Takaful (Islamic Insurance), Risk Management and Maqasid Al- Sharī‘Ah

Risk presents in the life of a human being from beginning of his/her life until the end. Daily transactions, financial operations are not exceptions from subjects of a risk. Moreover, risk does not differentiate between Islamic and non-Islamic financial transactions. However, the question boils down is “what is view of Islam to a risk and should it be managed and how?” This paper attempts to analyse and examine risk management in takaful from a standpoint of Sharī‘ah objectives. The study is limited to general overview, in other words the paper describes concepts and practices in general without going deep into details. Therefore, qualitative research method was used to analyse risk management in takaful and its relation to the objectives of Sharī‘ah. Findings of this paper are the concepts of risk management in takaful and its relation with Sharī‘ah objectives as it ought to be, as well as disclosure of current practices, issues and challenges to be precise. The study has shown its significance, since there is a lack of literature on this topic. Moreover, this paper shows some issues of current practice of risk management in takaful related to Maqaṣid al- Sharī‘ah.