Takaful Operators and Socio-economic Objectives during the Pandemic of Covid-19: Issues and Challenges

Abstract

Objective: Takaful operations in Malaysia have proven their credibility through the remarkable achievement in market structure and net contribution income. This research paper discusses on the issues and challenges faced by Malaysian Takaful Operators in contributing for the socio-economic objectives during the pandemic of Covid-19. Methodology: In complementing this study, ten respondents from takaful industry will be interviewed in gathering their insight over the subject matter. This study is in line with the VBIT framework which have been introduced to achieve inclusive protection for the underserved or unserved segments of the society and to address relevant socio-economic issues. Findings: Based on the findings, Malaysian Takaful Operators are optimistic about their performance always seek for the best opportunity in contributing to the society.  Takaful Operators also believe that all the challenges that they are currently faced would not become the barriers for them to consistently contribute to the socio-economic objectives even it is not in the pandemic era anymore. Implications: The proposed solution for the identified problems is part of the contribution in this study and can be very useful for the industry player. Some of the listed strategies are different from prior studies, and in fact, there is no study previously which have been discussing the challenges in detail.