A CONCEPTUAL FRAMEWORK FOR INSURTECH READINESS IN MICROTAKAFUL SECTOR
DOI:
https://doi.org/10.33102/2hxjk219Keywords:
Microtakaful, Insurtech, Takaful, Technology ReadinessAbstract
The adoption of Insurtech in the Microtakaful industry has the potential to enhance customer experience, streamline policy management, and improve the affordability and accessibility of Microtakaful products within the financial technology ecosystem. However, the readiness of Microtakaful sector in Malaysia to integrate Insurtech remains uncertain and requires further investigation. Existing literature highlights that issues related to public awareness, misconceptions regarding Takaful, limited accessibility, and operational challenges are among the factors that may hinder the growth and development of Microtakaful. This study aims to develop a conceptual framework for assessing the readiness of Malaysian Microtakaful providers to adopt Insurtech solutions. A conceptual framework focusing on the technological factor is proposed to understand how technological readiness influences Insurtech adoption in the Microtakaful sector. The findings are expected to identify critical factors influencing the adoption of Insurtech, highlight challenges and barriers in the integration in Microtakaful sector. This study employs a qualitative approach through a literature review to develop a conceptual framework for the Insurtech readiness in the Microtakaful sector in Malaysia. By addressing the existing gaps in Insurtech readiness, this study contributes to the sustainable development of Microtakaful and supports efforts to enhance accessibility, affordability, and operational efficiency in delivering Shariah-compliant financial protection to underserved communities in Malaysia
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