Challenges of Implementing Micro Takaful in the Country

Micro insurance acts as a micro financing tool to support low-income groups. Currently, micro insurance is considered as a key solution to improve the living conditions of low-income populations. In Islamic countries, there is a type of financial participation called Takaful, which is derived from the principle of universal sponsorship and is a form of financial protection based on mutual assistance and joint risk distribution. Takaful is a system that is based on the principle of mutual assistance (cooperation) and voluntary cooperation (donation), in which the risk is shared voluntarily and jointly between the participants. The aim of this study was to develop and deepen Takaful in Iran and to examine the challenge of implementing micro Takaful products in the country, which, despite the high level of risk and the frequency of exposure to its risks in the country, requires attention to this sector. In this section, an exploratory approach was used to examine micro Takaful products and their characteristics in different countries. After identifying products in other countries in order to assess the feasibility of implementing these products in Iran using Sharia and Islamic rules, the desired information was collected through interviews with experts and then, using statistical tests, the research objectives were examined based on the results of the SWOT study. The results of this study indicated that one of the biggest challenges is the lack of public awareness about the concept and function of Takaful. Another challenge that should be addressed is the lack of an appropriate legal and regulatory framework to support the Takaful industry.