TAKAFUL INSURANCE PHILOSOPHY BETWEEN DIGITALIZATION AND FINANCIAL RISK MANAGEMENT

Objectives: This research examines the role of digitization in takaful insurance within financial risk management. It highlights takaful as a viable alternative to commercial insurance. The study aims to explore its significance in the current global landscape. Additionally, it presents a proposed takaful project for Algeria.   Theoretical Framework: The study employs a descriptive approach with analytical methods. It explores key aspects of takaful insurance and financial risk management. The framework includes global perspectives and local applications. Emphasis is placed on digitization to enhance the sector.   Results and Discussion: Findings indicate that takaful insurance in Algeria remains underdeveloped. Despite global adoption, its local prevalence is limited. Challenges in awareness, regulation, and infrastructure hinder growth. Digitization presents an opportunity to address these barriers.   Research Implications: The study underscores the need for immediate solutions. Policymakers and stakeholders must prioritize digital transformation. Improved accessibility and regulatory support are crucial. The proposed takaful project offers a strategic pathway.   Originality/Value: This research provides fresh insights into Algeria’s takaful sector. It highlights digital innovation as a key enabler. The study proposes a unique project to boost adoption. Its findings contribute to financial risk management discourse.