A Review of Literature on Takaful and Conventional Insurance. Evidence from Bangladesh

Takaful and conventional insurance are the most important financial products that significantly contributes the financial sectors. This paper review and discuss challenges and factors of Takaful and conventional insurance in Bangladesh. Specially several challenges and factors are reviewed and discussed. The authors have been able to review more than thirty investigations over a eighteen years period, from 2006 to 2023. The paper is theoretical and analytical in nature and secondary method has applied. Through a literature review, this paper provides an account of main findings of the literature as well as examines the extent to which insurance gives impact towards financial sectors in terms of challenges and factors. The findings reveal that Takaful industry faces some challenges in Bangladesh such as lack of awareness among customers, regulatory barriers, expert Shariah committees and operational inefficiencies. While factors such as religiosity, Shariah board and regulatory framework have impact on promoting Takaful industry in Bangladesh. The paper concludes with several recommendations for future research, the most important of which is the need for a systematic effort on conceptual analysis as well as empirical study on Takaful and conventional insurance