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Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia

Peni Nugraheni (Department of Accounting, Universitas Muhammadiyah Yogyakarta, Bantul, Indonesia)
Rifqi Muhammad (Department of Accounting, Universitas Islam Indonesia, Sleman, Indonesia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 14 August 2019



This study aims to identify and describe possible innovations available to the takaful industry in Indonesia by considering demographic characteristics and geographical conditions. Indonesia has a predominantly Muslim population, and thus, presents good potential for the takaful market.


This study uses a qualitative, descriptive, literature-based method to discuss innovation strategies in the takaful industry. This method is appropriate for reviewing particular conditions and phenomena by analysing information and data drawn from existing literature.


Market, product and process innovations are chosen as the strategies appropriate to expanding the takaful market in Indonesia. Strategies are described, which could be used to implement these innovations by influencing the community to participate in takaful, and thus, to expand the takaful market.

Research limitations/implications

The innovation strategies described are adapted to the demographic characteristics of Indonesia and so cannot necessarily be generalised to other countries with different environments.

Practical implications

By considering customer demographic and geographical conditions, the takaful industry should choose the types of innovation that will suit the community characteristics and environmental conditions of Indonesia.


The study specifically discusses innovation strategies in the takaful industry by describing the socio-economic conditions of Indonesian society. Takaful companies in Indonesia can use the results to determine the types of innovation they pursue based on the customer demographic and geographical conditions faced.



Nugraheni, P. and Muhammad, R. (2019), "Innovation in the takaful industry: a strategy to expand the takaful market in Indonesia", Journal of Islamic Marketing, Vol. 11 No. 6, pp. 1313-1326.



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