The Present Status of Takaful (Islamic Insurance) and the Future Practical Use Plan for Korean Financial Enterprises

다국어 초록 (Multilingual Abstract)

[Purpose] This paper describes the conceptual and operational framework for Takaful and the present status of Takaful. Also, this paper suggests the future possible practical use plan for Korean financial Enterprise.
[Methodology] Due to Sharia jargon and language barrier, it is impossible to design and analyze Islamic insurance products directly according to the Quran. We indirectly analyzed and standardized Takaful financial products from several leading Islamic insurance companies.
[Finding] Takaful is an alternative form of a financial instrument to insure assets, liabilities, and other personal interests of individuals and organizations. The impressive growth worldwide and potential expansion into new markets brings with it a strong implication in improving the service quality of the conventional insurance market with innovative Takaful products.
[Implication] Takaful companies have an important competitive advantage: customer loyalty, which is built on Takaful’s Sharia compliance. Also, the worldwide Muslim population is huge and growing rapidly. The 60 percent of the global Muslim population is under 25 years old. If these young people buy into the value of participating in Takaful funds, the Takaful industry will soar.

참고문헌 (Reference)

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