Syed Ahmed Salman, PhD – Associate Professor, Faculty of Business, Lincoln University College, Malaysia
Rusni Hassan, PhD – Dean, Professor, Institute of Islamic Banking and Finance, International Islamic University, Malaysia
Syarah Syahira Mohd Yusoff – Deputy Dean, Assistant Professor, Institute of Islamic Banking and Finance, International Islamic University, Malaysia

Series: South Asian Political, Economic and Social Issues
BISAC: MED000000
DOI: https://doi.org/10.52305/IORL6530

Takaful: An Innovation in Contemporary Insurance analyzes the Malaysian Takaful industry, a significant sub-sector within the Islamic financial services market. Takaful is the Shariah-compliant counterpart to traditional insurance, premised on mutual help and collective responsibility among participants. The Malaysian Takaful market has expanded remarkably over the years, supported by rising demand for Shariah-compliant financial products alongside increased ethical investment consciousness. Despite its success, the Takaful sector faces numerous challenges, including intense competition and the need for product innovation. Some of the main challenges include striking a balance between strict adherence to Shariah compliance and responding to evolving consumer needs. The sector also faces the challenge of enhancing outreach, particularly to low-income members of society and the youth, by providing products like micro-Takaful that widen financial inclusion.

The chapters cover various topics, including consumer behavior, family Takaful, and Shariah compliance, with a focus on the definition of Takaful products and services. Additionally, the book explores the evolving dynamics of micro-takaful and its potential to enhance financial inclusion and community resilience in Malaysia. Particular emphasis is placed on the youth market and studies on the Malaysian youth’s intention to utilize Takaful products. The book also addresses the use of the Wakalah-Waqf model in Takaful operations.

Overall, this book provides an in-depth guide to understanding the complex Takaful industry in Malaysia and its growth potential.