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Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar

Since Zanzibar it has 99% of Muslims populations; Islamic Insurance (Takaful) seems to be the best alternative to increase financial protection. The main objective of this study was to examine challenges facing insurance operators in introducing Islamic insurance (takaful) in Zanzibar. Quantitative approach was adopted in this study and data was analyzed through descriptive statistical techniques such as frequencies, mean and standard deviation. Simple Random and purposive sampling were used to select 90 respondents. The data were collected through open ended questionnaires. The study found that most of the respondents almost (60%) replied negative perception of Islamic religion as the great challenge that affects the establishment of Takaful insurance in Zanzibar. In addition to that, Lack of capacity from Zanzibar Insurance Company affect the establishment of Takaful insurance in Zanzibar, since majority of the respondents almost more than 60% replied by large extent. The study concludes that lack of innovative and flexible products to cater for Muslim needs affect the establishment of Islamic insurance. Apart from that, the study indicated that, Shortage of skilled man-power to drive Takaful insurance has the great impact to the establishment of Takaful insurance. Therefore, the study recommends that, the concept of Takaful should be disseminated among the masses of Zanzibar; this will further result in enlarging the customer base of Takaful companies in Zanzibar.

Islamic Insurance (Takaful), Tanzania Financial Market, Descriptive Statistics

APA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. (2021). Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Research & Development, 2(1), 20-26. https://doi.org/10.11648/j.rd.20210201.14

ACS Style

Saadat Imam Makame; Mohammed Hafidh; Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res. Dev. 2021, 2(1), 20-26. doi: 10.11648/j.rd.20210201.14

AMA Style

Saadat Imam Makame, Mohammed Hafidh, Abdalla Ussi Hamad. Challenges in Introducing Islamic Insurance (Takaful) into the Tanzania Financial Market: A case of Zanzibar. Res Dev. 2021;2(1):20-26. doi: 10.11648/j.rd.20210201.14

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This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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