20
5) What are the measures that should be taken to improve the infrastructure in the
Takaful industry?
6) What should be done at the market level to strengthen the competitiveness of the
Takaful industry against its conventional counterpart?
7) What should be done to enhance the human capital level of the Takaful industry?
8) How effective are the regulations and market practices on consumer protection, and
the mechanism of dispute resolution in the Takaful industry?
9) How can FinTech be used to strengthen the Takaful industry and what are the measures
that should be undertaken?
10) How do you foresee the future of the Takaful industry?
These surveys are expected to facilitate the assessment of the Takaful industry and,
consequently, help in the formulation of policy recommendations for the development of the
Takaful industries in Islamic countries.
Country selection criteria: Three OIC member countries – Malaysia, Saudi Arabia, and Turkey
and one non-OIC country – the UK have been selected from the sample of countries to analyse
the dynamics on how to improve the Takaful sector. The selection process was not based on a
random method; rather, there were specific criteria that facilitated the selection of these four
jurisdictions. As the main criterion for screening the countries we apply Islamic Finance
Development Indicator (IFDI) from Thomson Reuters 3 , specifically its subcomponent - the
Takaful development indicator. Next, we apply the second filtering criterion - economic freedom
score developed by Heritage 4 which helped in choosing the relatively better-performing
economies.
3 Islamic Finance Development Indicator (by the ICD and Thomson Reuters) is a composite weighted index that measures the
overall development of the Islamic finance industry by providing an aggregate assessment of the performance of all its parts,
in line with Islamic principles. (See
(IFDI, 2018).
4 Economic freedom index (by the Heritage Foundation) is an aggregate indicator that scores the relative freedom of global
economies based on 10 factors: property rights, freedom from corruption, government spending, fiscal freedom, business
freedom, labour freedom, monetary freedom, trade freedom, investment freedom, and financial freedom. (See
).