The Specific Features of the Islamic Insurance System

Abstract

Takaful, or „Islamic Insurance,” has gained popularity since the 1990s, especially in the Gulf Cooperation Council and Southeast Asia. It offers a morally justifiable alternative for Muslim adherents seeking religiously-aligned insurance products. With over 300 operators, takaful is a $90 billion global industry and has a significant market share in countries like Brunei, Kuwait, Malaysia, Bangladesh, Oman, and Pakistan. However, it faces hurdles such as murky legal frameworks and lower profitability than conventional insurance. Given the significance of takaful, insurers need to continuously improve and expand their takaful offerings in order to successfully access this niche market as technology progresses. The objective of this paper is to clarify the basic features of takaful, an Islamic substitute for conventional insurance, by conducting a thorough review of relevant literature. The review emphasizes the differences, operational structures, ethical principles, and current practices of takaful, while also identifying potential research areas. The ultimate goal of this study is to advance our understanding of takaful and contribute to its development.
Keywords: Insurance, Emerging markets, MENA Region, Islamic finance
Jel-code: G22, G23, K39

Introduction

Since the 1990s, especially since the global financial crisis in 2009, „Islamic Insurance”, or takaful, has been gaining popularity as an alternative to conventional insurance products. The key markets for Islamic insurance are the countries of the Gulf Cooperation and Southeast Asia, where up to a quarter of insurance is covered by „Islamic Insurance” products, with a market share of 45.8% in Brunei, 39.3% in Kuwait, 23.9% in Malaysia, 14.4% in Bangladesh, 13.9% in Oman, and 12.6% in Pakistan. (Statista, 2023) The worldwide value of the takaful business amounts to 90 billion US dollars, and there are over 300 takaful operators globally. (Statista, 2024)

The critical premise of Islamic insurance is that conventional insurance products are not suitable to fulfil the needs of Muslim believers due to excessive risk and profit hunger. This article seeks to illustrate the critical peculiarities of Islamic Insurance, its Islamic-theological foundations, and key schemes, as well as highlight the biggest challenges in the industry. An essential aspect in comprehending the legitimacy of Islamic Insurance, or takaful, is an Islamic legal perspective, which will also be explored in this article, alongside elucidating Islamic insurance schemes and their current practices.

Methods

This research paper aims to explain the fundamental characteristics of takaful, which is an Islamic alternative to conventional insurance. The paper employs a comprehensive literary review to highlight the key differences between takaful and conventional insurance. Through an in-depth analysis of existing literature, the study identifies the unique features that distinguish takaful from conventional insurance mechanisms. It also explores the operational frameworks and ethical underpinnings of takaful. In addition to this, the paper delves into the contemporary landscape of takaful practices and identifies areas for future research. This study contributes to a better understanding of takaful, a rapidly growing field, and facilitates its advancement.

Result

Historical Overview
Insurance, as we know it today, emerged in the Mediterranean region during the late Middle Ages. Initially, it was limited to marine insurance, and many of the key terms used in this industry are of Italian-Spanish origin and derived from maritime jargon. The development of insurance was closely linked to European modernity, as technological advances brought new risks that required protection through insurance policies. The founding and rapid growth of the world’s most crucial insurance exchange, Lloyds London, is a testament to this fact that still holds today. (Lloyd’s, 2024)
During the early development of the insurance industry, its legal recognition did not keep up with its economic growth. In France, before the French Revolution, there was a rising insurance industry that was seen as socially unacceptable by the new government after the revolution. The government believed that the sector was speculative, and as a result, it was severely impacted. (Delbrel, 2018) Although this view was later revised, concerns about the industry remained, and the insurance contract was classified as an aleatory contract in the Code Napoléon of 1804 (§1964 Code Civil). Many European law codes, including the Austrian General Civil Code of 1812 (§1267ff. ABGB), followed this approach, possibly influenced by the French developments. In Europe, it was only towards the end of the 19th and 20th centuries that lawmakers started recognising the unique nature of insurance contracts. During this period, the first set of legal regulations specific to insurance were created.
In the Muslim world, insurance adoption was slow due to its colonial history and faced significant scepticism. Insurance products were not aligned with the local population’s reality, and there was also resistance from Muslim legal scholars towards insurance. While most legislations now recognise insurance contracts (such as those in Egypt, Turkey, Morocco, and Iran), insurance penetration remains below the world average. Even in the developed, oil-rich Gulf monarchies, insurance density and penetration remain lower than their potential. (Swiss Re, 2023, 38ff) This is partly due to Muslim law scholars’ reluctance towards insurance and the controversial insurance assessment from an Islamic Law perspective.
Theological Divides: Perspectives on Insurance in Islamic Jurisprudence
Islamic legal scholars from the four classical Sunni schools of law have historically been divided in assessing the insurance industry. Three distinct groups can be identified: the first group considers insurance to be h.arām or forbidden, without exception; the second group regards insurance as h.alāl or mubāh. (i.e. permitted); and the third group evaluates each type of insurance separately before making a decision.
Debates on the permissibility of insurance in Islam are complex and varied, with opinions ranging from outright rejection (Lohlker, 1996) to explicit endorsement (Bälz, 2009). One of the main challenges that scholars face is that the concept of insurance is not present in traditional Islamic commercial law (fiqh). (as-Sanhūrī, Šayh˘ Muh.ammad Ah.mad Fargˇ, 1972) Unlike European legal traditions, some schools of Islamic commercial law have a limited number of pre-defined contract types and do not allow for freedom of contract. This approach is intended to promote ethical conduct in business transactions by maintaining strict moral control over commercial activities (Schacht, 1991).
The insurance contract poses a challenge in Islamic law due to excessive risk (ġarar) and the prohibition of unjust enrichment (ribā). Scholars argue that the insurance benefit depends on unforeseeable events, making the subject matter of the contract unclear and violating the principle of equitable consideration (ʿiwad.) in Islamic contract law (Rosly, 2001). This type of transaction, known as baiʿ al-ġarar, is negatively assessed in both the Sunni(al-Gˇazīrī, 2003) and šīʿite (ˁUrfānī, 1993) legal traditions. More recent interpretations view baiʿ al-ġarar as a “risk, luck or aleatory business,” (El-Gamal, 2001) which includes the insurance contract.
Main Characteristics and Schemes of Islamic Insurance
In response to the reservations voiced by Islamic fiqh scholars regarding conventional insurance in the preceding section, a unique “Islamic-compliant” product family known as takaful (in rabic transcript takāful) has emerged since the late 1970s. Takāful, often labelled as “Islamic insurance” in Western literature, signifies a distinct approach (van Greuning & Iqbal, 2008).
Definition of Terms, History and Current Situation of the Takāful Market
Definition of terms
Takāful is an Islamic alternative to commercial insurance. This difference is emphasised in the choice of words and technical implementation. Takaful is derived from the Arabic root “kaf-fa-lam” which means “to provide”, “to ensure” and “to provide a guarantee” (Wehr, 1977) The sixth Arabic stem, which indicates reciprocity, suggests that mutual commitment is deliberately emphasized in Takaful.
History and current situation
In Islamic finance, claims are expected to be made that the instruments used in Islamic finance have their origins and structure in the Koran, Sunna, and the community of Medina. However, these claims are only partially scientifically verifiable. For instance, when it comes to the origin of takāful, Omar and Dawood make such a claim.
“A close examination of the primary sources of guidance for Muslims (the Qur’an and the Sunna), reveal that members of the first Islamic community fourteen centuries ago practiced successful schemes of cooperative risk sharing (Highlighted by the Author), even before the advent of takaful (sic))” (Fisher & Taylor, 2000).
The first modern company to specialise primarily in takāful products was the Islamic Insurance Company of Sudan, founded in 1979. The company, which is still active, is based in Khartoum and specialises in takāful-based living (watīqa-t-takāfulīya), families (at takāfulu-l ˁāˀilī) and collective takāful (at-takāfulu-l jamiˁī), among others. In addition, the company also offers classic insurance models, such as car insurance (Alsalama, 2024). From the founding of the Islamic Insurance Company of Sudan until the turn of the millennium, the popularity of takāful was limited. In 1999, only 34 takāful firms were operating worldwide (Lewis, 2011a).
The takaful industry experienced a rapid increase in the year 2000. In 2008, the number of takaful companies was between 100 and 150. By 2010, 195 takaful firms were already operating globally, and as of 2019, around 300 takaful firms are registered worldwide, according to the Global Takaful Directory. In 2018, the total volume of the takaful market was estimated to be $19 billion, expected to rise to $126.8 billion by 2032 (Prnewswire, 2024).
The takāful industry mainly focuses on the Gulf Cooperation Council (GCC) countries. In 2015, they contributed to 77% of the global takāful market in gross premiums. Southeast Asia and Africa follow with 15% and 5% global market share, respectively. The remaining markets, including the rest of the Arab region, accounted for only 3% of the market share in 2017. There are over 350 takāful firms worldwide, with just over a third registered in the Gulf monarchies and Malaysia (Statista, 2024).
In the 2010s, the takaful industry witnessed strong annual growth rates, which ranged between 13% and 14% in some years. However, the growth figures varied significantly across different regions. The Gulf Cooperation Council countries experienced an impressive growth rate of 18%, while the Southeast Asian market recorded a relatively modest expansion of 4% (Milliman, 2018).
The marketing efforts of takāful companies attracted a consumer class with high purchasing power and religious awareness, resulting in a significant increase in the takāful market.
Main Discussions and Basic Features
The goal of Islamic Insurance is to operate on a non-profit basis and ensure equitable risk-sharing among all participants. This is achieved by creating a dedicated takāful fund. Policyholders, as participants, contribute premiums to this fund. The fund is then used to cover claims of the participants in case of loss. The takāful operator is responsible for managing the fund and ensuring its profitability. They collect participant contributions and invest the fund assets in Sharia-compliant financial markets. Profits generated from the fund are typically shared among the participants. However, participants are also liable to cover any investment deficits. The takāful business model is similar to mutual insurance associations under German and Austrian law (Sultan H. & Syed A.-R., 2016).
In contrast to mutual insurance associations (VVaG), the concept of mutuality is not fully realized in conventional takāful practice. Instead, a hybrid structure is commonly employed, where takāful operators function as profit-oriented corporations, while the takāful fund exhibits characteristics akin to mutual insurance associations (Archer S., Abdel Karim R.A., Nienhaus V., 2009). Regarding premium payments, the principle of tabarruʾ, derived from classical Islamic law, predominates in the takāful industry, a concept that will be further elaborated upon below.
The accumulation of uncertain payments in the future against sums of money in the present is a major topic in Islamic commercial law. The orthodox view is that this practice is considered ġarar and violates one of the fundamental principles of Islamic economics (Nienhaus, 2016). However, fiqh scholars have concluded that this rule only applies to transactions against consideration, and unilateral transfers of assets without corresponding consideration, such as gifts, are exempt from this rule.. (Nienhaus, 2016). These transfers of assets are referred to as tabarruʾ in classical Islamic law.
The nature of tabarruʾ is ambiguous and insufficiently defined, like many other terms of Islamic law (Calmard, 2012). The question of whether the concept of tabarruʾ in classical Islamic law was limited to purely benevolent gifts or also included gifts made with the hope of later consideration is particularly relevant to takāful. This creates a problem in the context of insurance because an interpretation of tabarruʾ as a „benevolent gift” in which the giver completely waives the donated amount and has no further claim to anything in return would contradict the basic concept of modern insurance (Abozaid A., 2016, 93-94,100; Bhatty A. & Shariq N., 2016, p. 12). On the other hand, some schools of Islam, such as the Mālikītic one, argue that gifts and promises may also have a binding character, i.e. they may also include a claim to something in return (Vogel & Hayes, 1998).
Despite possible reservations, including the question of premium payments, deductibles, or loss coverage, Islamic scholars have found a possible legal framework to apply the principles of Islamic finance in the insurance business based on the interpretation of the Mālikītic school of law (Archer S., Abdel Karim R.A., Nienhaus V., 2009).
For a good overview of the classification of the takāful business model and the main points of differentiation from other insurance models are summarized in Table 1, see Lewis (2011).
The Main Business Concepts
of Takāful
The mud.āraba Model
Mud.āraba is a widely used form of Islamic banking financing (El-Gamal, 2016; Lewis, 2011) that is also used in takāful business. It is mainly used for long-term project financing. The basic principles of mud.āraba are similar to the limited partnership (commenda, Kommanditistengesellschaft-KG) model in German and Austrian law. In this model, the investor (limited partner, rabb al māl) provides the necessary capital to the general partner (ʿāmil / mud.ārib) and gives them instructions to carry out a specific project (Usmani, 2002).
The mud.āraba business model involves a partnership between a general partner (mud.ārib) who provides expertise and know-how to successfully carry out a project and an investor who decides whether the general partner should carry out a specific project specified by the investor (al-mud.āraba al-muqayyada- „limited mud.āraba”) or any project (al-mud.āraba al-mut.laqa- „unlimited mud.āraba”) (Usmani, 2002).
The two parties agree on a sharing ratio of project profits beforehand, and the mud.āraba business model does not provide for a regular salary or wages. (Usmani, 2002) The limited partner is fully liable for any losses. One significant difference between a KG under German and Austrian law and mud.āraba is that mud.āraba does not establish a separate legal entity (Vogel & Hayes, 1998).
In the insurance business, the takāful company provides the necessary technical expertise as a general partner, while individual participants serve as limited partners by providing the necessary capital for the takāful fund. The parties involved share the generated profit proportionately, and they are liable for any losses (Lewis, 2011).
There is a disagreement among fiqh scholars on the exact definition of profit. Some scholars concluded that premium surpluses could not be the subject of a mud.āraba contract between the takāful operator and the fund, resulting in a loss of profit for the takāful operator. This led to the wakāla model’s increased popularity (Archer S., Abdel Karim R.A., Nienhaus V., 2009) (Bhatty A. & Shariq N., 2016), which will be discussed later.
In the mud.āraba model, the takāful operator must pay for current expenses and cannot charge additional fees to the parties involved. However, the takāful operator can charge additional fees for fund management in the initial period until the takāful fund has sufficient funds.
The wakāla Model
The wakāla model and the mud.āraba model are two different models used in the Islamic insurance industry. In the wakāla model, the takāful company acts as an ordinary service provider. The parties pay a fee, and in return, the takāful company manages the insurance pool. Unlike the mud.āraba model, where the profit is divided proportionately between the contracting parties, in the wakāla model, only the fund receives the profit. The word „wakāla” means „mode of representation” in classical Islamic commercial law. (Dien, 2012) It is also one of the names of Allah. The Arabic word „wakīl,” which means „protector,” „administrator,” and „provider,” is related to wakāla (Lewis, 2011).
The h.anafītic school of law of Islam considers wakāla to be the basis of any contractual partnership par excellence. The term „nominated treaty” was defined relatively late in the 20th century. A nominated treaty always presupposes the performance of a specific service, such as healing activity, teaching, or legal advice (Dien, 2012).
In the insurance business, wakāla can be interpreted as a classic service contract between the fund operator (takāful company) and the parties involved (Lewis, 2011a). The fund operator acts as an agent (wakīl) of the participants (Archer S., Abdel Karim R.A., Nienhaus V., 2009). The participants pay a predetermined fee, and in return, the fund operator manages the fund to the best of its knowledge and belief. Although there is no profit-sharing analogous to mud.āraba, a wakāla contract does not preclude possible performance incentives to the fund operator.
The „performance” can be determined on the basis of quantitatively measurable metrics, such as fund profit, surplus profit, etc. While these measures may result in the takāful operator acting less in its own interest, the problem arises that the fund operator may charge unreasonably high fees for fund management from the participants, which could violate takāful’s principle of solidarity (Archer S., Abdel Karim R.A., Nienhaus V., 2009) (Bhatty A. & Shariq N., 2016).
Some hybrid solutions
The basic forms mentioned earlier are just a few examples of the possible takāful concepts. In reality, a combination of the mentioned types is typically used. Moreover, the literature also highlights some important forms of takāful:
The wakāla-mud.āraba Model
The takāful industry commonly uses a combination of the wakāla-mud.āraba model. Under this model, customers pay insurance premiums to the takāful operator as per the wakāla principle. The takāful operator then invests these premiums in the capital market using the mud.āraba model. Any investment gains are shared between the takāful operator and the parties involved based on an initial agreement.
The Waqf Model
The waqf model was originally designed by Malaysian scholars (Wan Ahmad W.M. & Rahman A.A., 212). and is now mainly practiced in Pakistan (Archer S., Abdel Karim R.A., Nienhaus V., 2009, p. 17). This model combines the two forms mentioned above, and it is often referred to in literature as the “wakāla-mud.āraba-waqf model”(Archer S., Abdel Karim R.A., Nienhaus V., 2009, p. 15). or simply the waqf-wakāla model. (Bhatty A. & Shariq N., 2016, p. 13) In the waqf model, the takāful fund has its own legal personality. Legally, this model differs from the two models discussed above. It involves an additional legal entity that acts as a “charitable foundation”(Archer S., Abdel Karim R.A., Nienhaus V., 2009, p. 16).
The main motivation behind this model is to provide investors with additional security against possible losses, which means that they are no longer fully liable for their invested capital (as is the case with the mud.āraba model) (Lewis, 2011a). Theoretically, this reduces the risk for the policyholder to some extent. The term „waqf” is taken from the Islamic tradition, and it describes religious foundations established for charitable purposes.
In classical Islamic law, waqf (plural awqāf) was the term used to describe religious foundations established for charitable purposes. A person left part of his property to the general public as a sign of his piety. From then on, this possession was considered inalienable (h.abs, tah.bīs) and was the property of Allah. Administrators could be appointed for the donated property (Peters, R., Abouseif, Doris Behrens, Powers, D.S., Carmona, A., Layish, A., Lambton, Ann K.S., Deguilhem, Randi, McChesney, R.D., Kozlowski, G.C., M.B. Hooker et al., 2012).
The theological basis for awqāf is primarily provided by two hadiths, and the basic motive is the protection of economically weaker individuals in society and protection against alienation. In the classical period, there were two types of awqāf, depending on their purpose: institutions that served religious purposes in the strict sense (such as mosques and religious schools) and institutions that ensured the economic operation of religious institutions (Peters, R., Abouseif, Doris Behrens, Powers, D.S., Carmona, A., Layish, A., Lambton, Ann K.S., Deguilhem, Randi, McChesney, R.D., Kozlowski, G.C., M.B. Hooker et al., 2012).
Applied to the insurance business, this implies that policyholders regularly pay an insurance premium, which is interpreted as a payment to a charitable foundation (waqf) according to Islamic legal principles. The policyholder thus undertakes to renounce part of his assets and leave them to the fund. On the other hand, the takāful operator undertakes to properly manage the waqf fund. In the event of damages, the insurance benefits will be paid out from the waqf fund, which will be interpreted as „charitable benefits” (Wan Ahmad W.M. & Rahman A.A., 2011).
From an Islamic legal standpoint, waqf offers a distinct advantage over the wakāla model due to its broader applicability within classical Islamic commercial law, encompassing a wide array of transactions. In contrast, tabarruʾ, primarily designated for debt settlement, holds a more limited scope. A notable innovation emerges from the fusion of waqf and mud.āraba models: In Malaysia, Syarikat Takaful Malaysia Berhad pioneered a hybrid approach. This model ingeniously distributes surpluses from the waqf fund through a mud.āraba contract, forging a mutually beneficial arrangement between the takaful company and participants (Wan Ahmad W.M. & Rahman A.A., 2011).
The waqf model, despite being based on Islamic law, faces criticism. The main argument is that waqf organizations have historically been and still are primarily charitable. However, the insurance industry is highly competitive and prioritizes profit over charity. Policyholders pay for protection against possible damages, (Allam H. & Nienhaus V., 2016) (Lewis, 2011a) not to donate their money to the waqf forever. This rational motivation creates technical issues, such as the waqf fund keeping all surplus rather than distributing it between participants and the operator. Additionally, the policyholder’s ability to claim against the waqf fund is not yet fully clarified under Islamic law.
Another issue is the solvency of the risk fund. Often, waqf funds have insufficient share capital at the outset to cover all insurance benefits. If the takāful fund incurs initial losses, an interest-free loan is provided to ensure the waqf fund’s liquidity. However, this loan is not always repaid in full, resulting in material losses of receivables and increased business risk (Archer S., Abdel Karim R.A., Nienhaus V., 2009).
Lastly, the „principal agent problem” arises, as the takāful operator invests in high-risk assets, potentially causing significant damage to participants and the waqf fund. While some authors argue that takāful operators invest only in low-risk, Islamic-compliant instruments, (Wan Ahmad W.M. & Rahman A.A., 2011) this remains a serious loophole.
Scope AND Regulation
The main takāful products
There are two main types of insurance that are commonly traded in the market: „life insurance” and all other products that are grouped under „non-life insurance.” Takaful companies usually structure their product portfolios primarily along these lines. However, many Muslims perceive the concept of „life insurance” as a „bet on the lives of others”, which makes them skeptical towards it. Therefore, takaful companies usually market this product category as „family takaful”. This product concept is very similar to that of „traditional life insurance” where the insurance (Archer S., Abdel Karim R.A., Nienhaus V., 2009) benefits can be claimed by beneficiaries in the event of the policyholder’s death or illness, depending on the product. On the other hand, products in the non-life sector are typically marketed as „general takaful”(Archer S., Abdel Karim R.A., Nienhaus V., 2009). These products encompass various categories such as household insurance, motor vehicle insurance, and accident insurance, similar to their „conventional” counterparts. Additionally, some takaful companies offer insurance products that are designed to help customers fulfill their religious duties, such as specialized travel insurance during the Hajj pilgrimage, to emphasize their Islamic compliance.
Advanced takāful concepts have been developed in recent years, mainly for large customers and banking business. These concepts include insurance against supply risks and credit defaults and are based on the original takāful concepts used in customer business. Additionally, a separate retakaful market has emerged based on the concept of reinsurance.
The Islamic microfinance industry is of particular interest in our regional focus. The payment of alms (zakāt) is a fundamental pillar of Islam, and establishing social justice through this institution is highly prioritized by Islamic scholars. After the establishment of global microfinance institutions, Islamic economists also took up this topic. In 2009, the Islamic Research and Training Institute (IRTI) published a study on the development potential of the Islamic microfinance industry (Obaidullah M. and Tariqullah K., 2008). The publication highlights the importance of establishing micro-takāful organizations but did not provide any concrete suggestions for practical implementation (Obaidullah M. and Tariqullah K., 2008).
While some proposed solutions from Islamic perspectives have emerged to address the financial inclusion of socioeconomically disadvantaged individuals in developing and transitioning countries, a widespread breakthrough in this area is far from realized. Literature does highlight specific initiatives in the Indo-Pacific region, as well as in Sudan, as positive examples. However, overall, the role of Islamic finance in the microfinance sector remains relatively insignificant (Nienhaus, 2016).
Some regulatory frameworks
The following section will discuss legal frameworks related to the takaful business. From the mid-1970s onwards, many significant Islamic institutions actively advocated for takaful as a Sharia-compliant alternative to conventional insurance products. Malaysia became the first country worldwide to formalize the takaful business within an institutional framework when it passed the Takaful Act in 1984. This Act is frequently cited in literature as a reference point. It comprises four parts that delve into the nature and operational framework of the takaful business in detail. The law defines family takaful and general takaful as potential product categories. It also establishes the Shariah Advisory Council (Advisory Council on Syariah Matters) as a central advisory body, which simultaneously serves as the primary advisory entity for all Islamic financial institutions in Malaysia (Malaysia Takaful Act, 1984).
In 2005, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) adopted its own takāful guideline (No. 26), which has since been implemented in numerous Islamic countries and is considered a model in many others. The guideline defines the wakāla-mud.āraba model as authoritative and defines life insurance and property damage insurance as the main product categories. The terms family takāful and general takāful, as in the Malaysian takāful act, do not appear in the vocabulary of the AAOIFI rule.
Currently, the discussions around the takaful industry, similar to the market for conventional insurance, are dominated by venture capital standards. Many countries, such as most Gulf monarchies, have implemented the international Solvency I-II guidelines in the takaful sector. (Milliman, 2017) Some countries, such as Bahrain and Malaysia, have also introduced their own sets of rules for the collection of wakāla fees in order to increase transparency. (Milliman, 2017)
Conclusions
Takaful, as an Islamic alternative to conventional insurance, has emerged from the philosophy of Islamic economy, aiming to provide a morally justifiable substitute for insurance products in Muslim-majority countries over the long term. Despite experiencing significant growth over the past decade, the likelihood of takaful replacing conventional insurance in the foreseeable future remains low. This is primarily due to a murky legal framework and lower profitability compared to conventional insurance. However, takaful has solidified its position as a crucial niche market among Muslim adherents who prioritize religious standards and would abstain from purchasing insurance products if takaful were not available. Consequently, takaful still holds tremendous potential, particularly among rural populations and low-income segments, such as in the realm of microinsurance. With technological advancements in regions like Southeast Asia, Sub-Saharan Africa, and the Middle East, it is imperative for insurers to sustain this Islamic alternative and cater to the needs of this niche market.
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Dr. Viktor Fórián-Szabó PhD economist

Dr. Ilona Pawełoszek PhD
Faculty of Management,
Czestochowa University of Technology, Poland

Dr. habil. Judit Bárczi PhD associate professor
John von Neumann University

Dr. habil. László Pataki PhD associate professor
John von Neumann University