Turkish Journal of Islamic Economics | 2021
Pandemic Crisis: Malaysian Takāful Market
Abstract
With the progressive number of COVID-19 cases, this pandemic has adversely immpacted the Takaful market in different forms containing liquidity impact, financial market volatility and solvency capital. This study describes the Malaysian takaful and insurance market throughout the COVID-19 crisis as well as its response to alleviate the burden faced by policyholders/certificate holders of life insurance and family takaful plans from the economic and Shari ah point of views. Qualitative approach is applied in this study to collect information, documents and data accordingly concerning to the topic discussed. The data will be explored using qualitative content, narrative, and discourse analysis to deliver its results and discussion. By understanding the precarious scenario of the Malaysian takaful and insurance market during the COVID-19 pandemic, we can further enhance the support to the regulator who has taken the initiative to direct the insurance and takaful industry to initiate adequate response to facilitate policyholders/ certificate holders during the outbreaks and decide what the best way forward would be as aligned with Maqasid al-Sharrah. This will ensure its positive impact in the Takaful market, not only to nurture sustaimability in our ecosystem, stabilize the socio-economic but to safeguard policyholders/certificate holders accordingly so they could withstand pre, present and post pernicious outbreaks and pandemics. This study inspires Takaful practitioners, policyholders/ certificate holders, academicians, and the society to recognise the importance of takaful industry and it s preventive measures to avoid takaful loss in this swift spread of COVID-19 comprising catastrophic reserves by takaful operators to mitigate adverse catastrophic risks to human life, and building a more humanising takaful which is in tandem with Maqasid al-Shari ah that attracts more potential policyholders/ certificate holders.