18
1.4. Methodology
The study employs various approaches to data collection and analysis. A comprehensive
approach includes two stages: 1) primary and secondary data collection, as well as case studies
review; and 2) synthesis comprising of drafting conclusions and recommendations based on
obtained results. The literature review is used to set up a framework for Takaful industry
analysis for deriving the best practices. The surveys include both structured questionnaires and
semi-structured interviews.
The questionnaire contains three sections: background information, challenges facing the
Takaful industry, and company-level SWOT analysis. The section on background information
collects data on the area of specialisation or occupation of the respondent, and his country of
residence (the options are Malaysia, Saudi Arabia, Turkey, and the UK). There are six options
given for occupation. These are: (1) industry player, (2) Shari'ah expert, (3) IT professional, (4)
regulator, (5) academician/consultant, and (6) other. The first three categories of specialisation
are considered as internal to the Takaful company; hence, the additional questions are asked to
indicate the category of the company: the full-fledged Takaful company, Takaful window,
subsidiary of the full-fledged Takaful company, Re-Takaful company, or Re-Takaful window.
These were followed by another question on the type of Takaful business plan offered (General
Takaful, Family Takaful, Composite, or others), which Takaful business model adopted (Wakalah
model, Modified Wakalah model, Mudarabah model, Modified Mudarabah model, Wakalah-
Mudarabah hybrid model, Waqf model, or Cooperative model), and whether the company is
publicly listed or not.
The section, on the issues and challenges facing the Takaful industry, covers eight potentially
challenging areas. These are:
1) The Political and macroeconomic environment which includes survey questions
about political uncertainty, macroeconomic conditions, and market confidence.
2) The Regulatory framework which covers questions on legislation, transparency and
disclosure, taxation, and capital requirement and solvency margins,
3) The Business operations which collects opinions on new business models, quality of
operation and, product development and innovation.
4) The Technology related questions including FinTech (InsurTech) and Cybersecurity.
5) The Shari'ah framework related to Shari'ah governance, Shari'ah standards, Shari'ah
board and Shari'ah audit.
6) The Infrastructure related questions such as distribution channels, availability of Re-
Takaful services and availability of Shari'ah-compliant instruments for investment.