---
title: "What is Takaful operator? | IslamicOpenFinance™"
description: "The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both."
url: https://islamicopenfinance.com/glossary/takaful-operator/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Takaful](https://islamicopenfinance.com/glossary/#takaful)

Takaful

# Takaful operator

The entity that manages a takaful business on behalf of participants, usually for a fee, a profit share or both.

A takaful operator is any establishment or entity that manages a takaful business, usually though not necessarily as part of the legal entity in which participants' interests are held, as IFSB-29 puts it. The operator underwrites, handles claims and invests the funds on participants' behalf. It is remunerated under a wakalah fee, a mudarabah profit share or a hybrid of the two, and conduct standards require it to treat participants fairly and disclose how it is paid.

## Sources

- [IFSB-29 Conduct of Business Supervision for Takaful Undertakings, 2023: Definitions, Takaful operator](https://www.ifsb.org/wp-content/uploads/2023/12/IFSB-29-Conduct-of-Business-Supervision-for-Takaful-Undertakings.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Takaful** Mutual cover: participants contribute to a common fund, as donations, to help one another against specified losses.](https://islamicopenfinance.com/glossary/takaful/) [**Wakalah model (takaful)** The takaful model in which participants appoint the operator as agent to run underwriting and investment for a known fee.](https://islamicopenfinance.com/glossary/wakalah-model/) [**Shareholders' fund (takaful)** The takaful operator's own fund: its capital, fees and expenses, kept apart from the participants' funds.](https://islamicopenfinance.com/glossary/shareholders-fund/) [**Takaful participant** A person or business that joins a takaful scheme, contributes to its funds and is entitled to compensation under its terms.](https://islamicopenfinance.com/glossary/takaful-participant/)

**Takaful**

1. [Takaful](https://islamicopenfinance.com/glossary/takaful/)
2. [Tabarru](https://islamicopenfinance.com/glossary/tabarru/)
3. [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund/)
4. [Participants' investment fund](https://islamicopenfinance.com/glossary/participants-investment-fund/)
5. [Shareholders' fund (takaful)](https://islamicopenfinance.com/glossary/shareholders-fund/)
6. [Wakalah model (takaful)](https://islamicopenfinance.com/glossary/wakalah-model/)
7. [Takaful participant](https://islamicopenfinance.com/glossary/takaful-participant/)
8. [Underwriting surplus](https://islamicopenfinance.com/glossary/underwriting-surplus/)

[All 221 terms](https://islamicopenfinance.com/glossary/)