Interest builds in sharia-compliant captive structures

• Limited investment opportunities and retakaful providers
• Islamic solutions not limited to Muslim community
• Labuan has unique Islamic window framework for takaful entities

While captive takaful remains a niche segment of the captive market, industry participants say interest is increasing as more organisations seek risk financing that align with Islamic finance principles.

A takaful captive must be structured in accordance with Islamic finance principles, operating on a mutual risk-sharing basis in which participants contribute to a common fund that is used to pay claims, rather than relying on the conventional transfer of risk to an insurer.