---
title: "Takaful and retakaful | IslamicOpenFinance™"
description: "Participants share risk through a fund the operator manages but does not own. Contribution split, Claims from the risk fund, Surplus handling and more for Takaful and retakaful on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/takaful/
lang: en-GB
source: "IslamicOpenFinance"
---

> Participants share risk through a fund the operator manages but does not own. Contribution split, Claims from the risk fund, Surplus handling and more for Takaful and retakaful on IslamicOpenFinance™.

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Markets

# Takaful and retakaful

Participants share risk through a fund the operator manages but does not own.

In takaful, participants contribute to a risk fund that pays claims, while the operator earns a wakalah fee or a mudarabah share for managing it. The fund, the operator's shareholders' fund and any surplus must be kept apart, as IFSB standards on takaful describe. IslamicOpenFinance™ separates those funds in the model and in every event.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### Contribution split

Each contribution is split between the participants' risk fund and the operator's fee as the certificate provides.

2

### Claims from the risk fund

Approved claims are paid from the participants' risk fund and recorded against it.

3

### Surplus handling

Underwriting surplus is determined and distributed or retained as the approved model states.

4

### Qard from the operator

If the risk fund is in deficit, a qard from the operator is recorded and tracked for repayment.

5

### Retakaful cession

Risks ceded to retakaful operators are recorded with their recoveries.

Value chain

## The actors in this chain

IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.

Participant Takaful operator Participants' risk fund Retakaful operator Surveyor Insurance regulator Shariah committee

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=takaful)

Typical flow

## A typical flow, step by step

1. **Quote**
2. **Contribution**
3. **Split to risk fund and fee**
4. **Certificate**
5. **Claim**
6. **Payment from the fund**
7. **Surplus**

Live demo

## See it in the terminal

Omar's motor claim with Hisn Takaful (demo) paid from the participants' risk fund, not from the operator's funds. Demo data

**Demo** All institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.

Glossary

## Key terms for this sector

[Takaful](https://islamicopenfinance.com/glossary/takaful) [Participants' risk fund](https://islamicopenfinance.com/glossary/participants-risk-fund) [Wakalah](https://islamicopenfinance.com/glossary/wakalah) [Mudarabah](https://islamicopenfinance.com/glossary/mudarabah) [Qard](https://islamicopenfinance.com/glossary/qard)

Other sectors

## Related sectors

[Markets Sovereign and corporate sukuk issuers Every issuance repeats the same steps; each one is still run by email and spreadsheets. - Issuance workflow - Subscription book - Asset register See the sector](https://islamicopenfinance.com/sectors/sukuk-issuers/) [Markets Islamic funds and asset management Screening, purification and distributions have to be provable to investors and boards. - Shariah screening - Purification of income - Subscriptions and redemptions See the sector](https://islamicopenfinance.com/sectors/asset-management/) [Social Islamic microfinance Small amounts, many customers and the need for low-cost, fair contracts. - Micro-murabaha - Qard hasan - Group products See the sector](https://islamicopenfinance.com/sectors/microfinance/)

## Build Takaful and retakaful on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)