Shariah Disclosure Attributes In Takaful Institutions: An Overview Of Takaful Managers’ Experiences

Abstract

Purpose – The fundamental purpose of this paper is to elaborate the
importance of Shariah related disclosure and transparency in takaful
institutions. The general approach of this study is qualitative in nature while
Phenomenology is adopted as a research strategy. Data collected through five
experiential in-depth interviews from takaful managers working in Khyber
Pakhtunkhwa. Interpretive phenomenological analysis and Shariah analysis
technique were for analysis purpose. The study extended the general approach
and understanding toward Shariah disclosure in takaful institutions by
exploring Shariah disclosure attributes in which both the existing and
potential customers are equally interested and that need to be disclosed. These
Shariah disclosure attributes are: disclosure of waqf arrangement in takaful
institutions, disclosure of about standardized fatwa, disclosure of Wakala fee,
disclosure of Shariah advisors’ public status, and disclosure of the Shariah
appraisal of profit sharing mechanism. The conceptual scope of the study is
limited to the disclosure of information related to only Shariah compliance
and Shariah governance in takaful institutions. It excluded all other kind of
information related to financial disclosure, corporate statements disclosure,
and social reporting. Takaful institutions may adopt the disclosure attributes
explained in this paper to increase confidence of both the existing contributors
and the potential contributors in takaful.