This document discusses microinsurance and the Islamic alternative of Takaful. It notes that conventional insurance is not allowed under Islamic law due to prohibitions against uncertainty, gambling and interest. Takaful operates under cooperative principles of mutual guarantee and assistance that are compliant with Sharia law. The document examines possibilities for microtakaful including cooperative models and partner agent models. It argues that microtakaful could help address poverty in Muslim communities by providing a safety net. Examples from Lebanon demonstrate that cooperative microinsurance schemes can effectively serve low-income populations when structured according to Islamic principles.