TAKAFUL is the Islamic alternative to life insurance. It is a donation contract of which all activities are conducted according to Islamic Sharia’a rules. It covers a group of subscribers who are exposed to certain homogenous risks by where if one subscriber is subjected to damage they will be compensated (or their agent) via TAKAFUL fund in accordance with the terms set in advance between the two parties in exchange for regular, full or part installment donations made by all subscribers, whom will share any surplus or returns made and share any losses as well as management duties of the fund.
Re-insurance – is a process of insuring the liabilities accepted by an insurance company under contract with the insured directly with re-insurance specialized companies, whether local, regional or global, in exchange of paid installments of certain percentages of the insured risks.
The main purpose of sharing such services, or part of them, with re-insurance companies is to preserve the soundness of the company’s financial standing and meet its contractual commitments towards the insured when claims are made.
Top benefits of re-insurance:
1.    Distribution of risks and liabilities that have been contracted by the insurance provider.
2.    Mitigation and prevention against catastrophic losses.
3.    Widen the range of expertise within the insurance company through engaging in theoretical training programmes.
4.    Make use of the design experience of re-insurance firms by sharing with them some of the significant signed lists with greater risks.
Types of re-insurance contracts:
Treaty reinsurance  – this type provides quick, automatic facilitations for an insurance company to accept risks that are insured against. This type includes two main sub-types:
1.    Proportional Treaty
2.    Non-Proportional Treaty
Proportional Treaties: This treaty is structured upon a pro rata basis where both the primary company and the reinsurer share obligations and rights in terms of the premiums and compensation of the policyholder.
Non-Proportional Treaties: This sub-type of treaties is considered an advanced formula in the reinsurance business, used by the primary company to protect against major losses, in the following way:
1.    Excess-of-loss Treaty
2.    Stop-of-loss Treaty
Reinsurance calculations:
This involves many procedures including preparing financial statements of premium, compensation, expenses and commissions shares of the primary insurers and the reinsurers, based upon quarter or bi annual basis. It also involves withholding a percentage of the achieved premiums each year for the insurer, as a guarantee for good execution, with similar approach to compensation. 
First: Death
The incidence of death, particularly pre-mature death, is a fact of life and it triggers fear of its impact on family members or those who have rights upon the deceased after they die, as well as their potential suffering due to death. Therefore, people need to adjust with this situation in proportional terms, which brings the mention of Group TAKAFUL insurance against death in two folds:
A.   Natural Deaths
The company will pay the inheriting or will-mentioned members of the family of the deceased an amount of money equal to the agreed said value in the policy.
B.   Accidental Deaths
The compay will pay the inheriting or will-mentioned members of the family of the deceased an amount of money double the said value in the policy or as agreed upon between both parties.
Second: Terminal Total Disability due to accident or illness  
This is a case when someone becomes disabled due to an illness or an accident that has led to non-employment because of loss of body organs, limb(s) that has led to total paralysis, insanity, etc. as well as dismemberment of one or both hands or legs. The benefits are paid to the policyholder in equal amount to the said value agreed upon, after the passing of a station period of six months in the case of disability due to illness.
Third: Terminal Partial Disability due to accident 
This is a less severe case to the above when someone becomes partially disabled due to an accident that has led to loss of a body organ or dismemberment of one of their hands or legs, etc. The benefits are paid to the policyholder of a percentage amount to the said value in accordance with the proportion of disability, in line with Islamic teachings “fiqh”.
Fourth: Temporary Total Disability due to accident 
This is a case when someone becomes temporarily bodily disabled due to an accident against their will that has led to non-employment or the loss of work ability in any other form of paid income for a certain period of time, leading to a return to normality afterword. The benefits are paid to the policyholder in the form of weekly payments of their salary up to 52 weeks or recovery, whichever comes first. This requires a station period of one week before making payments.