There are still untapped potential markets that need to be explored by Takaful operators in order to sustain the growth. In exploring those markets, Takaful operators need to establish an effective distribution channel. One of these distribution channels is banca Takaful. The collaboration between Islamic banks and takaful operators can enhance the banca takaful's potential to grow and strengthen its presence within the industry. This collaboration will combine value propositions of both Islamic banking and Takaful sectors such as strong linkage with the real economy, risk sharing, and effective risk management.

(a) From the above statement, how can banca Takaful help to sustain the growth of Takaful Operators? State TWO (2) differences between banca takaful and direct marketing? (10 marks)

(b) Define re-takaful. What are the parameters to cede with conventional reinsurance? (10 marks)