Reinsurance in the conventional financial system is insurance that is purchased by an insurance company and which allows insurance companies to remain solvent after major negative events followed by large claims. Almost all conventional insurance companies have a reinsurance scheme. Retakaful is the Islamic alternative to the reinsurance industry ensuring the stability of Takaful companies and the entire industry. Retakaful operators have a direct and close connection with the Takaful operators and the success and viability of the Retakaful market depends on the prosperity of the Takaful market.
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