Editing Islamic banking and finance (section)

==== Takaful (Islamic insurance) ====
{{Main|Takaful}}
''Takaful'', sometimes called "Islamic insurance", differs from conventional insurance in that it is based on [[Mutualism (movement)|mutuality]] so that the risk is borne by all the insured rather than by the insurance company.<ref name="DBTCI"/> Rather than paying premiums to a company, the insured contribute to a pooled fund overseen by a manager, and they receive any profits from the fund's investments.<ref name="Economist-8-10-2014"/>
Any surplus in the common pool of accumulated premiums should be redistributed to the insured. (As with all Islamic finance, funds must not be invested in ''[[haram]]'' activities like interest-bearing instruments, enterprises involved in alcohol or pork.)<ref name="DBTCI">{{cite web|title=Difference between Takaful and Conventional Insurance|url=http://www.takaful.com.pk/TakafulVsConventional.html|website=Takaful Pakistan|access-date=21 July 2016|date=c. 2009|archive-url=https://web.archive.org/web/20160722213627/http://www.takaful.com.pk/TakafulVsConventional.html|archive-date=22 July 2016|url-status=dead}}</ref>

Like other Islamic finance operations, the ''takaful'' industry has been praised by some for providing "superior alternatives" to conventional equivalents;<ref name="PfEoTit21C">{{cite web |author1=Omar Fisher |author2=Dawood Y. Taylor |date=April 2000 |url=http://ifpprogram.com/login/view_pdf/?file=Prospects%20for%20the%20Evolution%20of%20Takaful%20in%20the%2021st%20Century.pdf&type=Project_Publication |title=Prospects for Evolution of Takaful in the 21st Century: Origins of Takaful |work=[[President and Fellows of Harvard College]] |access-date=18 January 2018 |archive-date=2 August 2020 |archive-url=https://web.archive.org/web/20200802012313/http://ifpprogram.com/login/view_pdf/?file=Prospects%20for%20the%20Evolution%20of%20Takaful%20in%20the%2021st%20Century.pdf&type=Project_Publication |url-status=dead }}</ref> and criticized by others for not being significantly different from them in its use of the "[[law of large numbers]]" to spread risk,<ref>Siddiqui, Mohammad Najatuallah "Islamic banking and finance in theory and practice: A survey of the state of the art." ''Islamic Economic Studies'', 13 (2) (February): 1–48</ref> or its use of conventional corporate (not mutual) management practices.{{sfn|Khan|2013|p=409}}<ref name="MeGIFLEP2006:170">[[Murabaha#MeGIFLEP2006|El-Gamal, ''Islamic Finance'', 2006]]: p.170</ref>

The industry is projected to reach $25 billion in size by the end of 2017.<ref name="bi.com">{{cite web|title=Global takaful industry to reach $25 billion: Research |url=http://www.businessinsurance.com/article/20170106/STORY/912311289/Global-takaful-industry-to-reach-$25-billion-Research|website=BusinessInsurance.com|date=6 January 2017 |access-date=6 September 2017}}</ref>