Takaful Industry in the Era of Technological Advancement


  • Zaki Ahmad Finance and Banking, Universiti Utara Malaysia
  • Mahvish Nawaz Mokal Civilisation and Philosophy, Universiti Utara Malaysia
  • Mahfujur Rahman Islamic Business School, Universiti Utara Malaysia




Fintech, Insurance, Shariah, Takaful, Blockchain


The aim of this paper is to investigate how the takaful industry can address the issue of technological advancement. Furthermore, to explore the way by which takaful operators can compete with fintech insurers as well as in which areas takaful operators should focus on to innovate, e.g., technology or products, Additionally, to find out if there are any shariah concerns if takaful operators jump on the bandwagon of these fintech insurers, The findings of the research show that the impact of technological innovations extends beyond the takaful value chain itself to the whole takaful eco-system. The combination of big data and advanced analytics is reshaping the takaful industry, from underwriting to claims and marketing, by inventing new products and distribution channels. The threat from big-tech companies such as Google, Facebook, Apple, and Amazon have broadened the scope of the operator’s problem because these big-tech companies are currently offering insurance products through their websites. The Takaful industry should tie up with big tech companies to sell their products through their websites. Since these companies have deep knowledge and experience in technology, they have also gained a decent reputation as they have proven records of providing excellent services to their customers and have a vast global reach. This research brings insights for policymakers, regulators, and practitioners. The main insights in this paper are technological advancements in the takaful industry. It further answers the question of which areas Takaful operators should focus on to innovate, e.g., technology or products.

Author Biographies

Zaki Ahmad , Finance and Banking, Universiti Utara Malaysia

School of Economics, Finance and Banking, Universiti Utara Malaysia


Mahvish Nawaz Mokal, Civilisation and Philosophy, Universiti Utara Malaysia

School of Language, civilisation and Philosophy, Universiti Utara Malaysia



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How to Cite

Ahmad , Z. ., Mokal, M. N. ., & Rahman, M. . (2023). Takaful Industry in the Era of Technological Advancement. JEKSYAH Islamic Economics Journal, 3(02), 56–69. https://doi.org/10.54045/jeksyah.v3i02.726