Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar

Saadat Imam Makame; Mohammed Hafidh; Abdalla Ussi Hamad

doi:doi:10.11648/j.rd.20210201.14

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Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad

Published in Research & Development (Volume 2, Issue 1)

Received: 19 February 2021 Accepted: 19 March 2021 Published: 30 March 2021

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Abstract

Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.

Published in	Research & Development (Volume 2, Issue 1)
DOI	10.11648/j.rd.20210201.14
Page(s)	20-26
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Islamic Insurance (Takaful), Tanzania Financial Market, Descriptive Statistics

References

[1]	Talah, J. H (2009). Takaful in Status Sudan. Journal of Risk and Insurance 63, no. 41: 532-564.
[2]	Jaffer, S. (2006). Global Takaful Review: Evolving Trends, Opportunities and Challenges. Islamic Finance News, pp 86-91.
[3]	Fisher, O. S. (2008). Takaful Markets and Products: A Training and Reference ManualInstitute of Business administration, Karachi, Pakistan, August Pg 14-22 41.
[4]	Ali, K. M. (2008). Islamic Jiban Bima: Bartoman Prekhhpot. Bangladesh Institute of Islamic Life Insurance Limited, Bangladesh Pg 28-31.
[5]	Kamsam, T. (2006). Regulatory impediments faced by Market players in Takaful Industry. Islamic Finance news. 31st March (Vol. 3 Issue 8).
[6]	Noordin K., Fares D. (2016) Issues and Challenges in Introducing Islamic Insurance (Takaful) into the Algerian Financial Market: Lessons from Malaysia. In: Ab. Manan S., Abd Rahman F., Sahri M. (eds) Contemporary Issues and Development in the Global Halal Industry. Springer, Singapore.
[7]	Nabi, G. and Rahman, M. (2019). Exploring Potentials and Challengesof Takaful in Bangladesh. The Quarterly Journal of Islamic Economics Research Bureau, 29 (01 & 02).
[8]	Anand, M. (2014). Islamic Insurance in Malaysia: Insights For The Indian Insurance Industry. Singapore Journal of Legal Studies, 1-23.
[9]	Wahab, A. A., Lewis, M. K. and Hassan, M. K. (2007). Islamic takaful: Business models, Shariah concerns, and proposed solutions. Thunderbird International Business Review.
[10]	Zaki, Z. and Alok, S. (2013). A Comparison of the Efficiency of Islamic and Conventional Insurers. Towers Watson Technical Paper No. 2100531.
[11]	Yusop et al. (2011). Risk management efficiency of conventional life insurers and Takaful operators. Insurance Markets and Companies: Analyses and Actuarial Computations, Volume 2, Issue 1.
[12]	Al-Amri et al. (2014). Economies of Scope, Organizational Form, and Insolvency Risk: Evidence from the Takaful Insurance Industry. SSRN Electronic Journal.
[13]	COMCEC Annual Progress Report 2019.
[14]	Khan, I., Rahman, N. N. B. A., Yusoff, M. Y. Z. B. M. et al. (2016). History, problems, and prospects of Islamic insurance (Takaful) in Bangladesh. SpringerPlus 5, 785.

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APA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. (2021). Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Research & Development, 2(1), 20-26. https://doi.org/10.11648/j.rd.20210201.14

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ACS Style

Saadat Imam Makame; Mohammed Hafidh; Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res. Dev. 2021, 2(1), 20-26. doi: 10.11648/j.rd.20210201.14

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AMA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res Dev. 2021;2(1):20-26. doi: 10.11648/j.rd.20210201.14

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@article{10.11648/j.rd.20210201.14,
  author = {Saadat Imam Makame and Mohammed Hafidh and Abdalla Ussi Hamad},
  title = {Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar},
  journal = {Research & Development},
  volume = {2},
  number = {1},
  pages = {20-26},
  doi = {10.11648/j.rd.20210201.14},
  url = {https://doi.org/10.11648/j.rd.20210201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.rd.20210201.14},
  abstract = {Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.},
 year = {2021}
}

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TY  - JOUR
T1  - Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar
AU  - Saadat Imam Makame
AU  - Mohammed Hafidh
AU  - Abdalla Ussi Hamad
Y1  - 2021/03/30
PY  - 2021
N1  - https://doi.org/10.11648/j.rd.20210201.14
DO  - 10.11648/j.rd.20210201.14
T2  - Research & Development
JF  - Research & Development
JO  - Research & Development
SP  - 20
EP  - 26
PB  - Science Publishing Group
SN  - 2994-7057
UR  - https://doi.org/10.11648/j.rd.20210201.14
AB  - Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.
VL  - 2
IS  - 1
ER  -

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Author Information

Saadat Imam Makame

Department of Economic, Zanzibar University, Zanzibar, Tanzania
Mohammed Hafidh

Department of Economic, Zanzibar University, Zanzibar, Tanzania
Abdalla Ussi Hamad

Department of Economic, Zanzibar University, Zanzibar, Tanzania

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APA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. (2021). Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Research & Development, 2(1), 20-26. https://doi.org/10.11648/j.rd.20210201.14

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ACS Style

Saadat Imam Makame; Mohammed Hafidh; Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res. Dev. 2021, 2(1), 20-26. doi: 10.11648/j.rd.20210201.14

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AMA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res Dev. 2021;2(1):20-26. doi: 10.11648/j.rd.20210201.14

Copy | Download

@article{10.11648/j.rd.20210201.14,
  author = {Saadat Imam Makame and Mohammed Hafidh and Abdalla Ussi Hamad},
  title = {Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar},
  journal = {Research & Development},
  volume = {2},
  number = {1},
  pages = {20-26},
  doi = {10.11648/j.rd.20210201.14},
  url = {https://doi.org/10.11648/j.rd.20210201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.rd.20210201.14},
  abstract = {Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar
AU  - Saadat Imam Makame
AU  - Mohammed Hafidh
AU  - Abdalla Ussi Hamad
Y1  - 2021/03/30
PY  - 2021
N1  - https://doi.org/10.11648/j.rd.20210201.14
DO  - 10.11648/j.rd.20210201.14
T2  - Research & Development
JF  - Research & Development
JO  - Research & Development
SP  - 20
EP  - 26
PB  - Science Publishing Group
SN  - 2994-7057
UR  - https://doi.org/10.11648/j.rd.20210201.14
AB  - Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.
VL  - 2
IS  - 1
ER  -

Copy | Download