What is it about?

Managing socio-economic and business risk is getting harder day by day since business crisis after crisis are occurring ranging from daily, weekly, monthly and annual basis. Exposure to a risk is unavoidable but it can be managed. A takaful operation (Islamic insurance) is an alternative to conventional method of protection from the various risks ranging to life, properties, default, and to health. In October 1995, the ASEAN Takaful Group (ATG), a grouping of takaful operators in Brunei, Indonesia, Malaysia, and Singapore was formed to enhance mutual co-operation and to facilitate the exchange of business among takaful operators in ASEAN.

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Why is it important?

Known as notorious industry of insurance business, the takaful business in Malaysia, Takaful Malaysia Bhd., is regulated and strictly supervised by BNM (central bank) since 1988 with the appointment of the BNM Governor as the Director-General of Takaful. In developing the takaful industry in Malaysia, Bank Negara Malaysia has adopted a gradual approach that can be divided into three phases: Phase I (1984–1992), Phase II (1993–2000), and Phase III (2001–2010). This case study shares the management practices of these phases in details. The book chapter on this case study provides a wealth of information and enables researchers not only to identify the determinants of knowledge structure and its context but also the evolution of practice.


These cases studies map the strategic aspects of organizational structure and illustrate the motives that used to influence Malaysian managers’ choices in seeking specific responses to the situations at hand, that are in harmony with the traditions in Islamic inquiry. Insurance or takaful industry and business are riskier than any other usual financing business that protects the interest of its stakeholders. Hence learning from each others comes handy and this case study helps the readers in this direction.

Research Professor Dr. Khaliq Ahmad
Putra Business School-UPM-Malaysia

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This page is a summary of: Managing risk by Takaful Malaysia, November 2021, Taylor & Francis, DOI: 10.4324/9781003243779-9.
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