Takaful in Singapore : a study on the concept, opportunities, efficiency and future of Takaful.

Abstract

With the growing demand for Islamic insurance, especially in the Middle East and South-East Asia, we seek to explore the further development of such a system in Singapore. From the successful experiences of other Islamic countries and conventional insurance operators which have tapped into the vast Islamic insurance’s market, we anticipate that it will provide a competitive edge to Singapore in becoming a more holistic insurance hub in Asia. Through analyzing the principles behind Islamic insurance, we seek to have a deeper understanding of the workings of the Islamic world. Our research aims to explore how to further the development of Islamic insurance through efficiency analysis of life insurers in Singapore. This will bring about higher productivity. In addition, we have also examined several issues which may affect this development locally. In summary, the development of Islamic insurance can provide customers with more alternatives. Our analysis has shown that for Islamic insurance operators to be more productive, they should aim for technical change rather than efficiency change.