Is takaful industry innovative? Examining the perception of Takaful operators in Malaysia
Takaful is a social and ethical insurance based on the principle of Ta’awun (cooperation) and Tabarru (donation) where the risk is shared collectively by members of a policy. The concept of Takaful is providing financial assistance to the participants on a basis for mutual assistance, brotherhood...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
International Business Information Management Association (IBIMA)
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/72882/ http://irep.iium.edu.my/72882/ http://irep.iium.edu.my/72882/9/72882%20%20%20%20%20%20%20Is%20takaful%20industry%20innovative.pdf http://irep.iium.edu.my/72882/2/72882%20Is%20takaful%20industry%20innovative%20SCOPUS.pdf |
| Summary: | Takaful is a social and ethical insurance based on the principle of Ta’awun (cooperation) and Tabarru
(donation) where the risk is shared collectively by members of a policy. The concept of Takaful is providing
financial assistance to the participants on a basis for mutual assistance, brotherhood and solidarity in cases
where the participants face some misfortune. Takaful is an alternative to the conventional insurance, and its
primary objective is to protect the participants based on the ethical and moral foundations. Due to its unique innovative and not facing any major issues at the moment. They also suggested various possible solutions to
the current situation which indirectly shows that there are many aspects that can be improved in the Takaful
industry to achieve innovation that meets consumer requirements and satisfaction.
characteristics, Takaful is one of the fastest growing areas of International finance. An industry that started
with less than 10 players in the early eighties has become a multi-billion-dollar global industry that currently
spans across South-East Asia, Middle East, Africa, Central Asia and Europe with more than 200 players. The
purpose of this research is to understand how Takaful operators view Takaful products that are being created
with innovative methods and techniques in Malaysia. As compare to most of the prior research that are
centred on the demand side (i.e. consumers), this research however focuses on the supply side of Takaful
industry (i.e. the Takaful operators). The findings of this research are significant as it pushes the industry to
be innovative in their products and services. Not only innovative products are good to the customer, but also
enhance the Malaysian Takaful products to become global models. To achieve this objective, in-depth and
semi-structured interviews were conducted with the relevant fourteen officers among the Takaful Operators
(TOs) to obtain their views regarding the objective. From the findings, it can be seen that there is a negative
trend of innovation in the Takaful industry as the respondents highlighted a lot of issues and challenges that
hamper innovation in the whole industry. Only a few respondents thought that the industry is already |
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