Islamic insurance as an innovative mechanism for mitigating the impact of poverty and promoting sustainable development

Technological innovation has revolutionised the global financial landscape, significantly impacting Islamic finance and takaful in particular. Risk management practices, transparency and profitability, have benefited from considerable improvement due to the automation and efficiency introduced in the underwriting and claims processes. Adopting emerging technologies such as blockchain and artificial intelligence has also ensured security and reliability in this area, thus contributing to achieving sustainable development goals. Indeed, microtakaful, as a sub-sector of takaful, promotes financial inclusion by protecting low-income communities. Access to such services has been made even more accessible through the technological inclusion of large segments of the population, which helps mitigate the impact of poverty. This study aims to analyse, without claiming to exhaust the topic, the impact of technological innovation on Islamic finance, focusing on takaful and microtakaful.