The Role of Fintech in Promoting the Takaful Model of Islamic Insurance

Abstract

This study examines the influence of fintech integration on the Takaful insurance business in Qatar, emphasizing profitability and industry development. Takaful, an Islamic insurance policy based on ethical values, faces practical difficulties. Fintech, driven by technical breakthroughs such as blockchain and AI, provides solutions to simplify processes and improve accessibility. To get quantitative data, 320 Takaful and fintech experts were polled. Respondents had a wide range of expertise levels, emphasizing the importance of industry collaboration. Positive opinions of regulatory support (85.9%) and proactive fintech uptake (84.1%) were noted. Regulatory barriers (82.5%), cybersecurity concerns (82.2%), opposition to change (82.8%), and a lack of fintech financing (82.5%) were among the challenges. The study discovered that Fintech plays a substantial role in increasing profitability, with 91.3% reporting greater earnings and 84.4% reporting enhanced operational efficiency. Personalized insurance solutions (84.4%) and data-driven growth (88.1%) generated profitability. Fintech was largely viewed as supporting the Takaful insurance sector (83.4%), increasing client involvement (81.9%) and confidence. Correlation and regression analysis demonstrated the existence of favorable relationships between fintech integration, its problems, profitability, and industry promotion. These studies highlight Fintech’s transformational potential and inform industry stakeholders and policymakers. Addressing regulatory, cybersecurity, change resistance, and finance issues is critical to effectively integrating Fintech into Qatar’s Takaful insurance.