The Role of Education In Awareness Enhancement of Takaful: A Literature Review

Abstract

The purpose of this study is to evaluate the general level of public awareness towards Takaful concept and principles, and the role of education in enhancing public awareness on Takaful concept and principles. In addition, the study also evaluates some important issues that need to be taken into consideration by Takaful stakeholders in integrating Takaful courses into academic curriculum of higher learning institutions. Using literature/library based method, which is a kind of qualitative research approach, the study finds that the global level of public awareness on Takaful concepts and principles is relatively low. Review of literature also reveals that education plays an importance role in enhancing public awareness on Takaful concepts and principles. Therefore, integrating Takaful courses into academic curriculum of higher learning institutions is important to enhance the level of public awareness. The study also finds that there is a skill mismatch issue within Islamic finance industry in general including Takaful segment. Close and intensive collaboration between regulators, Takaful companies and universities and training institutes that are currently offering or intend to offer Takaful courses is highly recommended to overcome the skill mismatch issue. This study is expected to benefit Takaful regulators, higher learning institutions offering Takaful courses and Takaful companies in terms of providing them with the inputs to enhance public awareness on Takaful concept and principles.