Merging Waqf and Takaful for Sustainable Death Compensation at FWD Takaful Berhad: What Do the Experts Say?

Abstract

The waqf-takaful death compensation concept merges two Islamic principles: waqf and takaful. In this model, death benefits from a takaful plan are directed to religious institutions as waqf, ensuring ongoing community support. This approach not only provides financial security to the deceased’s family but also creates a lasting charitable impact, turning a one-time payout into a perpetual source of funding for social and religious causes. Despite facing challenges such as inconsistent implementation standards and management difficulties, some takaful operators in Malaysia have begun integrating death compensation waqf into their products. FWD Takaful Berhad, as one of the key players in the takaful industry, holds considerable potential for collaboration in further developing this product. Therefore, this study aims to propose a waqf-takaful death compensation product for FWD Takaful Berhad. A qualitative approach was employed, with data gathered through Focus Group Discussions (FGDs) involving academics and industry experts in Malaysia. The data were analyzed using thematic analysis via ATLAS.ti software. The study identified several potential strategies for developing the waqf-takaful death compensation product for FWD Takaful Berhad. This research offers valuable insights for academics and industry stakeholders interested in proposing waqf-takaful death compensation products in Malaysia.