Can Turkey Implement Malaysian Takaful Know-How into Turkish Market? A Qualitative Inquiry

Year 2021, Volume: 7 Issue: 1, 1 - 30, 19.03.2021

Hakan Aslan , Emin Avcı

https://doi.org/10.25272/ijisef.816143

Cited By: 2

Abstract

The concept of takaful has been introduced after long-continued discussions made by the Islamic scholars. Even though takaful practices have around forty years of history globally, takaful operations are a comparatively new and underdeveloped sector in the Turkish insurance market. Given its dominant Muslim population, well-developed financial system, and the fact that takaful contributions have grown exponentially which is supported by current statistics, Turkey has great potential in prospering its takaful market. Thus, Turkey should develop further policies to develop its own takaful operators. In achieving so, Malaysia, which is considered to be one of the most advanced takaful ecosystems in the world, has been regarded as an example for comparison to probe into its takaful sector and evaluate the opinions of the Malaysian professionals towards the development of the takaful system in Turkey. In this paper, a phenomenological perspective has been used, assuming takaful as the phenomenon. This phenomenon was investigated by examining the experiences of five business professionals and four Shariah scholars through semi-structured interviews. With this technique, it is also aimed to obtain some valuable suggestions for the Turkish takaful industry. It is found that Turkey should firstly develop its regulatory and Shariah governance system and then take gradual steps to regulate to market. In addition, increasing awareness, developing qualified human capital, adapting technology for marketing, and standardising the market practices will help the development of the takaful market in Turkey.

Keywords

Takaful, Islamic Insurance, islamic finance, participation insurance

References

• Abdullah, N. I., & Fares, D. (2012). Applications of Malaysia Deposit Insurance Corporation (MDIC) To Takaful Operators: An Analysis from the Shariah Advisors ’ Perspective. Information Management and Business Review, 4(12), 615–624.
• Aksoy, M. A. (2018). Türkiye’de Katılım Sigortacılığı. Ankara Hacı Baram Veli Üniversitesi Hukuk Fakültesi Dergisi, XXII(2), 3–36.
• Alhabshi, S. O. (2017). Challenges for the Takaful Industry. In M. Ariff & S. Mohamad (Eds.), Islamic Wealth Management Theory and Practice (pp. 249–265). Edward Elgar. https://doi.org/10.4337/9781786439390.00023
• Ali, E. R. A. E., & Odierno, H. S. P. (2008). Essential Guide to Takaful (Islamic Insurance) (1st ed.). CERT Publication.
• Aslan, H. (2015). Türkiye’de Tekafül (İslami Sigorta) Uygulamaları: Problemler ve Çözüm Önerileri. International Journal of Islamic Economics and Finance Studies, 1(1), 93–117.
• Aslan, H. (2017). Tekâfül Uygulamalarının Güncel Sorunları: Türkiye Piyasası İçin Bir Değerlendirme. In S. Kaya, F. Yardımcoğlu, & H. Aslan (Eds.), Tekâfül: Teori ve Uygulama (pp. 153–172). Ensar Neşriyat.
• Aslan, H., & Durmuş, M. E. (2016). İslami Sigortacılık (Tekafül): Yöneticilerin Perspektifinden Türkiye Uygulaması. In Ö. Karaoğlu, S. Kaya, F. Yardımcıoğlu, & H. Aslan (Eds.), International Congress on Islamic Economics and Finance (Issue Vol 3: “Islamic Finance: Sukuk and Takaful,” pp. 17–29). Beşiz Yayınları. http://www.isefam.sakarya.edu.tr/wp-content/uploads/2017/10/Volume-3.pdf
• Ayedh, A. M., & Echchabi, A. (2015). Shari’ah supervision in the Yemeni Islamic banks: a qualitative survey. Qualitative Research in Financial Markets, 7(2), 159–172. https://doi.org/10.1108/QRFM-06-2014-0017
• Azhar, A., & Badarulzaman, M. H. (2015). The Practice of Hibah in Takaful Institutions : A Case Study in Takaful Ikhlas Sdn. Bhd. The Journal of Muamalat and Islamic Finance Research, 12(2), 41–54.
• Berkem, Z. (2014). Effective Supervision of Islamic Insurance According to Malaysian Experience (1984-2012). International Journal of Social Economics, 41(12), 1220–1242. https://doi.org/10.1108/IJSE-08-2013-0182
• Billah, M. M. (2001). Sources of Law Affecting Takaful (Islamic Insurance). International Journal of Islamic Financial Services, 2(4).
• Burton, B. (2007). Qualitative Research in Finance – Pedigree and Renaissance. Studies in Economics and Finance, 24(1), 5–12. https://doi.org/10.1108/10867370710737355
• Çalık, A. (2014). Katılım Bankalarında Sigorta Uygulamaları ve Tekâfül Sigorta Sistemi. Finans Politik & Ekonomik Yorumlar, 51(587), 95–106.
• Christensen, L. B., Johnson, R. B., & Turner, L. A. (2015). Research Methods, Design and Analysis (12th ed.). Pearson.
• COMCEC. (2016). National and Global Islamic Financial Architecture: Problems and Possible Solutions for the OIC Member Countries (Issue October). http://ebook.comcec.org/Kutuphane/Icerik/Yayinlar/Analitik_Calismalar/Mali_Isbirligi/Toplanti7/index.html
• COMCEC. (2019). Improving the Takaful Sector In Islamic Countries.
• Dalgın, N. (1994). İslam Hukukuna Göre Sigorta. Ondokuz Mayıs University.
• Dalgın, N. (2003). İslam Hukuku Açısından Karşılıklı Sigortalar. İslami Araştırmalar Dergisi, 16(4), 615–629.
• Demir, F. (2002). Sigorta ('Âkıle Müessesesi ve Süftece Muamelesi Işığında Bir Tedkik). Ankara Üniversitesi İlahiyat Fakültesi Dergisi, XLIII(2), 169–200. http://ktp2.isam.org.tr/detayilhmklzt.php?navdil=tr&midno=10475625&Konu=İslâm+Hukuku
• Echchabi, A., & Abd Aziz, H. (2014). Shari’ah Issues in Islamic Banking: A Qualitative Survey in Malaysia. Qualitative Research in Financial Markets, 6(2), 198–210. https://doi.org/10.1108/QRFM-12-2012-0035
• Edmonds, W. A., & Kennedy, T. D. (2017). An Applied Guide to Research Designs: Quantitative, Qualitative, and Mixed Methods (Second). SAGE.
• Er, A. İ., & Özdemir, M. (2019). İslam İktisadı Söylemlerinin Cuma Hutbelerindeki Yeri: İstanbul İli Örneği. Pesa Uluslararası Sosyal Araştırmalar Dergi̇si̇, 5(2), 150–169. https://doi.org/10.25272/j.2149-8385.2019.5.2.09
• Faisal Nazir Hussain, & Noor, A. M. (2018). An Assessment of Customer’s Preferences on The Selection of Takaful Over Conventional: A Case of Saudi Arabia. Tazkia Islamic Finance and Business Review, 12(1), 33–60.
• Guest, G., Bunce, A., & Johnson, L. (2006). How Many Interviews Are Enough?: An Experiment with Data Saturation and Variability. Field Methods, 18(1), 59–82. https://doi.org/10.1177/1525822X05279903
• Habib, F., & Shaukat, M. (2016). Shariah Appraisal of the Takaful Model Based on “Tabarru” (Donation). Journal of Islamic Banking & Finance, 33(3), 65–83.
• Hacak, H. (2017). İslami Sigorta (Tekâfül) Ticari Sigortadan Farklı Mıdır? In S. Kaya, F. Yardımcoğlu, & H. Aslan (Eds.), Tekâfül: Teori ve Uygulama (pp. 93–110). Ensar Neşriyat.
• Ismail, E., & Alhabshi, S. O. (2017). Takaful. In B. Abdul Hamid, M. H. Ibrahim, & S. Kamarudin (Eds.), Islamic Finance the New Normal (pp. 321–358). Pearson.
• Jaiyeoba, H. B., & Haron, R. (2016). A Qualitative Inquiry into the Investment Decision Behaviour of the Malaysian Stock Market Investors. Qualitative Research in Financial Markets, 8(3), 246–267. https://doi.org/10.1108/QRFM-07-2015-0027
• Kaczynski, D., Salmona, M., & Smith, T. (2014). Qualitative research in finance. Australian Journal of Management, 39(1), 127–135. https://doi.org/10.1177/0312896212469611
• Laçinbala, Y., & Ünsal, H. (2019). Katılım Sigortacılığında (Tekafülde) Pencere Sisteminin Değerlendirilmesi. Sosyoekonomi, 27(42), 181–202. https://doi.org/10.17233/sosyoekonomi.2019.04.10
• Leavy, P. (2017). Research Design: Quantitative, Qualitative, Mixed Methods, Arts-Based, and Community-Based Participatory Research Approaches. The Guilfod Press.
• Loke Ke Wei, K., & Mohd Thas Thaker, H. (2017). A Qualitative Inquiry into Islamic Home Financing: Evidence from Malaysia. Qualitative Research in Financial Markets, 9(2), 147–167. https://doi.org/10.1108/QRFM-07-2016-0020
• Marhanum, C. M. S., Nurdianawati Irwani, A., Siti Salwani, R., & Saodah, W. (2012). Takaful Agents’ Roles in Accordance with the Quran and Sunnah. Global Journal Al-Thaqafah, 2(2), 41–45. https://doi.org/10.7187/GJAT212012.02.02
• Md Zabri, M. Z., & Mohammed, M. O. (2018). Qualitative Validation of a Financially Affordable Islamic Home Financing Model. ISRA International Journal of Islamic Finance, 10(2), 143–161. https://doi.org/10.1108/IJIF-08-2017-0023
• Merriam, S. B., & Tisdell, E. J. (2016). Qualitative Research A Guide to Design and Implementation (Fourth). Jossey Bass.
• Mohammed, N., Binti, N., Nor, M., Kamil, N. M., & Nor, N. B. M. (2014). Factors Influencing the Choice of Takaful Over Conventional Insurance : The Case of Malaysia. Journal of Islamic Finance, 3(2), 1–14.
• Mohd Fauzi, P. N. F., & Abdul Rashid, K. (2014). The Methods in Assessing Takaful Claims for Construction Works Loss and Their Legitimacy From the Shariah Perspectives. THE 2ND IIUM – KYOTO UNIVERSITY RESEARCH COLLOQUIUM Shari’ah Compliance Issues in Construction, 8 May 2014, 601–622.
• Mohd Noor, A., & Abdullah, M. A. (2009). Takaful (Islamic Insurance) Benefit: Ownership and Distribution Issues in Malaysia. Journal of Islamic Economics, Banking and Finance, 5(3), 35–48.
• Noordin, K. (2014). The Implementation of Tabbaru’ and Ta’awun Contracts in the Takaful Models. In A. Ab Rahman, W. M. Wan Ahmad, & S. Mohamad (Eds.), Islamic Economics, Banking and Finance: Concepts and Critical Issues. (pp. 91–112). Pearson Education Asia.
• Noordin, K., & Fares, D. (2017). Issues and Challenges in Introducing Islamic Insurance (Takaful) into the Algerian Financial Market: Lessons from Malaysia. In S. K. Ab. Manan, F. Abd Rahman, & M. Sahri (Eds.), Contemporary Issues and Development in the Global Halal Industry (pp. 359–369). Springer. https://doi.org/10.1007/978-981-10-1452-9
• Ölçen, O. (2014). Tekaful Sigortacılık Sistemi. İZU Sosyal Bilimler Dergisi, 2(5), 169–196.
• Othman, A., Sari, N. M., Alhabshi, S. O., & Mirakhor, A. (2017). Macroeconomic Policy and Islamic Finance in Malaysia (1st ed.). Palgrave Macmillan.
• Özdemir, M., & Aslan, H. (2018). The Political Economy of the Transformation of Islamic Finance in Turkey. https://www.setav.org/en/report-the-political-economy-of-the-transformation-of-islamic-finance-in-turkey/
• Rahman, Z. A., & Redzuan, H. (2009). Takaful The 21st Century Insurance Innovation (1st ed.). McGraw-Hill.
• Ritchie, J., & Lewis, J. (2003). The Foundations of Qualitative Research. In J. Ritchie & J. Lewis (Eds.), Qualitative research practice: A guide for social science students and researchers. SAGE. https://doi.org/10.4135/9781452230108
• Sakti, M. R. P., Syahid, A., Tareq, M. A., & Mohd Mahdzir, A. (2016). Shari’ah Issues, Challenges, and Prospects for Islamic Derivatives: A Qualitative Study. Qualitative Research in Financial Markets, 8(2), 168–190. https://doi.org/10.1108/QRFM-06-2015-0024
• Salmona, M., Kaczynski, D., & Smith, T. (2015). Qualitative theory in finance: Theory into practice. Australian Journal of Management, 40(3), 403–413. https://doi.org/10.1177/0312896214536204
• Saunders, M., Lewis, P., & Thornhill, A. (2016). Research Methods For Business Students (7th ed.). Pearson.
• Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th Editio). John Wiley & Sons. https://doi.org/10.13140/RG.2.1.1419.3126
• TSB. (2019). Official Insurance Statistics. https://www.tsb.org.tr/resmi-istatistikler.aspx?pageID=909
• Ünalan, A. (2008). İSLÂM HUKUKUNDA MUVÂLÂT AKDİ VE SİGORTA AÇISINDAN DEĞERLENDİRİLMESİ. Dicle Üniversitesi İlahiyat Fakültesi Dergisi, X(1), 1–17.
• Ünlü, U. (2018). Tekafül Sigortası Kapsamında Sigortalılarca Ödenen Primlerin İadesi. Mali Çözüm, 28(150), 149–155.
• Ustaoğlu, M. (2014). Alternatif faizsiz sigortacılık uygulamaları ve gelir seviyesine göre kamu bilincinin değerlendirilmesi: Ampirik analiz. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 2(2), 109–130.
• Üstün, Y. (2014). Si̇gorta, tekafül ve kooperati̇f Si̇gortacılığı. Karınca Dergisi, 80(927), 1–12.
• World Bank, & IDGB. (2016). Global Report on Islamic Finance: Islamic Finance: A Catalyst for Shared Prosperity. https://doi.org/10.1596/978-1-4648-0926-2
• Yas, M., Aslan, H., & Ozdemir, M. (2018). Modern History of Islamic Finance and a Strategic Roadmap for Its Development in Turkey. In A. F. Aysan, M. Babacan, N. Gur, & H. Karahan (Eds.), Turkish Economy: Between Middle Income Trap and High Income Status (pp. 213–238). Springer International Publishing. https://doi.org/10.1007/978-3-319-70380-0_10
• Yıldırım, İ. (2014). Tekafül (İslami) Sigortacılık Sisteminin Dünyadaki Gelişimi ve Türkiye’de Uygulanabilirliği. Organizasyon ve Yönetim Bilimleri Dergisi, 6(2), 49–58.
• Yılmaz, A. (1997). İslam Hukuku Açısından Sigorta. Harran Üniversitesi İlahiyat Fakültesi Dergisi, 3, 133–162.