A proposed model for an Islamic insurance industry

The problem. The study addressed the need for a viable Islamic insurance industry that could be instrumental in development of the economies of Muslim countries.;Method. A modified Delphi method was applied to obtain consensus among experts on the validity and utility of the model. The Delphi method was modified to include a combination of model formulation rounds and questionnaire rounds. Also, the Delphi method used in this study included a structured questionnaire supported by an article to explain the model.;The model formulation rounds were conducted during the early stages of development. Questionnaire rounds were scheduled in the late stages of development and after completion of the model formulation rounds.;Results. A framework was developed and evaluated to provide guidance in answering the following questions: (1) What are the preconditions for establishing a viable Islamic insurance industry? (2) What organizational structures are likely to be suitable for Islamic Insurance companies? (3) How should the rate of return (profit or loss) on investments of Islamic insurance companies be determined? (4) How should the rate of return for investors investing in the Islamic insurance industry be determined? (5) How should insurance premiums be calculated? (6) How should insurance products be designed? (7) How should Islamic governments assist an Islamic insurance industry? (8) What role should Islamic governments have regarding regulation of Islamic insurance companies, especially in the areas of investments and operations? (9) How could the proposed model be applied to develop a viable capital market in Islamic countries?...