Islamic finance also employs the concept of Takaful, which islamic finance i(https://shariafinance.com.au/)s an Islamic alternative to conventional insurance. Takaful operates on the principles of mutual assistance and risk-sharing. Participants contribute to a fund, and in case of a loss or event covered by the policy, the fund is used to cmpensate the affected participants. This way, the risk is collectively shared among the participants, adhering to Islamic principles.