The need for creating gold based
/ and multi-currency based domestic re-insurance pools, in each
designated market of operation is essential for the very nature
of insurance business. This is a business that is determined
on the law of probability. In Pakistan, premia-contributions
for acquired risks, without securitization of assets, have seen
a traditional loss of 30% max. of the direct premium receipts
(at an average) over the last four decades. This means we as
a poor, so-called third world country, are subsidizing the economies
of the developed world. This is improper! Creation of domestic
and international reinsurance pools are constantly necessary
and we have put our first such product DAULAT in place. The
‘assumption of risk’ and the ‘meeting of claim’
are both taken as external (to the capital) factors and therefore
pegged one against the other. DAULAT, the Islamic re-insurance
concept is a first, and classic instrument that can instantly
meet liabilities assumed with out suspicion and counter surveillance.
If a risk is assumed and there is a loss the insurance company
will and must pay. More; the size of the risk is no more an
issue! We can assume a risk of any size to the entire comfort
of the insured! Much like Islamic banking, which is real asset
based money management Islamic insurance propounded here is
real asset based risk assumption, creating an ever-growing capital
resource pool in each designated market.
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