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continue developing new products in order to survive in the market and increase their
competitiveness.
With the adoption of big data analytics, artificial intelligence and online channels, TOs will be
able to anticipate risks and demands with far greater precision. This allows for greater product
customization by TOs to suit the rapidly changing needs of the market and improve participant
experience when consuming financial services. For example, wearable computing that collects
real-time data makes underwriting process and managing on-going health claims more
collaborative andmore convenient for participants. Participants’ behaviour and healthy lifestyle
that are monitored and compensated through discounts in their plan also makes the product
much more versatile and appealing in the eyes of participants. Participant experience can also
be enhanced with value-added services, as technology enables new business models through
new and improved forms of distribution. For example, TOs can develop mobile/tablet financial
planning apps which help illustrate Takaful more clearly and vividly to customers. This enables
customers to understand the product features better and make informed-decision when
choosing a Takaful product. The risk of misconduct by agents could also be reduced, since
important part of insurance companies and TOs complain about force selling, mis-selling or
misrepresentation.
Diversity in products and services, powered by technology adoption, has significant potential to
position the Takaful industry with a competitive edge to serve consumers better. Besides new
coming TOs can use InsurTech investments and technology-based products and services as an
entry-strategy to the market. It should be noted that the new entries expand the market. There
is also a demand for increase in non-banking IFIs for developing the role of Islamic finance in
the overall economy (COMCEC, 2019). While focusing on product on ongoing operations based
technology adaptation the main Takaful software for TOs still needs to be developed to
strengthen operation quality and improve participant experience.
8.4. Talent Development
Human capital strategies should focus on investments to attract and develop highly skilled
talent, as the reality is good talent is in short supply. First, competitive remuneration is
important. Second, it is a must to continuously up-skill and build competencies of employees
across all levels. TOs must set a clear vision and culture of continuous learning and development.
In particular, the Takaful workforce should be equipped with an understanding of Islamic
finance and Takaful specificities. Programs for professional certification can help increase
specialization of employees with exposure to in-depth knowledge on Islamic finance including
Takaful. There is a need for developing certain training programs and academic publications as
well as periodical reports and other materials. Employees should also be encouraged to acquire
and develop their technical knowledge and competencies applicable in respect of risk
management, underwriting and regulatory requirements.