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When there are many players operate in a particular market, it encourages competition. Thus, healthy competition in the market leads to efficiency performance. Takaful and conventional insurance are the two parallel methods used to transact insurance business. The emergence of the Takaful market has contributed to competitiveness and conventional insurance is facing competition with Takaful. Therefore, this paper attempts to review the literatures relating to the relationship between competition and efficiency between Takaful and conventional and whether there exist a positive or a negative relationship.   

A Literature Review on the Relatiohship between Competition and Efficiency for Takaful and Conventional Insurance