The Potential Use of FinTech Developments in Takaful

Abstract

Despite the increasingly important role that fintech play in the takaful industry, academic research in this area is quite limited. The overall aim of this paper it thus to explore the potential use of fintech in the Islamic insurance industry, especially in terms of its opportunities and challenges. Specifically, big data analytics and robo-advisory were explored and how takaful operators might incorporate them for better customer experience and gathering competitive intelligence. To remain competitive in a fast changing business environment, takaful operators need to identify and adopt fintech that could influence positively customer experience and optimise cost efficiency. This paper reviews the literature on big data analytics and robo-advisory, aiming to shed the light on the barriers and benefits of harnessing these technological advancements for takaful operators.