Managing Surplus in Takaful Insurance Companies: The Moroccan Experience as a Model

Abstract

The abstract: This research aims to shed light on the regulatory, legal, and Sharia principles governing the distribution methods of surplus in cooperative insurance companies, proposing the optimal approach for distribution that maximizes fairness to the stakeholders in insurance companies as much as possible. It also highlights the importance of managing insurance surplus in cooperative insurance companies, reflecting solidarity among contributors in bearing losses and reducing insured risks by collective donations. We emphasize the significance of the surplus distribution system in balancing the principles of solidarity, achieving justice, and equality among members of the cooperative body, contributing to reinforcing the idea of Islamic cooperative insurance. This underlines the credibility of cooperative insurance companies and their adherence to Islamic Sharia provisions through their commitment to the opinions of the subcommittee of participative finance emanating from the Higher Islamic Council in Morocco. To achieve this goal, the researcher adopted an analytical approach to present theoretical and practical methods for managing cooperative insurance surplus. The researcher recommended the necessity of forming reserves and allocations for cooperative insurance companies before distributing the surplus to confront potential future deficits that may hinder their operations.