Extending the theory of planned behavior to explain the role of awareness in accepting Islamic health insurance (takaful) by microenterprises in northwestern Nigeria

Abstract

Purpose Nigeria is a country with very low health insurance coverage, with only 3 per cent of its population in the public and private sector covered by conventional health insurance. This made it possible for the exploration of alternative methods of insurance in Muslim dominated northwestern Nigeria. Thus, this paper aims to extend the theory of planned behavior to understand the role of awareness in the acceptance of Islamic health insurance (takaful) among microenterprises in northwestern Nigeria. Design/methodology/approach The methodology used was a purely quantitative survey with data collected from seven states that form the northwestern Nigeria. Findings The findings revealed that attitude, social influence and perceived behavioral control have a significant direct influence on takaful acceptance intention among microenterprises in northwestern Nigeria, while awareness does not. It was also discovered that awareness of takaful moderates the influences of social influence and perceived behavioral control on takaful acceptance intention, but it failed to moderate the influence of attitude on takaful acceptance intention in the same context. Research limitations/implications The implication is that despite the acceptance intention more awareness is required to enlarge the takaful market in the region. The study contributes to the theories of reasoned action and planned behavior through the integration of awareness as a moderator. Originality/value The work is pioneering, extent literature in the area of takaful failed in investigating the role of awareness as a moderating variables in Nigeria where much awareness of the concept is desirable.

A review of 20 years of takaful literature using a systematic method

“…The TPB is a popular theory that finds its application in several behavioral studies. Attitude is an important construct in both the theories, and most of them have reported its positive impact on behavior intention (Aziz et al, 2019;Bhatti and Husin, 2019;Kazaure, 2019;Farhat et al, 2019). Furthermore, subjective norm refers to the perception of social pressure to engage or not engage in a particular behavior.…”

The importance of trust factor in the intentions to purchase Islamic insurance (takaful) in Indonesia

“…The purpose of Islamic insurance is to protect one another from difficulties and disasters. Kazaure (2017) revealed in his study that tak aful is a mutual assistance among members toward unexpected events related to health, death, fire and disability. There are two sorts of Islamic insurance (tak aful) business in particular, General tak aful and Family tak aful.…”

Public trust in the long-term care insurance pilot program in China: An analysis of mediating effects

“…The explanatory variable of insurance awareness was measured using three items adopted from Reshmi et al ( 24 ) and Kazaure ( 25 ). In this study, it reflected the evidence of commercial insurance awareness, social insurance awareness, and knowledge of the Guangzhou LTCI pilot.…”

“…One of the potential predictors of the enrollees' satisfaction was their awareness related to the object evaluated ( 21 , 22 ). Health insurance awareness refers to individual's knowledge of the availability and coverage afforded through health insurance ( 23 , 24 ), their willingness to demand and use it ( 25 ), and their expectations with regard to its coverage, role in their own wellbeing, and implementation ( 26 ). Because of the complexity of the insurance policies, the awareness of health insurance depends on both the enrollees' education level ( 27 , 28 ) and the developments integral to the insurance industry ( 29 ).…”

“…Due to the limited number of pilot sites, not everyone has the opportunity to learn about LTCI. An awareness of the insurance program would imply that individuals have obtained knowledge about it and enjoy an opportunity to consider its value ( 23 , 25 ). Secondly, individuals value public policies and consider them to be fair when the information comes from a trusted institution ( 19 ).…”