to get feedbacks from the market players namely: the takaful practitioners, regulators and Shariah Scholars.
For the most part, conducting the workshop was not to discredit the existing models in the market rather it was simply intended to expand the options available and to take the industry to the next level. Structured in three sessions, the workshop analyzed, examined and discussed the ‘Wadi’ah Model in Re-Takaful Practice’. The first session described the underlying Shariah concept in the model and why it was preferred.
To substantiate further on it, Associate Professor Said Bouheraoua, a senior researcher in the Academy, drilled the attendees through the intricacies of the new proposed model, its Shariah based nature, the embedded contractual relationship stages in the model implementation. Furthermore, in the second session, the participants discussed the potential implementation challenges in the new model taking account of the regulatory requirements and operational realities. And finally, in the last session, they deliberated upon the way forward.
That being said, one of the key concerns of the industry players was the apparent conflict between the new proposed wadi’ah model and the fundamental distinctive tabarru feature of any takaful practices. However, such issue was comprehensively clarified. Furthermore, at the backdrop of a recent failed implementation of a new takaful proposed model based on waqaf concept, the sustainability and the economic viability of the model topped the other central concerns of the participants. Again, such concern was duly documented.
Overall, at the end of the sessions, the Head of Research Affairs at the Academy, Associate Professor Dr. Asyraf Wajdi made the concluding remarks with lush acknowledgements and gratitude to all the august participants in the workshop. Then, the workshop finally reclined to a close with gratitude to Allah for making it a reality and a success.