Retakaful commission
An amount a retakaful or reinsurance provider pays back to the ceding takaful undertaking for its work in placing the business.
A retakaful or reinsurance commission is a percentage of the contributions ceded, paid by the reinsurer to the ceding Islamic insurance company for its efforts in mobilising the reinsured contracts. AAOIFI's Islamic reinsurance standard defines it alongside a profit commission, which rewards good performance on the reinsured risks. Because the cession is made on behalf of the participants' fund, how such commissions are allocated between that fund and the operator is a disclosure and governance question.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.