Islamic Financial System - insurtech vs fintech

  Islamic insurance, also known as takaful , has a relatively recent history in Morocco. The first takaful company in Morocco, Dar Assafaa, was established in 2007, following the enactment of a law regulating takaful operations in the country.   Finance System Prior to the establishment of takaful companies in Morocco, Muslims in the country had to rely on conventional insurance, which is not in line with Islamic principles as it involves elements of gambling, interest (riba), and uncertainty (gharar).   The introduction of takaful in Morocco was seen as a positive development by many Muslims in the country, who welcomed the opportunity to purchase insurance products that are in line with their religious beliefs. Takaful companies in Morocco offer a range of products, including motor insurance, home insurance, and health insurance.   The growth of takaful in Morocco has been relatively slow, with only a few companies currently operating in the country. H...

  The  history of insurance in Bangladesh  dates back to the British colonial period when the first insurance company, the British India General Insurance Company, was established in Calcutta in 1850. However, insurance as an industry in Bangladesh began to take shape only after the country gained independence from Pakistan in 1971.   In 1973, the government of Bangladesh nationalized the insurance industry and established two state-owned insurance companies, the Jibon Bima Corporation (JBC) for life insurance and the Sadharan Bima Corporation (SBC) for general insurance. The nationalization of the insurance industry was aimed at promoting greater access to insurance and protecting the interests of policyholders.   Banking and Insurance In the 1980s and 1990s, the government initiated a series of reforms to liberalize the insurance sector and promote private sector participation. The reforms included the establishment of a regulat...

Takaful sector and insurance sector both are selling same product but business model is different. Insurance sector sells the policy or product.  On the other hand, takaful is just taking  donation from you. This donation is collected in a pool form. When any incident happens, amount from pool is reimburse to victim or policyholder. Remaining amount is either distributed back to other members or it's remain in a pool. Takaful company only charges fee to operate this pool. Whereas insurance company does not distribute the remaining amount as they take it as own wealth after paying claim amount.  Takaful invests this pool money in halal businesses. Insurance company is not bound to invest in halal businesses.