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This paper aims to provide an analysis on how takaful operators choose, which takaful model to adopt when managing their insurance operations.

The research uses a qualitative methodology and uses the Kingdom of Bahrain as a case study. A single/holistic case study design is used to holistically analyse how a takaful operator chooses which takaful model to adopt when managing its insurance operations.

The results reveal that generally, takaful operators adopt either the hybrid wakala-mudharaba or wakala model of takaful, depending on whether a takaful operator is managing/investing the participants’ general or family fund, respectively.

As the empirical data and results pertain to one jurisdiction, it may be difficult to generalize the empirical findings upon other jurisdictions.

This research may have contributed to knowledge by adding to literature empirical data and results in relation to takaful in the Kingdom of Bahrain that may have not previously existed in literature.

The purpose of this paper is to provide an analysis on whether takaful operators actually maintain separated and segregated accounts between the operator and participants’ funds, thereby conforming to Shariah compliance requirements or not.

The research uses a qualitative methodology by analysing secondary data relating to two takaful operators in each of the jurisdictions of the Kingdoms of Bahrain and Saudi Arabia.

The findings generally reveal that the financial statements and Shariah Supervisory Board annual reports of the takaful operators in the Kingdom of Bahrain confirm the Shariah-required maintenance of separate accounts between the operator and participants, as well as reveal transparency-related issues and Shariah governance weaknesses for takaful operators in the Kingdom of Saudi Arabia.

Generalizing based on a single case study may affect the accuracy of the findings. It may also be argued that qualitative researches are generally considered as less valid than quantitative researches.

This research may have provided empirical data that did not previously exist in the literature.