SUSTAINING THE TAKAFUL INDUSTRY IN MALAYSIA: CRITICAL FACTORS AND STRATEGIES

Abstract

This paper aims to outline the future direction of Malaysia's takaful industry by highlighting several crucial aspects that takaful operators should focus on to ensure long-term sustainability. To accurately address the research objectives, a qualitative research methodology was employed. Primary data was collected through in-depth interviews with four informants who possessed expertise in various fields related to takaful. The analysis identified six critical areas that require attention for the sustenance of the Malaysian takaful industry: increasing the number of retakaful companies, introducing Sharia parameters, establishing a clear insolvency framework, ensuring transparency in the legal and operational framework, enhancing the knowledge and trustworthiness of agents, and conducting comprehensive research. This study has several limitations. Firstly, the focus on the perspectives of takaful operators (TOs) in Malaysia may limit the generalizability of the findings to TOs in other countries. Secondly, the small number of informants interviewed may not fully capture the diversity of opinions and experiences in the industry. Future research could address these limitations by expanding the scope to include multiple countries and increasing the sample size of informants. The findings provide valuable insights for takaful operators, guiding them in developing future business targets and directions. These results are significant for the industry, offering strategies to increase market share and deliver better quality products and services to customers.