Purpose The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its … profit without adequately bearing the liability for potential loss. Social implications The condition of ḍamān al …

, such transactions create reinsurance default risk, or the risk that captive reinsurers will default on their obligations to … the underlying insurers. Second, they can expose insurers to recapture risk, or the prospect that an insurer will no … insurance scheme. Third, shadow insurance can create correlated parent company risk by magnifying the prospect that a single …