Reinsurance.. A Legal and Islamic Study

Abstract

The reinsurance is considered as one of the most important guarantees used by insurance companies to stave off collapse and protect themselves through converting part of the risks and fragmentizing the heavy losses that occur to the largest number of the insured people. Moreover, the reinsurance is considered as an important backbone needed for any insurance industry which can not abandon it regardless of its insurance potentials. Islamic insurance companies, like other insurance companies, are badly in need of reinsurance to avoid big losses and fragmentation of the risk included in insurance. The commercial reinsurance is forbidden in Islam that Islamic insurance companies must not resort to it. However, the lack and debility of the Islamic reinsurance companies in some countries create some challenges in front of them, sparking heated debate among contemporary scholars and specialized bodies about the Islamic ruling to resort to it in such a case, and controls that may lead to practice it, as well as the solutions and Islamic alternatives for not resorting to it. This research attempts to examine these previous issues legally through focusing on their truth, borders, history, importance, properties, methods, types and effects.