Factors Influencing the Yemeni Customers’ Intention to Adopt Takaful Products

Echchabi, Abdelghani; Ayedh, Abdullah Mohammed

doi:10.22146/gamaijb.25799

Cited by 8 publications

(14 citation statements)

References 14 publications

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“…Siala (2013) further found impressive involvement of religious motive behind the consumption of religiously compliant services. Moreover, Echchabi and Ayedh (2015) and Husin and Rahman (2016) supported the argument that there is a significant impact of religious values toward the adoption of Takaful insurance.…”

Section: Takaful (Islamic Insurance) Productsmentioning

confidence: 59%

“…Similarly, Langer (2014) argued, an individual will hesitate toward innovation if it is not permissible under his/her religion. Thambiah et al (2010), Hussain and Pasha (2011), Echchabi and Ayedh (2015) noted, Takaful insurance works under Islamic Sharia laws. Therefore, individuals with more religious inclinations tend to adopt Takaful insurance because of congruence with their beliefs and social norms.…”

Section: Takaful (Islamic Insurance) Productsmentioning

confidence: 99%

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Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products

Hassan

Abbas

2019

JIMA

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Purpose The research paper is an effort to find out the behavior of Pakistani individuals toward usage of Takaful insurance. This paper aims to identify the factors, which influence investors’ intention toward the adoption of Takaful. Islamic finance is growing rapidly in the international market, especially in Islamic countries. Pakistan is an Islamic country, where the majority of the population is Muslim. Therefore, there is a great potential for Takaful exists in the country. Design/methodology/approach Both explanatory and descriptive research designs used for the research framework. The theory of planned behavior is the base theory and the model incorporates several factors such as relative advantage, compatibility, social influence, awareness and religiosity that may influence the adoption of Takaful. The primary data collected through the distribution of self-administered survey-based questionnaire, containing 23 items scaled at a five-point Likert scale. The non-probability snowball sampling and judgmental sampling techniques are used due to the scarce of Takaful users. The sample consists of 345 individuals (127 Takaful users and 218 non-users) living in the three main cities, namely, Karachi, Lahore and Islamabad. The data are further analyzed and interpreted with IBM SPSS 21. The results are evaluated using descriptive statistics, reliability, confirmatory factor analysis, correlation and binary logistic regression models. Findings The research findings reveal that factors such as relative advantage, compatibility, social influence, awareness and religiosity have a significant impact on the behavioral intention of Takaful amongst a depicted sample of Pakistani people. Similarly, Takaful has great potential in the Pakistani market, but due to lack of awareness, Takaful share is far behind than conventional insurance. It is further suggested that Takaful operators must devise some policies and plan to spread awareness about Takaful and come up with more innovative products. Practical implications The Takaful operators must devise plans to aware people about Islamic insurance. The study provides implication to Takaful management; Takaful users; and more importantly, the regularity authorities to operate and successfully conduct Takaful applications. Further, they should advance Takaful operations and produce more innovative products. The study focuses on some factors while there are plenty of others, which should be studied accordingly. For future researchers and students, there is a great potential of other techniques and measures, which can be further used for analysis of Takaful business. Originality/value This research is a first attempt to trace out the behavior of Pakistani people about Takaful, using the above discussed factors. The behavioral intention is studied using users and non-users combination, which is never done before in the current setting.

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Section: Takaful (Islamic Insurance) Productsmentioning

confidence: 59%

Section: Takaful (Islamic Insurance) Productsmentioning

confidence: 99%

Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products

Hassan

Abbas

2019

JIMA

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“…As per the findings of Echchabi and Ayedh (2015), Echchabi and Echchabi (2013) and Reuters (2016), the Takaful insurance market is clustered in mostly "Gulf Cooperation Council" countries. Saudi Arabia is at the first place with the highest contribution volume, followed by Malaysia (Kaunain and Akhtar, 2016).…”

Section: Takaful Today and Tomorrowmentioning

confidence: 76%

“…The adoption of Takaful business is directly affected by three main factors such as subjective norm, attitude and perceived behavioral control (Abdulsater, 2014). Likewise, many studies have confirmed several factors such as religiosity, consumer knowledge, accessibility, situational factors and demographic variables, which have driven the adoption of Takaful insurance products (Hassan and Abbas, 2019;Echchabi and Ayedh, 2015;(Husin and Rahman, 2016;. The Takaful operators must devise more innovative products and arrange awareness programs through training and advertisement channels.…”

Section: Research Implicationsmentioning

confidence: 99%

“…Islamic Banks and Takaful companies are growing their operations rapidly due to the more acceptance from people all over the globe. The turnover estimated to reach $3.4tn by 2018 year-end (Echchabi and Ayedh, 2015;Lone and Bhat, 2018). According to Kazranian et al (2015), Takaful insurance is growing in the international market and an estimated US$17bn by the end of 2017.…”

Section: Takaful Barriersmentioning

confidence: 99%

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Takaful models: origin, progression and future

Hassan

2019

JIMA

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Purpose The concept of Takaful has a long history. It is linked with the era of Prophet Muhammad 1,400 years ago. The globalization and development of socio-economic systems have made business activities more complex in response to emerging human needs and requirements. Similarly, Takaful insurance has fully commercialized and become an important indicator of the international financial market. The purpose of this study is to understand the Takaful mechanism and progression of its procedures to date since its inception. Design/methodology/approach This study seeks to examine the origin, evolution and historical developments of Takaful mechanism, operations, models and governing framework with extant literature review from previous studies and current practices. Findings The modern Takaful insurance first began in Sudan back in 1979. The Takaful operations must abide by the Sharia laws and work under the supervision of the Sharia Supervisory Board. Since its evolution, Sharia scholars have introduced various Takaful models that are going to be explained in this study. Moreover, several Islamic organizations, including the “Islamic Financial Services Board” and the “Accounting and Auditing Organization for Islamic Financial Institutions,” have provided guidelines and supervision to develop and strengthen the Takaful industry further. The study acknowledges Takaful as a growing insurance industry with huge potential and promising future in both Pakistan and the international market. Practical implications During the analysis, various deficiencies and loopholes were identified, which are responsible for the unmatched growth of conventional insurance. They can be eliminated with the joint efforts of industrial players, Sharia scholars and Takaful insurance companies. Hence, Islamic scholars and academic researchers are encouraged to develop and modify the current practices of Takaful mechanism according to current market demands and consumer approach. The research efforts will help Takaful operators to develop more innovative Takaful products adhering Sharia compliance. Consequently, it will help to access more consumer market and further enhances the Takaful growth. Originality/value This study is an effort to provide a basic understanding of the mechanism of Takaful models. The study helps to comprehend how Takaful models have evolved and been modified over the course of time. Moreover, it provides a base for further development and improvement in current practices of Takaful models, which will result in increased progress for the Takaful industry.

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Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviour

Rifas

Rahman

Buang

et al. 2023

JIABR

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Purpose Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka. Design/methodology/approach This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling. Findings Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference. Research limitations/implications This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs. Practical implications Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme. Originality/value This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.

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Factors Influencing the Yemeni Customers’ Intention to Adopt Takaful Products

Cited by 8 publications

References 14 publications

Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products

Factors influencing the investors’ intention to adopt Takaful (Islamic insurance) products

Takaful models: origin, progression and future

Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviour

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