How do takaful operators choose which model to adopt? A case study from the Kingdom of Bahrain

Purpose: This paper aims to provide an analysis on how takaful operators choose, which takaful model to adopt when managing their insurance operations. Design/methodology/approach: 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. Findings: 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. Research limitations/implications: As the empirical data and results pertain to one jurisdiction, it may be difficult to generalize the empirical findings upon other jurisdictions. Originality/value: 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.