A narrative on Islamic insurance in Bangladesh: problems and prospects

Purpose - This study aims to find out the problems of family Takaful (Islamic Life Insurance) operations in Bangladesh and proposes strategies to overcome the problems. Design/methodology/approach - Qualitative data were collected through interviews with 32 respondents from two family Takaful operators in Dhaka, Bangladesh. Findings - The study finds a number of problems of family Takaful which relate to the government, Takaful company and theShariahboard. Lack of governing guidelines for Takaful companies in Bangladesh is causing numerous operational problems of family Takaful. To overcome these obstacles, the government should propose separate Act for Takaful. This requires support from the stakeholders along with Islamic scholars in the country. Practical implications - It is anticipated that the findings and suggestions of the study will assist the policymakers in improving the situation of family Takaful companies particularly in Bangladesh. Social implications - If the proposed suggestions are implemented in Takaful companies, the problems facing Takaful will likely be solved and more people will take part in Takaful. This would contribute to developing the country economically, raise Islamic values and foster peace and harmony in the society. Originality/value - Mainly, this study is based on the primary research that has been conducted in family Takaful companies in Bangladesh.