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the majority of the respondents in all the four countries see Shari'ah audit as a challenge, with
the highest percentage of responses, over 65% in Turkey.
6) Infrastructure. The sixth question of the survey solicited the views of the respondents on
the extent to which infrastructure creates a challenge to the growth of the Takaful industry.
Three options were identified for the responses: distribution channels, availability of Re-Takaful
services and availability of Shari'ah-compliant instruments for investment.
FIGURE 36: I NFRASTRUCTURE (SURVEY RESULTS)
(A) Distribution Channels (B) Availability of Re-Takaful
Services
(C) Availability of Shari'ah -
compliant Instruments for
Investment
Source: Authors
The majority of the respondents, over 60% in all the four countries, except the UK, agreed that
the Takaful industry faces challenges in terms of inadequate distribution channels, insufficient
availability of both Re-Takaful services and Shari'ah-compliant instruments for investment. The
percentage of respondents are higher in Malaysia, over 80% for the challenges related to
inadequate distribution channels and insufficient availability of Shari'ah-compliant instruments
for investment. In Saudi Arabia, the percentage is high, almost 90% about the challenge of
insufficient availability of Re-Takaful services.
7) Market. The seventh question of the survey was used to ask the respondents on the extent
to which the market forces pose challenges to the development of the Takaful industry. Four
options were identified for the responses: competition from Takaful companies, competition
from conventional insurers, Weak customer base and Low consumer awareness.
0%
20%
40%
60%
80%
100%
MY SA TR UK
SD D U A SA
0%
20%
40%
60%
80%
100%
MY SA TR UK
SD D U A SA
0%
20%
40%
60%
80%
100%
MY SA TR UK
SD D U A SA