Similar operations and standards are required in Retakaful operations as well. Retakaful premium recovered from Takaful companies (cedent). A percentage of the Retakaful premium is taken by the Retakaful company as a reward for the managing of the Retakaful fund, underwriting, policies administration, claims processing and settlement etc.

Retakaful is a further protection of policyholders whereby Takaful operator pass on part of the risk/labilities of their policyholders to Takaful Company or Insurance company against suffering too great loss from their Takaful Insurance operations