Dr. Yusuff Jelili Amuda, Wan Nuraini Binti Wan Din, Nursyafiqah Binti Ibrahim and Nurdiyanah Afiqah Binti Noraman
Islamic insurance is known as takaful which specifically attempts to bring both social and economic benefits to participants as well as to the emerging economy of Malaysia. Takaful is expected to be compliant with Islamic principles. However, there is an insufficient academic research in the recent time investigating policy on marketing takaful in emerging economy in Malaysia in the 21st Century. The motivation for this paper is to clarify misconception about Islamic takaful and practice of conventional insurance in Malaysian context. The primary objective of this paper is to explore policy on marketing takaful in enhancing the economic development in the Muslim nations. Critical content analysis as an integral part of qualitative research is employed. In other words, qualitative descriptive content analysis is used as methodology of the paper specifically by using secondary data of extant literature on takaful. Theoretical framework of takaful is explicated. The findings indicated that, development of takaful proves to be crucial especially to the economic development in many countries with emerging takaful market. Nonetheless, there are many barriers or hindrances to the rapid growth of takaful that are largely depend on the lack of proper marketing and handling of takaful operations by the takaful operators. The paper also identifies certain factors that hinder effective and efficient marketing of takaful operations. Of such hindrance for takaful in being marketed successfully are: lack of proper enlightenment, the quality customer service, the lack of exposure of local takaful insurance businesses to the international market, the compliance of new takaful products with Islamic principles and difficulties faced by takaful insurers to meet the participants’ expectation of gaining higher returns from their investment. In conclusion, it is important that marketing agents of takaful must be able to explain the features of a product to the customers in order for them to feel that they have fairly been treated by takaful operators. In so doing, the paper will provide suggestions in addressing multifarious challenges or hindrances to the development and enhancement of Takaful businesses in the context of Malaysia.