The Dynamics of Malaysian Takaful Market: Challenges and Future Prospects

Abstract

While Islamic finance industry has witnessed a tremendous growth across the globe, one of the markets, takaful, still requires attention in order to strengthen their position in the industry as well to increase their market share over their conventional counterparts. In the first part of this study, an overview of takaful and Malaysian takaful market will be discussed. Next, this paper will deliberate the challenges facing the takaful operators in developing the market and lastly, future prospects of takaful business will be discussed. This study is important to policy maker, practitioner and researcher who are dealing in Islamic finance, especially the takaful market. This study is useful as a guideline to revamp strategies in promoting the market as well as in enhancing the understanding on the local takaful market.