SS 41 – Islamic Reinsurance

This Standard aims to illustrate the rules and principles of Shari’ah that govern Islamic reinsurance and indicate the controls which Islamic insur- ance and reinsurance companies as well as Islamic financial institutions (Institution/Institutions) should observe in dealing with traditional in- surance and reinsurance companies. The overall objective of the standard is to facilitate transference of risks and increasing of insurance capacity.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This Standard covers Islamic reinsurance and participation with tradi- tional insurance or reinsurance companies. The Standard does not cover Islamic insurance which has already been covered in a separate standard. 2. Definition of Reinsurance