A Conceptual Framework for Insurtech Readiness in Microtakaful Sector (OpenAlex (recherche mondiale))

Summary

• Microtakaful has developed as a Shariah-compliant protection mechanism across several Muslim-majority countries since 1997.p.1
• Bank Negara Malaysia launched the Perlindungan Tenang initiative in 2017 to encourage affordable Microtakaful products.p.1
• By 2010, Takaful expanded across key countries including Lebanon, Indonesia, Malaysia, Sri Lanka, Bahrain, and Pakistan.p.3
• The Perlindungan Tenang initiative involved collaboration with 13 licensed insurers and Takaful operators.p.3
• Perlindungan Tenang products reached approximately 75,000 individuals by the end of 2019.p.3
• The study selected 30 relevant articles out of more than 100 reviewed to formulate the framework.p.4

Key insights

1. Academic research focusing specifically on Microtakaful technology readiness remains limited compared to general Takaful and insurance studies.p.3
2. Product affordability alone is insufficient to boost Microtakaful adoption, as consumer awareness and trust remain critical barriers.p.3
3. Global adoption of technologies like artificial intelligence and blockchain offers significant potential for growth in Microtakaful.p.4
4. Regulatory constraints and outdated legal frameworks continue to hinder the deployment of Insurtech solutions in developing regions.p.4
5. The conceptual model identifies relative advantage, compatibility, and trialability as primary technological constructs determining Insurtech readiness.p.5
6. Insurtech integration in Takaful requires strict alignment with Shariah principles alongside compatibility with existing legacy systems.p.6