An Analysis on Islamic Insurance Participation

Abstract

The paper tests the effects of attitude, subjective norm and amount of information on the Islamic insurance participation. Drawing upon the theory of reasoned action (TRA), this study proposes a model to examine the factors within the Islamic insurance participation context. The model is tested using survey data from 206 respondents. Importantly, the results suggest that attitude, subjective norm and amount of information provide the best fit to the data and are of value to be considered as the indispensable factors in determining the Islamic insurance participation. The findings of this study shed some light on the consumers' acceptance level of an Islamic insurance. It also provides valuable insights for takaful operators to manage the Islamic insurance services effectively. Limitations and future research directions are outlined. ABSTRAK Kajian ini menilai kesan gelagat, norma subjektif dan jumlah maklumat terhadap penyertaan insurans Islam. Berpandukan kepada teori tindakan beralasan, kajian ini mengemukakan satu model yang menguji faktor-faktor dalam konteks penyertaan insurans Islam. Model ini dinilai berpandukan kepada data dari kaji selidik yang melibatkan 206 responden. Mustahaknya, dapatan kajian ini menunjukkan bahawa gelagat, norma subjektif dan jumlah maklumat menyediakan padanan terbaik bagi data dan penting untuk dipertimbangkan sebagai faktor terpenting dalam menentukan hasrat menyertai insurans Islam. Dapatan kajian ini memperincikan tahap penerimaan pengguna terhadap insurans Islam. Ia juga menyediakan pengetahuan bernilai kepada pengendali-pengendali takaful dalam mengurus perkhidmatan-perkhidmatan insurans Islam dengan efektif. Kekangan dan hala tuju penyelidikan masa depan turut diperincikan.

Investigating the Factors of Consumers’ Purchase Intention Towards Life Insurance in Bangladesh: An Application of the Theory of Reasoned Action

“…TRA has been demonstrated practical in explaining behaviours with regard to financial decision making that involves planned and rational decisions. In this context, past studies exemplified the robustness of attitude and subjective norms, two basic variables of TRA, in explaining an individual's acceptance of Islamic insurance (Amin, 2012;Rahim & Amin, 2011), acceptance of qarḍḥasan financing (Amin et al, 2010), intention to donate cash waqf (Pitchay et al, 2015), and decision on home financing (Taib et al, 2008). Besides, Omar and Owusu-Frimpong (2007) explicitly validated the TRA model in elucidating Nigerian consumers' purchase intention toward life insurance.…”

“…Accordingly, former studies on financial decisions illustrated attitude as a significant predictor of an individual's intention. For example, attitude is reported as a significant positive determinant of qarḍḥasan financing (Amin et al, 2010), Islamic home financing (Alam et al, 2012), withdrawal of deposits from banks (Abduh et al, 2011), and acceptance of Islamic insurance (Amin, 2012;Rahim & Amin, 2011). Therefore, drawing on the fundamental logic of TRA and abovementioned studies, this study hypothesises that:…”

“…In explaining complex consumer behaviour, a few past studies (e.g., Cheng et al, 2006;Salem & Salem, 2018) have clearly indicated the impact of subjective norms. Such subjective norms have also been identified as a primary influencer on acceptance of qarḍḥasan financing (Amin et al, 2010), life insurance purchase in Nigerian context (Omar & Owusu-Frimpong, 2007), and acceptance of Islamic insurance (Amin, 2012;Rahim & Amin, 2011). This has led this study to propose that:…”

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

“…3.1.2 Research instrument/measures. A self-administered, structured questionnaire was developed based on constructs derived from past empirical research (Teo and Noyes, 2011;Amin, 2012;Ayyub et al, 2020;Kaabachi and Obeid, 2016;Sabirzyanov, 2016;Hamid and Nordin, 2001), and modified to suit our research context. In total, we have six main determinants, namely, intention, awareness, perceived behavioral control, subjective norms, religious motivation and attitude, in addition to six control variables ranging from enterprise variables (size, age and location) to socio-demographic variables (age, gender and educational level).…”

“…Attitude: Attitude toward Islamic finance refers to the degree to which a person, generally, has a favorable or unfavorable evaluation or appraisal of Islamic finance service products (Ajzen, 1991). To construct this variable, we make use of three items adapted from studies of Amin (2012) and Ayyub et al (2020).…”