The Reality of Takaful Insurance as an Alternative to Commercial Insurance in the Libyan Market: An Analytical Study of Opportunities and Challenges, Applied to Al-Libo and Al-Mukhtar Companies

Abstract

This study aimed to investigate the reality of Takaful (Islamic) insurance in the Libyan market and explore the possibility of adopting it as a strategic alternative to commercial insurance. The study relied on a descriptive-analytical approach and was applied to a population consisting of employees at "Al-Libu Insurance" and "Al-Mukhtar Takaful Insurance" companies in Tripoli. The researcher selected a purposive sample of individuals directly involved in insurance operations, technical tasks, and Sharia supervision, with a target sample size of (40) employees. (36) individuals responded, yielding a recovery rate of (90%). The study utilized a questionnaire as the primary tool. Results, obtained through the (One-Sample T-Test) and (Pearson) correlation coefficient, showed a high level of agreement that limited legislation and a shortage of qualified personnel hinder the full transition to Takaful. Furthermore, the findings revealed a strong positive correlation (0.940) between addressing these gaps and the success of Takaful as a strategic alternative. The study recommended the necessity of drafting an independent law for Takaful insurance and providing Sharia-compliant investment instruments.