Micro-Takaful by Takaful Operators in Pakistan: Problems and their Solutions from the Practitioners' Perspective

Abstract

This study investigates the underlying reasons behind the limited offering of micro-takaful(insurance) products by takaful operators in Pakistan and suggests solutions to enhance thegrowth of micro-takaful products in the country. The study is qualitative in nature. The researchers conducted atotal of twenty (20) semi-structured interviews of relevant Islamic finance practitioners (5 sales heads, 5 businessheads, 5 product development heads, and 5 sales agents) working at all five takaful operators (Dawood FamilyTakaful Ltd., Pak-Qatar General Takaful, Pak-Qatar Family Takaful, Pak Kuwait Takaful, Takaful Pakistan Limited)operating in Pakistan. NVIVO 12 software was used for generating items, codes, word clouds and text searchqueries. According to the findings of this study, the issues faced by practitioners include the poor financialcondition of the public, lack of sufficient funds with takaful operators, lack of cooperation among takaful operators,lack of customer awareness and interest, lack of takaful experts and diversified takaful products, absence of aculture of takaful practices, and lack of research and product development in the field of micro-takaful.Academicians should develop suitable micro-takaful products according to the needs of the public, and theregulator can require takaful operators to offer micro-takaful products.