CHAPTER 5: ISSUES, CHALLENGES AND FUTURE OF THE TAKAFUL INDUSTRY .................. 61 5.1. Issues .............................................................................................................................................61 5.1.1. Nature of Takaful Entity ................................................................................................................. 61 5.1.2. The Performance Level and Competitiveness.......................................................................... 62 5.1.3. Financial Accounting and Reporting Obligations ................................................................. 62 5.1.4. Shari'ah and Legal Issues................................................................................................................ 63 5.2. Challenges....................................................................................................................................63 5.2.1. Inadequate Awareness..................................................................................................................... 64 5.2.2. Lack of Political Will......................................................................................................................... 64 5.2.3. Re-Takaful Capacity.......................................................................................................................... 64 5.2.4. Limited Investment Options........................................................................................................... 65 5.2.5. Skilled Human Resources................................................................................................................ 65 5.2.6. Weak Regulatory Support .............................................................................................................. 65 5.2.7. Inadequate Distribution Capacity ............................................................................................... 65 5.2.8. Minimal Efforts in Research and Development ...................................................................... 66 5.3. Future of Takaful : Policy Steps towards Overcoming the Challenges....................66 CHAPTER 6: COUNTRY CASE STUDIES AND SURVEY ANALYSIS................................................. 69 6.1. Case Study: Malaysia ................................................................................................................69 6.1.1. Background.......................................................................................................................................... 69 6.1.2. Legal and Regulatory Framework .............................................................................................. 71 6.1.3. Growth Trends .................................................................................................................................... 74 6.1.4. Takaful Operational Framework................................................................................................. 77 6.1.5. The Most Preferred Takaful Structures ..................................................................................... 79 6.1.6. Issues and Challenges ....................................................................................................................... 81 6.1.7. Lessons learned, Recommendations and Transferring Knowledge ................................ 82 6.2. Case Study: Saudi Arabia ........................................................................................................85 6.2.1. Background.......................................................................................................................................... 85 6.2.2. The Legal and Regulatory Framework...................................................................................... 86 6.2.3. Growth Trends .................................................................................................................................... 89 6.2.4. The Most Preferred Takaful Structures ..................................................................................... 91 6.2.5. Issues and Challenges ....................................................................................................................... 95 6.2.6. Lessons learned, Recommendations and Transferring Knowledge ................................ 95 6.3. Case Study: Turkey ...................................................................................................................97 6.3.1. Background.......................................................................................................................................... 97 6.3.2. Legal and Regulatory Framework .............................................................................................. 98 6.3.3. Growth Trends ................................................................................................................................. 104 6.3.4. The Most Preferred Takaful Structures .................................................................................. 108 6.3.5 Issues and Challenges ..................................................................................................................... 109 6.3.6 Lessons learned, Recommendations and Transferring Knowledge .............................. 110 6.4. Case Study: The United Kingdom ..................................................................................... 111 6.4.1. Background....................................................................................................................................... 111