Profit Commission from Reinsurance Arrangement An Analysis from Shariah Perspective

Abstract

This research analyzes the profit commission from reinsurance arrangements payable to the Takaful fund from a Shariah perspective. To address the research questions and achieve the objectives, this study employs a qualitative research methodology, including a literature review and an examination of primary and secondary sources such as academic papers, books, and articles related to the topic. In addition to textual analysis, the researchers have conducted non-structured interviews and discussions with experts from the General Underwriting department of a takaful operator in Malaysia. As a result, the study identifies two differing opinions on this issue, each supported by various justifications. After analyzing these justifications, the researchers acknowledge the presented evidence. However, it is evident that the second opinion allowing the recognition of profit commission from reinsurance arrangements holds stronger justification based on the analysis conducted.