Enhancing Micro-takaful in Pakistan: Problems and Solutions
Abstract
Micro-takaful is the offering of insurance services to low-income earners based on Islamic principles. The current study gives suggestions/argues for the enhancement of micro-takaful in Pakistan using a qualitative research approach. Following the convenient and judgmental sampling technique, the researchers interviewed 30 respondents from 30 insurance companies (one respondent from each firm) in Pakistan. The study found that there are many obstacles in the way of micro-takaful growth, which include the lack of awareness and interest in takaful services among the general public as well as the lack of culture and practice among them. Similarly, shortage of funds with the insurance companies and lack of takaful experts are also some of the reasons behind the low growth of the industry. This study recommends all the insurance and takaful companies to offer takaful services. It also suggests that the government should support and facilitate the offering of takaful services by insurance companies in Pakistan.
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Copyright (c) 2021 Mohammad Ayaz, Maryam Saeed
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