The Need for Micro or Takaful in Islamic Insurance Partnerships in the Philippines

Abstract

The research on the need for Micro or Takaful in Sharia Insurance Partnerships in the Philippines, analyzes the feasibility of implementing affordable micro-Takaful solutions that are in line with Islamic finance principles to improve financial security for vulnerable groups. Data methodology was collected through semi-structured interviews and analyzed using thematic analysis to identify patterns and themes. The findings show a significant demand for Micro/Takaful in the Philippines, especially among Muslim and low-income communities who face cultural and financial barriers to accessing conventional insurance. Micro-Takaful offers a Shariah-compliant and cost-effective alternative that promotes financial protection and mutual support. By promoting shared responsibility, it provides ethical insurance that is in line with Islamic values and has the potential to improve social welfare, financial inclusion, and sustainability. The research highlights the importance of partnerships between Islamic financial institutions, local communities, and government entities to expand Micro/Takaful, ultimately improving financial security for underserved populations. With a growing Muslim population, the Philippines stands to benefit from this ethical model to meet the insurance needs of low-income communities.