“If there is a need to turn to the conventional reinsurance market then the Takaful operator should first try and obtain coverage from the cooperative and mutual insurance sector.”

Takaful reinsurance or Retakaful requires clearly defined joint responsibility which means that it is likely to be arranged on a proportional basis under quota share or surplus treaties. Although non-proportional reinsurance coverage could be arranged on a strict profit commission plan or on a reciprocal basis. However, there are very few retakaful companies in operation; with growing number of Takaful companies the existing retakaful capacity is not sufficient to meet the demand.  The only route available left for takaful companies is to reinsure on conventional basis, contrary to the customer's preference of seeking cover on Islamic principles.  Sharia scholars have allowed takaful operators to reinsure on a conventional basis so long as there was no retakaful alternative available. If there is a need to turn to the conventional reinsurance market then the Takaful operator should first try and obtain coverage from the cooperative and mutual insurance sector.

ICMIF Reinsurance Services (RS) acts as consultant intermediary to member companies for any reinsurance issues and provides reinsurance training. RS is the oldest member service and is the origin of ICMIF. It has steadily expanded over the years and today ICMIF secretariat’s reinsurance services facilitate the exchange of reinsurance business all over the world (in 2003 ICMIF RS facilitated USD 60 million of business between member organisations). Through its experienced staff and its worldwide contacts it can facilitate any type of treaty placement at normally better than market terms due to the low costs.

Amongst its member reinsurers are:

ACR ReTakaful SEA Bhd, a fully-owned subsidiary of ACR ReTakaful Holdings Limited, was incorporated in April 2008 and is a fully Shari'ah-compliant retakaful operator headquartered in Malaysia to capture the vast business opportunities in all parts of Southeast Asia. In July 2008, A.M. Best gave ACR ReTakaful SEA Berhad a financial strength rating of A- (Excellent), this rating was affirmed in January 2012.

BEST Re, established in 1985 BEST Re has an A.M. BEST financial strength rating of 'A-' (Excellent) in 2011. BEST Re focuses on emerging markets, promotion of the mutuality/takaful spirit and assisting low-income sectors.

MNRB Retakaful Berhad, incorporated in December 2006, as a wholly owned subsidiary of MNRB Holdings Berhad and granted the operating license by Bank Negara Malaysia on August 1st 2007. Fitch Affirms MNRB Retakaful Berhad's Insurer Financial Strength rating at 'Bbb+'

Shiekan Insurance & Reinsurance Co. Ltd. is a Sudanese company, established in 1983. Shiekan transacts the cooperative insurance which dictates the distribution of the surplus generated by the insurance operations to the policyholders, an aspect, among others, characterizing this type of insurance as compared to the conventional insurance industry. However, technically speaking the two are similar. In fact, in addition to the insurances of the public sector, Shiekan captures the biggest stake of the Sudanese private insurance business thanks to the private sector's trust in a big portfolio, well balanced and backed by first class reinsurance treaties.

Takaful Re provides a complete range of Retakaful services and products to Takaful and Islamic companies in order to meet their business requirements. The company is consistently ensuring that the products and services offered are in accordance with the principles of the Holy Quran and Sunnah as recommended by its Shari'a Supervisory Board. The Re-takaful fund is managed by experts within an interest-free or Shari'a compliant equity investment scheme. Its "BBB stable" rating has been reconfirmed by S&P in february 2012.

The mission for the reinsurance services is to promote cooperation and understanding in reinsurance matters among members of ICMIF, to encourage reinsurance placements between members, and to advise members on their reinsurance requirements and assist them to obtain suitable cover with secure reinsurers within or outside ICMIF. Through reinsurance services, ICMIF offers a professional member-oriented advisory and placement service, including the collection and payment of premiums and claims, preparation of contracts and technical reinsurance accounting.