Course description
Principles and Practices of Islamic Insurance
This course will provide students with an advanced understanding of Islamic insurance or "Takaful."
Practices that resemble modern-day insurance date back centuries. The Islamic practice of Takaful originated among ancient Arab tribes. It functioned as a pooled liability that required offenders from one tribe to pay compensation to the victims (or their heirs) of another. Takaful has since evolved to include many forms and plans needed in Modern society while still meeting the approval of Muslim scholars.
This course begins with an introduction to insurance and risk management. You'll explore the Islamic perspective on insurance and risk, risk identification, and measurement. From there, you'll review tools of risk management, risk avoidance, and risk financing, as well as insurance as a risk financing tool.
You'll take a closer look at specific Islamic finance products, as well as perspectives on risk taking versus risk avoidance and note milestones in the Islamic approach to risk reduction. Finally, you'll explore the six stages of Islamic insurance development and examine insurance contracts - their purposes, limitations, and sources.
Upcoming start dates
Who should attend?
Prerequisites
Although there areno course prerequisites, basic knowledge of Islamic financewill be helpful.
Training content
Week 1: Overview of Economic Risk
- Introduction
- What is Risk?
- Risk vs. Uncertainty
- Components of Risk and Associated Terms
- The Islamic Perspective of Risk
- Risks Faced by Financial Institutions
Week 2: Islamic Perspective on Risk Management
- Introduction
- Islamic Finance Products - Associated Financial Risks
- Fundamentals of Enterprise Risk Management (ERM)
- Enterprise Risk Management - Process
- Islamic Approach to Risk Taking Vs. Risk Avoidance
- Milestones in the Islamic Approach to Risk Reduction
Week 3: Principles of Islamic Risk Management
- Introduction
- Risk Management from an Islamic Viewpoint
- Risk Management Framework
- Risk Management in Islamic Financial Institutions
- Causes for Failures within an Organisation
- Use of Hedging Instruments for Risk Minimisation
- Managing Risks in Islamic Modes of Finance
- Integrated Approach to Risk Management
Week 4: Legal Principles Underlying Islamic Insurance Products
- Introduction
- Six Stages of Islamic Insurance Development
- Proposed Model for Islamic Insurance Contracts
- Limitations Imposed by the Sharī‘ah on Insurance Contracts
- Fundamental Characteristics of Insurance Contracts
- Purpose of Insurance Contracts
- Generic Sources of Islamic Insurance Contracts
- Specific Sources of Islamic Insurance Contracts
Course delivery details
This course is offered through Islamic Development Bank Institute, a partner institute of EdX.
3-6 hours per week
Costs
- Verified Track -$50
- Audit Track - Free
Certification / Credits
What you'll learn
- Overview of Economic Risk
- Islamic Perspective on Risk Management
- Principles of Islamic Risk Management
- Underlying Legal Principles
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